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Banking and Finance

BEAR MARKET bɛər mɑrkɪt

29 Dec 2024

Phrase

  • a downward market trend when prices of shares, commodities etc are falling and the market is pessimistic. When this occurs there is usually high inflation and unemployment.
Example Sentence: Investment in a bear market might make sense.
 

BULL MARKET bʊl mɑrkɪt

28 Dec 2024

Phrase

  • an upward market trend when prices of shares, commodities etc are rising and the market is optimistic.
Example Sentence: Though things seem to be improving in our sector, the bull market won't come back.
 

RALLY ˈræli

27 Dec 2024

Noun

  • when share prices (or the stock exchange itself) return to a strong position after a period of weakness.
Example Sentence: Unfortunately I only started buying shares when the summer stock market rally was over so I didn't get as rich as some of my friends did.
 

SLUSH FUND slʌʃ slʌʃ

17 Dec 2024

Noun

  • a certain amount of money kept for illegal and/or dishonest purposes, mainly for politics OR a reserve fund (not necessarily in the context of corruption).
Example Sentence: We all know that almost all the parties in this country have money that can be used as a little slush fund when needed.
 

GROSS PROFIT MARGIN groʊs prɒfɪt mɑrdʒɪn

30 Nov 2024

Noun

  • The difference between the selling price of a product or service and the cost of producing it, excluding taxation, salaries paid to employees, overheads (electricity, office rent etc).
Example Sentence: There were so many items I had to work with that in the end I made a mistake in calculating our gross profit margin.
 

COLLATERAL kəˈlætərəl

28 Nov 2024

Noun

  • a car, a house or something valuable that you promise to give the lender if you cannot pay back the money you borrowed from them.
Example Sentence: I need $20.000 urgently. I can put my flat in London up as collateral – it must be worth 10 times as much as that.
 

CREDIT LIMIT krɛdɪt lɪmɪt

22 Nov 2024

Noun

  • the maximum amount of money a financial institution e.g. a bank is willing to give someone.
Example Sentence: If your credit limit with your bank is too low, it's not the best solution to acquire credit cards from several different banks.
 

REMORTGAGE reɪmɔrgɪdʒ

20 Oct 2024

Verb

  • arrange a second mortgage (= an agreement with a bank or similar organization in which you borrow money to buy property), or increase the first mortgage, especially in order to obtain more money.
Example Sentence: In order to raise funds to pay off my debts, I’ve had to remortgage my apartment.
 

MORTGAGE mɔrgɪdʒ

19 Oct 2024

Noun

  • An agreement which allows you to borrow money from a bank or similar organization, especially in order to buy a house or an apartment.
Example Sentence: Banks are now being a lot more cautious about who they lend money to. It’s getting much more difficult to arrange a mortgage on a property.
 

RETURN ON INVESTMENT  

18 Oct 2024

Phrase

  • profit (or loss) on an investment, often expressed as a percentage.
Example Sentence: I initially invested $50,000 in the company. In the past 5 years, the company has paid me $150,000 in profit share. That’s what I call an excellent return on investment.
 

HEDGE FUNDS hɛdʒ fʌnd

17 Oct 2024

Noun

  • Hedge funds are speculative funds which make large bets on market movements. They utilize borrowed money to substantially leverage their returns (and losses), often at a factor of ten to one, or more. They purchase exotic securities and also take substantial short positions when they think the market or a particular sector of the market will go down.
Example Sentence: Hedge funds are extremely risky and are suitable for high-wealth investors only.
 

CASH RICH kæʃ rɪtʃ

16 Oct 2024

Noun

  • describes someone who has most of the wealth in cash.
Example Sentence: I keep all my money in the bank in a high-interest account. I consider myself to be cash rich.
 

NET WORTH nɛt wɜrθ

15 Oct 2024

Noun

  • the money value after liabilities (debts) are subtracted from assets.
Example Sentence: I owe $31,000 and have assets worth $87,000 so my net worth is $56,000.
 

YIELD yild

04 Oct 2024

Noun

  • Return on investment shown as a percentage.
Example Sentence: On average last year I was getting a 7.7% yield on my property investments.
The company offered a 10% yield on its investment.
 

TRADER treɪdər

03 Oct 2024

Noun

  • Investor who holds stocks and securities for a short time (minutes, hours or days) with the objective of making profit from short-term gains in the market.
Example Sentence: Traders need to choose just the right time to buy and sell shares. A minute's delay can cost them a lot of money.
 
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