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Banking and Finance

FUTURES fyutʃər

07 Jun 2022

Noun

  • Contracts to buy or sell securities at a future date.
Example Sentence: If you invest in futures and predict that a stock will decrease in value by a certain date, but the stock actually increases in value, you will lose money.
 

EQUITY ɛkwɪti

06 Jun 2022

Noun

  • The value of stocks and shares; the net value of mortgaged property.
Example Sentences: He sold his equity in the company last year.
The rights give holders the opportunity to purchase additional equity interests in the company at a big discount.
 

DIVIDEND dɪvɪˌdɛnd

05 Jun 2022

Noun

  • A portion of a company's earnings which is paid to the shareholders/stockholders on a quarterly or annual basis.
Example Sentence: Dividends of US$0.4 per share will be paid out to shareholders on March 31 after a year of record profits.
 

COMMODITIES kəˈmɒdɪti

04 Jun 2022

Noun

  • Products such as agricultural products and natural resources (wood, oil and metals) that are traded on a separate, authorized commodities exchange.
Example Sentence: The country's most valuable commodities include tin and diamonds.
 

CAPITAL kæpɪtl

03 Jun 2022

Noun

  • Money used for producing more wealth or for starting a new business.
Example Sentences: She leaves her capital untouched in the bank and lives off the interest.
We've put 20 000 capital into the business, but we're unlikely to see any return for a few years.
 

BLUE CHIP STOCKS  

01 Jun 2022

Phrase

  • Stocks of leading companies with a reputation for stable growth and earnings.
Example Sentence: Coca Cola and BP are examples of blue chip stocks.
 

BID bɪd

31 May 2022

Verb

  • The price a buyer is willing to offer for shares in a company.
Example Sentences: When trading online, be careful that you don't bid too high for the shares.
How much did you bid for the shares?
 

VENTURE CAPITAL vɛntʃər kæpɪtl

19 May 2022

Phrase

  • Money raised by companies to finance new ventures in exchange for percentage ownership.
Example Sentences: Venture capital firms have a reputation for negotiating tough financing terms and setting high demands on target companies.
The company is looking for venture capital investment in order to expand. They're willing to sell 25% of the company for $400,000.
 

STOCK OPTIONS stɒk ɒpʃən

18 May 2022

Phrase

  • Are options, usually given to employees, to purchase stock in the company at a future date.
Example Sentence: After working for Microsoft for more than 10 years, I was able to cash in my stock options and retire comfortably at the age of 42.
 

LIQUIDATION lɪkwɪˈdeɪʃən

17 May 2022

Noun

  • This refers to the sale of all the assets of the company.
Example Sentence: The assets of a company that has gone into liquidation are often sold off at an auction.
 

IPO  

16 May 2022

Phrase

  • Initial Public Offering (IPO) refers to first sale of stock by a private company to the public.
Example Sentences: Alibabas IPO was 100 times oversubscribed.
There has been a 30% rise in the number of IPOs compared with last year.
 

FIXED COSTS fɪkst kɒst

15 May 2022

Phrase

  • Are costs that are incurred by the firm whether it produces or not, and that remain constant in amount whether its production volume is large or small.
Example Sentences: Rent, insurance, and salaries of supervisory personnel are common examples of fixed costs.
Or fixed costs are too high, we will need to reduce the number of staff we employ.
 

BURN RATE bɜrn reɪt

14 May 2022

Phrase

  • Refers to the amount of money a start-up company spends from month to month (money burnt) in order to survive.
Example Sentences: A burn-rate of $50,000 would mean the company spends $50,000 a month above any incoming cash flow to sustain its business.
Our current burn rate is US$15,000 per month. At this rate, we'll be able to continue operating the business until the end of the year.
 

BAD DEBTS bæd dɛt

13 May 2022

Phrase

  • Are funds owing to a business which are determined to be uncollectable.
Example Sentence: If you extend credit to numerous customers, and your experience is that a certain amount of your sales on account will be uncollectable, you should probably set up a reserve for bad debts.
 

APPRAISED VALUE əˈpreɪz vælyu

12 May 2022

Phrase

  • Is the value placed on an item, product or business by an appraiser who is recognized for experience in a particular field.
Example Sentence: The appraised value of our business is much higher than we thought. One of our competitors has made enquiries about buying us out.
 
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