Top common and basic financial terms list [A-Z]

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Financial terms are the most important part of finance and businesses that help to understand, estimate and implement strategy, planning, and funding into any business. It’s a beginning rule of any business course like MBA, MFM, MMS, MMM, marketing, supply chain, business administration, management information systems, etc. listed below common and basic important financial terms. Start to understand your business journey now.

Top financial terms to understand and implement in business for success

Assets

Annual report

Accounts payable

Accounts receivable

Amortization

Arbitrage

Annual percentage rate (APR)

Accrual accounting

Audit

Angel investor

Agent bank

Ask price

Asset allocation

Average cost

Alpha

Alternative investments

Allowance for doubtful accounts

Adjusted gross income (AGI)

Authorized shares

Auction market

Annuity

Average daily trading volume

Automatic stay

All-or-none order

At-the-market order

American Depositary Receipt (ADR)

Asset-backed security

Acid-test ratio

Accumulated depreciation

After-hours trading

Balance sheet

Bonds

Bull market

Budget

Bankruptcy

Basis point

Blue chip stocks

Brokerage account

Bear market

Book value

Black-Scholes model

Beta

Bond rating

Back-end load

Business cycle

Bad debt

Break-even point

Block trade

Buy limit order

Bid-ask spread

Business valuation

Broker

Business plan

Bridge financing

Bank statement

Bookkeeping

Beneficiary

Business expense

Basis risk

Bullish

Cash flow

Capital

Credit

Currency

Collateral

Commodity

Corporate bonds

Cost of goods sold (COGS)

Capital gains

Credit rating

Capital market

Current assets

Coupon rate

Capital expenditure

Capitalization

Cost of capital

Certificate of deposit (CD)

Consolidation

Call option

Contingent liability

Cash management

Creditor

Conversion ratio

Current liabilities

Cash equivalents

Clearinghouse

Credit risk

Compound interest

Capital structure

Carry trade

Debt

Dividend

Depreciation

Derivative

Dow Jones Industrial Average (DJIA)

Default

Discount rate

Due diligence

Direct deposit

Divestment

Deflation

Dividend yield

Day trading

Dividend payout ratio

Debt-to-equity ratio

Discounted cash flow (DCF)

Dilution

Debenture

Debt service

Dividend reinvestment plan (DRIP)

Drawdown

Duration

Debt consolidation

Direct costs

Dead cat bounce

Debt securities

Debt-to-income ratio

Depository

Discretionary income

Derivative market

Equity

Exchange rate

Earnings per share (EPS)

Expenses

Ex-dividend

Efficient market hypothesis (EMH)

Economic indicators

Eurobond

Escrow

Equity capital

Exchange-traded fund (ETF)

External audit

Expiration date

Earnings before interest, taxes, depreciation, and amortization (EBITDA)

Employee stock option plan (ESOP)

Equity financing

Exchange

Earnings yield

Economic recession

E-mini

Excess return

Expected return

Equity research

Eurocurrency

Exchange rate risk

Expense ratio

Earnings announcement

Equity market

Equity value

Exponential moving average (EMA)

Financial statement

Fixed income

Futures

Face value

Federal Reserve

Foreign exchange (Forex)

Free cash flow

Fair value

Financial leverage

Float

Fiscal year

Fund manager

Fundamental analysis

Forward contract

Fixed assets

Franchise

Financing

Financial institution

Fiscal policy

Fill or kill

Fair market value

Floor trader

Fiduciary

Financial ratio

Full-service broker

Forward rate

Front-end load

Frictional unemployment

Financial planner

Financial risk

Gross profit

Goodwill

General ledger

Government bond

Gross domestic product (GDP)

Growth stock

Gross margin

Grant

Going public

Golden parachute

Green bonds

Guaranteed investment certificate (GIC)

General partner

Gross income

Good faith estimate

Group life insurance

Gross settlement

Globalization

Group insurance

General and administrative expenses (G&A)

Gilt-edged securities

Growth rate

General obligation bond

General meeting

Good faith violation

Gross rent multiplier

Global macro strategy

Gross operating profit

Government-sponsored enterprise (GSE)

Guaranteed return

Hedge fund

Holding period

Home equity

High-yield bond

Hypothetical performance

Hard asset

Hedging

Holding company

Historical cost

Human capital

Horizontal merger

Hidden costs

Holding period return

Homeowners insurance

Hybrid security

Hyperinflation

High-frequency trading

Head and shoulders pattern

Holding period yield

Health savings account (HSA)

High-net-worth individual (HNWI)

Hot IPO

Haircut (finance)

Hurdle rate

Home equity loan

High watermark

Hostile takeover

Hazard insurance

Home office deduction

Herd mentality

Inflation

Index

Interest

Initial public offering (IPO)

Investment

Income statement

Insider trading

Intrinsic value

Inheritance tax

Indemnity

Inflation rate

Income tax

Intangible assets

Internal rate of return (IRR)

Invoice

IPO underwriter

In arrears

International Monetary Fund (IMF)

Installment loan

Impairment

Inverted yield curve

Investment banking

Investment horizon

In-the-money

Indirect costs

Interbank market

Investment grade

Interest expense

Interim dividend

Inheritance planning

Joint account

Junk bond

J-curve

Jobless claims

Junior debt

Journal entry

Joint venture

Junk fees

Jumbo loan

Joint life annuity

Jumpstart Our Business Startups Act (JOBS Act)

JPY (Japanese yen)

Just-in-time (JIT) inventory

Jumbo CD (certificate of deposit)

Jargon

Juristic person

Jumbo mortgage

Judgment lien

Jurisdiction risk

JOINT (Joint Ownership Investment and Trading) account

Joint and several liability

Joint return

Journal voucher

Joint stock company

JSE (Johannesburg Stock Exchange)

Junior equity

Judicial foreclosure

Joint and survivor annuity

Jobber

Job market

Key performance indicators (KPIs)

Keynesian economics

Key rate duration

Kiting

Kicker

Keiretsu

Know Your Customer (KYC)

Knock-in option

Kondratieff Waves

Kicker bond

KYC regulations

Kappa coefficient

Knockout option

K-shares

Kicker loan

Knowledge economy

Kondratieff cycle

Kicker ratio

Kicker pattern

Kicker provision

Kanban

Key rate duration risk

Keogh plan

Kinked demand curve

Kicker feature

Keiretsu system

Keynesian multiplier

Key man insurance

Key rate risk

Keltner channel

Liquidity

Loan

Leverage

Liability

Long position

Limited liability

Long-term debt

Listed company

Loss

Line of credit

Lock-up period

Liquidity ratio

Long-term investment

Leasing

Limit order

Lump sum

Leverage ratio

LIBOR (London Interbank Offered Rate)

Loss aversion

Lien

Loan-to-value ratio

Long-term assets

Legal tender

Liquid asset

Loan origination

Liquidity risk

Limited partner

Loss carryforward

Letter of credit

Level 3 assets

Money market

Mortgage

Mutual fund

Maturity

Market capitalization

Margin

Merger

Margin call

Microfinance

Money supply

Markup

Market order

Municipal bond

Margin trading

Market risk

Mortgage-backed security

Market value

Money laundering

Market maker

Market price

Market segmentation

Market share

Money market account

Maintenance margin

Market economy

Market timing

Money market fund

Monetary policy

Market index

Market saturation

Net income

Net worth

NASDAQ

Nominal interest rate

Notional value

Nonperforming loan

Nonrecourse loan

Naked option

Negotiable instrument

Nonprofit organization

NYSE (New York Stock Exchange)

Net asset value (NAV)

Noncurrent asset

Nominee

Nonfarm payrolls

National debt

Notice of default

Naked short selling

Negative gearing

Nominal value

Noncompete clause

Nonoperating income

Noncallable bond

Normal distribution

Nonrefundable tax credit

Net present value (NPV)

Nonqualified plan

Nostro account

Nonfinancial asset

Nonpublic company

Options

Overdraft

Outstanding shares

Open market operations

Operating income

Offshore banking

Over-the-counter (OTC)

Order book

Operating margin

Option premium

Owner's equity

Offer price

Overvaluation

Outperform

Out-of-the-money

Operating expense

Open interest

Order flow

Origination fee

Open-end fund

Organizational chart

Overhead

Order execution

Open outcry

Option contract

Outflow

Overhead ratio

Oligopoly

Operating lease

Over-the-counter market

Profit

Portfolio

Price-to-earnings ratio (P/E ratio)

Public company

Principal

Private equity

Purchasing power

Payroll

Par value

Prepaid expenses

Preferred stock

Profit margin

Pension

Price volatility

Prime rate

Present value

Prospectus

Passive income

Payout ratio

Personal finance

Price floor

Provision

Price index

Production cost

Purchase order

Price discrimination

Pre-tax income

Portfolio diversification

Perpetual bond

Price-earnings growth ratio (PEG ratio)

Quantitative easing

Quoted price

Quick ratio

Qualified dividends

Quality of earnings

Quantitative analysis

Quota system

Quiet period

Quotation

Quality spread differential

Return on Investment (ROI)

Risk

Revenue

Rate of return

Retirement

Real estate

Recession

Risk management

Risk tolerance

Residual value

Revenue recognition

Return on Assets (ROA)

Return on Equity (ROE)

Ratio analysis

Redemption

Reserve

Regulation

Revenue growth

Reinvestment

Registered investment advisor (RIA)

Return on Capital (ROC)

Risk appetite

Risk-free rate

Rights issue

Royalties

Reconciliation

Real-time

Repo market

Retail investor

Reverse stock split

Stock

Securities

Stock market

Shareholders

Savings account

Stock exchange

Solvency

Speculation

Stockholder

S&P 500

Spot price

Stock option

Short selling

Small-cap

Swap

Security deposit

Stock split

Subprime

Stockholder's equity

Savings bond

Syndicate

Systemic risk

Speculative investment

Standard deviation

S&P 500 index

Settlement

Stockholder's meeting

Surplus

Securities and Exchange Commission (SEC)

Swap rate

Treasury bonds

Ticker symbol

Tangible assets

Trade deficit

Tax deduction

Term life insurance

Tax return

Trade surplus

Treasury bill

Taxable income

Time value of money

Transaction

Tax-exempt

Treasury note

Trade-off

T-bills

Trustee

Tax shelter

Trading volume

Ticker tape

Terminal value

Treasury yield

Treasury bond yield

Transfer pricing

Trade finance

Turnover rate

Tax liability

Technical analysis

Treasury stock

Tax avoidance

Underwriting

Uptick

Unit trust

Unrealized gain

Uniform Gifts to Minors Act (UGMA)

Unsecured loan

User fee

Underlying asset

Underinvestment problem

Universal life insurance

Unearned revenue

Unemployment rate

Utility

Unallocated benefit

Unit cost

Uniform Commercial Code (UCC)

Unit of account

Unlisted company

U.S. Treasury

U.S. Securities and Exchange Commission (SEC)

Unsecured debt

Uniform Transfers to Minors Act (UTMA)

Utility theory

Unit price

Unsystematic risk

Uptrend

Utilization rate

Unsolicited offer

Usury

Umbrella insurance

Venture capital

Volatility

Valuation

Vanguard

Volatile market

Value investing

Variable cost

Valuation ratio

Venture capitalist

Value stock

Volume

Volatility index (VIX)

Voting rights

Vendor financing

Voluntary bankruptcy

Value-at-risk (VaR)

Variable interest rate

Voting trust

Venture debt

Vendor agreement

Value chain

Voluntary liquidation

Venture funding

Voluntary disclosure

Voluntary compliance

Voluntary contribution

Variable annuity

Voluntary pension plan

Value proposition

Valuation model

Wealth management

Wire transfer

Working capital

Wall Street

Warrant

Write-off

Weighted average

Withdrawal

Wholesale banking

Wage

Wrap account

Walk-away lease

Write-down

Windfall profit

Withholding tax

White-collar

Warehouse receipt

Wage garnishment

Waterfall model

Wage inflation

Wealth effect

Whistleblower

Wash sale

Wealth tax

Walk-away clause

Working capital ratio

Wage earner plan

Wage stagnation

Working capital cycle

Wealth preservation

Xenocurrency

XIRR (Extended Internal Rate of Return)

Yield

Yield Curve

Yield to Maturity (YTM)

Yield on Cost

Year-to-Date (YTD)

Yen

Yellow Sheets

Yieldco

Young Investor

Yen Carry Trade

Zero Coupon Bond

Z-Score

Zoning Laws

Zombie Company

Zero-Based Budgeting

Zero-Sum Game

Zero-Interest Financing

Zero-Percent Financing

Zero Balance Account (ZBA)

Zone of Possible Agreement (ZOPA)