Glossario

Glossary

1. Stock: A security that represents a share of ownership in a company and constitutes part of the company’s equity capital.
2. Bank: A financial institution that accepts deposits, offers loans, and provides other financial services to its clients.
3. Balance Sheet: A document summarizing the income and expenses of an individual, family, or business over a specific period.
4. Bond: A debt security issued by an entity (company or government) to raise funds, promising to repay the principal with interest.
5. Budget: A detailed plan outlining how an individual or organization intends to allocate financial resources over a given period.
6. Capital: The sum of money or other assets that can be used to generate income or investments.
7. Credit Card: A payment tool that allows the purchase of goods and services on credit, with the obligation to repay the spent amount at a later date.
8. Debit Card: A payment tool that allows spending of money available in one’s bank account.
9. Checking Account: A type of bank account that allows deposits and withdrawals, providing payment tools such as checks and debit cards.
10. Credit: A sum of money that a person or organization can borrow, with the obligation to repay it with interest.
11. Debt: A sum of money that a person or organization owes to a creditor.
12. Diversification: An investment strategy that involves spreading capital across various assets to reduce risk.
13. Dividend: A portion of a company’s profits distributed to shareholders.
14. Economics: The study of the production, distribution, and consumption of goods and services.
15. Financial Balance: A situation in which the income and expenses of an individual or a business are balanced.
16. Finance: The discipline that studies the management of money, investments, and financial instruments.
17. Tax System: The set of laws and regulations governing taxation.
18. Mutual Fund: An investment vehicle that pools money from various investors to purchase a variety of financial securities.
19. Risk Management: The process of identifying, assessing, and controlling financial risks.
20. Inflation: The general increase in the prices of goods and services in an economy over time.
21. Interest: The cost of borrowing money, expressed as a percentage of the principal.
22. Investment: The allocation of financial resources into activities or instruments with the goal of generating a return.
23. Liquidity: The ease with which an asset or investment can be converted into cash without losing value.
24. Stock Market: The place (physical or virtual) where shares of publicly listed companies are bought and sold.
25. Mortgage: A long-term loan typically used for purchasing real estate, which must be repaid with interest.
26. Convertible Bond: A debt security that can be converted into a predetermined number of shares of the issuing company.
27. Net Worth: The difference between an individual’s or a company’s assets and liabilities, representing their net wealth.
28. Savings Plan: A planned strategy for setting aside a portion of income for future goals.
29. Portfolio: A collection of investments held by an individual or organization.
30. Loan: A sum of money borrowed that must be repaid with interest.
31. Profit: The positive difference between a company’s revenues and costs, representing its net gain.
32. Quote: The current price of a stock or other financial security in the market.
33. Income: The amount of money earned by an individual or organization through work, investments, or other activities.
34. Return: The measure of gain or loss generated by an investment over time, usually expressed as a percentage.
35. Savings: The portion of income not spent and set aside for future use.
36. Expenditure: The use of money to purchase goods and services.
37. Interest Rate: The percentage representing the cost of borrowed money or the gain on invested money.
38. Taxes: Mandatory contributions imposed by the government on individuals and businesses to finance public spending.
39. Government Bonds: Debt securities issued by the government to finance its activities and public debt.
40. Nominal Value: The face value of a security or currency, which may differ from its market value.
41. Volatility: A measure of the fluctuation in a security’s price over time, indicating the level of risk involved.
42. Warrant: A financial instrument that gives the holder the right to buy shares of a company at a predetermined price within a certain period.
43. Trust Administration: The management of an individual’s assets by a trustee for the benefit of another individual or entity.
44. Fundamental Analysis: The evaluation of a security’s intrinsic value through analysis of financial data and economic factors.
45. Technical Analysis: The study of price movements and volumes of a security to predict future trends.
46. Insurance: A contract that transfers the financial risk of unforeseen events from an individual or organization to an insurance company.
47. Asset: All valuable possessions owned by an individual or company that have economic value.
48. Self-Financing: The process through which a company generates capital through its profits rather than seeking external funding.
49. Risk Aversion: Investors’ preference to avoid risk, favoring safe investments.
50. Bankruptcy: A state of insolvency where an individual or company is unable to pay its debts.
51. Tax Base: The value on which taxes are calculated.
52. Benchmark: A standard reference used to measure the performance of an investment or portfolio.
53. Speculative Bubble: A situation where asset prices rise rapidly and unsustainably, often followed by a sharp decline.
54. Junk Bond: A high-risk, high-yield bond issued by companies with a low credit rating.
55. Capital Gain: The profit earned from selling an investment at a price higher than the purchase price.
56. Market Capitalization: The total market value of a company calculated by multiplying the stock price by the total number of shares outstanding.
57. Coupon: Periodic interest payments made to bondholders.
58. Collateral: An asset used as security for a loan, which may be claimed by the lender if payments are not made.
59. Accounting: The process of recording, classifying, and summarizing financial transactions.
60. Income Statement: A document summarizing a company’s revenues, costs, and profits over a specific period.
61. Fixed Costs: Expenses that do not change with the level of production or sales.
62. Variable Costs: Expenses that vary according to the level of production or sales.
63. Consumer Credit: Loans provided to consumers for the purchase of goods and services.
64. Financial Crisis: A period of severe economic instability characterized by falling asset values and difficulties in the financial system.
65. Crowdfunding: A method of financing that collects small amounts of money from many people, typically via online platforms.
66. Default: The inability of a borrower to make required payments on a loan or bond.
67. Depreciation: The reduction in the value of an asset over time.
68. Derivatives: Financial instruments whose value is derived from another asset, such as futures, options, and swaps.
69. Dividends: A portion of a company’s profits distributed to its shareholders.
70. Direct Debit: A service that allows automatic payment of bills and other expenses directly from a bank account.
71. Due Diligence: The detailed evaluation of a company or investment before making an acquisition or investment.
72. Leverage: The use of debt to increase the potential return of an investment.
73. Equity: A company’s own capital, representing the shareholders’ ownership.
74. Risk Exposure: The amount of risk that an investor or company is willing to accept.
75. ETF (Exchange-Traded Fund): An investment fund traded on a stock exchange, which replicates the performance of a market index.
76. Fair Value: The estimated value of an asset based on reasonable valuation models.
77. Consumer Confidence: An economic indicator that measures the level of optimism consumers have about the future economic situation.
78. Pension Fund: A long-term savings plan designed to provide income after retirement.
79. Forward Contract: A derivative contract that obligates the parties to exchange an asset at a future date at a predetermined price.
80. Deductible: The amount that the insured must pay out of pocket before the insurance covers the remaining costs.
81. Merger: The union of two or more companies into a new entity.
82. Guarantee: Assurance that a debt or obligation will be fulfilled.
83. Wealth Management: A financial service that offers professional advice and investment management for individuals and organizations.
84. Hedge Fund: An investment fund that uses advanced strategies to achieve high returns, often with high risk.
85. Holding Company: A company that owns the majority of shares in other companies.
86. Income Tax: A tax on the income earned by individuals and businesses.
87. Stock Index: A measure of the value of a section of the stock market.
88. Liquidity Ratio: An indicator of a company’s ability to pay its short-term debts.
89. Core Inflation: A measure of inflation that excludes volatile prices for food and energy.
90. Insider Trading: The buying or selling of securities based on non-public material information.
91. Compound Interest: Interest