Glossary of Terms for the Financial field

Glossary of Terms for the Financial field

 

In this glossary you will find terms who will help you involve in your financial environment. The worker in the finance field as to know the right words and definitions of what he is talking about. This is a an important clue in finance, a work area ruled by money. Therefore it is very important to not be misunderstood.

Corruption: Dishonest behavior by those in positions of power, such as managers or government officials. Corruption can include giving or accepting bribes or inappropriate gifts, double dealing, under-the-table transactions, manipulating elections, diverting funds, laundering money and defrauding investors.

Closing Price: The final price at which a security is traded on a given trading day. The closing price represents the most up-to-date valuation of a security until trading commences again on the next trading day.

Downside: The negative movement in the price of a security, sector or market. Downside can also refer to economic conditions and it describes periods when an economy has either stopped growing or is shrinking

Down Jones BRIC 50 Index: A market capitalization-weighted stock index containing 50 of the most liquid and largest companies operating in Brazil, Russia, India and China (BRIC nations).

Falling Knife: phrase for a security or industry in which the current price or value has dropped significantly in a short period of time.

Fair Trade Investing: Investing in companies or projects that promote fair trade with producers in developing nations.

Glocalization: A combination of the words "globalization" and "localization" used to describe a product or service that is developed and distributed globally, but is also fashioned to accommodate the user or consumer in a local market.

Junior Equity: Junior equity refers to equity that ranks lower than some other form of equity. It normally refers to the common stock in a company because it is subordinate to preferred stock.

Kiting: The act of misrepresenting the value of a financial instrument for the purpose of extending credit obligations or increasing financial leverage.

Loan Shark: A person or entity that charges borrowers interest above an established legal rate

Negative Return: This occurs when a company or business has a financial loss

Power Ratio: A measure of a media company's revenue performance (i.e., advertising income) in comparison to the audience share it controls, calculated as follows: Company Revenue / (Audience Share * Total Market Revenue)

Over-selling: This occurs when a salesperson continues their sales pitch after the customer has already decided to purchase.

Ostrich: A term that refers to the tendency of certain investors to ignore bad news that can affect their investments.

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