Financial Vocabulary #2
Hey there and welcome back to the Art of Business English. This week I have the second instalment in my mini-series on financial vocabulary.
Today we will be looking at some more technical language, this should be great if you are struggling to understand these terms.
Let’s jump in and see what we have got.
Creditworthiness
Meaning:
The value placed on an individual or company to pay back a loan.
Example:
“The better our creditworthiness, the better the bank conditions for a loan.”
Up/downside
Meaning:
The positive or negative aspects of a business decision or situation.
Example:
“I think this deal has a lot of upside, risk is low, yet returns could be very big.”
Asset Class
Meaning:
An asset class is a grouping of investments that exhibit similar characteristics and are subject to the same laws and regulations. E.g. Bonds (fixed income)
Example:
“Will cryptocurrency become a new asset class?”
Run up debt
Meaning:
Continue to increase your debt load by taking on more loans.
Example:
“Many companies have run up large amounts of debt during the financial crisis.”
Line of credit
Meaning:
The amount of credit given to a borrower
Example:
“Many companies have a line of credit to help them pay invoices and remain liquid.”
Remittance batch
Meaning:
Sums of money sent as payment, which are grouped together and sent to the bank for processing
Example:
“Creating a remittance batch to pay your supplies saves time and groups payments all together.”
A fine
Meaning:
To pay a sum of money as punishment for breaking the law.
Example:
“Breaking tax laws can result in a very hefty fine from the IRS.”
Contribution (pension plan)
Meaning:
An amount of money usually paid monthly or annually into a retirement fund.
Example:
“Making regular contributions to your pension plan is a great way to ensure you have a good life after you retire.”
Equities
Meaning:
Stocks and shares.
Example:
“Trading in equities can bring great reward, but also carries a significant amount of risk.”
Fees
Meaning:
a payment made to a person or company in exchange for advice or services.
Example:
“When investing in mutual funds, it is a good idea to check how much you will be paying in fees.”
Tranche
Meaning:
A proportion of something, usually money or stock options.
Example:
“The first tranche of stock will be released on Monday.”
Blockchain
Meaning:
A blockchain is a digital, public ledger that records online transactions.
Example:
“Blockchain technology is what all cryptocurrency is built upon.”
Bang for your buck
Meaning:
Getting a lot of value for your money.
Example:
“You get a lot of bang for your buck with the new gym downtown.”
Final thoughts
I hope you have enjoyed part 2 of my series on financial vocabulary. I hope there are a lot of new words in there that you have discovered. Sometimes we know the word, but we are not quite sure what it means.
Please feel free to share your financial vocabulary below in the comments section, it would be great to hear from you and learn what words you use on a regular basis.
If you are interested in expanding your knowledge of collocations, then why don’t you grab a copy of my eBook, “500 Business Collocations for Everyday Use”. It includes a free download with all the correct pronunciation.
Grab your copy here.
I will see you all next week for another free episode of the Art of Business English. Till then, take care.
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