The ABC of Finance
Hello hello everyone!
Welcome back to a free resource for your SaaS Finance skills.
Today, we have the ABC of Finance.
All you need to master Finance (almost).
A
Assets
Valuable items/resources owned by individuals/business or organizations
B
Budget
A financial plan that outlines income and expenses over a specific period
C
Credit Score
A numerical representation of an individual's creditworthiness
D
Debt
Money borrowed and owed to lenders
E
Equity
Ownership in an asset or company
F
Financial planning
Setting goals/creating a budget and making strategic decisions to achieve financial success
G
Gross Income
The total earnings before taxes and deductions are applied
H
Hedge Fund
An Investment fund that employs various strategies to generate high returns for its investors
I
Interest
The Cost of borrowing money or the return on investment for lending money
J
Joint Account
A bank or investment account shared by two or more individuals
K
KPI
Key Performance Indicators
L
Liquidity
The ease with which an asset can be converted into cash without significant loss in value
M
Mutual Fund
An investment vehicle that pools money from multiple investors
N
Net Worth
The difference between an individual's or company's assets and liabilities
O
Options
Financial derivatives that give the holder the right but not the obligation to buy/sell an underlaying asset
P
Portfolio
A collection of investments held by an individual or organization
Q
Quick ratio
A financial metric that measures a company's ability to cover its short-term liabilities
R
Retirement Planning
Involves saving and investing money to ensure financial security during retirement years
S
Stock Market
A market-place where stocks (shares of ownership in companies) are bought or sold
T
Taxes
Compulsory payments made to the government by individuals and businesses
U
Underwriting
The process of assessing risk and determining the terms and conditions of insurance policies
V
Volatility
Measures the degree of variation in the price of an asset or security over time
W
Wealth Management
Involves financial services and strategies to help high-net-worth individuals
X
Xenocurrency
A xenocurrency is a currency deposited or exchanged in a market outside its country of origin
Y
Yield
The return on an investment
Z
Zero-Sum Game
A situation in which one participant's gain/loss is exactly balanced by the losses/gains of other participants