Английский для финансов: ключевая лексика

"overdraft"

When you spend more money than is in your bank account, resulting in a negative balance.

"The bank charged me a fee because I went into overdraft after paying my rent."

"collateral"

An asset pledged to a lender as security for a loan; forfeited if the loan is not repaid.

"She used her car as collateral to secure the small business loan."

"compound interest"

Interest calculated on both the initial principal and the accumulated interest from previous periods.

"Thanks to compound interest, her savings account grew much faster than she expected."

"credit rating"

A numerical score that reflects a person's or company's creditworthiness, based on borrowing history.

"His credit rating improved significantly after he paid off his student loans on time."

"line of credit"

A flexible loan from a bank allowing borrowing up to a set limit, repaid as funds are used.

"The company opened a line of credit to cover seasonal cash flow gaps."

"amortization"

The process of gradually paying off a debt through regular scheduled payments of principal and interest.

"The 30-year amortization schedule meant her monthly mortgage payments stayed low."

"wire transfer"

An electronic transfer of funds from one bank account to another, domestically or internationally.

"He sent the deposit via wire transfer to the overseas supplier the same day."

"default"

Failure to meet the legal obligations or conditions of a loan, such as missing payments.

"The company defaulted on its bonds after failing to make three consecutive interest payments."

"bear market"

A period when stock prices fall 20% or more from recent highs, reflecting widespread pessimism.

"Investors moved their money into bonds during the prolonged bear market of 2022."

"bull market"

A period of rising stock prices and investor optimism, typically lasting months or years.

"The bull market that began in 2009 was one of the longest in American history."

"diversification"

Spreading investments across different asset classes to reduce exposure to any single risk.

"Her financial advisor recommended diversification across stocks, bonds, and real estate."

"yield"

The earnings generated on an investment, expressed as a percentage of the investment's cost or market value.

"The bond offered a 5% annual yield, which was attractive given the low-interest environment."

"market capitalisation"

The total market value of a company's outstanding shares, calculated by share price times number of shares.

"After the IPO, the startup's market capitalisation exceeded one billion dollars."

"liquidity"

The ease with which an asset can be converted into cash without significantly affecting its price.

"Real estate has low liquidity compared to stocks, which can be sold in seconds."

"hedge fund"

A private investment partnership that uses advanced strategies, including leverage and derivatives, to generate returns.

"The hedge fund profited during the crash by short-selling overvalued tech stocks."

"index fund"

A type of mutual fund designed to replicate the performance of a specific market index, such as the S&P 500.

"She invested her retirement savings in a low-cost index fund to match market returns."

"accounts payable"

Money a company owes to its suppliers or vendors for goods and services already received.

"Reducing accounts payable days improved the supplier relationships significantly."

"accounts receivable"

Money owed to a company by its customers for goods or services already delivered but not yet paid for.

"The finance team chased the outstanding accounts receivable before the quarter closed."

"accrual basis"

An accounting method where revenue and expenses are recorded when earned or incurred, not when cash changes hands.

"Under the accrual basis, the invoice was recorded as revenue in December even though payment came in January."

"depreciation"

The systematic allocation of a tangible asset's cost over its useful life to reflect wear and reduction in value.

"The machinery was depreciated over ten years using the straight-line method."

"gross margin"

Revenue minus the cost of goods sold, expressed as a percentage, showing profitability before overhead costs.

"The company maintained a healthy 60% gross margin despite rising raw material prices."

"EBITDA"

Earnings Before Interest, Taxes, Depreciation and Amortisation — a measure of core operating profitability.

"Investors focused on EBITDA to compare operating performance across companies with different capital structures."

"balance sheet"

A financial statement showing a company's assets, liabilities, and shareholders' equity at a specific point in time.

"The auditor reviewed the balance sheet to check that assets equalled liabilities plus equity."

"write-off"

The reduction of an asset's value to zero on the books, often because it is uncollectible or has no remaining worth.

"The bank took a $2 million write-off on the defaulted commercial loan."

"due diligence"

A comprehensive investigation and analysis of a company before signing a contract or completing an acquisition.

"The private equity firm spent six weeks conducting due diligence before making a formal offer."

"leveraged buyout"

The acquisition of a company using a significant amount of borrowed money, with the target's assets often as collateral.

"The leveraged buyout left the acquired company with heavy debt obligations to service."

"synergies"

The additional value created when two companies merge, exceeding what each could achieve independently.

"Management predicted $50 million in cost synergies from eliminating duplicate functions."

"valuation"

The process of determining the current worth of a company, asset, or investment using financial analysis.

"The startup's valuation reached $500 million after its Series C funding round."

"hostile takeover"

An acquisition of a company opposed by its management and board, typically achieved by buying shares directly from shareholders.

"The board adopted a poison pill strategy to defend against the hostile takeover attempt."

"initial public offering"

The first time a private company offers shares to the public on a stock exchange to raise capital.

"The initial public offering raised $800 million and gave early investors a significant return."

"private equity"

Investment in companies that are not listed on public stock exchanges, typically aiming to restructure and resell them.

"The private equity firm bought the struggling retailer, cut costs, and sold it at a profit five years later."

"spin-off"

A new independent company created by separating a division or subsidiary from its parent company.

"The conglomerate announced a spin-off of its healthcare division to unlock shareholder value."

"systemic risk"

The risk that the failure of one financial institution or market could trigger a wider collapse across the system.

"The 2008 crisis revealed how systemic risk could spread rapidly from one bank to the entire global economy."

"stress test"

A simulation used to evaluate how a bank or portfolio would perform under adverse economic scenarios.

"The Federal Reserve conducts annual stress tests to ensure major banks can survive a severe recession."

"Basel III"

An international regulatory framework for banks that sets minimum capital requirements and liquidity standards.

"Under Basel III, banks must hold higher capital buffers to absorb potential losses."

"counterparty risk"

The risk that the other party in a financial contract will default on their obligations.

"Traders used credit default swaps to hedge their counterparty risk on large OTC derivatives."

"anti-money laundering"

Laws, regulations, and procedures designed to prevent the practice of generating income through illegal actions.

"The bank invested heavily in anti-money laundering software to flag suspicious transactions automatically."

"know your customer"

The process by which banks verify the identity and risk profile of their clients before establishing a relationship.

"All new account applications must pass a know your customer check before the account is activated."

"fiduciary duty"

A legal obligation to act in the best interests of another party, common for financial advisors and fund managers.

"The fund manager's fiduciary duty prevented her from putting client assets into high-risk speculative investments."

"capital adequacy ratio"

A measure of a bank's available capital as a percentage of risk-weighted assets, used to assess financial stability.

"Regulators required the bank to raise new equity to restore its capital adequacy ratio above the minimum threshold."

"quantitative easing"

A monetary policy where a central bank purchases securities to increase money supply and stimulate economic activity.

"The European Central Bank launched quantitative easing to combat deflation and boost lending."

"inflation rate"

The percentage increase in the general price level of goods and services over a given period.

"Rising energy costs pushed the inflation rate to a 40-year high, forcing the central bank to act."

"fiscal policy"

Government decisions about taxation and spending used to influence the overall economy.

"The government used expansionary fiscal policy — cutting taxes and increasing spending — to fight the recession."

"current account deficit"

When a country imports more goods, services, and capital than it exports, resulting in a net outflow.

"The widening current account deficit put downward pressure on the national currency."

"interest rate hike"

An increase in the benchmark interest rate by a central bank, typically to reduce inflation or cool an overheating economy.

"Mortgage applications dropped sharply following the central bank's second consecutive interest rate hike."

"GDP growth"

The percentage increase in a country's Gross Domestic Product, a key indicator of economic health.

"Strong consumer spending drove GDP growth to 3.2% in the final quarter of the year."

"sovereign debt"

Money borrowed by a national government, typically through the issuance of government bonds.

"Investors became nervous about the country's ability to repay its sovereign debt after the credit downgrade."

"purchasing power parity"

A measure comparing the cost of a standard basket of goods across countries to assess relative currency values.

"According to purchasing power parity, the emerging market currency was significantly undervalued."