FINANCE COMMON TERMS.docx

**COMMON TERMS** **PRINCIPLES OF FINANCE** Here are some common terms in finance: 1. **Asset**: Resources owned by an individual or company. 2. **Liability**: Obligations or debts owed to others. 3. **Equity**: Ownership interest in an asset after liabilities are deducted. 4. **Investm...

**COMMON TERMS** **PRINCIPLES OF FINANCE** Here are some common terms in finance: 1. **Asset**: Resources owned by an individual or company. 2. **Liability**: Obligations or debts owed to others. 3. **Equity**: Ownership interest in an asset after liabilities are deducted. 4. **Investment**: The allocation of funds to assets with the expectation of generating returns. 5. **Revenue**: Income generated from normal business operations. 6. **Expense**: Costs incurred in the process of earning revenue. 7. **Profit**: The financial gain after subtracting expenses from revenue. 8. **Loss**: When expenses exceed revenue. 9. **Cash Flow**: The movement of money in and out of a business. 10. **Balance Sheet**: A financial statement showing assets, liabilities, and equity at a specific point in time. 11. **Income Statement**: A financial report detailing revenue and expenses over a period. 12. **Budget**: A plan for income and expenses over a specific period. 13. **Capital**: Financial assets or resources used for investment. 14. **Dividend**: A portion of a company\'s earnings distributed to shareholders. 15. **Interest**: The cost of borrowing money, usually expressed as a percentage. 16. **Stock**: A share representing ownership in a company. 17. **Bond**: A fixed income investment representing a loan made by an investor to a borrower. 18. **Mutual Fund**: An investment vehicle pooling money from multiple investors to purchase securities. 19. **Portfolio**: A collection of financial assets like stocks, bonds, and cash. 20. **Risk**: The potential for loss or the uncertainty of returns. 21. **Return**: The gain or loss made on an investment. 22. **Liquidity**: The ease with which an asset can be converted into cash. 23. **Debt**: Money borrowed that must be repaid. 24. **Credit**: The ability to obtain goods or services before payment. 25. **Market Capitalization**: The total market value of a company\'s outstanding shares. 26. **Diversification**: Spreading investments across various assets to reduce risk. 27. **Leverage**: Using borrowed funds to increase the potential return of an investment. 28. **Default**: Failure to meet the legal obligations of a loan. 29. **IPO (Initial Public Offering)**: The first sale of stock by a private company to the public. 30. **Financial Ratios**: Metrics used to assess a company\'s financial performance. Những thuật ngữ này là nền tảng để hiểu các khái niệm tài chính và đầu tư. These terms are fundamental to understanding finance and investment concepts. Những thuật ngữ này là nền tảng để hiểu các khái niệm tài chính và đầu tư.