- Sep 7, 2024
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Hey all!
In this thread, I’ve included a list of 100 terms I believe are essential to building that commercial awareness. I’ve made a 50/50 split, covering financial and legal terms. Feel free to add any more terms and definitions you feel are essential !
50 Financial Terms
1. Asset: Anything of value owned by an individual or organisation, such as cash, stocks, or property.
2. Liability: A financial obligation or debt owed by an individual or organisation to another party.
3. Equity: The value of ownership in a company, typically measured as assets minus liabilities.
4. Bond: A fixed-income investment representing a loan made by an investor to a borrower.
5. Dividend: A portion of a company's profits distributed to its shareholders.
6. Capital: Financial resources or assets used to fund a business's operations or investments.
7. Liquidity: The ease with which an asset can be converted into cash without affecting its value.
8. Hedge: A strategy used to minimise risk in investments by offsetting potential losses.
9. Inflation: The rate at which the general level of prices for goods and services rises, eroding purchasing power.
10. Deflation: A decrease in the general price level of goods and services, often indicating reduced demand.
11. Gross Domestic Product (GDP): The total monetary value of all finished goods and services produced within a country's borders in a specific time period.
12. Monetary Policy: Central bank policies aimed at controlling money supply and interest rates to influence economic activity.
13. Fiscal Policy: Government decisions on taxation and spending to influence economic conditions.
14. Exchange Rate: The value of one currency in relation to another.
15. Interest Rate: The percentage charged on a loan or paid on savings over time.
16. Yield: The earnings generated on an investment over a specific period, expressed as a percentage.
17. Stock: A share in the ownership of a company, representing a claim on its assets and profits.
18. Market Capitalisation: The total value of a company's outstanding shares, calculated as share price multiplied by the number of shares.
19. IPO (Initial Public Offering): The process by which a private company offers shares to the public for the first time.
20. Mergers and Acquisitions (M&A): The consolidation of companies through combining (merger) or purchasing (acquisition).
21. Derivatives: Financial instruments whose value is derived from an underlying asset, such as stocks or bonds.
22. Option: A contract that gives the holder the right, but not the obligation, to buy or sell an asset at a specified price.
23. Futures Contract: An agreement to buy or sell an asset at a future date and a predetermined price.
24. Leverage: The use of borrowed funds to increase the potential return on an investment.
25. Portfolio: A collection of financial investments like stocks, bonds, and cash equivalents.
26. Risk Appetite: The level of risk an investor or organisation is willing to accept to achieve financial goals.
27. Arbitrage: The simultaneous purchase and sale of an asset to profit from price differences.
28. Venture Capital: Financing provided to startups and small businesses with growth potential in exchange for equity.
29. Private Equity: Investments made in privately held companies, often involving buyouts or restructuring.
30. ESG (Environmental, Social, and Governance): Non-financial factors considered in investment decision-making.
31. Balance Sheet: A financial statement showing a company’s assets, liabilities, and equity at a specific point in time.
32. Income Statement: A financial statement that reports a company's revenue, expenses, and profit over a period.
33. Cash Flow Statement: A financial report detailing cash inflows and outflows during a given period.
34. Working Capital: The difference between a company's current assets and current liabilities, indicating liquidity.
35. Blue-Chip Stock: Shares in a well-established and financially stable company.
36. Bull Market: A financial market characterised by rising prices and optimism.
37. Bear Market: A financial market characterised by declining prices and pessimism.
38. Short Selling: A trading strategy where an investor sells borrowed shares, aiming to buy them back later at a lower price.
39. Margin: The difference between the cost of a product or service and its selling price.
40. Credit Default Swap (CDS): A financial derivative used to transfer the risk of default on a loan or debt.
41. Quantitative Easing: A monetary policy tool where a central bank purchases securities to increase money supply.
42. Sovereign Debt: The money borrowed by a country's government, typically in the form of bonds.
43. Foreign Direct Investment (FDI): Investments made by a company or individual in one country into business interests in another.
44. Trade Surplus: A situation where a country exports more than it imports.
45. Trade Deficit: A situation where a country imports more than it exports.
46. Hard Currency: A stable currency widely accepted in global trade, like the US dollar or euro.
47. Soft Currency: A less stable currency prone to depreciation, often limited to domestic use.
48. Economies of Scale: Cost advantages gained by producing goods in larger quantities.
49. Subprime Mortgage: A type of loan offered to individuals with poor credit history, often at higher interest rates.
50. Collateral: An asset pledged by a borrower to secure a loan, forfeited if the loan is not repaid.
50 Legal Terms
1. Tort: A civil wrong causing harm or loss, leading to legal liability.
2. Contract: A legally binding agreement between two or more parties.
3. Breach of Contract: Failure to fulfil the terms of a contractual agreement.
4. Consideration: Something of value exchanged between parties in a contract.
5. Offer: A proposal to enter into a contract, which becomes binding once accepted.
6. Acceptance: Agreement to the terms of an offer, forming a binding contract.
7. Negligence: Failure to exercise reasonable care, resulting in harm or damage.
8. Damages: Monetary compensation awarded to a party who has suffered harm or loss.
9. Equity (Law): A branch of law providing remedies not available under common law.
10. Injunction: A court order requiring a party to do or refrain from doing something.
11. Judicial Review: A process by which courts review the legality of decisions made by public bodies.
12. Precedent: A legal principle established in previous court cases, used as guidance in future cases.
13. Statute: A written law passed by a legislative body.
14. Common Law: Law developed through judicial decisions rather than statutes.
15. Fiduciary Duty: A legal obligation to act in the best interests of another party.
16. Corporate Governance: The system of rules and practices by which a company is directed and controlled.
17. Merger: The combining of two companies into a single entity.
18. Acquisition: The purchase of one company by another.
19. Due Diligence: A comprehensive appraisal of a business before a transaction to evaluate its assets, liabilities, and potential risks.
20. Arbitration: A method of dispute resolution outside the courts, with a binding decision by a neutral third party.
21. Mediation: A non-binding dispute resolution process facilitated by a neutral third party.
22. Litigation: The process of taking legal action through the courts.
23. Jurisdiction: The authority of a court to hear and decide cases.
24. Intellectual Property (IP): Legal rights protecting creations of the mind, such as inventions, trademarks, and copyrights.
25. Patent: A legal right granted to an inventor to exclude others from making or selling their invention.
26. Trademark: A symbol, word, or phrase legally registered to represent a brand or product.
27. Copyright: Legal protection for original works of authorship, such as books, music, and art.
28. Confidentiality Agreement: A contract protecting sensitive information from being disclosed.
29. Partnership: A legal relationship between two or more people to operate a business.
30. Shareholder: An individual or entity owning shares in a company.
31. Directors' Duties: Legal obligations directors owe to a company and its stakeholders.
32. Limited Liability: A legal structure limiting an individual's financial responsibility for a company's debts.
33. Subsidiary: A company controlled by a parent company through majority ownership.
34. Insider Trading: The illegal practice of trading securities based on non-public information.
35. Force Majeure: A contract clause excusing performance due to extraordinary events beyond control.
36. Indemnity: A contractual obligation to compensate for a loss or damage incurred.
37. Liquidation: The process of dissolving a company by selling its assets to pay debts.
38. Receivership: A legal process where a receiver is appointed to manage a company’s assets to repay creditors.
39. Securities: Financial instruments, such as stocks and bonds, representing ownership or debt.
40. Prospectus: A formal document issued by a company detailing its financial health and operations, used to attract investors.
41. Articles of Association: A document outlining a company's internal rules and regulations.
42. Memorandum of Association: A legal document stating a company’s purpose and the scope of its operations.
43. Employment Contract: A legally binding agreement outlining the terms of employment.
44. Data Protection: Legal rules governing the use and storage of personal information.
45. Competition Law: Regulations promoting fair competition and preventing anti-competitive practices.
46. Bribery: Offering, giving, or receiving something of value to influence the actions of another party.
47. Anti-Money Laundering (AML): Laws and regulations designed to prevent the illegal generation of income through criminal activities.
48. Whistleblowing: Reporting unethical or illegal activities within an organisation.
49. Corporate Social Responsibility (CSR): A company's commitment to ethical practices and social responsibility.
50. Breach of Trust: Failure to fulfil the duties or obligations of a trustee.
Hope this was of help! Goodluck with the applications and interviews!
In this thread, I’ve included a list of 100 terms I believe are essential to building that commercial awareness. I’ve made a 50/50 split, covering financial and legal terms. Feel free to add any more terms and definitions you feel are essential !
50 Financial Terms
1. Asset: Anything of value owned by an individual or organisation, such as cash, stocks, or property.
2. Liability: A financial obligation or debt owed by an individual or organisation to another party.
3. Equity: The value of ownership in a company, typically measured as assets minus liabilities.
4. Bond: A fixed-income investment representing a loan made by an investor to a borrower.
5. Dividend: A portion of a company's profits distributed to its shareholders.
6. Capital: Financial resources or assets used to fund a business's operations or investments.
7. Liquidity: The ease with which an asset can be converted into cash without affecting its value.
8. Hedge: A strategy used to minimise risk in investments by offsetting potential losses.
9. Inflation: The rate at which the general level of prices for goods and services rises, eroding purchasing power.
10. Deflation: A decrease in the general price level of goods and services, often indicating reduced demand.
11. Gross Domestic Product (GDP): The total monetary value of all finished goods and services produced within a country's borders in a specific time period.
12. Monetary Policy: Central bank policies aimed at controlling money supply and interest rates to influence economic activity.
13. Fiscal Policy: Government decisions on taxation and spending to influence economic conditions.
14. Exchange Rate: The value of one currency in relation to another.
15. Interest Rate: The percentage charged on a loan or paid on savings over time.
16. Yield: The earnings generated on an investment over a specific period, expressed as a percentage.
17. Stock: A share in the ownership of a company, representing a claim on its assets and profits.
18. Market Capitalisation: The total value of a company's outstanding shares, calculated as share price multiplied by the number of shares.
19. IPO (Initial Public Offering): The process by which a private company offers shares to the public for the first time.
20. Mergers and Acquisitions (M&A): The consolidation of companies through combining (merger) or purchasing (acquisition).
21. Derivatives: Financial instruments whose value is derived from an underlying asset, such as stocks or bonds.
22. Option: A contract that gives the holder the right, but not the obligation, to buy or sell an asset at a specified price.
23. Futures Contract: An agreement to buy or sell an asset at a future date and a predetermined price.
24. Leverage: The use of borrowed funds to increase the potential return on an investment.
25. Portfolio: A collection of financial investments like stocks, bonds, and cash equivalents.
26. Risk Appetite: The level of risk an investor or organisation is willing to accept to achieve financial goals.
27. Arbitrage: The simultaneous purchase and sale of an asset to profit from price differences.
28. Venture Capital: Financing provided to startups and small businesses with growth potential in exchange for equity.
29. Private Equity: Investments made in privately held companies, often involving buyouts or restructuring.
30. ESG (Environmental, Social, and Governance): Non-financial factors considered in investment decision-making.
31. Balance Sheet: A financial statement showing a company’s assets, liabilities, and equity at a specific point in time.
32. Income Statement: A financial statement that reports a company's revenue, expenses, and profit over a period.
33. Cash Flow Statement: A financial report detailing cash inflows and outflows during a given period.
34. Working Capital: The difference between a company's current assets and current liabilities, indicating liquidity.
35. Blue-Chip Stock: Shares in a well-established and financially stable company.
36. Bull Market: A financial market characterised by rising prices and optimism.
37. Bear Market: A financial market characterised by declining prices and pessimism.
38. Short Selling: A trading strategy where an investor sells borrowed shares, aiming to buy them back later at a lower price.
39. Margin: The difference between the cost of a product or service and its selling price.
40. Credit Default Swap (CDS): A financial derivative used to transfer the risk of default on a loan or debt.
41. Quantitative Easing: A monetary policy tool where a central bank purchases securities to increase money supply.
42. Sovereign Debt: The money borrowed by a country's government, typically in the form of bonds.
43. Foreign Direct Investment (FDI): Investments made by a company or individual in one country into business interests in another.
44. Trade Surplus: A situation where a country exports more than it imports.
45. Trade Deficit: A situation where a country imports more than it exports.
46. Hard Currency: A stable currency widely accepted in global trade, like the US dollar or euro.
47. Soft Currency: A less stable currency prone to depreciation, often limited to domestic use.
48. Economies of Scale: Cost advantages gained by producing goods in larger quantities.
49. Subprime Mortgage: A type of loan offered to individuals with poor credit history, often at higher interest rates.
50. Collateral: An asset pledged by a borrower to secure a loan, forfeited if the loan is not repaid.
50 Legal Terms
1. Tort: A civil wrong causing harm or loss, leading to legal liability.
2. Contract: A legally binding agreement between two or more parties.
3. Breach of Contract: Failure to fulfil the terms of a contractual agreement.
4. Consideration: Something of value exchanged between parties in a contract.
5. Offer: A proposal to enter into a contract, which becomes binding once accepted.
6. Acceptance: Agreement to the terms of an offer, forming a binding contract.
7. Negligence: Failure to exercise reasonable care, resulting in harm or damage.
8. Damages: Monetary compensation awarded to a party who has suffered harm or loss.
9. Equity (Law): A branch of law providing remedies not available under common law.
10. Injunction: A court order requiring a party to do or refrain from doing something.
11. Judicial Review: A process by which courts review the legality of decisions made by public bodies.
12. Precedent: A legal principle established in previous court cases, used as guidance in future cases.
13. Statute: A written law passed by a legislative body.
14. Common Law: Law developed through judicial decisions rather than statutes.
15. Fiduciary Duty: A legal obligation to act in the best interests of another party.
16. Corporate Governance: The system of rules and practices by which a company is directed and controlled.
17. Merger: The combining of two companies into a single entity.
18. Acquisition: The purchase of one company by another.
19. Due Diligence: A comprehensive appraisal of a business before a transaction to evaluate its assets, liabilities, and potential risks.
20. Arbitration: A method of dispute resolution outside the courts, with a binding decision by a neutral third party.
21. Mediation: A non-binding dispute resolution process facilitated by a neutral third party.
22. Litigation: The process of taking legal action through the courts.
23. Jurisdiction: The authority of a court to hear and decide cases.
24. Intellectual Property (IP): Legal rights protecting creations of the mind, such as inventions, trademarks, and copyrights.
25. Patent: A legal right granted to an inventor to exclude others from making or selling their invention.
26. Trademark: A symbol, word, or phrase legally registered to represent a brand or product.
27. Copyright: Legal protection for original works of authorship, such as books, music, and art.
28. Confidentiality Agreement: A contract protecting sensitive information from being disclosed.
29. Partnership: A legal relationship between two or more people to operate a business.
30. Shareholder: An individual or entity owning shares in a company.
31. Directors' Duties: Legal obligations directors owe to a company and its stakeholders.
32. Limited Liability: A legal structure limiting an individual's financial responsibility for a company's debts.
33. Subsidiary: A company controlled by a parent company through majority ownership.
34. Insider Trading: The illegal practice of trading securities based on non-public information.
35. Force Majeure: A contract clause excusing performance due to extraordinary events beyond control.
36. Indemnity: A contractual obligation to compensate for a loss or damage incurred.
37. Liquidation: The process of dissolving a company by selling its assets to pay debts.
38. Receivership: A legal process where a receiver is appointed to manage a company’s assets to repay creditors.
39. Securities: Financial instruments, such as stocks and bonds, representing ownership or debt.
40. Prospectus: A formal document issued by a company detailing its financial health and operations, used to attract investors.
41. Articles of Association: A document outlining a company's internal rules and regulations.
42. Memorandum of Association: A legal document stating a company’s purpose and the scope of its operations.
43. Employment Contract: A legally binding agreement outlining the terms of employment.
44. Data Protection: Legal rules governing the use and storage of personal information.
45. Competition Law: Regulations promoting fair competition and preventing anti-competitive practices.
46. Bribery: Offering, giving, or receiving something of value to influence the actions of another party.
47. Anti-Money Laundering (AML): Laws and regulations designed to prevent the illegal generation of income through criminal activities.
48. Whistleblowing: Reporting unethical or illegal activities within an organisation.
49. Corporate Social Responsibility (CSR): A company's commitment to ethical practices and social responsibility.
50. Breach of Trust: Failure to fulfil the duties or obligations of a trustee.
Hope this was of help!
Goodluck with the applications and interviews!