Today's post will be a work in progress. I shall continually add in terms that I use in my posts. So check back often!
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Asset: Anything that one has that is not kept for consumption
Annuity: A fixed income for a specific period of time.
Bond: A loan made usually to buy a house
Compound: The effect of investing the income earned on an investment back into the same investment
Collateral: Any asset given as security for a loan
Dividend: A share of the profits earned by having equity or shares in a company or business
Earnings: Any income earned either in the form of a salary, dividends or interest
Equity: Shares in a company
Fixed Interest: The income earned from a cash investment or loan
Forward Contract: An obligation to buy or sell something at a future date for a fixed price
Funds: The amount of money available for spending or investment
Government Bond: A fixed term loan made by the government usually to fund major projects or
balance the budget
Home Loan: The amount borrowed in order to buy a house. The house is given as collateral.
Income: Any money earned either in the form of a salary, dividends or interest
Income is the same as earnings.
Interest: The amount of income earned on a loan or money deposit usually expressed in a percentage of the loan or deposit
Inflation: The rising cost or price of goods and services
Investment: Any asset purchased for the purpose of gaining value
Market: A place where goods are bought and sold
Money: Any currency acceptable as a means of payment for goods or services
Mortgage: A loan from a bank used to buy a house; this is the same as a bond
Option: The right to buy or sell something at a future date for a fixed price
Price: The cost goods, services or investments measured in terms of money
Price Earnings Ratio: The price of a share divided by the earnings per share that a company makes
Real: The returns one makes taking into account inflation
Stocks: Shares or equities
Stock Broker: An agent who buys and sells shares on your behalf
Stock Exchange: The market where a stock broker is able to buy and sell shares
Trade: The activity of buying and selling goods and services
Transaction: The activity when goods or services are bought or sold
Turnover: The total income a company or individual makes by selling goods or services
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