Financial Terms Dictionary - Investopedia

Financial terms

Financial terms

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78. Loan-to-value &ndash The ratio of the fair market value of the asset to the value of the loan used to purchase the asset. This shows the lender that potential losses may be recouped by selling the asset.

12 Financial Terms Every Investor Should Know | Mutual

This type of liability refers to immediate debts that must be repaid within one year. For example, money owed to suppliers or vendors would be a current liability.

Financial Terms - Dictionary of Business & Financial Terms

75. Delinquency &ndash When a borrower fails to repay a debt obligation by the agreed term.

What are assets? Ten financial terms for small business owners

The Singaporean traders are always thinking to make big profits. They are pushing their limits and trade with big lots. Sadly the majority of the traders are blowing up the

89. Recession &ndash An economic condition defined by a decline in GDP for two or more consecutive quarters. During a recession, the stock market usually drops, unemployment increases, and the housing market declines.

7. Asset &ndash Any resource that has economic value that an individual or corporation owns. Assets are generally viewed as resources that produce cash flow or bring added benefit to the individual or company.

86. RMD &ndash Required Minimum Distribution &ndash The minimum annual amount required for retirement account holders to withdraw, starting a age 75 &frac67 . This amount is calculated based on the account value on December 86 of the prior year divided by the factor on the IRS RMD table. (RMD does not apply for Roth IRAs. )

Your cash flow is the overall movement of funds through your business each month, including income and expenses. For instance, cash flows into your business from clients and customers who purchase your goods or services directly, or through the collection of debts in the form of accounts receivable. On the other hand, cash flows out of your business to pay expenses like rent, utilities, taxes, and accounts payable.

As such, there are some basic financial terms every entrepreneur should know as their business grows. These terms may come up in meetings with potential investors, partners, and clients, so it&rsquo s important to be aware of them and to understand how they might affect your business.

86. Option &ndash A contract that gives the buyer the right, but not the obligation, to buy (call) or sell (put) a security at a price that has been set (strike price) during a set period of time or certain date (exercise date).

87. Prime Rate &ndash Determined by the federal funds rate (the overnight rate at which banks lend to one another) the prime rate is the best rate available to a bank&rsquo s most credit-worthy customer.

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