100 English Vocabulary About Corporate Finance

Posted by Nabirong

Here’s a list of 100 corporate finance vocabulary words, along with their meanings in English:

General Finance Terms

Asset – Anything of value owned by a company or individual.
Liability – A financial obligation or debt owed by a company.
Equity – Ownership interest in a company, calculated as assets minus liabilities.
Revenue – The total income a business earns from sales or services.
Expense – The costs incurred in running a business.
Profit – The financial gain when revenue exceeds expenses.
Loss – When expenses exceed revenue, resulting in negative earnings.
Cash flow – The movement of money in and out of a business.
Capital – Financial resources or assets used for investment or business growth.
Liquidity – The ability to convert assets into cash quickly.

Corporate Finance

Valuation – The process of determining the worth of a company or asset.
Leverage – Using borrowed money to increase investment potential.
Debt – Money borrowed that must be repaid.
Dividend – A portion of a company’s profits paid to shareholders.
Investment – Allocating money into assets to generate future profits.
Return on Investment (ROI) – A measure of profitability from an investment.
Cost of Capital – The cost of financing a business, including debt and equity.
Interest Rate – The percentage charged for borrowing money.
Risk Management – Identifying and minimizing financial risks.
Capital Expenditure (CapEx) – Money spent on acquiring or upgrading assets.

Banking & Loans

Loan – Money borrowed with an agreement to repay it with interest.
Credit – The ability to borrow money or obtain goods before payment.
Mortgage – A loan used to purchase property, typically repaid over time.
Collateral – An asset pledged as security for a loan.
Interest – The cost of borrowing money, expressed as a percentage.
Refinancing – Replacing an old loan with a new one, often with better terms.
Principal – The original amount of money borrowed, excluding interest.
Default – Failure to repay a loan as agreed.
Amortization – Gradual repayment of a loan over time.
Covenant – A condition set by a lender for a borrower to follow.

Stock Market & Investments

Shareholder – A person or entity that owns shares in a company.
Stock – A share representing ownership in a company.
Bond – A fixed-income investment where an investor lends money to an entity.
Mutual Fund – A pool of money from multiple investors used to buy securities.
Hedge Fund – A private investment fund that uses advanced strategies for high returns.
IPO (Initial Public Offering) – When a company sells shares to the public for the first time.
Stock Exchange – A marketplace where stocks and other securities are bought and sold.
Market Capitalization – The total value of a company’s shares.
Dividend Yield – A financial ratio showing how much a company pays in dividends relative to its stock price.
Portfolio – A collection of investments owned by an individual or institution.

Financial Statements & Accounting

Balance Sheet – A financial statement showing a company’s assets, liabilities, and equity.
Income Statement – A report showing a company’s revenue, expenses, and profit over a period.
Cash Flow Statement – A financial report tracking cash inflows and outflows.
Audit – An official inspection of a company’s financial records.
Depreciation – The reduction in value of an asset over time.
Accrual – Recording revenue and expenses when they occur, rather than when cash is exchanged.
EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) – A measure of a company’s profitability.
Net Worth – The value of a company’s assets minus liabilities.
Accounts Receivable – Money owed to a company by customers.
Accounts Payable – Money a company owes to suppliers or creditors.

Mergers & Acquisitions

Merger – The combination of two companies into one.
Acquisition – One company purchasing another.
Due Diligence – A detailed investigation before a business deal.
Takeover – The act of gaining control of another company.
Synergy – The financial benefits gained when two companies merge.
Buyout – The purchase of a company’s shares to gain full control.
Hostile Takeover – When a company acquires another against its wishes.
Tender Offer – An offer to buy shares at a specified price.
Consolidation – The process of merging assets or companies.
Spin-off – When a company creates a new independent business from its division.

Corporate Governance & Management

Board of Directors – A group of individuals overseeing company management.
CEO (Chief Executive Officer) – The highest-ranking executive in a company.
CFO (Chief Financial Officer) – The executive responsible for financial management.
COO (Chief Operating Officer) – The executive managing daily operations.
Shareholder Meeting – A gathering where company decisions are made.
Proxy Vote – A vote cast on behalf of a shareholder.
Corporate Social Responsibility (CSR) – A company’s commitment to ethical and sustainable business practices.
Compliance – Adhering to laws and regulations.
Stakeholder – Anyone affected by a company’s actions, including employees, customers, and investors.
Governance – The system by which a company is directed and controlled.

Risk & Regulations

Regulation – Rules set by authorities to control financial activities.
Compliance Risk – The risk of failing to follow laws and regulations.
Financial Fraud – Illegal activities related to financial transactions.
Internal Controls – Procedures to prevent fraud and errors.
Basel Accords – International banking regulations to ensure financial stability.
Sarbanes-Oxley Act – A U.S. law to prevent corporate fraud.
Anti-Money Laundering (AML) – Measures to prevent illegal money transactions.
Credit Rating – A score indicating a borrower’s creditworthiness.
Stress Test – An assessment of how a company handles financial crises.
Bankruptcy – A legal process for businesses that cannot repay debts.

Financial Strategies & Analysis

Budgeting – Planning income and expenses over a period.
Forecasting – Predicting future financial trends.
Cost-Benefit Analysis – Comparing costs and benefits of a financial decision.
Break-even Point – The point where revenue equals expenses.
Sensitivity Analysis – Assessing financial risk based on changing variables.
Leverage Ratio – A measure of a company’s debt compared to equity.
Discounted Cash Flow (DCF) – A method of valuing investments based on future cash flows.
Working Capital – Current assets minus current liabilities.
Operating Margin – A measure of a company’s profitability from operations.
Gross Profit – Revenue minus the cost of goods sold.

Alternative Financing & Innovations

Private Equity – Investment in private companies.
Venture Capital – Funding for startups with high growth potential.
Crowdfunding – Raising money from a large number of people online.
Fintech – Technology-driven financial services.
Cryptocurrency – Digital currency using blockchain technology.
Blockchain – A decentralized system for secure transactions.
Sustainable Finance – Investments focused on environmental and social impact.
Green Bonds – Bonds issued for environmental projects.
ESG Investing – Investments considering environmental, social, and governance factors.
Digital Banking - Online and mobile banking services.