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Oct 11, 2018 · Finance Terms Everyone Should Know. 1. Amortization: Amortization is a method of spreading an intangible asset's cost over the course of its useful life. Intangible assets are non-physical assets that are essential to a company, such as a trademark, patent, copyright, or franchise agreement. 2.
- Checking Account
- Debit Card
- Savings Account
- Interest
- Loan
- Credit Card
- Credit Score
- Investment
- Stock
- Bond
You have to keep your money somewhere, and generally, the safest place is in a savings bank or credit union, as they are insured by the Federal Deposit Insurance Corp. (FDIC) or National Credit Union Share Insurance against losses. These financial institutions offer a variety of accounts, and a checking accountis one of them. A checking account is ...
You can also access the cash in your checking account by using a debit card, which in this digital age is a more popular and convenient vehicle than a paper check. Debit cards allow you to avoid carrying cash. Most stores accept them, and all you have to do is swipe your card through a machine and enter in your personal identification number (PIN)t...
A savings accountis where you keep the money that you are, well, saving. Funds are held for future use rather than the cash you need to pay for regular expenses. Depending on how much you hold in it, you may have to pay a monthly fee to keep the account open. There may also be a minimum balance requirement and a limit on how much money you can with...
Interest is, quite simply, the price that a person or entity pays for borrowing money. Interest is determined as a percentage of the amount borrowed over a period of time. There are two kinds of interest: simple and compound. The first is paid only on the actual amount borrowed, called the principal. The second is paid on both the principal and the...
A loan is an agreement between two people or entities where one party temporarily gives a sum of money to the other. The party getting the money pays interest for the privilege. Loans can be used for such purposes as buying big-ticket itemssuch as a car, a house, or an education. The loan terms will include the length of time before the money has t...
A credit card is a kind of loan that is available to consumers whose finances are in good enough shape to qualify for it. A financial institution issues a plastic card with an account number and the cardholder’s name on it. The card can be used to purchase goods in stores and online up to a certain amount of money, known as the credit limit. It can...
Your credit score is one way for banks and credit card companies to tell if you can qualify for a loan. They look at your history with money in something called a credit report, of which you have more than one. The most trusted credit score is the FICO Score, compiled by FICO (formerly Fair Isaac Corp.). It is used by 90% of U.S lenders. The three ...
When you use money to acquire an asset that you hope will generate income or appreciate in value, that is an investment. There is no guarantee, however, that investments will always make you money—it is quite possible to lose money instead. Generally, the riskier the investment, the higher the profit if it does succeed. Even a savings account is an...
A stock is a share of ownership in a company, which the company issues for purchase as a way of raising capital. They are acquired via the stock market in a practice known as trading. When the company does well, the price rises and your stock value increases. If it does poorly, the price drops and your investment loses money. Stocks come with consi...
Bonds are issued by governments and corporations as a means of raising money. Unlike stocks, they do not provide ownership in the issuer. Instead, a bond purchaser makes a loan to the issuer that must be paid back at a predetermined time. The issuer pays periodic interest to the purchaser while it has use of their money, generally twice a year. Bon...
People also ask
What financial terms & definitions should you know?
How do you define Finance?
What is financing & how does it work?
What are the different types of Finance?
- Assumed Interest Rate. The term “assumed interest rate” refers to an estimated or hypothetical interest rate used for planning or analysis when the actual interest rate is uncertain or unknown.
- Annual Percentage Rate. The Annual Percentage Rate (APR) is a financial term representing the annualized cost of borrowing money, including the interest rate and any additional fees or costs associated with the loan.
- Accounts Receivable. Accounts Receivable is a term used in accounting and finance to refer to the money owed to a business by its customers or clients for goods or services delivered or provided on credit.
- Adjustable Rate Mortgage. Consumer-to-Consumer refers to a business model or transactions that occur directly between individual consumers rather than involving a business or commercial intermediary.
Jun 8, 2023 · Financing is the act of providing funds for business activities , making purchases or investing . Financial institutions and banks are in the business of financing as they provide capital to ...
Feb 19, 2024 · Finance describes the management, creation and study of money, banking, credit, investments, assets and liabilities that make up financial systems, as well as the study of those financial ...
Finance is defined as the management of money and includes activities such as investing, borrowing, lending, budgeting, saving, and forecasting. There are three main types of finance: (1) personal, (2) corporate, and (3) public /government. This guide will unpack the question: what is finance?
Jun 5, 2023 · What Does Finance Mean? Its History, Types, and Importance Explained. Finance is the study and management of money, investments, and other instruments. Learn about the basics of public, corporate ...
