Key Financial and Business Terms

The finance and business terminology may be difficult, at least for the first-timers. Getting familiar with fundamental terms is important if you want to go through the business, or investments, or keep track of your finances. This page includes definitions for financial and business terms that are important to know, usually appearing in academic dictionaries or encyclopedias helpful to students and professionals, as well as the general public.

% Ch-ADB

% Ch-ADB: Percentage change of economic data from Asian Development Bank (ADB), generally showing cross-country GDP, Inflation or trade economic indicators for Asia. Which is widely used in ADB member countries for different report or analysis to assess the state of economy and measure how well those countries are doing.

ADD-all

ADD-all stands for add up all variables or figures pertaining to a certain finance story. In financial analysis, ADD-all can mean the sum of all revenue sources or expense buckets. Commonly used in budgeting and financial planning, it is a linear equation to calculate the sum of costs or profits.

All-arbi

All-arbi is actually arbitrage, a type of trading where traders take advantage of the price differences in different markets to gain profit. This phrase, especially in the context of academic dictionaries, is frequently referred to when talking about classes of financial markets and background information on trading strategies. In this way, arbitrage guarantees market pricing consistency across exchanges.

Arbi-aust

Arbi-aust — arb opportunities in Aussie markets. Such opportunities come into play when traders can take advantage of price discrepancies on Australian markets (such as the Australian Securities Exchange) and overseas. In an overall financial context, where currency and commodities trading provide arbitrage opportunities for free profit, arbi-aust is pretty important.

Aust-bank

Aust-bank is short for Australian banks and they are at the centre of the orbit of Australia's financial system. The term refers to the main participants in Australia's financial markets, and you will see this word often in academic literature about banking systems and financial stability in Australia.

Bank-beta

Bank-beta is the stock beta of a bank. Volatility is measured by the beta value, which illustrates how much more (or less) volatile a stock is compared to the market. Stocks that move with the market (high beta) are considered riskier, while stocks that are more stable (low beta) are safer investments. Bank-beta has an essential role in academic debates: it is used for risk measurement and portfolio construction.

Beta-bond

A Beta-bond is a bond with returns that follow the market movement pattern, modeled after the beta coefficient used to evaluate stock. Investors looking for something in between such as exposure to the vagaries of market activity while nonetheless enjoying more stable fixed-income returns will frequently utilize beta-bonds. They can be regarded riskier bonds because they are determined by market trends.

Bond-budg

Bond-budg means bdebt issuing budg. It includes all expenses associated with bond issuance, ie underwriting fees, legal costs and interest payments. A bond budget is the best tool cash strapped businesses and governments have to keep financing costs down.

Budg-cale

Budg-cale is an abbreviation of budget calendar which is a schedule or timeline that sets out the preparation, review, revision and approval of the budget for an organization. A calendar which is employed by companies, governments and institutions to ensure that financial planning and resource allocation are completed on time.

Cale-Cash

Cale-Cash →Cale-Cash is cash management calendars, which help in scheduling and tracking the cash spending of a business or organization. Cash flow management is integral to business processes since it affects liquidity, working capital, and timely payments for daily operations.

Cash-CFAT

Cash-CFAT = cash flow after tax (CFAT) It is a key financial measure that indicates how much cash a business generates after taxes are taken out. CFAT is critical for evaluating a company’s capacity to reinvest in other business activities, pay down some debt or return funds back to shareholders via dividends.

CFC-clea

The cheque-clea is CFC-clea (clearing cash flow cycles of course). It is the process of reconciling all unpaid bills and financial transactions, ensuring that the credits and debits balance out. A properly managed clearing cash flow cycles, will allow businesses to keep an eye on liquidity and plan their respective needs.

Clea-comm

Clea-comm is short for clear communication, and it is a key idea in business management. Clearly, in finance terminology refers to the communication of financial information — budgets, reports, forecasts etc. between departments as well as stakeholders and investors. Communication also helps keep everyone aligned on the desired financial direction of the business.

Comm-comp

Comm-comp is short for company-based compensation packages; these are packages that the firm will offer its employees. They very often come with salaries, bonuses, stock options and benefits. This is a key term upon which one can build an understanding of business models, HR practices, and executive compensation strategies, academically.

Comp-cont

Comp-cont stands for compensation contracts that spell out individual details on an employee's pay and benefits. Such contracts are formal agreements that outline the elements of compensation including salary, bonus structures, health coverage and other components for employees, especially in top level or executive positions.

Cont-cost

Cont-cost — Contract costs They refer to the costs that are directly incurred by businesses or contractors in order to fulfill a contract such as labor, materials, overhead and other direct costs. Project managers and financial controllers need to understand contract costs so that projects are kept within budget.

Cost-cros

Cost-cros are cross-functional costs that occur when more than one department or team within an organization - e.g. product development and marketing spread their resources over a specific project. Taking more care with cross-functional allocation of costs will help ensure that financial resources are utilized and managed as efficiently as possible across specific business units.

Cros-cycl

Cros-cycl: Short for Cross-cycle costs. These are costs that span over many periods or business cycles. For instance, when it comes to capital-intensive projects, cross-cycle costs may include long-term investments — or even long-lived assets that will be amortized or depreciated over time.

Cycl-dedu

Cycl-dedu is based on Enterprise-level deduction, i.e., expenditures or income lost via deductions within a single business cycle. These could be through operational expenses, depreciation or other types of deductions that may lower their taxable income as a company.

Dedu-depr

For accounting purposes, Deduction of depreciation (Dedu-depr) This knowledge refers to wear and tear that causes the value of assets to depreciate over time. Depreciation is a non-cash expense that businesses can use to reduce their taxable income, making it a useful tax-saving tool. This term will be helpful in understanding different accounting methods and ways companies use to evade taxes.