high yield | a return on investment that is higher than average |
hire purchase | a method of paying for a product or service in which the buyer pays a series of instalments over a |
hostile bid | a takeover bid that is opposed by the target company |
hot issue | a new security that is expected to trade at a significant premium on its issue price |
hyperinflation | very rapid growth in the rate of inflation |
illiquid | not easily convertible into cash |
IMF | International Monetary Fund |
income redistribution | a government policy to redirect income to a targeted sector of a country's population |
income tax | tax levied on any income |
inflation rate | a rate at which the general price level increases |
inheritance tax | tax payable on property inherited after somebody's death |
initial public offering | the first instance of making shares available to the public |
insolvency | the inability to pay debts |
insurance broker | a person or company that sells insurance contracts |
interest | the rate that a lender charges for a loan |
interest rate cap | an upper limit on interest rates |
interest yield | the annual rate of interest earned on a security |
interim dividend | a dividend whose value is determined on the basis of a period less than a full fiscal year |
Internal Revenue Service | tax office |
invoice | a document that the supplier sends to a customer detailing the cost of product and requesting paymen |
joint venture | a project undertaken by two or more parties |
killer bee | somebody who helps a company avoid being taken over, especially a banker |
ledger | a book in which transactions are recorded |
legal tender | banknotes and coins accepted within a given jurisdiction |
lessee | the person who uses a leased asset] defaults (fails to make payments that are due, for example |
lessor | the person who provides the asset being leased |
letter of intent | a document in which a company indicates an intention to do something, e.g. to buy a business |
liquidator | the person appointed to sell assets of an insolvent company |
loan shark | somebody who lends money at excessively high rates of interest |
long-term debt | loans that are due after at least one year |
long-term liabilities | loans that are due after at least one year |
luxury tax | a tax on goods or services that are non-essential |
majority shareholder | a shareholder with a controlling interest in a company |
management buy-out | the purchase of an existing business by an individual manager or management group from within that b |
margin | the difference between the cost and the selling price of a service |
market economy | an economy in which a free market in goods and services operates |
mature economy | an economy that is no longer growing rapidly |
money laundering | the process of making money obtained illegally appear legitimate |
moral hazard | the risk that the existence of a contract will cause behavioural changes in one or both parties to t |
mortgage | a credit to finance the acquisition of land and real property |
multinational corporation | a corporation operating in different countries |
national debt | the total borrowing of a country's government |
near money | assets that can be quickly turned into cash, e.g. bank deposits, short-dated bonds |
non-profit organisation | an organisation that does not have financial profits as a main strategic objective |
NYSE | New York Stock Exchange |
offer for sale | an invitation to buy |
opening bell | the beginning of a day of trading on a market |
opening price | a price for a security at the beginning of a trading day |
overdraw | withdraw more money from a bank account than it contains |
overdraft | withdrawal of more money from a bank account than it contains |
paper money | banknotes |