This commercial paper is usually not held on banks’ balance sheets, but if they can’t roll it over for cash from another bank they have to bring it onto the balance sheet and eventually count up the value of the dodgy assets behind them. At an AGM, the directors of the company present an annual report containing information for shareholders about the company’s performance and strategy. So why not have some fun while learning? The rest goes to the provider to cover charges. The bid and offer price are made by the market maker. Contact us: [email protected]. For example, the average of N15, N25, N60 and N100 is N50 (N15+N25+N60+N100=N200; divided by 4 is N50). If you’ve found this list to be helpful, please drop your comments and share this post with your friends. 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In the context of the stock market, traders often try to exploit arbitrage opportunities. It is a trusted reference business “dictionary” in an organization. … This is most clearly seen when buying foreign currency at a bank. Arbitrage is basically buying a security in one market and simultaneously selling it in another market at a higher price, profiting from the temporary difference in prices. Explain Business Glossary domain Summarize good definitions Demonstrate importing business terms Description: This course is designed for Data Stewards who are … Chapter 11 is a chapter of the US bankruptcy code that gives a company an opportunity to reorganize and emerge from bankruptcy. Small Business Development Center (SBDC) - An U.S. organization set up to assist small business owners by providing management and technical resources to help start and run their businesses. In some cases, Chapter 11 bankruptcy allows companies to continue to function. Glossary of Business Terms – “P” A B C D E F G H I J K L M N O P Q R S T U V W X Y Z Partnership – A legal business relationship of two or more people who share responsibilities, resources, profits and liabilities. Small business owners can sometimes struggle to understand the different terms used by banks. AIM allows these companies to raise capital by listing on a public exchange with much greater regulatory flexibility compared to the main market. Keep handy this glossary of marketing terms. If a plan cannot be agreed, the court can either convert the case to liquidation under Chapter 7 or, if this is in the interest of creditors, return the business to the status quo before bankruptcy. Asset stripping is the taking over a company with the aim of selling off its assets, such as property, to make a profit, rather than developing the business. Some bear markets are short – bad news creates a panic and stocks are sold off suddenly. The carry trade occurs when investors borrow money at low rates of interest in one currency and invest it at higher rates in another. Generally associated with Nassim Nicholas Taleb’s book, The Black Swan. Cost-push inflation occurs when production input costs – wages, raw materials – rise. This should cover the cost of rebuilding the property, not its market value. Budget is simply a formal statement of estimated income and expenses based on future plans and objectives. An annual percentage rate (APR) is the annual rate charged for borrowing or earned through an investment. Capital ratios are a measure of a bank’s capital strength used by regulatory agencies. Oasdom Business Terms A to Z The Business glossary. This starts with classifying terms into a hierarchical structure. Some of these intermediaries may call themselves “agents” or “consultants” and may or may not be tied to offering deals from a limited pool of suppliers. This could be any major asset, but typically a house may be used as collateral. Overall, this means that interest can be compounded several times in a year depending on the number of times that interest payments are made. Our Glossary of Business Terms helps you understand the words and phrases that you may encounter and use when you start, run and manage a business. The OFT can refer takeovers to the Competition Commission, which may find against a proposed deal on the grounds that it would harm competition in the UK. Companies must provide an annual set of accounts. Business Terms Glossary What Does Plant and Equipment Mean? In the US, the rule is every quarter. A knowledge-driven hub dedicated to promoting self reliance & entrepreneurship. Chapter 11 bankruptcy is a form of corporate financial reorganization in which a company’s assets gets sold off to pay creditors. Shareholders with voting rights vote on current issues, such as appointments to the company’s board of directors, executive compensation, dividend payments, and the selection of auditors. A business glossary is a means of sharing internal vocabulary within an organization. This is a monthly CBI survey on conditions in the industrial sector. They generally invest in a particular geographical area, have a defined strategy (eg income, growth or a mixture of both), or have a ‘theme’, for example, focusing on technology or smaller companies. All flows of money are added together and grouped according to their type. This is London’s financial district. In general, you do not have to pay capital gains tax on your car, your main home, ISAs or personal belongings worth £6,000 or less. There is a big risk, though, that the exchange rate moves against you. That is, it’s calculated under the assumption that any interest paid is included in the principal payments balance and the next interest payment will be based on the slightly higher account balance. Annuities are created and sold by financial institutions, which accept and invest funds from individuals. If this isn’t possible, the administrator will try to get a better result for the creditors – by rescuing parts of the business – than would be possible if the company was wound up. Mortgage brokers, insurance brokers, Forex brokers and stock brokers are all covered by the term. Thanks for doing such a good job! The City Corporation is Britain’s oldest local government; it has the status of a county, with powers that exceed those of London’s 32 other boroughs, notably control of its own police force. The most complete compilation of common business terms with a detailed explanation of their meaning. This caused the yen to surge by over 10% in less than a fortnight. This represents your small business’s obligations to pay debts owed to lenders, suppliers, and creditors. The Alternative Investment Market (AIM) is a sub-market of the London Stock Exchange (LSE) that is designed to help smaller companies access capital from the public market. If this fails, the administrator will sell the company’s assets to make at least a partial payment to creditors. In other words, a budget is a document that management makes to estimate the revenues and expenses for an upcoming period based on their goals for the business. The British government prefers to use the CPI to measure inflation rather than the RPI. A market when prices roar ahead. It is generally used for large purchases such as cars or homes. Practically all banks had to write off billions of dollars in bad debts as a direct consequence of the sub-prime crisis in the US, but uncertainty over future possible losses froze up inter-bank lending. Bonds are generally issued by either the government (gilt-edged bonds), or a public company (corporate bonds). Economic expansions tend inexorably to create bubbles in share or house prices or both, which inevitably burst. Creditors must vote to approve the reorganization plan. This is a metaphor for the protocol that exists in financial institutions to insulate analysts from pressures from the deal-makers. A bond is simply an IOU. A quality Business Glossary is an important part of collaboration, particularly in larger businesses that span numerous departments. But there is always subtle pressure on analysts to make favorable comments so firms do not take their mergers and acquisitions business to a rival investment bank. You pay the tax at whatever your highest rate of income tax is. This site uses Akismet to reduce spam. There are risks involved. The amount they pay can be calculated by multiplying the face value of the holding by the “coupon” (rate of interest) shown in the title of the gilt. The part of the balance of payments that records a nation’s incoming and outgoing investment flows, such as payments for parts of or entire companies (direct or portfolio investment), stocks, bonds, bank accounts, real estate and factories. Many shares and bonds are now quoted on more than one stock market and after-hours dealing allows dealers to buy and sell outside the official hours of the market. In Nigeria, it is called the Central Bank of Nigeria CBN. A bear market is a stock market in which share prices fall precipitously, typically 15%-20%. A high PMI indicates materials purchases are increasing and the outlook is positive. Bankers’ drafts are considered a safe way of obtaining money from someone you don’t know. 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