C2
| Term | Definition | Example |
|---|---|---|
|
acquisition
|
the act of buying or taking over another company | The tech firm announced the acquisition of a smaller startup. |
|
arbitrage
|
the simultaneous buying and selling of securities, currency, or commodities in different markets in order to take advantage of differing prices for the same asset | Traders use sophisticated algorithms to spot arbitrage opportunities. |
|
asset
|
a useful or valuable thing, person, or quality; property owned by a person or company | The company's most valuable asset is its portfolio of patents. |
|
austerity
|
a set of economic policies implemented with the aim of reducing government budget deficits through spending cuts or tax increases | The government's austerity measures were unpopular with the public. |
|
bear market
|
a market in which share prices are falling, encouraging selling | Investors are cautious during a bear market. |
|
bull market
|
a market in which share prices are rising, encouraging buying | The long bull market has created significant wealth for investors. |
|
capital
|
wealth in the form of money or other assets owned by a person or organization, available for a particular purpose such as starting a company or investing | They need to raise more capital to fund their new research and development. |
|
commodity
|
a raw material or primary agricultural product that can be bought and sold, such as copper or coffee | The price of oil and other commodities has been volatile. |
|
dividend
|
a sum of money paid regularly by a company to its shareholders out of its profits | The company announced a higher-than-expected dividend this quarter. |
|
due diligence
|
a comprehensive appraisal of a business undertaken by a prospective buyer, especially to establish its assets and liabilities and evaluate its commercial potential | Before the acquisition, the firm conducted thorough due diligence. |
|
equity
|
the value of the shares issued by a company; the value of a company divided among its shareholders | He has a significant equity stake in the business. |
|
fiscal
|
relating to government revenue, especially taxes | The government's fiscal policy aims to stimulate economic growth. |
|
inflation
|
the rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling | Central banks often raise interest rates to combat high inflation. |
|
leverage
|
the use of borrowed capital for an investment, with the expectation that the after-tax profit will be greater than the interest paid | The company used leverage to finance its expansion, which is a high-risk strategy. |
|
liability
|
a state of being legally responsible for something; a debt or financial obligation | The company has significant liabilities due to outstanding loans. |
|
liquidity
|
the availability of liquid assets (cash) to a market or company | The company faced a liquidity crisis and was unable to pay its short-term debts. |
|
logistics
|
the detailed coordination of a complex operation involving many people, facilities, or supplies | The logistics of delivering aid to the disaster zone are incredibly complex. |
|
merger
|
the combination of two or more companies, either by creating a new one or by one absorbing the other | The merger of the two tech giants created a new industry leader. |
|
monopoly
|
the exclusive possession or control of the supply of or trade in a commodity or service | The company was accused of having a monopoly on the software market. |
|
outsourcing
|
the business practice of hiring a party outside a company to perform services or create goods that were traditionally performed in-house | Many companies are outsourcing their customer service operations to other countries. |
|
portfolio
|
a range of investments held by a person or organization | A diversified investment portfolio helps to mitigate risk. |
|
revenue
|
the total income generated by the sale of goods or services related to the company's primary operations | The company's annual revenue exceeded $10 billion for the first time. |
|
shareholder
|
an owner of shares in a company | The shareholders will vote on the proposed merger at the annual meeting. |
|
subsidiary
|
a company controlled by a holding (or parent) company | The corporation owns several smaller subsidiaries in different sectors. |
|
venture capital
|
capital invested in a project in which there is a substantial element of risk, typically a new or expanding business | The startup secured a significant amount of venture capital funding. |
