Term | Definition | Example |
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acquisition
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the act of buying or taking over another company | The tech firm announced the acquisition of a smaller startup. |
arbitrage
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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
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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
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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
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a market in which share prices are falling, encouraging selling | Investors are cautious during a bear market. |
bull market
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a market in which share prices are rising, encouraging buying | The long bull market has created significant wealth for investors. |
capital
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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
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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
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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
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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
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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
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relating to government revenue, especially taxes | The government's fiscal policy aims to stimulate economic growth. |
inflation
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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
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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
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a state of being legally responsible for something; a debt or financial obligation | The company has significant liabilities due to outstanding loans. |
liquidity
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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
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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
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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
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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
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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
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a range of investments held by a person or organization | A diversified investment portfolio helps to mitigate risk. |
revenue
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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
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an owner of shares in a company | The shareholders will vote on the proposed merger at the annual meeting. |
subsidiary
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a company controlled by a holding (or parent) company | The corporation owns several smaller subsidiaries in different sectors. |
venture capital
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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. |