Stocks and Shares │ Important Vocabulary │ BBA Notes │ Business Communication │ 3rd Semester │ TU

Stocks and Shares



Important Vocabulary


  • Liability: Having a responsibility or an obligation to do something, e.g. to pay a debt
  • Creditor: A person or organization to whom money is owed (for goods or services rendered, or as a repayment of loan)
  • Bankrupt: To be insolvent; unable to pay debts
  • Assets: Everything of value owned by a business that can be used to produce goods, pay liabilities, and so on
  • Liquidate: To sell all the possessions of a bankrupt business
  • Liability: Money that a company will have to pay to someone else (bills, taxes, debts, interest and mortgage payments, etc.)
  • To put up capital: To provide money for a company or other project
  • Venture capital: Money invested in a possibly risky new business
  • Founders: The people who begin a new company
  • Premises: The place in which a company does business; an office, shop, workshop, factory, warehouse, and so on
  • Underwrite: To guarantee to buy an entirely new share issue, if no one else wants it
  • Dividend: A proportion of the annual profits of a limited company, paid to shareholders

  • Mutual fund: A company that spreads investor's capital over a variety of securities
  • Portfolio: An investor's selection of securities
  • Stockbroker: A person who can advise investors and buy and sell shares for them
  • Blue-chip: A stock in a large company or corporation that is considered to be a secure investment
  • Defensive stock: A stock - in an industry not much affected by cyclical trends - that offers a good return but only a limited chance of a rise or decline in price
  • Growth stock: A stock - which usually has a high purchasing price and a low current rate of return - that is expected to appreciate in capital value
  • Market-maker: A wholesaler in stocks and shares who deals with brokers
  • Institutional investors: Financial organizations such as pension funds and insurance companies which own most of the shares of all leading companies (over 60%, and rising)
  • Inside share-dealing: The use of information not known to the public to make a profit out of buying and selling shares




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Extracted From:

MacKenzie, I. (2002). English for Business Studies: A course for Business Studies and Economics students (Second). Cambridge University Press.



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