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 a 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 buying 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
Extracted From
MacKenzie, I. (2002). English for Business Studies: A course for Business Studies and Economics students (2nd ed.). Cambridge University Press.
