Tooltip Categories: Economics & Finance

financial leverage

The use of borrowed money to increase production volume, and thus sales and earnings. It is measured as the ratio of total debt to total

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financial margin

For a financial entity is the difference between the the cost of lent money and the cost of the money received.

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financial market

Any marketplace where buyers and sellers participate in the trade of assets such as equities, bonds, currencies and derivatives. Financial markets are typically defined by

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financial cushion

Amount of money kept back or saved for future use to counter risk (source: http://www.thefreedictionary.com/reserve+account)

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financial derivatives

A broad term covering a variety of financial instruments whose values are derived from one or more underlying assets, market securities or indices. (source: http://en.wikipedia.org/wiki/Derivative_%28finance%29)

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financial distress

A condition where a company cannot meet or has difficulty paying off its financial obligations to its creditors. The chance of financial distress increases when

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financial exclusion

The unavailability of banking services to people living in poverty. It is believed to be one factor preventing poor people from exiting poverty, by forcing

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financial expense

Financial expense includes:interest and related charges; foreign exchange losses on debt; net expense on the disposal of marketable securities; amortisation of bond redemption premiums; additions

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financial bubble

A situation in which prices for securities, especially stocks, rise far above their actual value. This trend continues until investors realize just how far prices

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