What are financial terms I should know?
The three major asset classes are stocks, bonds and cash (or cash equivalents). Each of these reacts differently to conditions in the market and economy, so be sure you choose those that line up best with your personal goals, risk tolerance and time horizon.
What are terms used in finance?
Four terms commonly used in earnings announcements are net income, EBITDA, GAAP, and EPS. News reports also look at how much companies have in free cash flow, total debt, and assets they have available in cash equivalents.
What are the 5 areas of finance?
Though there are several aspects to personal finance, they easily fit into one of five categories: income, spending, savings, investing and protection. These five areas are critical to shaping your personal financial planning.
What are the terms used in banking?
Glossary of Basic Banking Terms
- ACH (Automated Clearing House).
- APR (Annual Percentage Rate).
- APY (Annual Percentage Yield).
- ATM (Automated Teller Machine).
- Available balance.
- Cash equivalents.
- Certificate of deposit (CD).
What does Ebitda stand for?
EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. EBITDA measures the company’s overall financial performance.
Who is the father of finance?
Eugene F. Fama
Eugene F. Fama, 2013 Nobel laureate in economic sciences, is widely recognized as the “father of modern finance.” His research is well known in both the academic and investment communities. He is strongly identified with research on markets, particularly the efficient markets hypothesis.
What are the 3 types of finance?
The finance field includes three main subcategories: personal finance, corporate finance, and public (government) finance.
What are two types of income?
What are Types of Income? There are two kinds of income: Earned income and unearned income. Earned income is money you make while actively working, like being employed or running your own business. Unearned income typically includes investment, retirement, and passive income.
What are 4 types of bank accounts?
What Are 4 Types of Bank Accounts?
- Checking Account. Think of a checking account is as your “everyday account.” It’s a place to keep the money you use to pay your bills or cover everyday expenses.
- Savings Account.
- Money Market Account.
- Certificate of Deposit (CD)