For upper-intermediate learners: investment concepts, market dynamics, and corporate finance vocabulary from business media.
Free Money & Finance vocabulary flashcards at the B2 level — all 35 words with definitions and examples. Study them with spaced repetition and recognize and use these words confidently in real conversations.
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depreciate
to decrease in value over time, said of assets like vehicles or equipment
equity
ownership interest in a company, represented by shares, after debts are subtracted
liquidity
the ease with which an asset can be turned into cash quickly without losing value
portfolio
a range of different investments held together to spread financial risk
volatility
the tendency of a price or value to change rapidly and unpredictably
hedge
to make an investment that protects you against a possible financial loss elsewhere
fiscal
relating to government taxation and spending policies
surplus
an excess of money when income exceeds spending over a period
deficit
the amount by which spending or losses exceed income or gains
acquisition
the act of one company buying another company or a significant asset
collateral
an asset pledged to a lender that can be seized if the borrower fails to repay
leverage
the use of borrowed money to increase the potential return on an investment
dividend yield
the annual dividend paid by a share as a percentage of its current market price
amortise
to gradually pay off a debt through regular payments over a set period
arbitrage
the practice of buying something cheaply in one market and selling it at a higher price in another
bear market
a period when share prices fall significantly and investors expect further decline
bull market
a period of rising share prices and general investor confidence
capital gain
the profit made when you sell an asset for more than you paid for it
cash flow
the movement of money into and out of a business over a given period
write off
to officially record an asset or debt as a loss that will not be recovered
underwrite
to accept financial responsibility for a project or guarantee payment if losses occur
yield
the income earned on an investment, expressed as a percentage of its cost or current value
default
to fail to repay a loan or meet a financial obligation on time
merger
the joining of two companies to form a single, larger organisation
stake
a share or financial interest in a company or investment
shareholder
a person or entity that owns shares in a company
dividend
a portion of a company's profits distributed to shareholders
bond
a financial instrument where you lend money to a government or company and receive interest
inflation-adjusted
calculated after removing the effect of rising prices, to show real value
benchmark
a standard measurement used to compare the performance of an investment
exposure
the degree to which an investor is affected by risk in a particular area
diversify
to spread investments across different types of assets to reduce overall risk
recession
a period of negative economic growth lasting at least two consecutive quarters
austerity
government policies that reduce spending and increase taxes to lower a deficit
devaluation
a deliberate reduction in the official value of a country's currency relative to others