Creditors must vote to approve the reorganization plan. They were invented in the late 1990s and are a form of insurance on bonds issued by companies or countries that investors buy and sell. The most complete compilation of common business terms with a detailed explanation of their meaning. This starts with classifying terms into a hierarchical structure. Automaticity:In disputes, the “automatic” chronological progression for settling trade disputes in regard to panel establishment, terms of reference, composition and adoption procedures. Entrepreneur in Heat. Up until the start of the credit crunch, financial institutions were able to borrow money at rates only slightly higher than the official interest rates set by central banks, but the process became far more expensive after mid-2007, reflecting the sense of heightened risk. Commission investigations often take around six months and the delay can be enough to put off the bidder. Governments are in a constant battle to even out the peaks and troughs – Gordon Brown prides himself on ending boom and bust – but none has ever completely solved the problem. This Business terms page will help you manage and understand common business vocabulary across the business domain, providing an authoritative source for all business operations, including its Database Systems. An annual percentage rate (APR) is the annual rate charged for borrowing or earned through an investment. A term often heard is “management buy-out” which means the management buys company shares to become the owner of that company. This is the banker to the government and the other banks in a country. Accounts payable is a business finance 101 term. In the Basel I accord, it is categorized as undisclosed reserves, revaluation reserves, general provisions, hybrid instruments and subordinated term debt. Budget is simply a formal statement of estimated income and expenses based on future plans and objectives. Characterized by the limited liability of its owners, the issuance of shares of easily transferable stock, and existence as a going concern. Before digging deep into search engine optimization, you should be familiar with these terms and The annual equivalent rate (AER) is the interest rate for a savings account or investment product that has more than one compounding period. Bonds are generally issued by either the government (gilt-edged bonds), or a public company (corporate bonds). In some cases, Chapter 11 bankruptcy allows companies to continue to function. 2. "A glossary of business terms", Business English, 2004, ISBN 9780764124440 This page was last edited on 28 October 2020, at 05:54 (UTC). According to generally accepted accounting principles, the sum of the owner's (shareholders') equity and a business' liabilities equals the total assets a business has. The Alternative Investment Market (AIM) is a sub-market of the London Stock Exchange (LSE) that is designed to help smaller companies access capital from the public market. It is paid for houses, bungalows, flats, maisonettes, mobile homes or houseboats, whether owned or rented. Business Constraint (s) Business constraints are limitations placed on the solution design by the organization that needs the solution. Shares increased in value over 14-fold – prompting former Fed chairman Alan Greenspan to utter his famous warning of “irrational exuberance” among investors – before they declined by almost 50% between 2000 and 2002. Please note that because there are so many different descriptions applied to fees, we have grouped all the different … Tier two capital is also known as supplementary capital. Chief operating officer: A chief operating officer or c… After 1982, the US stock market for example, experienced the biggest bull market ever. The generic term used to describe an intermediary between two parties, generally a buyer and a seller. A market when prices roar ahead. The bid and offer price are made by the market maker. Those listed on the stock exchange must produce information on their profits six months into the financial year. Bonds are rated from the safest (AAA) to the riskiest (D), also known as ‘junk bonds’; ‘investment grade’ bonds are normally higher than BBB. If this fails, the administrator will sell the company’s assets to make at least a partial payment to creditors. This should cover the cost of rebuilding the property, not its market value. Bankers’s draft is a cheque drawn from a bank or building society against real cash. Our glossary contains the most common phrases and jargon used together with the definition of what it actually means. Here’s How Video Marketing Can Become A Saviour For You. The result of asset stripping is often a dividend payment for investors and either a less-viable company or bankruptcy. If a plan cannot be agreed, the court can either convert the case to liquidation under Chapter 7 or, if this is in the interest of creditors, return the business to the status quo before bankruptcy. Terms of Use and Privacy Policy, Buyer Readiness Stages: How to Get Your Customers to Buy, 10 Low-Investment Home Business Ideas You Can Start Online for 2020, Are you thinking of starting a business but don’t know where and how to start? The term typically refers to products such as coffee, cocoa and soya beans (soft commodities) or gold, aluminum and platinum (hard commodities). This is an analyst who forecast trends in stocks, indices and currencies by looking at patterns on charts of their historic performance. Use the Wix Encyclopedia to easily search for the business terminology all professionals need to know. Our Glossary of Business Banking Terms aims to de-mystify the most common banking terms by explaining in plain English what they mean. The notion of impartial advice to investors took a huge knock in the Wall Street scandals of recent years. Run by unit trusts, open-ended investment companies or investment trusts, these are portfolios of shares or bonds run by fund managers, who are (hopefully) expert at buying and selling shares to maximize performance. This includes any fees or additional costs associated with the transaction but does not take compounding into account. Small business owners can sometimes struggle to understand the different terms used by banks. There are various types of loans but this is a type of loan that can be taken out by people moving house who need access to finance in order to cover them until they sell their home. All flows of money are added together and grouped according to their type. By using the Data Catalog business glossary, an organization can describe its business vocabulary as a hierarchy of terms, and it can create a classification of terms that better represents its business taxonomy. Such companies are usually well-known, have a large market capitalization and a good track record of dividend payments. In other words, a budget is a document that management makes to estimate the revenues and expenses for an upcoming period based on their goals for the business. A business glossary is a means of sharing internal vocabulary within an organization. Another way of structuring the business glossary is to use are… Yes, there are more business terms to be added to this list soon. The Business Glossary enhances Data Governance, through an organized list of terms, with specific meanings. Deals made between members after the official close of the market. The amount you pay depends on what valuation band your property falls into. Annuities are created and sold by financial institutions, which accept and invest funds from individuals. … Glossary of business terms. For example, the average of N15, N25, N60 and N100 is N50 (N15+N25+N60+N100=N200; divided by 4 is N50). The rest goes to the provider to cover charges. The current concern focuses on naked CDSs on sovereign debt. If it looks like an issuer might have trouble paying, its CDS price rises because the bond is more risky and it will cost more to insure. The balance of payments is influenced by many factors, including the financial and economic climate of other countries. But there is always subtle pressure on analysts to make favorable comments so firms do not take their mergers and acquisitions business to a rival investment bank. A low PMI indicates orders for materials are down and the economic outlook is less favorable. Cost-push inflation occurs when production input costs – wages, raw materials – rise. Save my name, email, and website in this browser for the next time I comment. If the shares were bought before April 1998, this gain will be adjusted downwards to remove the effects of inflation. Economic expansions tend inexorably to create bubbles in share or house prices or both, which inevitably burst. This commercial paper is usually not held on banks’ balance sheets, but if they can’t roll it over for cash from another bank they have to bring it onto the balance sheet and eventually count up the value of the dodgy assets behind them. Plant and equipment is the same as long-term, fixed, or capital assets. For example, an ‘agreement’ is a general term that can be used to classify other, more specific terms like ‘contract’ and ‘purchase order’. Few banks are willing to lend any more against these questionable assets and are reluctant to roll them over, preferring to have their cash back. 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