Serrano, Aina Marie C.

ABM1201
Business Finance

Check a finance dictionary or surf the internet for the technical meanings of the finance
terms or jargons.

1. financial statements
- a set of documents that show your company's financial status at a specific
point in time. They include key data on what your company owns and
owes and how much money it has made and spent.

2. accounting principles
- are the rules and guidelines that companies and other bodies must follow
when reporting financial data. These rules make it easier to examine
financial data by standardizing the terms and methods that accountants
must use.

3. economic theory
- The study of relationships in the economy. Its purpose is to analyze and
explain the behavior of the various economic elements.

4. financial management
- means planning, organizing, directing, and controlling the financial
activities such as procurement and utilization of funds of the enterprise. It
means applying general management principles to the financial resources
of the enterprise.

5. capital market
- is a place where buyers and sellers indulge in trade (buying/selling) of
financial securities like bonds, stocks, etc. The trading is undertaken by
participants such as individuals and institutions. The capital market trades
mostly in long-term securities.

6. financial investment
- is a financial product like a cryptocurrency or a stock that is bought with
the goal of making money. Each investment has specific risks, advantages
and disadvantages that will determine how and when investors buy or sell
them.
7. portfolio analysis
- is the process of reviewing or assessing the elements of the entire
portfolio of securities or products in a business. The review is done for
careful analysis of risk and return.
8. market analysis
- is a complete assessment of the size and nature of a given market or
industry. It takes into account both quantitative factors, such as the
volume and value of the market, and qualitative factors, such as the
competition and regulation of the market.

9. behavioral finance
- is the study of the effects of psychology on investors and financial
markets. It focuses on explaining why investors often appear to lack self-
control, act against their own best interest, and make decisions based on
personal biases instead of facts.

10. investing decision

- It relates to how the funds of a firm are to be invested into different assets
so that the firm is able to earn the highest possible return for the investors.
An investment decision can be long-term, also known as capital budgeting
where the funds are committed into long-term basis.