Finance Glossary: Essential Terms You Need to Know
A Assets Anything of value owned by an individual or company, such as cash, investments, real estate, and personal property. Annual Percentage Rate (APR) The yearly interest rate charged on borrowed money or earned through an investment, expressed as a percentage. Amortization The process of paying off a debt over time in regular installments of principal and interest. B Balance Sheet A financial statement that shows a company's assets, liabilities, and shareholders' equity at a specific point in time. Bonds Debt securities issued by corporations or governments to raise capital, with a promise to pay back the principal along with interest. Budget A plan that outlines expected income and expenses over a certain period, used to manage finances and achieve financial goals. C Capital Financial assets or resources that individuals or businesses use to fund operations and growth. Credit Score A numerical representation of an individual's creditworthiness, based on their credit hi...