More words...

Financial risk

Financial risk is the possibility that shareholders will lose money when they invest in a company that has debt, if the company's cash flow proves inadequate to meet its financial obligations. When a company uses debt financing, its creditors are repaid before its shareholders if the company becomes insolvent. Financial risk also refers to the possibility of a corporation or government defaulting on its bonds, which would cause those bondholders to lose money.

Financial risk is one of the high-priority risk types for every business. Financial risk is caused due to market movements and market movements can include host of factors. Based on this, financial risk can be classified into various types such as Market Risk, Credit Risk, Liquidity Risk, Operational Risk and Legal Risk.

Spanish translation: Riesgo Financiero

Examples:

• "The optimism correlates with risk aversion, rather than taking on more risk … and likewise when they feel more pessimistic they would more risk adverse. However, Mr Oliver thinks these findings could help consumers, marketers and investors and also help manage problematic financial risk-taking.” Found in: http://www.abc.net.au/news/2017-08-05/gambling-finance-risk-taking-impacted-by-luminance/8777464

•  “Brexit poses global financial risk, Bank of England warns. The Bank of England has warned that uncertainty about the EU referendum is the "largest immediate risk" facing global financial markets.” Found in: http://www.bbc.com/news/business-36548460

Reserve Ratio

The reserve ratio is the portion of depositors' balances that banks must have on hand as cash. This is a requirement determined by the country's central bank, which in the United States is the Federal Reserve. The reserve ratio affects the money supply in a country at any given time.

Also known as Cash Reserve Ratio, it is the percentage of deposits which commercial banks are required to keep as cash according to the directions of the central bank.

Spanish translation: Coeficiente de reserva

Examples:

• “Many central banks, especially in developing and emerging markets, use a required reserve ratio (RRR) or cash reserve ratio (CRR) as a tool of monetary policy. By changing the ratio, central banks can influence the growth of credit”.Found in: http://www.centralbanknews.info/p/reserve-ratios.html 

• “The People's Bank of China (PBOC) has cut the reserve requirement ratio (Reserve Ratios, RRR) for the banks by a full percentage point, taking the ratio down to 16 percent”. Found in: https://www.cnbc.com/2017/01/22/china-cuts-reserve-ratios-for-big-5-banks-temporarily-amid-cash-crunch-sources.html

Words T5

Bond

A bond is an instrument of indebtedness of the bond issuer to the holders.

Spanish translation: Bono

Examples:

• ‘Since 1989, the worst year for the aggregate bond market was 1994 (-2.9%)’.

Found in:  http://www.financialsamurai.com/the-case-for-buying-bonds-living-for-free-and-other-benefits/ 

• If you invest in bonds, your money will be unavalaible until the due date.

Broker

A broker is an individual or firm that charges a fee or commission for executing buy and sell orders submitted by an investor, a reputable forex broker should have rules, programs or services to protect the integrity of the market

Spanish translation: Corredor de bolsa

Examples:

• ‘Two former Deutsche Bank corporate brokers have been sentenced to one of the longest prison terms possible for the crime of insider trading in the UK. As US financial market participants walk free in the streets managing their own "home office" money, Martyn Dodgson and Andrew Hind will be rotting in a Wandsworth prison cell (among the worst reputed of England's prisons) for up to four and half years for what the judge called "persistent, prolonged and deliberately dishonest behavior." As Bloomberg reports, the group, including three other defendants, formed part of the FCA’s biggest insider-trading investigation dubbed Operation Tabernula’.

Found in: http://www.zerohedge.com/news/2016-05-12/deustche-bank-brokers-jailed-after-prolonged-persistent-bad-behavior-biggest-insider

• ‘When it comes to buying a home or renewing a mortgage term, many financial experts recommend using a mortgage broker to help find the best mortgage rate and terms. The reason is that mortgage brokers work for you – not the bank (even though they’re paid by the lender and not the client) – and can leverage their large network of lenders to access the most favourable mortgages based on their clients’ needs’

Found in: http://boomerandecho.com/mortgage-brokers-gone-bad/

Customers

A customer is an individual or business that purchases the goods or services produced by a business. Attracting customers is the primary goal of most public-facing businesses, because it is the customer who creates demand for goods and services.

Spanish translation: Clientes

Examples:

• ‘Customers are also likely to make purchases with their own money, or the money given to them by others who know them personally’.

Found in: https://www.entrepreneur.com/video/286000

• ‘Customers are often grouped according to age, race, sex, ethnicity, income level and geographic location all go into a customer's demographic profile’.

Found in: http://westernweekender.com.au/2016/11/dont-forget-existing-customers/

Investor 

A person who puts money into something in order to make a profit or get an advantage.

Spanish translation: Inversor 

Examples:

• ‘As an investor, watch for the dangers of over-consumption and lifestyle creep. The Siegels, especially Jackie, have no sense of when to stop spending their money and it eventually takes its toll.’ 

Found in: http://blog.wallstreetsurvivor.com/2016/11/01/9-incredible-finance-documentaries-make-better-investor/

• ‘A common complaint I hear a lot of from would be investors is how to start investing with a small amount of money. Most people don’t have a few grand laying around to put into the market and so they just sit on the sideline instead, thinking that $100 won’t matter in the long run. [...] You don’t need thousands to get started down the path of financial freedom. In fact, in one case, you can start out with just $10!’

Found in: http://www.moneysmartguides.com/investing-with-a-small-amount-of-money

Financial Statements 

Financial statements are reports prepared and issued by company management to give investors and creditors additional information about a company's performance and financial standings. This is the fundamental purpose of financial accounting – to provide useful financial information to users outside of the company.

Spanish translation: Estados Financieros 

Example:

• ‘The Australian financial reporting (financial statements) landscape continues to evolve as a result of changing expectations from investors, regulators and the government. On the one hand, there are increased calls from investors for cutting the disclosure clutter in financial statements and tailoring financial statements to better tell the story. However, on the other hand the accounting standard setters are requiring additional disclosures including those in the new accounting standards (namely leases, revenue and financial instruments)’. 

Found in: http://accounting-simplified.com/financial/statements/types.html

Words T4

Deflation

In economics, deflation is a decrease in the general price level of goods and services. Deflation occurs when the inflation rate falls below 0% (a negative inflation
rate). Inflation reduces the real value of money over time; conversely, deflation increases the real value of money – the currency of a national or regional economy. This allows one to buy more goods and services than before with the same amount of money.

Spanish translation: Deflación

Examples:

• ‘For example, in a deflationary economy, a computer that sells for $1,000 today might carry a price tag of $990 next year. Or, if you buy a car for $20,000 today, you might be able to buy a better car for $20,000 next year.’

Found in: http://www.bankrate.com/finance/investing/5-ways-to-outlast-deflation-1.aspx

• ‘Deflation is different from disinflation as the latter implies decrease in the level of inflation whereas on the other hand deflation implies negative inflation.’

Found in: http://economictimes.indiatimes.com/definition/deflation

Interest rate 

Interest rate is the amount charged, expressed as a percentage of principal, by a lender to a borrower for the use of assets.

Spanish translation: Tasa de interés

Examples:

• ‘The Swiss government ran a negative interest rate policy in the early 1970s’.

Found in: http://www.investopedia.com/terms/n/negative-interest-rate-policy-nirp.asp

• ‘Interest Rate in the United States averaged 5.83 percent from 1971 until 2016, reaching an all time high of 20.00 percent in March of 1980 and a record low of 0.25 percent in December of 2008.’

Found in: http://www.tradingeconomics.com/united-states/interest-rate

Profit

Financial benefit that is realized when the amount of revenue gained from a business activity exceeds the expenses, costs and taxes needed to sustain the activity.

Spanish translation: Beneficio

Examples:

• ‘Samsung doesn't need to forfeit all profits from several products to Apple’.

Found in: http://money.cnn.com/2016/12/06/technology/samsung-apple-supreme-court/

• ‘Credit Suisse lowers profit targets and steps up cost cuts’.

Found in: https://www.ft.com/content/8b5a733c-bc5c-11e6-8b45-b8b81dd5d080

Words T2

Bank guarantee

A bank guarantee is a guarantee from a lending institution ensuring the liabilities of a debtor will be met. In other words, if the debtor fails to settle a debt, the bank covers it. A bank guarantee enables the customer, or debtor, to acquire goods, buy equipment or draw down loans, and there by expand business activity.

Spanish translation: Aval bancario 

Examples:

- 'The Minister explained that bank guarantees had initially been imposed on enterprises registered with the Ministry in order to safeguard worker rights.'
Found in: http://m.gulfnews.com/news/uae/government/smes-excused-from-bank-guarantees-starting-october-2016-1.1867358

- With a bank guarantee you can cover performance and payment obligations.

Banker Blanket Bond (BBB)

This is an insurance for the bank to cover against the losses which might happen due to criminal act/ dishonest act carried out by employee. Usually a bank can choose to insure a specific employee like a bank manager. It can also choose to insure itself so that any prospective employee who joins the bank and takes up any position is
automatically covered by the insurance rules. Criminal acts like robbery and forgery by bank employee are covered under this insurance provision.

Spanish translation: Póliza Global Bancaria

Examples:

-  ‘The key policies are professional liability insurance (otherwise known as errors and omissions or professional malpractice insurance); directors' and officers' liability insurance; bankers blanket bond fidelity/crime insurance; and an umbrella commercial general liability policy.’

Found in: United Nations Office for Project Services accountability framework and oversight policy (Annual session 2008), page 4.

-  ‘Any organization that is involved in the provision of financial services to third parties needs to consider Bankers Blanket Bond insurance.’  

Found in: http://www.willisfinexglobal.com/fi_bankers_blanket.html

Individual Savings Account (ISA)

A type of investment account in the UK in which the tax on income is lower than usual, and there is no tax on profits made from an increase in the value of shares

Spanish translation: Cuenta de ahorro individual.

Examples:

-  ‘Your full allowance can be saved in one of our cash ISAs or invested in our stocks and shares ISA.’

Found in: https://www.triodos.co.uk/en/personal/ethical-isas/

-  ‘The Innovative Finance Isa sounded so promising. You would earn decent
interest when the stock market is volatile and other savings returns are
at rock-bottom — and all within a tax-free wrapper.’

Found in: http://www.thetimes.co.uk/article/the-unloved-child-of-the-isa-family-5mxvb50wv 

Overdraft

The amount of money you owe to a bank when you have spent more money than is in your bank account; an arrangement that allows you to do this.

Spanish translation: Descubierto

Examples:

-  ‘A decision by the competition regulator not to recommend a cap on excessive overdraft charges could be re-examined, the Financial Conduct Authority says.’

Found in:  http://www.bbc.com/news/business-37845849

-  I had to arrange an overdraft to pay for the car.

Words T8

E-commerce

Electronic commerce (e-commerce or ecommerce) is a type of business model, or segment of a larger business model, that enables a firm or individual to conduct business over an electronic network, typically the internet.

Spanish translation: Comercio electrónico

Examples:

- 'Succeeding in building an e-commerce business doesn´t always discriminate against your past. You can control your own future if you give yourself permission to do so'.
Found in: http://www.websitebuilderexpert.com/e-commerce-examples-case-studies/

- ‘By 2010, e-commerce represented 77 percent of direct-to-consumer revenues and was a significantly more profitable than either retail stores or catalog sales.’

Found in: The Investment Checklist: The Art of In-Depth Research By Michael Shearn

Fintech

Fintech is a portmanteau of financial technology that describes an emerging financial services sector in the 21st century. Originally, the term applied to technology applied to the back-end of established consumer and trade financial institutions. Since the end of the first decade of the 21st century, the term has expanded to include any technological innovation in the financial sector, including innovations in financial literacy and education, retail banking, investment and even crypto-currencies like bitcoin.

Spanish translation: Finanzas y tecnología

Example:

- ‘Over the past five years, global financial technology (fintech) financing has grown rapidly, but the share of fintech investment directed at companies looking to compete against the financial services sector has remained relatively stable at 62 percent. In New York City, however, that explosive growth has coincided with a dramatic shift toward collaboration. As a result, the city is quickly becoming the global center of a new kind of fintech innovation’.

Found in: https://www.accenture.com/hk-en/insight-fintech-golden-age-competition-collaboration

Tariff

A tax imposed on imported goods and services. Tariffs are used to restrict trade, as they increase the price of imported goods and services, making them more expensive to consumers. A specific tariff is levied as a fixed fee based on the type of item (e.g., $1,000 on any car). Tariffs provide additional revenue for governments and domestic producers at the expense of consumers and foreign producers. They are one of several tools available to shape trade policy.

Spanish translation: Arancel

Examples:

 - "Tariffs on some sensitive products will be eliminated over longer timeframes as agreed by the TPP Parties”.

Found in: http://www.bbc.com/news/business-32498715

- “China declares it will stop selling iPhones if Trump imposes tariffs”

Found in: https://www.extremetech.com/electronics/239376-china-declares-will-stop-selling-iphones-trump-imposes-tariffs

Words T9

Bank account

A bank account is a financial account maintained by a financial institution for a customer. A bank account can be a deposit account, a credit card account, or any other type of account offered by a financial institution, and represents the funds that a customer has entrusted to the financial institution and from which the customer can make withdrawals. Alternatively, accounts may be loan accounts in which case the customer owes money to the financial institution.

The financial transactions which have occurred within a given period of time on a bank account are reported to the customer on a bank statement and the balance of the accounts at any point in time is the financial position of the customer with the institution.

The laws of each country specify the manner in which accounts may be opened and operated. They may specify, for example, who may open an account, how the signatories can identify themselves, deposit and withdrawal limits and many other matters.

Spanish translation: Cuenta bancaria

Examples:

- ‘Avoiding commissions associated with a bank account is often one of the main concerns of clients’.

Found in: http://ec.europa.eu/consumers/financial_services/bank_accounts/index_en.htm

- ‘In today's world, European citizens cannot fully participate in society without a bank account. Bank accounts have become an essential part of our everyday life, allowing us to make and receive payments, shop online and pay utility bills (telephone, gas, electricity)’.

Found in: https://en.wikipedia.org/wiki/Bank_account

Bankrupcty

Is a legal situation in which a person (natural person), company or institution (legal entities) can not face the payments that must be made (liabilities due), because these are higher than their available (active) economic resources.

Spanish translation: Quiebra o bancarrota

Examples:

- ‘A bankruptcy case normally begins when the debtor files a petition with the bankruptcy court. A petition may be filed by an individual, by spouses together, or by a corporation or other entity’.   

Found in: http://www.uscourts.gov/services-forms/bankruptcy

- ‘Lehman Brothers bank filed for bankruptcy on September 15, 2008.’

Found in: http://www.telegraph.co.uk/finance/financialcrisis/6173145/The-collapse-of-Lehman-Brothers.html

Words T3

Leasing

Written or implied contract by which an owner (the lessor) of a specific asset (such as a parcel of land, building, equipment, or machinery) grants a second party (the lessee) the right to its exclusive possession and use for a specific period and under specified conditions, in return for specified periodic rental or lease payments. A long-term written lease (also called a deed) creates a leasehold interest which in itself can be traded or mortgaged, and is shown as a capital asset in a firm's books.

Spanish translation: Arrendamiento financiero

Examples:

• ‘Leasing land for recreational hunting can provide Oklahoma landowners will a little extra cash in their pocket, labor resources for their land, perhaps a few new friends and a reduction in trespassing.’

Found in: http://www.newstimes.com/news/article/Oklahoma-residents-benefit-from-leasing-land-to-10690664.php

• ‘While construction started on the 374-unit complex last fall, officials with the company, one of the largest apartment developers in the nation, said the first units in Kennedy Flats will be available by January. Already the phones in the leasing office are ringing with potential tenants.’

Found in: http://www.newstimes.com/business/article/Leasing-office-opens-for-Kennedy-Flats-in-Danbury-6481181.php

Loan

Is the lending of money from one individual, organization or entity to another individual, organization or entity. A loan is a debt provided by an entity to another entity at an interest rate, and evidenced by a promissory note which specifies, among other things, the principal amount of money borrowed, the interest rate the lender is charging, and date of repayment. A loan entails the reallocation of the subject asset for a period of time, between the lender and the borrower.

Spanish translation: Préstamo

Examples:

• ‘Interest rates have a huge effect on loans.’

Found in: http://www.investopedia.com/terms/l/loan.asp

• ‘In 2010 student loans overtook credit cards to become the biggest source of American household debt other than mortgages.’

Found in: http://www.economist.com/news/united-states/21708241-hillary-clintons-college-funding-plan-better-politics-policy-more-present?zid=316&ah=2f6fb672faf113fdd3b11cd1b1bf8a77

Preference shares

Shares representing part of the capital issued by a company and entitling their holders to priority with respect to both net profit and net assets. Preference shares usually carry a definite rate of dividend that is generally lower than that declared on ordinary shares.

Spanish translation: Acciones preferentes

Examples:

• ‘Listed perpetual preference (pref) shares are finally showing some sign of life after a decline between 2012 and early 2016 in which the JSE pref index shed a quarter of its value.’

Found in: http://www.financialmail.co.za/moneyinvesting/2016/04/28/preference-shares-a-rally-at-last

• ‘Barclays issues subordinated debt instruments and preference shares that contribute to the strengthening of our capital position.’ 

Found in: https://www.home.barclays/barclays-investor-relations/treasury-and-capital/subordinated-debt-and-preference-shares.html

Subprime Mortgage

A subprime mortgage is a type of mortgage that is normally issued by a lending institution to borrowers with low credit ratings

Spanish translation: Hipoteca Subprime

Examples:

• ‘In this scene appears "Michael Burry" who discovers as there are numerous bonds that are with a high percentage of subprime mortgages and deduces that from 2007 the bonds were worthless.‘

Found in: http://wibaf.blogspot.com.es/search/label/T3

• ‘The subprime mortgage crisis occurred when banks used home mortgages to underwrite mortgage-backed securities, and then went bankrupt after the housing market collapsed.’

Found in: https://www.thebalance.com/subprime-mortgage-crisis-4073020