Finance: English Vocabulary List

a contract that gives the holder the right, but not the obligation, to buy or sell an asset at a predetermined price within a specified time frame

"He bought a stock option."

"The investor exercised his option to buy the stock at the agreed-upon price before it expired."

the official record of financial transactions and accounts for a business, including ledgers, journals, and other accounting documents

"He kept the company book."

"The accountant carefully maintained the company's general book, ensuring all financial entries were accurate and up-to-date."

the amount that was profited or lost in an organization or company after everything was calculated

"The bottom line was profit."

"After all expenses were accounted for, the company's bottom line showed a substantial increase in profitability this year."

the value of an asset after deducting all claims, debts, or liens against it

"She has equity in the house after ten years of payments."

"Equity represents the value of an ownership interest in an asset after all debts are subtracted"

a thing or method that protects one against potential problems, particularly financial ones

"Investors use a hedge to protect against big losses."

"Investors often buy gold as a hedge against inflation because its price tends to rise when the value of paper currency falls."

the acquisition of a company, leading to a change in ownership and often involving the purchase of a substantial portion of its shares

"The takeover of the company was completed last month."

"The larger company announced a hostile takeover of its smaller competitor by offering to buy all of its shares at a high price."