Finance Terms: Here’s An Interesting Glossary for the Beginners

Finance investment companies in Delhi, India says that even after taking a way lot of content on finances, you may not totally be sure of all the important financial terms. A very few industries are as riddled with jargon as the finance industry. This is why it appears really difficult to know the application and benefits of all of them.

However, you need not enter into the extremely intense dictionary of the finance industry. Just the basics are well enough to give you the essential understanding of the terms & benefits associated with the finance industry. Here are a few common terms that you may tuck under your tool belt for all the convenience.

401(k):

401(k) is a plan offered by companies and is meant to help you save for the retirement. The money you set aside is tax deferred, and it’s frequently matched in part which means that the company will dedicate its money to your account as well.

APR:

The term APR stands for Annual Percentage Rate, and it refers to how much interest you’re paying on the money you borrow. It’s especially a term that’s very important when you are signing up for a credit card.  The higher your APR, the more money you’ll ultimately pay if you don’t if you don’t pay off your balance in full each month.

Assets:

Assets are items of value. For example things like major savings funds, a car or a plot of land are good examples of assets and are used to calculate your net worth.

Bankruptcy:

This is a really scary term and much familiar term. Bankruptcy means owing more money than you can actually afford to pay. It happens when you borrow too much through mortgages, credit card debt, student loans, car payments and more.

Bonds:

You must have heard the terms “stocks and bonds” at several occasions. When you buy a bond, you’re lending that company money. How that money is paid back is determined by the terms & conditions under which you bought the bond.

 

Stocks:

When you buy a stock, you are buying a small part of the company. The price of each share is determined in part by how much people are willing to pay for them. How much they are selling them for and how well the company is anticipated to perform.

Debt Consolidation:

Debt consolidation is a term that describes a strategy when you've accumulated debt from multiple, high-interest sources (such as credit cards). Finance investment companies in Delhi, India says that debt consolidation allow you to make one payment each month, reducing the amount of money you spend repaying your debts overall.