Whether you work for a company or are interested in economics and finance, you will recognize that knowing financial terms in English can be very useful. The world of investments and international trade take the English language beyond national borders. Even if you do not invest in the stock market or work for a company, you will surely have come across English terminology while reading news articles about the economic situation in the world.
For this reason, ABA English has decided to give you some example technical terms from the English financial lexicon that might be useful to you. Let’s start!
In the Stock Market
Many people choose to invest their savings in the stock market in order to get some extra money without having to work, because they love the risk and challenge of the unknown, or maybe because they dream of encountering that stroke of luck that will change their lives. Whatever the motivation for investing in the stock market may be, there are some English terms that you should know. Below, we present a list of the most common stock market terminology.
bear market: a market with decreasing value
The bear market has caused prices to fall again.
bull market: a market with increasing value thanks to investor confidence
The bull market encourages investment.
recession: a period of depression in the economic growth of a country lasting anywhere from a few months to a few years
Due to the current recession, we were forced to reduce expenses and investments.
rally: used to indicate sudden economic recovery due to growth in investments
Last year, the rally helped my financial situation.
shares: a portion of the capital stock in a company
I have some shares in this company.
stocks: a certificate that marks the holder as a shareholder in a company.
I invest in stocks and shares.
In a Company
If you work for a company, you will undoubtedly know the basic vocabulary of finance and investment in your native tongue. But what about their English translation? English is now the international language of commerce, finance, and investment. Here are the most common terms from that sector.
cash outflow: the cash that a business dispenses in payments for operating expenses, investments, etc.
Every company has a cash outflow to manage the costs of supplies and maintenance.
external capital: these are outside sources of capital. Unlike the capital itself, it has a specific expiration date and specific remuneration. The profits must be paid to the investor, independent of the profits received by the company.
Our external capital amounts to £130,000.
investment: this is a sum of money put to use in a purchase of goods or in commercial activity, with the intention of producing more money.
We are looking for growth in our investment.
loss: a decrease in financial value.
We suffered a loss, but we can manage it!
profit : the cash that remains after a company’s expenses have been paid.
Our company made a huge profit this year with the sale of our new products.
revenue: income obtained during a period of business or capital activity.
Net income is calculated by subtracting expenses from revenue.
In the Bank
What about banking in English? English is also very important in this field of work. Even if you don’t work in finance or don’t worry about the economy, you will definitely need to use banking services when you are abroad. What happens if you come across the word overdraft in your account? Do you know what it means? To avoid misunderstandings, here is a brief list of the most common banking terms in English.
collateral: goods or money that the signer pledges to guarantee the repayment of a loan.
In order to receive the loan, the bank requested $5,000 as collateral.
credit rating: a formal evaluation of the credit history of a person or company. This is very important when applying for a loan.
Our credit rating is quite stable and positive, so we will not have any problems getting a loan.
debt: something that is owed by a debtor and must be repaid to a creditor. Usually the repayment of a sum of money.
After taking out the loan, I realized I could not pay back the debt.
interest rate: the amount a bank charges for each loan it grants. This is always expressed as a percentage.
Reduced interest rates encourage people to invest their money in the market.
long-term loan: a loan that whose repayment can be anywhere from one to 20 years after the loan is granted.
We need a large amount, so we will apply for a long-term loan.
mortgage: a loan that uses an interest in real estate as a guarantee to fulfillment of an obligation or repay a debt.
The bank has offered me a very good mortgage, so now I can buy my first house!
overdraft: this occurs when the bank continues to allow you to withdraw money when your account is at zero. Be careful with penalties that may apply!
My bank offers overdraft protection.
short-term loan: a loan that whose repayment can be anywhere from one day to one year after the loan is granted.
We need a short-term loan for the new investment.
These are only some of the English words that can be found in the world of finance. If you need to speak English at work and want to improve your knowledge of the language, ABA English is here for you. We have 144 video lessons, short films, online exercises, and qualified teachers at your disposal. What are you waiting for? Learn English with ABA English!