Numbers dressed up in fancy suits pretending to be words.
To verify that the sum of row totals equals the sum of column totals in a spreadsheet, because trusting your formulas is for amateurs. It's the accounting equivalent of checking your math twice before raising your hand.
Money already spent that cannot be recovered and therefore should not factor into future decisions, though humans are psychologically terrible at ignoring it. Your brain keeps asking 'but what about the money we already spent?' and economics keeps answering 'it's gone, move on.'
Modeling how a portfolio or institution would perform under adverse scenarios like market crashes or economic meltdowns. Like a financial fire drill, except the fire is hypothetical and the panic is very real.
When two companies combine to become one larger, more dysfunctional company with twice the middle management. It's always sold as a "merger of equals" and always ends with one side updating their resumes within six months.
A comprehensive listing of all accounts in an organization's general ledger, organized into categories like assets, liabilities, and expenses. It's the financial filing system that makes sense to exactly one person: whoever designed it.
A trader who believes that staring at price charts and drawing lines on graphs can predict the future, also known as a technical analyst. They're basically financial astrologers with better software.
The polite adjective for anything related to money arguments in government or business, where "budgetary concerns" means "we don't want to pay for that." It's the formal way of discussing fiscal matters while avoiding words like "broke," "wasteful," or "embezzled." When someone mentions budgetary constraints, they're either actually out of money or just don't want to fund your brilliant idea.
A pre-approved sum of money allocated for specific purposes, whether it's reimbursing employees for business expenses or giving your kid enough cash to learn about financial responsibility (and candy budgets). In corporate speak, it's the amount you're permitted to spend before someone starts asking uncomfortable questions. It's not free money—it's controlled spending with receipts attached.
The predetermined order in which cash flows are distributed among different classes of investors, with senior investors getting paid before junior ones. It's like a literal waterfall—money flows down until each tier is satisfied.
An accounting entry recognizing that an asset is now worth less than its book value, forcing companies to admit their expensive acquisition was actually terrible. It's the corporate version of finding out your vintage comic book collection is worthless.
Money a company owes to suppliers and vendors for goods or services received but not yet paid for. The grown-up version of 'I'll pay you back later,' except with purchase orders and payment terms.
A method that front-loads depreciation expenses in early years of an asset's life, providing larger tax deductions sooner. It's the accounting equivalent of eating dessert first, with the IRS's blessing.
In trading, placing multiple buy or sell orders at different price levels to either manipulate apparent market depth or genuinely scale in/out of positions. Context determines whether it's strategy or securities fraud.
The practice of rolling over short-term loans continuously to make them function as long-term financing, or cosmetically refreshing products to extend their revenue life. It's kicking the can down the road with extra steps.
The difference between the present value of cash inflows and outflows over time, discounted because a dollar today is worth more than a dollar tomorrow—thank you, inflation and opportunity cost. If it's positive, invest; if negative, run away.
An investment made to offset potential losses in another investment, which is basically placing a bet that your other bet might be wrong. It's the financial equivalent of bringing both sunscreen and an umbrella because you have zero faith in the weather forecast.
Basic goods traded in bulk markets where one unit is virtually identical to another—think oil, wheat, gold, or coffee beans before they get a fancy name at Starbucks. These fungible raw materials are bought and sold on specialized exchanges where traders gamble on price fluctuations. It's where agricultural products and natural resources become abstract financial instruments.
An asset's value on the balance sheet after accounting for depreciation and amortization—basically what the accountants say it's worth, which often bears no resemblance to what someone would actually pay for it.
One hundredth of one percent (0.01%), because apparently regular percentages weren't confusing enough for finance professionals. When your mortgage rate increases by 25 basis points, congratulations—you're paying 0.25% more.
A bond provision allowing holders to demand early repayment at par if certain events occur, like a change of control or credit downgrade. The bondholder's nuclear option when they don't like new management's plans.
The point at which something begins to happen or have effect—the minimum viable amount before things change significantly. Cross it and there's no going back.
The stuff you promise to forfeit if you can't pay back a loan—basically insurance for lenders who don't trust your word alone. It's the financial equivalent of leaving your driver's license at the bowling alley when you rent shoes. Can be your house, car, or collection of vintage Beanie Babies (though banks prefer the first two).
The fundamental method used to determine when transactions are recorded—either when cash moves (cash basis) or when obligations occur (accrual basis). Like choosing whether to count calories when you eat or when you order.
The fancy way to say 'fork over the cash,' typically used when governments or large organizations finally release funds they've been sitting on. It's the financial equivalent of a parent grudgingly handing over allowance money. Always sounds more dignified than 'pay out,' which is exactly why accountants love it.