Definition

The foundation or starting point for literally anything, from arguments to tax calculations to why your accounting department insists on doing things 'the old way.' In finance, it's the original cost of an asset used to calculate gains or losses. In business discussions, it's the justification people grasp at when they need to sound like they have a plan.

Example Usage

On what basis did we decide to pivot to NFTs? I'll wait while you invent a retrospective justification.

Source: Financial and general business terminology

Related Terms

Intermediate

zombie company

A business that generates just enough revenue to service its debt but not enough to pay it down or grow, essentially the corporate undead. They're alive, but only technically.

💰 Finance / Accounting
Beginner

earnings before interest and taxes

Operating income that excludes financing costs and tax expenses, providing a clearer view of operational performance. It's EBITDA's more conservative cousin that remembers depreciation and amortization are real expenses.

💰 Finance / Accounting
Advanced

yield to maturity

The total return anticipated on a bond if held until it matures, accounting for current price, par value, coupon interest, and time to maturity. It's what you'll earn assuming the issuer doesn't default, which is a bigger assumption than bond investors like to admit.

💰 Finance / Accounting
Beginner

gross profit margin

The percentage of revenue remaining after subtracting cost of goods sold, revealing how much you make before paying for all the other stuff that keeps businesses running. High margins are good; low margins mean you're working hard to stay broke.

💰 Finance / Accounting
Intermediate

free cash flow

Cash from operations minus capital expenditures—the actual money left over after keeping the business running that can be used for dividends, buybacks, or acquisitions. It's the ultimate 'show me the money' metric that cuts through accounting games.

💰 Finance / Accounting
Beginner

Recession

Two consecutive quarters of economic decline, or as economists love to debate, maybe it's a vibe thing. During a recession, everyone becomes an armchair economist and suddenly has strong opinions about GDP, none of which are correct.

💰 Finance / Accounting

Translate This Term

See “basis” in Corporate Speak, Gen-Z Slang, Pirate Speak, and more.

Try the Translator

Share This Term

Post on XShare on FacebookShare on LinkedIn

Discover a Term

Beginner

USB

For example, your friend may text you, "how you doin? it's been 2 long, usb!" Or, your friend may comment on a picture y...