Definition

The speed at which something happens or the proportional relationship between two values—basically, how fast or how much per unit of measurement. Think of it as the mathematical way to compare apples to oranges (or interest to principal).

Example Usage

The mortgage rate climbed to 7%, making homebuyers weep quietly into their spreadsheets.

Source: Merriam-Webster via Free Dictionary API

Related Terms

Advanced

derivatives

Financial instruments whose value is derived from some underlying asset, essentially bets on bets that get so complex even the people trading them need flowcharts. These include options, futures, swaps, and other products that made 2008 interesting. They're tools for hedging risk or speculation, depending on whether you're being responsible or reckless.

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Advanced

notional value

The total value of a leveraged position's assets, as opposed to the actual cash you put up, which is usually much less. It's the difference between owning a $100,000 house and the $20,000 you put down.

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cherry picking

Selectively choosing favorable data points while ignoring unfavorable ones, or choosing which trades to allocate to which accounts after seeing results. It's the art of making anything look good through strategic omission.

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solvency ratio

A measure of whether a company can meet its long-term obligations, typically comparing assets to liabilities or earnings to debt service. It answers the question: 'Will this company exist next year?'

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obligation

A binding commitment that transforms 'I'd like to' into 'I legally have to' faster than you can say 'terms and conditions.' It's the formal requirement—legal, moral, or contractual—that keeps society functioning and accountants employed. The thing that makes you show up even when you'd rather fake your own death.

💰 Finance / Accounting
Beginner

financing

The art of obtaining money for a venture, purchase, or operation, typically through loans, investments, or creative accounting that would make your grandmother worry. In real estate and business, it's the difference between owning something outright and owing a bank for the next 30 years. Everyone says they're 'exploring financing options' which usually means 'we're broke but optimistic.'

💰 Finance / Accounting

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