Definition

The act of assigning a score, rank, or evaluation to something based on predetermined criteria; the quantification of opinion into a number so we can argue about it online.

Example Usage

The credit agency is rating companies based on their ESG score and debt-to-equity ratio.

Source: Merriam-Webster via Free Dictionary API

Related Terms

Intermediate

solvency

The ability to meet long-term obligations and survive beyond next quarter—unlike liquidity, which only cares about immediate bills. A company can be liquid but insolvent (cash now, doomed later) or illiquid but solvent (asset-rich, cash-poor).

💰 Finance / Accounting
Advanced

ringfence

To cordially tell money 'you stay here and don't associate with those other rowdy funds.' A legal barrier ensuring specific funds can only be used for their designated purpose, protecting them from predatory creditors or budget cuts.

💰 Finance / Accounting
Intermediate

materiality

The threshold at which an error or omission would influence the decisions of financial statement users, essentially the line between 'oops' and 'fraud.' It's subjective, context-dependent, and endlessly debatable.

💰 Finance / Accounting
Intermediate

boarding

In fintech and hospitality, the process of onboarding someone into a financial service or accommodation by providing meals and lodging. It's the careful dance of getting customers to commit their money and wallets to your platform before they realize the terms are ridiculous.

💰 Finance / Accounting
Beginner

stocks

Pieces of corporate ownership that you can buy and sell obsessively while checking your phone every five minutes. Or, a supply of raw materials waiting to become something useful.

💰 Finance / Accounting
Intermediate

reconcile

To make your financial accounts stop lying to each other by adjusting numbers until debits and credits agree. It's accounting's version of couples therapy—painful but necessary.

💰 Finance / Accounting

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Intermediate

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