Finance is managing money, investments, assets, and liabilities for individuals, businesses, and governments.

Raising capital by borrowing, usually through loans or bonds.

Total value of a company’s outstanding shares (price × number of shares).

Current assets minus current liabilities — shows short-term liquidity.

A financial statement showing assets, liabilities, and equity at a specific date.

A fixed-income instrument representing a loan made by an investor to a borrower.

Total value of a company’s outstanding shares (price × number of shares).

Personal, corporate, and public (government) finance.

Profit is earnings; cash flow is actual money movement.

Possibility of losing part or all of an investment.

Raising money by selling ownership shares in the company.

A comparison of financial metrics used to evaluate a company’s performance.

Money today is worth more than the same amount in the future.

Reducing risk by investing in various assets or industries.

Earnings Before Interest, Taxes, Depreciation, and Amortization — measures operational profitability.

Ownership value in a company after liabilities are subtracted from assets.

Using borrowed funds to increase investment returns or business operations.

Measures gain/loss from investment relative to its cost.

Movement of money into and out of a business.

Interest calculated on both the principal and previously earned interest.

Represents ownership in a company and a claim on part of its assets.

Minimum return required to make a project or investment worthwhile.

Process of evaluating long-term investments and deciding where to allocate capital.

A portion of company profits paid to shareholders.

Documents showing a company’s financial activities: income statement, balance sheet, cash flow.