According to Oxfam, 82% of the world's wealth is in the hands of the 1% of the world's population. Even if you are not one of these lucky people, you definitely deal with money every day. Therefore, we hope that our English cheat sheet for economists will be useful to you.
If you work in the financial sector, we recommend that you study our concise economic dictionary on banking, finance and accounting, taxation and auditing. For representatives of other professions, the section on investments, cryptocurrency and professional jargon of economists may be of interest.
We encourage even those of you who are not in the financial sector to explore our carefully selected resources. They will help you keep track of your personal finances, explore the world of movie brokers, and always keep your finger on the pulse, without waiting for news about the current economic situation to be translated into Russian.
Concise Dictionary of Economic Terms
Let's look at the basic terminology of English for economists. At the beginning of our financial and economic dictionary are general terms from economic theory, which many of us began to study in school. Further - highly specialized industry concepts for employees of banks, accounting departments and audit companies. For a snack - a short crypto-dictionary on the topic of the day and professional slang.
Basic terminology
Let's start with the ABC of economic theory: we will study the most necessary terms.
| Word/Phrase | Translation |
|---|---|
| a seller | salesman |
| a buyer | buyer |
| profit and loss | profit and loss |
| a margin | margin |
costs:
| costs, expenses
|
| a market | market |
| competition | competition |
| efficiency | efficiency |
| an exchange | exchange |
| trade | trade |
| an advantage | advantage, benefit |
| a disadvantage | disadvantage, damage |
| purchasing power | purchasing power |
| demand | demand |
| supply | sentence |
| a demand curve | demand curve |
| a supply curve | supply curve |
| an incentive | motivating motive |
| a production possibilities curve (PPC) | production possibilities curve |
| tax | tax |
| duty | duty |
| duty free | duty-free |
| a subsidy | subsidy |
| an absolute price | absolute price |
| a relative price | relative price |
| a price floor | minimum price |
| the equilibrium price | equilibrium price |
| a price level | price level |
| a consumer price index | consumer price index |
| a minimum wage | minimum size wages |
| sur plus | surplus, excess |
| scarcity | lack, deficiency |
| a government budget | the state budget |
| gross domestic product (GDP) | gross domestic product (GDP) |
| gross national product (GNP) | gross national product (GNP) |
| foreign national debt | public external debt |
| The World Trade Organization (WTO) | World Trade Organization (WTO) |
| gold and currency reserves | gold reserves |
| inflation | inflation |
| devaluation | devaluation |
| a commodity bundle / a market basket | consumer basket |
| unemployment | unemployment |
| the poverty line | poverty line |
| financial crisis | financial crisis |
Professions in the field of economics and finance
Now let's look at the most common professions in the economic sector.
| Word/Phrase | Translation |
|---|---|
| an economist | economist |
| an accountant | accountant |
| a business analyst | business analyst |
| a financial advisor | Financial Consultant |
| an investment counselor (adviser) | investment consultant |
| a comptroller | Financial Controller |
| a tax officer / a tax inspector | tax inspector |
| a broker | broker |
| a public certified accountant (Am.E.), a chartered accountant (Br.E.) | auditor |
| an actuary | actuary (specialist in insurance calculations) |
| a treasurer | treasurer |
| a bank clerk | a bank employee |
| a chief financial officer (CFO) | financial director |
Banking
Consider the key terms for working in a bank.
| Word/Phrase | Translation |
|---|---|
| a stock market | securities market, stock market |
| an interest | percent |
| an interest rate | interest rate |
| capitalization | capitalization |
| the capitalization rate | interest rate used in income capitalization |
| a refinancing rate | refinancing rate |
| an encashment | collection |
| the International Monetary Fund | International Monetary Fund |
| a credit rating | credit rating |
| creditworthiness | creditworthiness |
| a credit history | credit history |
| a loan | mortgage credit lending |
| a payment guarantor | payment guarantor |
| a fine (a penalty) | penalty, fine |
| a general lien | the right to seize the debtor's property |
| forgery | counterfeit (banknotes, bills) |
| a default | default |
Finance and accounting (finance and accounting)
Record income and expenses, balance debits and credits English language a selection of words for accountants will help.
| Word/Phrase | Translation |
|---|---|
| bookkeeping | accounting |
| financial planning | financial planning |
| accounting analysis, financial analysis | the financial analysis |
| accounting/accountancy | Accounting |
| financial statements (a financial report) | financial statements (financial report) |
| an accounting period | reporting period |
| an annual report | annual report |
| a balance sheet | balance sheet |
| a cash flow statement | cash flow statement |
| a fiscal year | fiscal year |
| account reconciliation | reconciliation of accounts |
| assets | assets |
| liabilities | liabilities |
| financial risk management | financial risk management |
types of accounting ratios:
| types of accounting ratios:
|
record keeping:
| accounting documentation:
|
Taxation and auditing (taxation and auditing)
Let's move on to vocabulary for tax professionals.
| Word/Phrase | Translation |
|---|---|
| a tax declaration | tax return |
| a tax payer | taxpayer |
| a fiscal period | taxable period |
| a tax base | object of taxation |
| a tax holiday | tax credit |
| a tax rate | tax rate |
| direct taxes | direct taxes |
| indirect taxes | indirect taxes |
| an income tax |
|
| value added tax (VAT) | value added tax (VAT) |
| a tax counsel | tax advisor |
| an audit team | revision group |
| audit accounts | audited reporting |
| a tax haven | "tax haven", offshore zone, territory with a preferential taxation regime |
| to levy | to tax |
Business and investment (business and investment)
We present a business dictionary from the field of trade and investment.
| Word/Phrase | Translation |
|---|---|
| stocks and shares | stocks and bonds |
| a shareholder | shareholder |
| a stock exchange | stock Exchange |
| a venture fund | venture fund |
| an investment portfolio | investment portfolio |
| flotation | corporatization |
| a nominal value | nominal cost |
| a share price slump | collapse of stock prices |
| a bull market | bull market, bull market |
| bear market | bear market, bear market |
| an advisory company | consulting company |
| a boom and a bust | rise and fall (in company development) |
| illegal business | illegal business |
| shadow economy | shadow economy |
| to accumulate capital | increase capital |
| to tie up a block of shares | invest in a shareholding |
| to turn bankrupt | go bankrupt |
Cryptoindustry (crypto industry)
So we got to the most relevant topic - the crypto industry. Since many concepts are borrowed from English, we decided to give not only a translation, but also a brief interpretation.
| Word/Phrase | Translation |
|---|---|
| a cryptocurrency | cryptocurrency (digital currency that is created and controlled by cryptographic methods) |
| fiat currency, fiat money | fiat money (currency that the government establishes as legal tender) |
| a blockchain | blockchain (digital registry that stores information about all transactions, transactions and concluded contracts) |
| a smart contract | smart contract, smart contract (computer algorithm for concluding and maintaining commercial contracts in the blockchain system) |
| a token | token (digital share of the company) |
| a token holder | token holder |
| mining | mining (the process of extracting tokens) |
| cloud mining | cloud mining (mining tokens in a cloud service) |
| an initial coin offering (ICO) | initial placement of tokens on the exchange |
| crypto-bounty | crypto-bounty (provision of services in exchange for free tokens) |
Professional jargon
Some concepts from the professional slang of English-speaking economists are alien to us. Therefore, we decided to explain them in more detail - it will be easier to remember.
| Word/Phrase | Translation |
|---|---|
| a kickback | bribe, kickback |
| skint | penniless man |
| turnover | staff turnover |
| a bankster (banker + gangster) | corrupt banker |
| nom-nomics | "nom-nomika" is an abbreviated and more appetizing version of the name of the economy :-) |
| a hard sell | hard sell - aggressive product marketing strategy |
| leverage | financial leverage (financial leverage, financial leverage) |
| a chainsaw consultant | an outside expert brought in to reduce headcount while "leaving the hands of management clean" |
Useful Resources
Let's move on to useful resources that will make your work even more productive.
Tutorials:
- Economics by R. Arnold - A guide from California State University. The main convenience is that the terms are highlighted in blue and placed in the column on the left. This makes memorizing words much easier. In the Economics 24/7 section, you will find articles on entertaining economics, supported by real-life and historical examples. At the end of each chapter there are sections Chapter summary and Key terms and concepts with a summary of information and basic definitions.
- The Economics Book: Big Ideas Simply Explained by DK - the book tells about the development of economic thought, starting from Aristotle. The key feature is that the material is presented in the form of colorful infographics, which makes it easier to understand complex economic terms. Among the authors and consultants of the manual are a World Bank employee, an Obama campaign participant, and an adviser to the UK Treasury.
- Macmillan Guide to Economics by L. Raitskaya and S. Cochrane is a textbook from the Macmillan publishing house, compiled in English in collaboration with the Russian-speaking teacher of MGIMO Lilia Raitskaya. The textbook provides special sections for the development of various language skills, including listening.
- Professional English in Use Finance by I. MacKenzie is a textbook in the popular Professional English series from Cambridge University Press.
- English for the Financial Sector by I. MacKenzie - not only basic terms from the financial sector are collected here, there are also exercises to develop language skills.
- Oxford English for Careers: Finance by R.Clark and D. Baker
Dictionaries:
- Financial Dictionary by Farlex - 8,000 economic terms compiled for you by financial expert Harvey Campbell and Duke University professor Paul Stitch.
- A Dictionary of Finance and Banking is a textbook and part-time dictionary from Oxford Press.
- The Forbes Financial Glossary is a glossary from the world famous economic magazine.
Tools for the job:
- Financial Management - many templates for various financial documents in Excel and Word.
- Top Excel Templates for Accounting - templates of various types of documents for accountants in Excel files.
- AuditNet - templates for auditors.
Online magazines:
- Forbes is the famous financial magazine, without which this material would not have developed. Forbes has articles with the most popular being Forbes Lists, e-books, podcasts and video- interviews with entrepreneurs and materials about the richest people on the planet.
- The Economist is a British economics magazine with tons of sections to suit your every need: video, podcasts , iOS app and , mailing list , World in Figures infographics , The World If about alternative history in general and economic thought in particular , and The Economist Films 's stunning visuals .
- McKinsey Quarterly is one of the most respected business publications in the English speaking world. And this is not surprising: articles have been published since 1964, and McKinsey Quarterly still holds its own. Subscribe to the newsletter, download the application for iOS or Android and receive useful materials.
- Bloomberg Businessweek is a business magazine published by Bloomberg. The magazine has an impressive variety of , and .
Indicators of the company's financial activity: data characterizing various aspects of activities related to the formation and use of cash funds and savings. Raizberg B.A., Lozovsky L.Sh., Starodubtseva E.B. Modern economic ... ... Economic dictionary
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Bank financial indicators- are used to assess the current state of a credit institution and forecast its development. For this purpose, the following bank reporting data is analyzed: a turnover sheet for the accounting accounts of a credit institution (f. 101); information… … Banking Encyclopedia
FINANCIAL INDICATORS OF THE ENTERPRISE- reporting or settlement data characterizing various aspects of the enterprise's activities related to the formation and use of its monetary funds and savings. F.p.p. expressed in abs. and relates. (norms, coefficients) quantities. ... ... Financial and Credit Encyclopedic Dictionary
OJSC "MTS": the history of the company's development, financial performance- JSC "Mobile TeleSystems" (MTS), the largest Russian mobile operator, following an inspection by the inspectorate of the Federal Tax Service of the Russian Federation, received tax claims for 2005-2006 in the amount of 1.13 billion rubles (or about 49 ... ... Encyclopedia of newsmakers
FINANCIAL INDICATORS- (see FINANCIAL INDICATORS) … Encyclopedic Dictionary of Economics and Law
Financial ratios- relative indicators financial condition enterprises that express the relationship of some absolute financial indicators to others. Terminological dictionary of banking and financial terms. 2011 ... Financial vocabulary
FINANCIAL BUDGETS- Budgets containing planned and reported indicators for standard financial reports Glossary of business terms. Akademik.ru. 2001 ... Glossary of business terms
Books
- Key financial indicators for assessing the activities of an enterprise, Vladislav Masaev. The use of the system of key financial indicators (KFI) of the effectiveness of the company every year is more and more in demand and relevant. The system of key financial ... Buy for 5790 rubles
- Financial measurements of corporate strategies. Stakeholder approach, I. V. Ivashkovskaya. The monograph proposes a new approach to the financial justification of corporate strategies, corresponding to the transition to an innovative economy. Methodology and measurement tools developed…
| account | check |
| assets | assets |
| ATM (cash machine) | ATM |
| audit | revision, audit |
| auditing | Accounting |
| balance | balance |
| balance of payments | payment balance |
| balance of trade | trade balance |
| balance sheets | balance sheet |
| purchase | buy |
| cargo | cargo |
| cash | cash |
| Chamber of Commerce | Chamber of Commerce |
| client/customer | customer |
| collateral | pledge |
| commodity turnover, circulation | turnover |
| common market | Common Market |
| competition | competition |
| competitive | competitive |
| competitor | competitor |
| consumer; ~ Goods | consumer; ~goods |
| consumption | consumption |
| consumption, accumulation fund | consumption fund, accumulation |
| convertible, hard | convertible, solid |
| costs | costs |
| cover expenses | incur expenses |
| credit terms | Loan conditions |
| currency | currency |
| damage | damage |
| deal/transaction | deal |
| delivery | supply |
| deposit | contribution |
| depreciation | depreciation, amortization |
| discount | discount |
| dividends | dividends |
| domestic market | domestic market |
| efficiency | Efficiency (coefficient of performance) |
| employee | office worker |
| employer | employer |
| enterprise | company |
| entrepreneur | entrepreneur |
| expenditures/expenses | costs/expenses |
| export earnings | export earnings |
| external debt | external debt |
| factory assets/funds | enterprise funds |
| find/turn out to be defective/substandard | reject |
| GDP (Gross Domestic Product) | GDP (gross domestic product) |
| GNP (Gross National Product) | GNP (gross national product) |
| growth rate | rates of growth |
| incentive | stimulus |
| in charge of economic policy | responsible for economic policy |
| income tax | income tax |
| insurance | insurance |
| interest rate | interest rate |
| International Monetary Fund (IMF) | International Monetary Fund (IMF) |
| investor | investor, contributor |
| joint venture/enterprise | joint venture |
| labor intensive | labour intensive |
| lender, borrower | lender, beneficiary |
| letter of credit | letter of credit |
| liabilities | liabilities |
| limited liability | limited liability |
| loan | loan, loan |
| loan agreement | loan agreement |
| long-term, medium-term, current plans | long-term, medium-term, current plans |
| management, administration | leadership, management, management |
| man power | work force |
| mortgage | mortgage |
| natural resources | Natural resources |
| output | output, volume (of production) |
| payments | deductions |
| per capita | per capita |
| personnel turnover | staff turnover |
| planned, market economy | planned/market economy |
| portfolio | briefcase |
| price list | price-list |
| producer | manufacturer |
| production/prime cost/cost price | cost price |
| profit | profitable, beneficial |
| profitability | profit |
| profitable, advantageous | profitable |
| ratio | coefficient |
| raw materials | raw material |
| retail | retail |
| revenue | receipts |
| sales and purchases | marketing (sale) and purchase |
| savings | saving |
| scarce, rare | in short supply |
| securities | securities |
| self financing | self-financing |
| share | share |
| shortage, deficit | deficit |
| small, medium enterprise | small, medium enterprise |
| spare parts | spare parts |
| State Bank | State bank |
| stock | stock |
| stock company | joint-stock company |
| stock exchange | exchange |
| exchange rate | exchange rate |
| business slow down | business downturn |
| stock market | stock market |
| stockholder | shareholder |
| supplier | provider |
| supply and demand | supply and demand |
| tariff | duty |
| tax, property ~ | tax |
| terms of delivery | delivery conditions |
| terms of payment | payment terms |
| to be in demand | be in demand |
| to deliver/supply | supply/supply |
| to fulfill/overfulfill a plan | fulfill/overfulfill the plan |
| to manage, run (e.g. a firm, hotel) | exploit |
| to patent | patent |
| to save on something/ economize | saving, saving |
| trade representative | trade representative |
| trial order | trial order |
| turnover | turnover |
| value added tax (VAT) | value added tax (VAT) |
| warehouse/storehouse | stock |
| wholesale | wholesale |
| World Trade Organization (WTO) | World Trade Organization(WTO) |
| discount rate, bank rate | discount rate |
| accounting and reporting | accounting and reporting |
| agent, intermediate | intermediary |
| rears | debt |
| be listed on stock market | be quoted |
| bid, tender | bidding, bidding, offer, tender |
| bill (of exchange) | bill of exchange, bill of exchange |
| bill of lading | bill of lading |
| invoice | invoice |
| bond | bond |
| break even point | breakeven point |
| broker | stockbroker |
| budget cuts | sequestration |
| capital flight | capital flight |
| capital intensive | capital intensive |
| capital investment | capital investments, investments |
| chartering | chartering |
| cost accounting | cost accounting |
| cost recovery | self-sufficiency |
| deduct, write off from taxes | deduct, deduct from taxes |
| equity capital | share capital |
| equity investment | net worth |
| European Bank for Reconstruction and Development (EBRD, World Bank) | European Bank for Reconstruction and Development (EBRD) |
| fixed capital | main capital |
| freely convertible currency | freely convertible currency (hard currency) |
| freight | freight |
| government, treasury bonds (T-bills) | State treasury bond (GKO) mutual fund |
| grant | grant |
| insolvency | insolvency, bankruptcy |
| installment payment plan | installment payment |
| issue | emission |
| listing | quotation | Loading Unloading |
| maturity | maturity |
| means of production | means of production |
| military-industrial complex | military-industrial complex (MIC) |
| Ministry of Foreign Economic Ties | MFER (Ministry of Foreign Economic Relations) |
| money supply | money supply |
| negotiated instrument | negotiable instrument |
| non-collected taxes | arrears |
| oil field | field |
| oil pipeline | pipeline |
| oil rig | drilling rig |
| oil wells | commercial wells |
| overheads | overheads |
| pipeline | pipeline |
| procurement | purchase |
| profitable, self-subsidizing | self-sustaining |
| pumping | pumping out |
| raise labor productivity | increase labor productivity |
| rate of reimbursement | recovery rate |
| repayment of credit | repayment of loans |
| risk management | risk management |
| savings (e.g. in savings bank account) | production sharing agreement (PSA) |
| subcontractor | contractor |
| submit dispute to arbitration | refer a case to arbitration |
| tax code | tax code |
| tax collection | collection of taxes |
| tax evasion | tax evasion |
| tax privileges, tax relief | tax incentives |
| tax return | tax return |
| taxable | taxable |
| taxation | taxation |
| tax-exempt, tax-free | tax-exempt, tax-free |
| to file taxes | file a declaration |
| trade mission | trade mission |
| trade/commercial counselor | trading advisor |
| trade plus | active trade balance |
Stock (Shares) - a document confirming the rights of its owner to the income and property of the company that is their issuer. There are ordinary (voting) and preferred (non-voting) shares, the totality of which constitutes the authorized capital of the company.
Shares Preferred (Preferred Stock) - the rights to the organization's capital, fixed in a special way, which presuppose the preferential receipt of a fixed rate of return on investments in capital in the presence of profit.
Ordinary shares (Ordinary Stock) – shares, the owners of which are entitled to the net assets of the company, are entitled to participate in the development of fundamental decisions for the development of the company related to its business activities (election of the Board of Directors, approval of annual reports and control over financial performance, etc.). The owners of ordinary shares bear all the risks associated with the financial and economic activities of the company. In addition, they claim general meeting shareholders decide on the amount of dividends that are paid out of net profit after the payment of dividends on preferred shares.
Assets (assets) - property rights economic entity on the different kinds property, including funds in circulation. Allocate current assets (or working capital), hard-to-sell assets (fixed capital) and intermediate assets (financial investments);
resources controlled by the owners of the company and acquired as a result of past business operations, used by management to obtain future economic benefits.
Non-current assets (fixed assets, Non— Current assets, FA) - company assets that transfer their value to products for a period exceeding one year, and (or) several operating cycles, and (or) formed to obtain long-term benefits. This group includes fixed assets, intangible assets, construction in progress, long-term financial investments and some other assets that meet the above criteria.
Liquid / quick liquid assets (Liquid assets) - cash and other highly liquid assets that the company can convert into cash without significant loss of value and in a short time to meet its urgent obligations.
Current assets, current assets (Current assets, CA) - the company's assets in continuous circulation include cash and short-term investments in securities, short-term receivables, work in progress, inventories of materials and goods ready for sale. Common to a group of assets is the principle of one-time transfer of its value to manufactured products, and the expected period for converting assets into cash within one year, or a period not exceeding one operating cycle if its duration exceeds one year.
Depreciation (Depreciation, Depreciation) - periodically made accruals, reflecting the reduction in the carrying (i.e., residual) value of depreciable non-current assets, made during the estimated life of the asset. For fixed assets (funds) - depreciation, and other depreciable assets, for example, intangible assets - depreciation.
There are the following depreciation methods:
linear method (straight line method):
declining balance method;
write-off method based on the sum-of-the-year-digits method of useful life of a depreciable asset;
write-off method in proportion to the volume of production (units-of production method).
Balance (external) (Public Soft) - the balance sheet of companies compiled for external publication, that is, for shareholders, creditors, the public and tax authorities.
book value (Book value) - the cost of an element of assets reflected on the balance sheet. As a rule, it is formed as the difference between the initial cost of an asset minus depreciation, revaluation, or markdown, taking into account the market value.
The book value of the share (Book value per share) – the value of the share, calculated on the basis of the book value of equity.
Bank overdraft (bank Overdraft) - a loan granted to a borrower on a current account, repaid on demand. Maximum amount overdraft loan is predetermined by the agreement, and interest is accrued only on the used part of the loan daily.
Bankruptcy (Bankruptcy) - a procedure regulated by the legislator for the transfer of assets of a legal entity or an individual to an arbitration manager for the formation of a bankruptcy estate in order to fully or partially satisfy the claims of creditors, with the subsequent release of the debtor from further prosecution.
Accounting (financial) statements (Financial Statement) - prepared, in accordance with the requirements established by the financial market regulator, the reporting of an economic entity, characterizing:
the financial position of the subject on a certain date (Balance sheet, Balance sheet);
financial results its activities (profit and loss statement, Profit & Loss Statement);
cash flows for the reporting period (statement of cash flows, Cash— flow Statement);
condition and structure of equity (statement of changes in equity, Reconciliation of Movements in Shareholders’ funds);
additional explanations (appendices) that increase the level of transparency of reporting, taking into account the peculiarities and specifics of the conditions for the implementation of operating, investment and financial activities.
accounting profit (Accounting Profit) - the difference between the volume of revenue and expenses attributed to revenue, calculated in accordance with accepted accounting principles for a certain period (usually, for a year, quarter, month).
Budgetary control — management process linking the responsibility of performers with the requirements of the policy pursued by the company in the field of operating, investment and financial activities, which implies continuous monitoring of budget parameters based on a comparative plan-fact analysis. Its implementation pursues the tasks of ensuring the fulfillment of the set goals, and determining the point in time at which it becomes necessary to revise or adjust them.
Gross costs, total costs (Total Cost)- the sum of variable and fixed costs in the studied economic process.
Gross profit (Gross Profit, GP)- the difference between sales revenue and the cost of goods sold, goods and services.
Gross margin, GM— the difference between sales revenue (income) and variables production costs per unit of production.
Earnings before interest and taxes, EBIT(Operating profit)- earnings before interest and taxes.
Promissory Note- a written promissory note of the form established by the legislator, issued by the borrower (drawer) giving the holder the right to demand from the borrower the amount fixed on the bill for payment within the specified period.
Non-operating income, other income (Extraordinary Income, Other Income) – income received from operations with securities, from participation in the capital of subsidiaries and affiliates, from exchange rate differences on operations in foreign currency.
Non-operating expenses, other expenses (Other Expenses)- costs associated with the production and sale of the main products, but attributable to the financial results of economic activity.
Guaranteed placement, underwriting (Underwriting)- purchase by a financial institution of a large block of securities at a rate established by an agreement between the company and the institution, with subsequent resale (placement) on the open market at a free rate.
Geographical segment– a distinct component of an entity that is involved in the production of goods or services in a particular economic environment and that is exposed to risks and earns returns that are different from the risks and returns of other components of the entity operating in a different economic environment.
Accounts receivable, accounts receivable (Accounts Receivable, AR) - obligations of counterparties related to the current activities of the organization. (Receivables) - a debt arising to the subject from counterparties and other persons as a result of the conclusion of economic agreements for the implementation of transactions, and (or) other operations determined by law.
Cash expenses, expenses (Expenditure)- the amount of money spent by an economic entity for the purchase of raw materials, goods and services.
Cash– cash on hand and bank deposits payable on demand, including foreign currency deposits. The absolutely liquid part of the company's assets, consisting of cash balances, funds in the current bank account, and highly liquid securities that are freely tradable along with cash.
Share financial instrument (Equity instrument)- any document confirming the right to a share of the company's assets remaining after the repayment of all obligations.
Accounts payable- the amount of claims that the company must pay to counterparties by virtue of the agreements concluded with them (for example, contracts for the supply or provision of services, after they fulfill their obligations under these contracts).
Loan Capital– bonds and other types of long-term loans to the organization.
Inflation- a general increase in prices, leading to a decrease in the purchasing power of the monetary unit.
Capitalization of dividends (Scrip or bonus Issue)– issue of new shares for free distribution among shareholders (on account of payment of dividends), in proportion to the previously established shares of shares.
Bond- a financial instrument, which is a form of market-quoted long-term borrowing of funds by a company in the financial market. Object of financial investment; a debt security that represents its holder the right to receive periodic payments and repayment of the principal amount of the debt on a predetermined date in the medium or long term.
Current liabilities, short-term (Current liabilities, CL)- the amount of funds payable during the next reporting period (during the year). Includes non-interest bearing liabilities (on commercial loans), current tax payments and declared and payable dividends. They also include amounts on bank loans due to be repaid during the reporting period (short-term loans and borrowings).
Long-term liabilities, Long-term debt obligations (Long-Term Liabilities, LTL, LTD)- pledges, pledges, as well as other obligations (credits and loans) that are due for repayment in more than 1 year (for abroad - in more than 10 years), from the date these obligations are reflected in the balance sheet.
Option- a financial instrument that provides its owner with the right, but not the obligation, to buy or sell a specified quantity and quality of an asset at a predetermined rate after a certain period or earlier.
Industry segment- a business component separately allocated by an economic entity that participates in the production of a separate type (homogeneous group) of goods or the provision of services and which is subject to its own risks and receives income that differs from the risks and incomes of other industry components.
Deferred tax, deferred tax liabilities (Deferred Tax)- the amount of accrued taxes on income, reflected in the income statement, but not actually paid in the reporting period. It is formed as a result of the discrepancy in time between the calculations in the formation of financial and tax reporting.
Revaluation of Fixed Assets– revaluation of the initial cost of fixed assets in order to determine their replacement cost (reproduction cost) in current prices at the time of revaluation. Produced on the initiative of the company's leaders to optimize taxation and conditions for the reproduction of the main capital of the campaign.
Solvency- the company has the funds to fulfill its financial obligations on time.
Profit (Income, Profit)- the difference between the sales proceeds (income) and the expenses attributed to this proceeds.
Real assets (Tangible Assets)- all assets reflected on the balance sheet of the company, with the exception of intangible assets.
Own shares on the company's balance sheet (Treasure Stock)– ordinary shares that were purchased from shareholders are not redeemed and are reflected on the balance sheet at the cost of their acquisition (or other value).
Own funds, net worth of the company, net assets (Net Assets, NTA)- the value of assets after subtracting from them the sum of all liabilities of the company. In the Russian Federation, it is carried out on the basis of the Order of the Ministry of Finance No. 10-n. The result of the calculations is given at the end of the reporting year in the statement to the Statement of Changes in Equity (Form No. 3).
Own (share) capital (Equity capital, Net worth, EQ)- balance, or market, value, which determines the amount of claims of holders of ordinary and preferred shares of the company. It can be defined as the difference between the value of an organization's assets and liabilities. In Russia, it includes authorized capital, retained earnings of previous years, additional capital and reserve capital.
Total assets (Total Assets, TA)- the amount of fixed assets, intangible assets, financial investments and working capital.
Authorized Share Capital (ASC)- the amount of contributions of its founders, determined by the Charter of the company, can be changed only on the basis of a decision of the meeting of founders (shareholders) and after re-registration of the company.
Authorized capital (Capital Stock)- capital, the amount of which is fixed in the constituent documents of the company and which is formed from the funds received by the company as a result of the issue of capital.
Factoring- a method of financing economic activities by assigning the rights to claim (sale) of the company's receivables to banks or specialized factoring organizations.
Futures Contract A commitment to buy or sell a financial asset at an agreed rate and within a predetermined time frame.
Net profit (Net profit, Net Income, NP, N1)- the difference between all income (including other and extraordinary) and the corresponding costs and expenses, including the payment of taxes, for a certain period.
Net Loss- the excess of all expenses over income during the reporting period.
Net assets of the balance sheet (Net Total Assets, NTA)- all balance sheet assets minus liabilities, including borrowed capital. In Russia, they are determined in accordance with the Order of the Ministry of Finance No. 10-n, according to which, own shares on the balance sheet, debts of the founders on contributions to the authorized capital of the company and certain types of intangible assets are not taken into account as assets accepted for accounting. The entire value of the company's external liabilities is deductible from this estimate.
Securities issuance– issuance of issue-grade securities (shares, bonds, other debt obligations) by industrial and commercial and financial and investment companies for the formation of financial capital.
Economic analysis, budget planning, forecasting financial results.
Annuity- a uniform sequence of payments or receipts for a certain number of periods.
Vertical balance analysis, structural analysis (Vertical balancesheetanalysis)- determination and interpretation of the structure of the final financial indicators with the identification of the impact of each reporting position on the result (currency, balance sheet total) as a whole.
Replacement cost of fixed capital (Replacement Cost)- a method for estimating fixed capital based on the costs (expenses) of replacing retired fixed capital with a capital of similar quality that provides similar services.
Sales revenue (Receipts)- cash received from the sale of manufactured products, the provision of services or elements of capital to a third party.
Horizontal analysis, time analysis (Analysis of Time)- comparison of each position of the financial statements with the previous period to clarify the directions and patterns of their changes.
Break-even chart- a graphic image showing the dependence of operating profit on sales volume, which determines the volume of sales sufficient to compensate for full operating costs (variable and fixed costs).
Cash Flow– receipts in the form of cash payments, confirmed checks and other documents with high liquidity. Continuous receipts and expenditure of funds in the process: current (operational); investment; and financial activities. The amount of profit (before taxes), depreciation and reserve deductions of various kinds, accounted for in accounting, but not paid in the form of cash to the side.
Cash Flow from Operating Activities, CFopera) - cash flow from ordinary activities for the period. In the absence of a cash flow statement, it can be calculated as profit from ordinary activities, net of taxes payable, but adjusted for cost elements that do not cause corresponding cash flows (for example, depreciation).
Cash Flow from Investing Activities, CFinv) - cash flow generated as a result of investment activities. Defined as a net change in fixed (non-current) assets.
Cash Flow from Financing Activities, CFfin) - cash flow in the process of carrying out the financial activities of the company, is formed by attracting new sources of the company's capital (share issue plus new interest obligations), minus paid dividends and redeemable interest obligations.
Dividend- the share of profit directed to the payment of profitability to the shareholders of the company. If there is a net profit, a mandatory payment of dividends on preferred shares is made, within the limits of a predetermined yield during the issue. The yield on ordinary (voting) shares is not guaranteed and depends on the company's dividend policy and the amount of money it has available. The amount of dividends is usually determined at the general annual meeting of shareholders of the company.
Dividend per Share (DPS)- the actual amount of cash payments made by the company to shareholders per share. Determined based on the ratio of the amount of dividends paid to the number of ordinary shares outstanding, according to financial statements.
Dividend Yield is the current income of shareholders as a result of the payment of dividends to them, defined as the ratio of the amount of dividends per share and the average market price of a share (Div/P).
Dividend Policy- the company's policy on the use of net profit, which is formed by the board of directors, determines what share of the profit will be paid to shareholders in the form of dividends, and what will remain in the form of retained earnings and be reinvested.
Present Value- reflecting the value of assets of the present value of the future net inflow of cash (which will be generated by the asset in the current state of financial and economic activity. The main principle of IFRS when assessing current assets on the company's balance sheet.
Discounted cash flow (DCF)- the result of applying the discount method in the evaluation of investment projects, the use of which reduces the value of future receipts and payments, against payments made at the time of acceptance management decision.
The duration of the financial cycle (Working Capital Days)- an indicator that characterizes the period of immobilization of funds in the current activities of the company, calculated as the sum of the period of storage of inventory, the duration of the repayment period for receivables, minus the duration of the repayment period for accounts payable.
Added economic value (Economic Value Added, EVA)- represents the difference between the funds received by the company for the period and all expenses incurred, including capital expenditures.
Added market value (Market Value Added, MVA) is an indicator of performance evaluation representing the difference between the book value of the company's capitalization and its current market value.
Profitability, profitability (Rate of return)- the actual or calculated level of income for a certain period for the project.
Return Of Equity (ROE)- a characteristic of the effectiveness of the use of equity capital by the company's management, determined on the basis of the ratio of net profit and the average cost of equity capital over the period of analysis.
Earnings per Share (EPS)- the ratio of net profit to distribution to the number of ordinary shares on which it is supposed to pay dividends.
Stock financial strength(Financial safety margin)- the ratio of the difference between the current (projected) sales volume and the sales volume at the break-even point to the current (projected) sales volume, expressed as a percentage.
Safety Area- an indicator that characterizes the difference between the actual (planned) and critical (breakeven) levels of sales.
Profitability Index (PI)- shows the effectiveness of investments, which is - the ratio is given: the value of all proceeds from the project to the present value of all cash costs associated with it.
Indirect method J Cash-Flow Statement– a method for determining the net cash flow by adjusting the net profit indicator by the amount of change in the current act and liabilities, as well as non-cash items of cash write-offs.
Beta Value– an indicator of the risk of the shares of this company, estimated on the basis of comparative monitoring of the volatility of the share price in relation to the volatility of the financial market Used by business analysts to determine the fair market value of shares.
Share dividend yield ratio (Dividend Yield, DY)- shows the percentage of income in the form of dividends (after tax) to the market value of the share.
Dividend Payout Ratio (DPR)– the share of distributed profit directed to the payment of dividends.
Liquidity Ratios (LR)- a group of financial ratios showing the ability of the enterprise to fulfill its short-term (financial and non-financial) obligations. For the balance sheet, companies are defined as the ratio of various groups of liquid assets to current liabilities.
current or total liquidity, coverage ratio (Current ratio, CR)- a liquidity indicator that demonstrates the ratio between the balance sheet value of the total current assets and term liabilities of the company. Shows the extent to which the company's current debt is covered by liquid assets. Depending on the specifics of the business and the stage of its economic development cycle, it ranges from 1 to 3.
quick (urgent) liquidity, intermediate coverage ratio, "litmus test" ratio (Acid test, Quick Ratio, QR) - liquidity indicator, which is the ratio of liquid working capital (cash and cash equivalents, as well as short-term receivables) to current liabilities . Depending on the specifics of the business and the stage of its economic development cycle, it ranges from 0.5 to 1.
absolute liquidity, critical liquidity ratio (Absolute ratio, AR)- liquidity indicator, defined as the ratio of the company's most liquid assets (cash and highly liquid securities) to current liabilities. Shows how much short-term debt the organization can repay in the near future. The normative value of dependence on the industry specifics of the business and the stage of the economic development cycle ranges from 0.1 to 0.5.
Equity maneuverability ratio (Own Current Assets Ratio, KNWC) - the ratio of net working capital (the company's own working environment) to the total cost of working capital.
Inventory turnover ratio ( Inventory Turnover, IT)- the ratio between the average cost of inventories and the cost of production of goods sold for a certain period.
Asset turnover ratio (Assets Turnover, TAT)- the ratio of sales revenue to the average value of the company's assets for the period.
Current assets turnover ratio (Current Assets Turnover, СAT) – the ratio of proceeds from the sale of products, works and services to the average value of the current assets of the enterprise for the period.
Dividend Coverage Ratio- the ratio between the company's profit after tax and the amount of dividends on ordinary (or ordinary and preferred) shares.
Economic growth sustainability ratio (Sustainable Growth Rate, SGR)- growth in sales of products provided by an increase in assets that do not lead to a loss financial stability companies;
a calculated analytical indicator that determines the possible rate of increase in the company's sales, provided that the main business indicators (capital structure, business activity, turnover profitability, etc.) remain unchanged in the near future.
Margin of Financial Safety– share net assets in the total assets of the company. Shows how much of the assets are financed by equity.
Liquidity- a characteristic of the ease of sale and the transformation of material or other values into cash to cover current financial obligations.
Liquidity of Balance statement- a characteristic of the balance sheet, defined as the degree of coverage of obligations by assets, the period of conversion of which into cash corresponds to the maturity of obligations.
Liquid Assets- assets that can be converted into cash without significant loss of value within a short period of time.
Marginal profit (Profit Margin, RM, Contribution Margin, CM)- the difference between sales revenue and the cost of goods sold in value terms, or as a percentage of revenue.
Insolvency- an economic situation in which the value of the assets owned by the company is less than the value of its liabilities, leading to the impossibility of the company to fulfill its financial obligations.
Turnover- a group of indicators characterizing the soon turnover of funds or liabilities. The turnover for a given type of funds or liabilities can be calculated as the quotient of 365 days divided by their turnover period.
Asset turnover (Assets Turnover, AT)- the ratio of the company's net revenue for the period and the average value of assets, characterizing the efficiency of its financial and economic activities.
Accounts Receivable Turnover (ART) is an analytical indicator reflecting the ratio of proceeds from the sale of products (services) to the average value of accounts receivable for the period. Shows forced or voluntary expansion or contraction of commercial credit provided to customers and other counterparties by the company.
Capital Turnover- an indicator that characterizes the number of turnovers of capital per year, or sales proceeds per unit of capital used.
Accounts Payable Turnover, A PT) – the accounts payable turnover ratio is calculated as the ratio of the amount of goods and raw materials purchased by the organization on the terms of accounts payable to the average cost of accounts payable for commodity and other transactions. It characterizes the effectiveness of the company's use of suppliers' funds to cover the needs of working capital financing.
Inventory Turnover- a group of indicators reflecting the rate of use of stocks of raw materials and finished products:
- for a situation where only public reporting data is available, the ratio of the cost of ending stocks to cost of sales for the year, and (or) sales volume for a certain period to the average value of stocks for the same period, which shows the number of inventory turnovers for the period.
- inventory efficiency indicators (based on management reporting)
— stocks of finished goods / average weekly shipments;
- stocks of raw materials and materials / average weekly use of raw materials and materials;
- work in progress / average weekly production
Working capital turnover (Working Capital Turnover,WCT)- the ratio between the volume of sales and the average cost of working capital, showing the number of turnovers of liquid assets for the same period.
Working capital (Net Working Capital, NWC)- a calculated analytical indicator defined as the difference between the company's working capital and its current liabilities. It characterizes the capital available to the company to finance current activities.
Operating cash flow (Cash flow from operating activities, CFop) - the most important characteristic of the effectiveness of operational activities. It is determined (indirectly) as the sum of net income and depreciation minus the increase in own working capital (other than cash) for the period.
Operational Gearing, Operational Leverage, OL- the ratio of fixed and total costs of the operating business unit. The higher the leverage value, the more benefits the organization has when sales increase, and vice versa, the higher the risk of an operating loss when sales decrease.
Operating Leverage Effect (Degree Operating Leverage, DOL)- the effect of changes in the dynamics of operating profit due to the presence in the structure of costs associated with current activities of the permanent part. It is defined as the ratio of the contribution to cover fixed costs (Contribution margin, CM) to the operating profit (EBIT).
Receivables turnover period (Accounts Receivable Days, ARD)- an analytical indicator that characterizes the conditions for commodity lending by the company to its customers. It is determined on the basis of the ratio of the average value of accounts receivable to the average daily revenue for the period.
Payables turnover period (Accounts Payable I APT)- an indicator characterizing the conditions of commodity crediting of the company by suppliers. It is determined on the basis of the ratio of the average value of accounts payable to the average daily amount of costs for the period (product cost).
Payback Period (PP)- the time interval during which the cumulative undiscounted cash inflows from the project covered the initial investment in the project.
Full cost (Full Cost)- a set of accounting costs of the company for the production and sale of products, expressed in monetary terms.
Total stock return (Earnings Yield)- earnings per share as a percentage of the market value of the share.
Cash Flow (C-F)- the difference between the receipt jv of cash in cash and cash payments (wages, taxes, payment of supplier bills, acquisition of fixed assets and intangible assets, etc.) for a certain period of time.
Present value (PV)- the amount of cash flows, reduced by the moment of making a managerial decision, which is consistent in time, obtained on the basis of a discounting operation.
Profitability- Group relative indicators the efficiency of the financial and economic activities of the company, characterizing the level of return on costs incurred and (or) the degree of use of funds.
Return on assets, return on total assets (Return on assets, ROA, Return on total assets, ROTA)- the ratio between profit before payment of interest payments on loans and borrowings and income tax and the average value of all assets (possibly operating assets). This makes it possible to neutralize the influence of the capital structure of an enterprise and to compare the efficiency of using the assets of companies with different capital structure. If net profit is used in the numerator, then the indicator is known as the firm's profitability (Return on Firm).
Return on Capital Employed, ROCE- the ratio of earnings before interest and taxes (EBIT). The denominator is defined as the average chronological value of the used capital for the period.
Return on Invested Capital (ROIC)- the ratio between earnings before interest, but after tax (EBIAT) and the amount of invested capital (capitalization) on average for the period. It is used as an indicator of the efficiency of capital use that levels the structure of capital.
Return on Investment (ROI)- the ratio between net profit after taxation and the book value of assets on average for the analyzed period.
Return on investment in the form of cash flow (Cash Flow Return on Investment, CFROl) - the ratio of net cash flow from ordinary activities to the average value of the assets generating them.
Return on sales (Sales Margin, ROS)- the ratio of profit from product sales (operating profit, EBIT) to sales volume (sales proceeds) for the period under review.
Profitability of products, profitability of products (Profitability of Output) - the ratio of profit from sales to the costs incurred for its production and distribution.
Return on equity, return on net assets (Rett on net assets, RONA)- the ratio of profit received for the period by the company to the average level of own funds.
The ratio between earnings before interest, but after tax (EBIAT) and net assets, used as an indicator of the effective use of equity capital, eliminating the effect of the financing structure.
Return on equity (ROE)- the ratio between profit after tax and the book value of equity capital. If the company has preferred shares as part of the share capital, then dividends on them should be deducted from profit after tax - in the numerator, and the capital contributed by these shareholders - the denominator of the calculated indicator.
Market Capitalization- the total market value of equity, calculated on the basis of the latest share price quotation, which is multiplied by the number of shares outstanding.
Production Cost- direct costs of production (manufacturing) plus allocable overhead production costs. It is possible to determine only on the basis of direct costs.
Payback period (Payback Period, RR)- period of time for which cash flows generated by the investment must fully pay off the initial investment.
Term (period) of repayment of receivables (Debtor Days Ratio)- the average period of payment by buyers for sales made on credit. It is defined as the ratio of the average value of accounts receivable to sales proceeds under the terms of a trade credit.
Term (period) of repayment of accounts payable (Creditor Days Ratio)- the average period of payment for purchases made on credit (in calendar days). It is defined as the ratio of the average value of accounts payable to the average value of accounts payable for settlements with suppliers and contractors.
Shelf life of inventory (Inventory Days)- an indicator reflecting the period in days of working capital in inventory. Usually, the numerator is the average cost of inventory, and the denominator is the average daily sales revenue. Can be calculated separately for raw materials, work in progress and finished goods.
Current stock return (Dividend Yield)- the return on a share, calculated by dividing the actually paid dividends by the share price.
Break even; the minimum sales volume that covers all expenses (Break-even point, BEP)- the volume of sales of products (goods, services), in which the current (variable and fixed) costs are fully covered by the proceeds from the sale, however, the profit from sales is zero.
Trend Analysis- collection and processing of data for various periods of time and comparison of each reporting position with a number of previous periods in order to determine the trend, that is, the main trend in the dynamics of the indicator, cleared of random influences and individual characteristics of individual periods.
Financial Analysis- a set of methods and algorithms for determining the financial consequences of the implementation of certain management decisions.
Evaluation of key parameters and ratios that represent an objective picture of the company's financial condition, in particular, its profits and losses, changes in the structure of liabilities and assets, settlements with creditors and debtors, current and prospective solvency and financial stability.
Financial leverage, leverage (Financial Leverage, Financial Gearing, FL) - the ratio of borrowed capital and equity capital in the structure of business financing sources. It indirectly characterizes the risk of the financial activity of the company.
Financial cycle (Financial Cycle, FC)- the period of turnover of funds, which is equal to the interval between the inflow and outflow of working capital.
Functioning capital (Working Capital, WC)- current assets of the company, as well as non-current and intangible assets that accompany the current activities of the enterprise.
Net discounted income (Net Discounted Income)- the difference between income for a certain period of time and the costs incurred to obtain these incomes, reduced to the current value of the base period.
Net return on equity (Net Profitability of Equity, ROE)- the ratio of net profit for a certain period to the average value of equity.
Net working capital (Net Working capital, NWC)- a calculated analytical indicator, a part of the company's working capital financed from sustainable sources, that is, the excess of the cost of equity and long-term loans and borrowings over the value of non-current assets.
Economic value added (EVA)- the excess of the profit of the enterprise over the total cost of capital. The most important indicator for assessing the financial attractiveness of an intercompany unit or strategic business unit using the indicator of residual income. EVA is defined as profit after tax for the period less all capital costs.
The effect of operational leverage, the effect of the production leverage (Degree of operational leverage, DOL)- the estimated increment in operating profit, obtained as a result of an increase in sales of products, obtained due to the behavior of individual cost groups that do not respond to this increment (conditionally constant).
Effect financial leverage(Degree of Financial Leverage, DOFL)- the effect of changes in the return on equity under the influence of a change in the share of borrowed funds in the sources of long-term financing of the company, formed as a result of relative savings on payments for the use of borrowed capital (loan interest) compared to expenses for the use of equity capital (dividends). The effect of financial leverage is the estimated increase in the return on equity of the company due to the additional attraction of borrowed funds, despite their payment.
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Specialties related to financial activities are popular and in demand both in Russia and in other countries. However, a diploma from a Russian higher educational institution is not always enough to get an interesting and promising job in your specialty, even in our country. In order not to vegetate in a low position, but to make a serious career in finance, financial English is almost always required.
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Financial terminology
The basis of professionalism in any business is the possession of terminology, and financial terminology is no exception. If you want to achieve heights - the dictionary of financial terms should become your reference book, just like the English financial dictionary. Only if you are completely sure that you understand the terms in English not just correctly, but in all the subtleties of their meaning and application, can you be just as sure that you understand correctly both what you read in the textbook and what you are going to say to a potential employer or client. You can confirm your knowledge of English terminology and general knowledge in the financial sector by obtaining one or more of the various international certificates. A description of the most common exams and the possibility of taking them in Moscow can be found on the page dedicated to international certification.
If you are educated in the field of finance, already have a diploma and want to connect your activities with finance in Russia and abroad, or are a practicing financier - articles for financiers in English will help you better understand issues related to various aspects of your chosen profession, global trends development of the financial sector. English-language resources and articles are an opportunity to receive first-hand information from the financial world, without waiting for it to appear in the Russian-language segment of the Internet. And here the phrase that was said by one of the most famous financiers in the world, Mayer Amschel Bauer (Rothschild), is quite appropriate: "Who owns the information, he owns the world."
Aval
A bill of exchange guarantee to which the bill of exchange law applies. This guarantee means a guarantee of full or partial payment of the draft if the debtor has not fulfilled his obligations on time. Aval is given on the front side of the bill and is expressed by the words: "Consider as aval" or any other similar phrase and signed by the avalist. Aval is given for any person responsible for the bill, so the avalist must indicate for whom he gives guarantee. In the absence of such an indication, the aval is considered issued for the drawer, i.e. not for the debtor, but for the creditor. The avalist and the person for whom he is responsible are jointly and severally liable. Having paid the bill, the avalist acquires the right reverse claim to the one for whom he issued the guarantee, as well as to those who are obliged to this person.
Prepaid expense
The amount of money issued against future payments for material values work performed and services rendered.
advice
In banking, commercial, accounting practice - a notice sent by one counterparty to another about changes in the state of mutual settlements or about transferring money, sending goods. The advice note, as a document, has a legal character.
Assets
Property of enterprises, which includes fixed assets, other long-term investments (including intangible assets), working capital, financial assets.
Acceptance
The consent of the obligated person to pay the payment request and thus make the settlements stipulated by the contract with the product supplier. The acceptance form of payment involves the presentation for payment for the supplied products of a payment request issued by the supplier of goods.
excise tax
Indirect tax included in the price of the goods and paid by the buyer. The law of the Russian Federation establishes the procedure for imposing excises on sold wine and vodka products, ethyl alcohol and food raw materials (except for those sold for the production of alcoholic beverages and wine products, beer, tobacco products, tires, cars, trucks lifting capacity up to 1.25 tons, jewelry, diamonds, crystal products, carpets and rugs, fur products, as well as clothes made of genuine leather).
Stock
Securities issued by joint-stock companies and indicating the share of the owner (holder) in the capital of this company, giving their owner the right to receive profit in the form of a dividend, and also, depending on the type, capable of giving the right to vote at a general meeting of shareholders (simple nominal) . This type of equity securities is not issued government bodies, they are issued only by industrial, commercial and financial corporations. The price at which a share is sold in the market is called the share price.
Audit activity
Activities of independent non-departmental financial control. Audit (independent financial control) is carried out by specialized audit firms and services. Auditing firms provide control and consulting services to all enterprises and organizations on a paid basis. Audit firms are independent organizations designed to help improve the quality of control, its objectivity.
Correspondent banks
Banks that, on the basis of a correspondent agreement, carry out each other's instructions for payments and settlements through specially opened accounts or through accounts of correspondent banks in a third bank.
bank guarantee
A written obligation given by a bank or other credit institution, or an insurance organization (guarantor) at the request of another person (principal), to pay the principal's creditor (beneficiary), in accordance with the terms of the obligation given by the guarantor, a sum of money upon presentation by the beneficiary of a written demand for its payment. A bank guarantee ensures the proper performance by the principal of his obligation to the beneficiary (main obligation). For the issuance of a bank guarantee, the principal pays a fee to the guarantor. A bank guarantee shall enter into force from the date of its issuance, unless otherwise provided for in the guarantee. The obligation of the guarantor to the beneficiary stipulated by the bank guarantee does not depend in the relations between them on the main obligation for the performance of which it was issued, even if the guarantee contains a reference to this obligation.
Bank transfer
An instruction from one person (transferor) to the bank to transfer a certain amount in favor of another person (transfer recipient). The bank that has accepted the transfer order executes it through its correspondent.
Bankruptcy
The inability of the debtor to satisfy the claims of creditors for payment for goods (works, services), including the inability to ensure mandatory payments to the budget and extra-budgetary funds.
barter deal
Non-currency, but valued and balanced exchange of goods, drawn up by a single agreement (contract).
Cashless payments
Settlements between organizations made by bank transfer of the amount from the account of the debtor organization to the account of the creditor organization according to settlement documents in a cashless manner. Payments can be made with the consent (acceptance) of the payer and on his behalf.
commodity exchange
Commercial enterprise, regularly functioning market of homogeneous goods with certain characteristics.
stock exchange
An organized and regularly functioning market for the purchase and sale of securities. The main functions of the stock exchange are the mobilization of temporarily free funds through the sale of securities and the establishment of the market value of securities.
Budget
The form of formation and spending of the fund of funds intended for financial support tasks and functions of the state and local self-government; economic category, represented by monetary relations that arise between the state and legal entities and individuals regarding the redistribution of national income in connection with the formation and use of the country's budget fund, intended to finance the national economy, socio-cultural needs, defense needs and public administration.
Consolidated budget
A set of budgets for all levels of the budget system of the Russian Federation in the relevant territory.
budget deficit
The excess of budget expenditures over its revenues.
Budget income
Funds received free of charge and irrevocably in accordance with the law Russian Federation at the disposal of the state authorities of the Russian Federation, state authorities of the constituent entities of the Russian Federation and local governments.
Budget surplus
The excess of budget revenues over its expenditures.
Budget expenses
Funds allocated for financial support of the tasks and functions of the state and local self-government.
budget painting
A document on the quarterly distribution of budget revenues and expenditures and receipts from sources of financing the budget deficit, establishing the distribution of budgetary appropriations among recipients of budgetary funds and drawn up in accordance with the budget classification of the Russian Federation.
budget system
Based on economic relations and legal norms, the totality of all types of budgets in the country that have relationships established by law with each other. The unity of the budget system is based on the interaction of budgets of all levels, carried out through the use of regulatory revenue sources, the creation of targeted and regional budget funds, and their partial redistribution. This unity is realized through a single socio-economic, including tax, policy.
The budget system of the Russian Federation
Based on economic relations and the state structure of the Russian Federation, regulated by the rules of law, the totality of the federal budget, the budgets of the constituent entities of the Russian Federation, local budgets and budgets of state off-budget funds.
budget loan
Budgetary funds provided to another budget on a returnable, gratuitous or reimbursable basis for a period not exceeding six months within a financial year.
Budget Structure
Based on economic relations and legal norms, the totality of all types of budgets in the country. The main document in the construction of the budget system is the Constitution of the Russian Federation.
Budget law of the Russian Federation
A set of legal norms (mandatory rules of conduct) that delimit the scope of various budgets (for example, regional, regional, city, district, rural, settlement), determine the powers of individual state authorities in issuing a budget law, regulating the preparation and implementation of this law.
Budget regulation
The system of redistribution of funds, which consists in the transfer of part of the resources of the higher budget to the lower one in order to balance. The regulatory mechanism includes: subsidies; subventions; regulatory sources of income. Budgetary regulation is integral part budget process.
budget device
The set of principles on which the organization of the budget system is based.
Budget appropriations
Budgetary funds provided by the budget list to the recipient or manager of budgetary funds.
Budget credit
A form of financing budget expenditures, which provides for the provision of funds to legal entities on a returnable and reimbursable basis.
Budget Process
The activities of public authorities, local governments and participants in the budgetary process, regulated by the norms of law, in drawing up and reviewing draft budgets, draft budgets of state extra-budgetary funds, approving and executing budgets and budgets of state extra-budgetary funds, as well as monitoring their execution.
Currency
The monetary unit used to measure the value of goods, the concept of "currency" is used in the following meanings: the monetary unit of a given country (US dollar, Japanese yen), banknotes of foreign states, as well as credit and means of payment used in international settlements, and international ( regional) monetary unit of account and means of payment (transferable ruble, EURO).
Currency freely convertible
A currency freely and unlimitedly exchangeable for other foreign currencies.
Currency calculations
The system for organizing and regulating payments for monetary claims and obligations in foreign currency arising from the implementation of foreign economic activity. Settlements can be in cash and on credit, i.е. with installment payment. Cash settlement represents the full payment for the goods before the due date or at the moment of transfer of the goods or documents of title to the buyer. Settlement on credit or settlement with installment payment has two forms: commercial credit (credit from the exporter to the importer) to the issuance of advances by the importer to the exporter.
Exchange rate
The price of the monetary unit of a given national currency, expressed in monetary units of the currency of another country.
bill of exchange
A security that certifies an unconditional obligation of the drawer (promissory note) or another payer specified in the bill (bills of exchange) to pay out the amounts of money received on loan upon the expiry of the term stipulated by the bill, the relations of the parties to the bill are regulated by the law on transferable and simple bills of exchange. The Law of the Russian Federation "On the monetary system of the Russian Federation" (Article 13) considers a bill of exchange a payment document used in non-cash payments. Russia adheres to the "Uniform bill of exchange law", adopted in 1930 in Geneva.
Promissory note credit
Credit issued by issuing a bill of exchange to the importer, who accepts it upon receipt of shipping and payment documents.
Extrabudgetary funds
A specific form of redistribution and use of financial resources attracted to finance certain social needs and comprehensively used on the basis of organizational independence of funds.
Government loans
Credit relations between the state and legal entities and individuals, as a result of which the state receives certain amounts of money for certain period for a fee, are carried out in the form of the sale of government securities, loans from extra-budgetary funds and in the order of obtaining loans from banks.
Government spending
Part of financial relations, which is due to the use of state revenues in connection with the implementation of its functions: security; defense; foreign economic relations; social; managerial.
public finance
Monetary relations regarding the distribution and redistribution of the value of the social product and part of the national wealth, associated with the formation of financial resources at the disposal of the state and its enterprises and the use of public funds for the costs of expanding production, meeting the socio-cultural needs of society, the needs of defense and management. State budget revenues consist of many sources and receipts. The totality of all types of state revenues, which is formed by various methods, constitutes the system of state revenues.
State off-budget fund
The form of formation and spending of funds generated outside the federal budget and the budgets of the constituent entities of the Russian Federation.
State loan
Monetary relations arising from the state with legal entities and individuals in connection with the mobilization of temporarily free funds at the disposal of public authorities and their use to finance public spending.
Devaluation
Depreciation of the national or international (regional) monetary unit in relation to the currencies of another country. Very often, devaluation reflects the depreciation of foreign exchange funds as a result of inflation.
Denomination
Consolidation of the national currency by exchanging, according to the established ratio, old banknotes for new ones in order to streamline monetary circulation, facilitating accounting and settlements in the country with simultaneous recalculation (in the same ratio) of prices, tariffs, wages and etc.
Depository
An organization that conducts depository activities.
Depository activity
Provision of services for the storage (deposit) of securities, as well as "servicing securities", i.e. fulfillment of the depositor's instructions for exercising the rights certified by the securities.
Deport
An exchange transaction for a period concluded on the stock exchange with the expectation of a decrease in the price of securities in order to obtain an exchange rate difference.
Deflation
Withdrawal by the state from circulation of a part of the circulating excess funds in order to reduce inflation.
Bank deposit agreement
An agreement under which one party (bank), which has accepted the amount of money (deposit) received from the other party (depositor) or received for it, undertakes to return the deposit amount and pay interest on it on the terms and in the manner prescribed by the agreement. A bank deposit agreement in which a citizen is a depositor is recognized as a public agreement. The rules on the bank account agreement shall apply to the relations of the bank and the depositor on the account to which the deposit has been made, unless otherwise provided by the rules of this chapter or follows from the essence of the bank deposit agreement.
Bank account agreement
An agreement under which the bank undertakes to accept and credit funds incoming to the account opened by the client (account holder), fulfill the client's instructions to transfer and issue the appropriate amounts from the account and conduct other operations on the account. The Bank may use the funds available on the account, guaranteeing the client's right to freely dispose of these funds. The Bank is not entitled to determine and control the directions of use of the client's funds and establish other restrictions not provided for by law or the bank account agreement on its right to dispose of the funds at its own discretion.
State loan agreement
An agreement under which the Russian Federation, a subject of the Russian Federation, acts as a borrower, and a citizen or legal entity acts as a lender. Government loans are voluntary. A state loan agreement is concluded by acquiring by the lender of issued government bonds or other government securities certifying the right of the lender to receive from the borrower the funds provided to him on loan or, depending on the terms of the loan, other property, established interest or other property rights within the terms stipulated by the conditions issuance of a loan. It is not allowed to change the terms of the loan issued into circulation. The rules on the state loan agreement apply accordingly to loans issued by the municipality.
Loan agreement
An agreement under which one party (lender) transfers money or other things defined by generic characteristics to the ownership of the other party (borrower), and the borrower undertakes to return to the lender the same amount of money (loan amount) or an equal amount of other things of the same kind received by him and quality. The loan agreement is considered concluded from the moment of transfer of money or other things. A loan agreement between citizens must be concluded in writing if its amount exceeds at least ten times the minimum wage established by law, and in the case when the lender is a legal entity, regardless of the amount. In confirmation of the loan agreement and its terms, a borrower's receipt or other document may be submitted certifying the transfer of a certain amount of money or a certain number of things by the lender to him.
Surety agreement
An agreement under which the guarantor undertakes to be responsible to the creditor of another person for the fulfillment by the latter of his obligation in whole or in part. A guarantee agreement may also be concluded to secure an obligation that will arise in the future. The suretyship agreement must be made in writing. Failure to comply with the written form entails the invalidity of the surety agreement. If the debtor fails to perform or improperly performs the obligation secured by the surety, the surety and the debtor shall be liable to the creditor jointly and severally, unless the law or the surety agreement provides for subsidiary liability of the surety.
State external debt
Debt obligations of the Government of the Russian Federation to foreign states or international organizations denominated in foreign currency.
State domestic debt
Debt obligations of the Government of the Russian Federation, denominated in the currency of the Russian Federation, to legal entities and individuals, unless otherwise established by the regulatory acts of the Russian Federation. The legal forms of debt obligations are loans received by the government, government loans received through the issuance of securities on behalf of the Government of the Russian Federation, other debt obligations guaranteed by the Government of the Russian Federation.
Debtor, debtor company
An enterprise that does not fulfill or will not be able to fulfill its obligations to creditors in the near future. The legislation of the Russian Federation introduced the concept of an insolvent debtor (bankrupt).
Grants
Budgetary funds provided to the budget of another level of the budgetary system of the Russian Federation on a gratuitous and irrevocable basis to cover current expenses.
Fixed Income
Revenues that are fully or partially transferred to a certain type of budget.
Pledge
A civil law action that entitles the creditor under a secured obligation (pledge holder), in the event of the debtor's failure to fulfill this obligation, to receive satisfaction from the value of the pledged property preferentially over other creditors. The pledgee has the right to receive satisfaction on the same basis from the insurance indemnity for the loss or damage to the pledged property, regardless of in whose favor it is insured, unless the loss or damage occurred due to reasons for which the pledgee is responsible. Pledge of land plots, enterprises, buildings, structures, apartments and other immovable property (mortgage) is regulated by the Mortgage Law. The pledge arises by virtue of the contract. A pledge also arises on the basis of the law upon the occurrence of the circumstances specified in it.
Investment fund
An intermediary who, by issuing securities, attracts privatization certificates and funds from citizens for their subsequent investment in privatization objects, real estate and securities of other joint-stock companies. There are investment funds of open and closed types. Open-end investment funds sell their securities with the obligation to buy them back at the first request of investors. Closed-end investment funds issue their securities with the obligation to redeem them at the end of the period for which the fund was established.
Investors
Business entities (government bodies that allocate funds to cover urgent and long-term needs), persons to whom securities belong on the basis of ownership (owners) or other property rights (owners).
Endorsement
Its essence lies in the fact that on the reverse side of the bill or an additional sheet (allonge) an endorsement is made, through which another person, along with the bill, is transferred the right to receive payment. The person who transfers the bill of exchange by endorsement is called the endorser, and the person who receives it is called the endorser. The act of transferring a bill is called endorsement or endorsement. An endorsement may be made in favor of any person, including even in favor of the payer or drawer. It should be simple and unconditional. Partial endorsement, i.e. transfer of only part of the amount of the bill is not allowed. The endorser is responsible for acceptance and payment. He can absolve himself of responsibility by saying "No turnover on me."
Collection
A form of settlement in which the bank (issuing bank) undertakes, on behalf of the client, to carry out actions at the expense of the client to receive payment and (or) acceptance of payment from the payer. The issuing bank that received the client's order is entitled to engage another bank (executing bank) for its execution. The procedure for making settlements on collection is regulated by the law, the banking rules established in accordance with it and the customs of business turnover applied in banking practice.
Limitation of actions
The term for the protection of the right on the claim of a person. whose right has been violated. The general statute of limitations is three years. For certain types requirements, the law may establish special limitation periods, reduced or longer in comparison with the general period. The limitation period, in particular, does not apply to the requirements of depositors to the bank for the issuance of deposits.
Commercial banks
Private and state banks that carry out universal operations for lending to industrial, commercial and other enterprises, mainly at the expense of the monetary capital that they receive in the form of deposits.
commercial loan
Credit provided in the form of a commodity by sellers to buyers in the form of a deferred payment for goods sold. It is provided against the obligations of the debtor (buyer) to repay within a certain period of time both the amount of the principal debt and accrued interest. There are five main ways to provide a commercial loan: bill method; open account; discount subject to payment within a certain period; seasonal credit; consignment.
Bankruptcy estate
The property of the debtor, which may be levied in the process of bankruptcy proceedings.
Bankruptcy proceedings
A procedure aimed at the forced or voluntary liquidation of an insolvent enterprise (i.e. bankrupt).
bankruptcy creditor
An individual or legal entity that has property claims against the debtor and is not the bearer of security rights.
Consignment
A type of lending in which a retailer can simply receive inventory without obligation. If the goods are sold, then payment will be made to the manufacturer, and if not, then the retailer can return the goods to the manufacturer without paying a penalty. Consignment is usually used when selling new, atypical goods, the demand for which is difficult to predict. An example is the practice of producing and selling new textbooks for institutes. Book publishers send their books to institute bookstores with the condition that they be returned if they are not sold.
Loan agreement
An agreement under which a bank or other credit organization (creditor) undertakes to provide funds (credit) to the borrower in the amount and on the terms stipulated by the agreement, and the borrower undertakes to return the received amount of money and pay interest on it. The loan agreement must be concluded in writing. Failure to comply with the written form entails the invalidity of the loan agreement. Such an agreement is considered null and void. The lender has the right to refuse to provide the borrower with the loan provided for in the loan agreement in whole or in part if there are circumstances that clearly indicate that the amount provided to the borrower will not be returned on time. The borrower has the right to refuse to receive a loan in whole or in part, notifying the lender about this before the term for its provision established by the agreement, unless otherwise provided by law, other legal acts or a loan agreement. In the event of a breach by the borrower of the obligation stipulated by the loan agreement for the intended use of the loan, the lender is also entitled to refuse further lending to the borrower under the agreement.
Leasing
It is a special form of financial investment for the purchase of equipment, durable goods or real estate. The participants in leasing operations are, as a rule, three parties: the enterprise - the manufacturer of the leasing object; leasing company - lessor; as well as an enterprise - a tenant (lessee).
Broker
An intermediary in the conclusion of transactions on stock and commodity exchanges, which acts on behalf of clients and at their expense.
Minimum budget security
The minimum allowable cost of state or municipal services in monetary terms provided by public authorities or local governments per capita at the expense of the relevant budgets.
Minimum State Social Standards
Public services, the provision of which to citizens on a gratuitous and irrevocable basis at the expense of financing from the budgets of all levels of the budgetary system of the Russian Federation and the budgets of state non-budgetary funds, is guaranteed by the state at a certain minimum allowable level throughout the territory of the Russian Federation.
Tax
Mandatory, individually gratuitous payment collected from organizations and individuals in the form of alienation of funds belonging to them on the basis of ownership, economic management or operational management of funds, in order to financially support the activities of the state and (or) municipalities. Signs of the tax: compulsory character; gratuitousness; non-equivalence.
Tax inspections
Operational financial control. The head of the system of tax authorities is the Ministry of Taxes and Dues of the Russian Federation. The tasks of the tax services are: a) control over compliance with tax legislation, ensuring the completeness and timeliness of making tax payments to the budget; b) the implementation of audits of the financial condition of enterprises and organizations, regardless of departmental subordination and their organizational - legal form; c) control over the correctness of determining taxable profit (income) in order to prevent its underestimation; d) registration of all subjects, as well as real and potential objects of taxation; e) accounting, evaluation and sale of confiscated, ownerless property, property transferred to the state, treasures. Tax inspectorates have the right: to receive in organizations of various forms of ownership Required documents and information, with the exception of those that constitute a trade secret determined by law; monitor compliance with the legislation on entrepreneurship of citizens; inspect all premises used for generating income; suspend all operations of enterprises and citizens in case of non-submission of documents; seize documents evidencing the concealment of income; apply sanctions and fines; file suits in court and arbitration for the liquidation of enterprises, the recognition of transactions as invalid.
Immovable things (real estate, real estate)
Land plots, subsoil plots, other objects and everything that is firmly connected with the land, i.e. objects, the movement of which is impossible without disproportionate damage to their purpose, including forests, perennial plantings of a structure building. Immovable things also include aircraft and sea vessels subject to state registration, inland navigation vessels, and space objects. Other property may also be classified as immovable by law.
Penalty (fine, penalty)
A sum of money determined by law or contract which the debtor is obliged to pay to the creditor in the event of non-performance or improper performance of an obligation, in particular in the event of delay in performance. Upon a demand for the payment of a penalty, the creditor is not obliged to prove the infliction of losses to him. The creditor is not entitled to demand payment of a penalty if the debtor is not liable for non-performance or improper performance of obligations.
Government bonds
Securities issued by the state in order to attract part of the borrowed funds to the state budget. Income received from state securities, unlike corporate securities, has preferential taxation. Currently, the Ministry of Finance of the Russian Federation, on behalf of the Government of the Russian Federation, attracts short-term borrowed funds from legal entities and the population under bonded loans. The most common short-term loan is a loan for the issuance of government short-term zero-coupon bonds (GKOs).
Corporate bonds
Mortgage bonds (backed by physical assets) unsecured bonds (direct debt that does not create a property claim against the corporation) bonds secured by other securities of the firm (backed by shares or debentures of the company) convertible bonds (give the investor the right to purchase ordinary shares of the same company at a certain price at a certain time) income bonds (yielding interest only when income is earned).
Municipal bonds
Issued to raise funds for the construction or repair of public facilities: roads, bridges, water supply systems, etc. Divided into the following types general obligation bonds (backed by the good faith of the issuer) project income bonds (redeemed with project income to finance which they are issued).
Bond
A security that certifies the right of its holder to receive from the person who issued the bond, within the period stipulated by it, the par value of the bond or other property equivalent. A bond also gives its holder the right to receive a fixed percentage of the nominal value of the bond or other property rights.
Monetary obligations
Must be expressed in rubles. A monetary obligation may provide that it is payable in rubles in an amount equivalent to a certain amount in foreign currency or in conventional monetary units (ecu, for example). In this case, the amount payable in rubles is determined at the official exchange rate of the relevant currency or conventional monetary units on the date of payment, unless a different exchange rate or another date for its determination is established by law or by agreement of the parties.
Overdraft
A negative balance on the client's current account, sometimes acquiring the status of a loan, i.e. a form of short-term credit, the provision of which is carried out by debiting funds from the client's account by the bank in excess of the balance of funds in the account, resulting in a debit balance. With an overdraft, all amounts credited to the client's current account are sent to repay the debt, so the amount of the loan changes as funds are received, which distinguishes an overdraft from ordinary loans. Interest is charged at existing or agreed rates.
Option
The right to choose the method of fulfilling the obligation provided by one of the parties to the contract, its terms or the right to refuse to fulfill the obligation under certain conditions.
Option loan
A loan with an option is a form of loan or debt under which the lender, within certain limits, is given the right to choose repayment.
Offeror
The person making the offer.
Offer
A formal offer to a certain person to conclude a deal, indicating all the conditions necessary for its conclusion.
Liabilities
Liabilities (excluding subventions, grants from own funds and other sources) of an enterprise consisting of borrowed and borrowed funds, including accounts payable.
Bill of exchange (draft)
Issued and signed by the creditor (drawer). It contains an order to the debtor (drawee) to pay within the specified period the amount indicated in the bill to a third party (receiver).
Payment order
The order of the payer to the bank to transfer a certain amount of money to the account of the person indicated by the payer in this or in another bank within the period provided for by law or established in accordance with it, if more short term is not provided for by the bank account agreement or is not determined by the customs of business turnover applied in banking practice at the expense of the funds in his account.
Policy
A document of the insurance body confirming the existence of a concluded insurance transaction.
duties
Monetary amounts that are collected by specially authorized institutions for actions performed in favor of an enterprise or individuals.
Company
The property complex used for business activities. In general, an enterprise as a property complex is recognized as real estate. The structure of the enterprise as a property complex includes all types of property intended for its activities, including land plots, buildings, equipment, inventory, raw materials, products, rights of claim, debts, as well as rights to designations that individualize the enterprise, its products, works and services (company name, trademark marks, service marks) and other exclusive rights, unless otherwise provided by law or contract.
Profit (loss) from the sale of products and goods
It is defined as the difference between the proceeds from the sale of products (works, services) in current prices without value added tax and excises, as well as for its production and sale
Promissory note (solo bill)
It is issued and signed by the debtor and contains his unconditional obligation to pay the creditor a certain amount at the stipulated time and in a certain place.
Regulatory income
Revenues that are intended to support the lower budget, observing subordination. The list of fixed and regulating incomes is fixed by special tax laws and codes.
reserves
Part of the financial resources that is intended to finance the needs that arise unforeseen and are aimed at both simple and expanded reproduction and consumption. Insurance reserves - part of the financial resources aimed at compensating for damages in insured events. Insurance financial reserves - financial reserves of insurance companies. These reserves are needed when current funds not enough to pay.
Decision to issue securities
A written document registered with the state registration authority and containing data sufficient to establish the scope of the rights certified by the security.
Ruble
The currency of the Russian Federation, legal tender must be accepted at face value throughout the Russian Federation.
Stocks and bods market
Part of the loan capital market where the issue and purchase and sale of securities is carried out. Through the securities market (banks, special credit institutions and the stock exchange), money savings of legal entities, individuals and the state are accumulated and directed to the production and non-productive investment of capital. A distinction is made between the primary securities market, where the issue and initial placement of securities are carried out, and the secondary market, where the sale (circulation) of previously issued securities is carried out.
savers
Legal entities and individuals who accumulate funds due to the fact that the costs are less than the accumulated funds, concentrated on the hands in the form of a person or bank accounts (population, enterprises and the state).
Savings (deposit) certificate
A security that certifies the amount of the deposit made to the bank and the right of the depositor (certificate holder) to receive, after the expiration of the established period, the amount of the deposit and the interest stipulated in the certificate in the bank that issued the certificate, or in any branch of this bank. Deposits are on demand (give the right to withdraw certain amounts upon presentation of a certificate) and urgent (which indicate the withdrawal period of the deposit and the amount of interest due).
Collection
Mandatory contribution levied from organizations and individuals, the payment of which is one of the conditions for the commission in the interests of payers of fees by state bodies, local governments, other authorized bodies and official types of securities. Financial market participants are savers, investors, issuers.
Financial plan
A systemic set of measures of material mediation of the functioning of the state. It is drawn up for a period of 1 to 5 years and is included in the budget. In form, the financial plan is a statement of goals, figures and organizational proposals for the planning period. At the enterprise, planning is based on the consideration of the law of value, and at the same time planning acts as an economic category. Financial plans have all the links financial system enterprises and organizations operating on a commercial basis draw up balance sheets of income and expenses, institutions engaged in non-commercial activities - estimates, cooperative organizations, public associations and insurance companies - financial plans, public authorities - budgets of different levels. The object of financial planning is the financial activities of business entities and the state, and the final result is the preparation of financial plans, from the estimate of an individual institution to the consolidated financial balance of the state. Each plan defines income and expenses for a certain period, links with the links of the financial and credit systems (contributions to social insurance contributions, payments to the budget, payment for a bank loan, etc.). All parts of the financial system have financial plans. Enterprises and organizations operating on a commercial basis make up a “balance of income and expenses”, enterprises and organizations operating on a non-profit basis draw up an “estimate”, a plan of public associations - a “financial plan”, state authorities make up the "budget" (of different levels central, local, subjects of the Federation).
Financial return
The amount of profit received on invested resources. The main task is to reduce the financial intensity and increase the financial return in social production. At the same time, it must be remembered that an improved reproduction structure of financial resources for the value of a social product is an important reserve for the growth of financial resources.
Finance
The totality of objectively determined economic relations having a distributive nature, a monetary form of expression and materialized in cash income and savings, formed in the hands of the state and business entities for the purposes of expanded reproduction, material incentives for workers, satisfaction of social and other needs. The condition for the functioning of finance is the availability of money, and the reason for the emergence of finance is the need for business entities and the state in resources to ensure their activities.
Stock Exchange
A specialized organization that brings together professional participants in the securities market, creating conditions for the concentration of supply and demand, as well as for increasing the liquidity of the market as a whole. An exchange is a specific trading organization that is subject to special rules and procedures. In the process of exchange trading meetings, the market price (rate) of the securities is established by special methods, information about which, along with information about the volume of transactions made, becomes the property of a wide range of investors. In this regard, the stock exchange can be likened to a sensitive device that signals the state of the stock market, and through it - the state of affairs in the economy as a whole.
Forfaiting
Such credit operation, in which the exporter, having received from the importer the drafts (bills of exchange) accepted by the latter, sells them at a discount to a bank or a specialized financial firm. When the due date for payment of the drafts, the importer usually repays his debt in semi-annual installments. Traditionally, forfaiting-based lending to foreign trade firms is usually done by large banks. By resorting to forfaiting, the exporter gets the opportunity to additionally mobilize funds and reduce receivables. An exporter turns to the forfaiting market if he fails to obtain a guarantee from a state institution, or his foreign trade contract is not creditworthy enough, or his own financial situation does not allow him to divert funds for a long time.
Futures or futures contract
Standard contract for the supply of goods in the future at a price, certain parties when making a deal.
security paper
A document certifying, in compliance with the established form and mandatory details, property rights, the exercise or transfer of which is possible only upon its presentation. With the transfer of a security, all the rights certified by it are transferred in aggregate. In cases provided for by law, or in the manner prescribed by it, for the exercise and transfer of rights certified by a security, evidence of their fixing in a special register (regular or computerized) is sufficient. Securities include a government bond, bond, bill, check, deposit and savings certificate, bank savings book to bearer, bill of lading, shares, privatization securities and other documents that are classified as securities by securities laws or in the manner prescribed by them.When purchasing a security, an investor can count on at least two types income: investment and course.
Registered securities
Securities for which investor information must be available to the issuer at a securities registry firm.
Bearer securities
Securities, the transfer of rights to which and the exercise of the rights certified by them do not require mandatory identification of the investor's name.
Securities circulation
Conclusion of civil transactions involving the transfer of ownership of securities.
Securities release form
The form of issuance of securities, in which the investor is established on the basis of presentation of a properly executed security certificate or, in the case of depositing such a certificate, and entry on the depo account.
Central banks
Banks that issue banknotes and are the centers of the credit system. They occupy a special place in it and are, as a rule, state institutions.
Check
A security that contains an unconditional order from the drawer of a check to a bank to pay the amount specified in it. Only a bank where the drawer has funds that he has the right to dispose of by issuing checks can be indicated as a payer on a check. It is not allowed to withdraw a check before the expiration of the term for presenting it. The issuance of a check does not extinguish the monetary obligation for which it was issued. The form of a check and the procedure for filling it out are determined by law and the banking rules established in accordance with it.
Issue right
The set of legal rules governing the issuance of money into circulation.
Emission
Issuance of banknotes. On the territory of the Russian Federation, the monopoly right to issue banknotes into circulation belongs to Central Bank RF.
Issuers
Legal entities that can issue securities. With the help of the financial market, the money savings of savers are attracted to invest the costs of developing production, implementing state and regional targeted programs, and other needs. An objective prerequisite is the discrepancy between the needs for financial resources of business entities and the availability of sources of financial resources.
Entity
An organization that has separate property in ownership, economic management or operational management and is liable for its obligations with this property may, on its own behalf, acquire and exercise property and other non-property rights, bear obligations, be a plaintiff and defendant in court. Legal entities must have an independent balance sheet or estimate and be registered as a legal entity. Legal entities can be organizations that pursue profit making as the main goal of their activities (commercial organizations) or do not set profit making as such a goal and do not distribute the profits received among participants (non-profit organizations).
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