1. Account Balance
– Meaning: The amount of money in a bank account.
– Example: “Please check your account balance before making large withdrawals.”
2. Annual Percentage Rate (APR)
– Meaning: The yearly interest rate on a loan or credit.
– Example: “The APR on this mortgage is 3.5%.”
3. Asset
– Meaning: Anything valuable owned by an individual or company.
– Example: “Property and machinery are considered assets on the balance sheet.”
4. Bankruptcy
– Meaning: A legal process for businesses or individuals unable to repay debts.
– Example: “After declaring bankruptcy, they had to liquidate many of their assets.”
5. Capital
– Meaning: Wealth in the form of money or assets.
– Example: “The company raised capital by issuing shares.”
6. Cash Flow
– Meaning: The total amount of money being transferred in and out of a business.
– Example: “Positive cash flow is crucial for the sustainability of the business.”
7. Collateral
– Meaning: An asset pledged for the repayment of a loan.
– Example: “The bank required collateral before approving the mortgage.”
8. Compound Interest
– Meaning: Interest calculated on both the initial principal and accumulated interest.
– Example: “Compound interest allows your investments to grow faster.”
9. Credit Limit
– Meaning: The maximum amount that can be borrowed on a credit card.
– Example: “My credit limit is $5,000.”
10. Debt Consolidation
– Meaning: Combining multiple debts into a single loan with lower interest.
– Example: “Debt consolidation can make it easier to manage your payments.”
11. Accounts Payable
– Meaning: Money owed by a business to its suppliers.
– Example: “Accounts payable needs to be cleared by the end of the month.”
12. Accounts Receivable
– Meaning: Money owed to a business by its clients.
– Example: “Our accounts receivable has increased due to new clients.”
13. Amortization
– Meaning: Spreading out loan payments over time.
– Example: “We opted for a 20-year amortization on our home loan.”
14. Audit
– Meaning: An official examination of accounts or financial statements.
– Example: “An external audit is conducted annually.”
15. Balance Sheet
– Meaning: A statement showing a company’s assets, liabilities, and equity.
– Example: “The balance sheet reflects the company’s financial position.”
16. Break-even Point
– Meaning: When total costs and total revenue are equal.
– Example: “The business reached its break-even point within six months.”
17. Budgeting
– Meaning: Planning how to allocate finances.
– Example: “Budgeting helps ensure that funds are allocated appropriately.”
18. Capital Expenditure (CapEx)
– Meaning: Funds used by a company to acquire, upgrade, or maintain physical assets.
– Example: “Capital expenditure is crucial for long-term growth.”
19. Cost of Goods Sold (COGS)
– Meaning: The direct costs of producing goods sold by a company.
– Example: “COGS increased last quarter due to higher raw material prices.”
20. Depreciation
– Meaning: The reduction in the value of an asset over time.
– Example: “The company depreciates its equipment over five years.”
21. Bear Market
– Meaning: A market in decline, typically by 20% or more.
– Example: “The market entered a bear phase last year.”
22. Blue-chip Stock
– Meaning: Shares of a large, reputable, and financially stable company.
– Example: “Investors often buy blue-chip stocks for their stability.”
23. Bond Yield
– Meaning: The return on investment for a bond.
– Example: “Higher bond yields can attract more investors.”
24. Bull Market
– Meaning: A market that is on the rise.
– Example: “Many investors are excited about the bull market in tech stocks.”
25. Dividend
– Meaning: A portion of profits paid to shareholders.
– Example: “The company declared a quarterly dividend of $0.50 per share.”
26. Exchange-Traded Fund (ETF)
– Meaning: A fund that tracks a specific index and trades on an exchange.
– Example: “ETFs offer a low-cost way to invest in a variety of assets.”
27. Equity
– Meaning: Ownership interest in a company.
– Example: “Shareholders have equity in the company.”
28. Hedge Fund
– Meaning: A private investment fund that uses various strategies to earn returns.
– Example: “Hedge funds often use leverage to maximize returns.”
29. Initial Public Offering (IPO)
– Meaning: When a company offers its shares to the public for the first time.
– Example: “The tech startup raised millions in its IPO.”
30. Mutual Fund
– Meaning: A pool of funds from many investors to buy a diversified portfolio.
– Example: “Mutual funds are popular for their diversification.”
31. Deposit
– Meaning: Adding money to a bank account.
– Example: “I made a deposit into my savings account today.”
32. Withdrawal
– Meaning: Removing money from a bank account.
– Example: “The ATM allows withdrawals of up to $500 per day.”
33. Interest Rate
– Meaning: The percentage charged on borrowed money or earned on savings.
– Example: “The interest rate on my savings account is 2%.”
34. Loan Principal
– Meaning: The original amount of money borrowed or invested.
– Example: “The principal of my loan is $10,000.”
35. Overdraft
– Meaning: A deficit in a bank account caused by withdrawing more than the account balance.
– Example: “My bank charged an overdraft fee after my balance went negative.”
36. Mortgage
– Meaning: A loan to purchase property, typically secured by the property itself.
– Example: “They applied for a mortgage to buy a new home.”
37. Wire Transfer
– Meaning: An electronic transfer of funds.
– Example: “I sent a wire transfer to my international supplier.”
38. Currency Exchange Rate
– Meaning: The rate at which one currency can be exchanged for another.
– Example: “The exchange rate affects the cost of goods for importers.”
39. Fixed Interest Rate
– Meaning: An interest rate that remains constant throughout the loan period.
– Example: “My mortgage has a fixed interest rate of 4%.”
40. Variable Interest Rate
– Meaning: An interest rate that can change over time.
– Example: “A variable interest rate means your payment can fluctuate.”
41. Capital Gains Tax
– Meaning: Tax on the profit made from selling an asset.
– Example: “I had to pay capital gains tax on the sale of my shares.”
42. Corporate Tax
– Meaning: Tax imposed on company profits.
– Example: “Corporate tax rates vary from country to country.”
43. Deductible
– Meaning: An expense that can be subtracted from taxable income.
– Example: “Certain business expenses are deductible, reducing overall tax liability.”
44. Deferred Tax
– Meaning: A tax that is postponed to a future period.
– Example: “The company recorded deferred tax due to temporary differences.”
45. Income Tax
– Meaning: Tax on personal or corporate income.
– Example: “Everyone is required to file an income tax return each year.”
46. Sales Tax
– Meaning: A tax on goods and services.
– Example: “Sales tax is added to the price of retail items.”
47. Tax Bracket
– Meaning: A range of incomes taxed at a specific rate.
– Example: “High-income earners fall into a higher tax bracket.”
48. Tax Credit
– Meaning: A reduction in tax liability, often for specific expenses or activities.
– Example: “The company received a tax credit for its energy-efficient upgrades.”
49. Tax Deduction
– Meaning: An expense that reduces taxable income.
– Example: “Charitable donations qualify as tax deductions.”
50. Tax Return
– Meaning: A form filed to report income and calculate taxes owed.
– Example: “Tax returns must be filed by the deadline to avoid penalties.”
51. Anti-Money Laundering (AML)
– Meaning: Laws and regulations designed to prevent illegal money transactions.
– Example: “Banks have strict AML policies to prevent money laundering.”
52. Compliance
– Meaning: Adherence to laws, regulations, and guidelines.
– Example: “Compliance is mandatory to avoid legal issues.”
53. Federal Deposit Insurance Corporation (FDIC)
– Meaning: U.S. agency insuring bank deposits.
– Example: “The FDIC protects depositors if the bank fails.”
54. Financial Reporting
– Meaning: The process of disclosing financial data to stakeholders.
– Example: “Transparent financial reporting builds investor confidence.”
55. Know Your Customer (KYC)
– Meaning: A process to verify customer identity in financial transactions.
– Example: “KYC policies help banks prevent fraud.”
56. Regulatory Compliance
– Meaning: Adherence to regulations set by financial authorities.
– Example: “All financial institutions must maintain regulatory compliance.”
57. Sarbanes-Oxley Act (SOX)
– Meaning: U.S. law for corporate accountability and financial transparency.
– Example: “The SOX Act ensures accurate financial disclosures.”
58. Securities and Exchange Commission (SEC)
– Meaning: The U.S. agency overseeing securities markets.
– Example: “The SEC investigates securities fraud and enforces market regulations.”
59. Risk Management
– Meaning: Identifying and mitigating potential financial risks.
– Example: “Risk management is essential in banking and finance.”
60. Transparency
– Meaning: Open and honest disclosure of financial information.
– Example: “Transparency is key to maintaining stakeholder trust.”
61. Benchmarking
– Meaning: Comparing company performance with industry standards.
– Example: “Benchmarking helps identify areas for improvement.”
62. Earnings Per Share (EPS)
– Meaning: A measure of profitability, calculated as net income divided by shares.
– Example: “Investors look at EPS to assess a company’s profitability.”
63. EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization)
– Meaning: A metric for a company’s operational performance.
– Example: “EBITDA provides insight into core profitability.”
64. Financial Ratios
– Meaning: Ratios used to assess a company’s financial health.
– Example: “Liquidity ratios measure a company’s ability to meet short-term obligations.”
65. Gross Profit Margin
– Meaning: The difference between revenue and the cost of goods sold.
– Example: “A high gross profit margin indicates efficient production.”
66. Liquidity
– Meaning: The ability to convert assets into cash.
– Example: “High liquidity means the company can easily meet its obligations.”
67. Market Capitalization (Market Cap)
– Meaning: The total value of a company’s shares of stock.
– Example: “Apple has one of the highest market capitalizations globally.”
68. Net Income
– Meaning: The total profit after all expenses are subtracted from revenue.
– Example: “Net income is reported on the income statement.”
69. Return on Assets (ROA)
– Meaning: A measure of profitability, showing how efficiently assets generate profit.
– Example: “ROA is useful for comparing company efficiency within an industry.”
70. Return on Equity (ROE)
– Meaning: A measure of financial performance, calculated as net income divided by shareholder equity.
– Example: “Investors favor companies with high ROE.”
71. Automated Teller Machine (ATM)
– Meaning: A machine for cash withdrawal and banking transactions.
– Example: “ATM services are available 24/7.”
72. Checking Account
– Meaning: A bank account used for daily transactions.
– Example: “I use my checking account for bill payments and everyday purchases.”
73. Credit Score
– Meaning: A score reflecting a person’s creditworthiness.
– Example: “A high credit score can help you qualify for better loan rates.”
74. Direct Deposit
– Meaning: Electronically transferring funds directly to a bank account.
– Example: “My employer pays my salary through direct deposit.”
75. Electronic Funds Transfer (EFT)
– Meaning: A transfer of funds through electronic systems.
– Example: “Many people use EFT for utility bill payments.”
76. Fixed Deposit
– Meaning: A deposit that earns interest over a fixed term.
– Example: “A fixed deposit can be a safe way to earn interest on savings.”
77. Loan Application
– Meaning: A request submitted to a lender for borrowing funds.
– Example: “Submit your loan application with all required documents.”
78. Minimum Balance
– Meaning: The lowest amount needed in an account to avoid fees.
– Example: “Maintaining a minimum balance can help avoid service fees.”
79. Online Banking
– Meaning: Managing bank transactions over the internet.
– Example: “Online banking allows you to transfer money easily.”
80. Transaction Fee
– Meaning: A fee charged for specific banking services or transactions.
– Example: “There’s a small transaction fee for international transfers.”
81. “How can I assist you today?”
– Meaning: A welcoming way to ask clients how you can help with their needs.
– Example: “Welcome! How can I assist you today with your banking needs?”
82. “We offer a range of options based on your needs.”
– Meaning: Introducing flexibility in services to match individual client needs.
– Example: “For savings, we offer accounts that match different goals and timeframes.”
83. “Would you like to review your account options?”
– Meaning: A polite way to guide clients into discussing account types.
– Example: “To make sure you’re in the right account type, would you like to review your options?”
84. “Let’s go over the terms and conditions.”
– Meaning: Ensures clients understand contract or service details.
– Example: “Before opening this account, let’s go over the terms and conditions together.”
85. “This is a low-risk investment product.”
– Meaning: Describing investment options with minimal risk to ease concerns.
– Example: “For long-term goals, this low-risk investment product might be ideal.”
86. “I’ll walk you through the steps.”
– Meaning: Offering guidance, often in a step-by-step way.
– Example: “I’ll walk you through the application process, so it’s straightforward.”
87. “This product offers a fixed interest rate.”
– Meaning: Explaining stability in the rate, often preferred for budgeting.
– Example: “For a predictable return, this product offers a fixed interest rate.”
88. “Do you have any questions about the fees involved?”
– Meaning: An invitation for clients to clarify any concerns about fees.
– Example: “It’s important to understand the costs. Do you have questions about the fees?”
89. “We’re here to support your financial goals.”
– Meaning: Expressing the institution’s commitment to the client’s objectives.
– Example: “Whether saving or investing, we’re here to support your financial goals.”
90. “This is a variable-rate account.”
– Meaning: Explaining that the interest rate can change over time.
– Example: “Since this is a variable-rate account, your returns may fluctuate.”
91. “We’ll need proof of identity for verification.”
– Meaning: Requesting identification to proceed with services.
– Example: “To open your account, we’ll need proof of identity for verification.”
92. “Would you like to set up automatic payments?”
– Meaning: Offering convenience by automating bill payments.
– Example: “Automatic payments can help ensure bills are paid on time. Would you like to set that up?”
93. “This account includes overdraft protection.”
– Meaning: Explains an account feature that prevents negative balances.
– Example: “If you want peace of mind, this account includes overdraft protection.”
94. “Your deposit is FDIC-insured.”
– Meaning: Assuring clients that deposits are protected by insurance.
– Example: “Rest assured, your deposit is FDIC-insured up to $250,000.”
95. “Would you like to set a savings goal?”
– Meaning: Inviting clients to create a specific target for saving.
– Example: “Setting a goal can be motivating. Would you like to set a savings goal?”
96. “Let’s discuss your risk tolerance.”
– Meaning: Understanding the client’s comfort level with investment risk.
– Example: “For investment planning, it’s essential to discuss your risk tolerance.”
97. “This loan requires a co-signer.”
– Meaning: Explaining that another person must also agree to repay.
– Example: “For approval, this loan requires a co-signer to share responsibility.”
98. “This option has no prepayment penalties.”
– Meaning: Clarifying that clients can pay off loans early without extra costs.
– Example: “You can pay this loan off early with no prepayment penalties.”
99. “You’re eligible for a loyalty bonus.”
– Meaning: Informing clients of rewards for continued business.
– Example: “Since you’ve been with us for three years, you’re eligible for a loyalty bonus.”
100. “Thank you for choosing our services.”
– Meaning: A courteous way to show appreciation.
– Example: “Thank you for choosing our services; we’re here to help you meet your financial goals.”
1. “This portfolio is designed for long-term growth.”
– Meaning: Indicates an investment strategy aimed at increasing value over an extended period.
– Example: “Based on your goals, this portfolio is designed for long-term growth with moderate risk.”
2. “We recommend diversifying your investments.”
– Meaning: Advising clients to spread investments across various assets to reduce risk.
– Example: “Diversifying your investments can help manage risk while still aiming for growth.”
3. “This option has a higher potential return but involves more risk.”
– Meaning: Clarifying that while returns may be greater, there is also a higher level of risk.
– Example: “If you’re comfortable with the risk, this option offers a higher potential return.”
4. “Your risk tolerance will guide our investment choices.”
– Meaning: Tailoring investment strategies based on the client’s comfort with risk.
– Example: “With your moderate risk tolerance, we’ll focus on balanced growth options.”
5. “Would you like to reinvest your dividends?”
– Meaning: Asking if the client wants their earnings from investments to go back into the portfolio.
– Example: “Reinvesting dividends can help your portfolio grow faster over time.”
6. “We can adjust your portfolio periodically.”
– Meaning: Offering to review and modify investments based on market conditions and goals.
– Example: “To stay on track, we’ll adjust your portfolio periodically as needed.”
7. “This fund has a good track record of stability.”
– Meaning: Describing a fund with a history of steady performance.
– Example: “If you prefer lower risk, this fund has a good track record of stability.”
8. “Would you like a conservative, balanced, or aggressive approach?”
– Meaning: Offering clients choices in terms of investment strategy.
– Example: “We can structure your portfolio conservatively, balanced, or aggressively based on your goals.”
9. “This stock option offers high liquidity.”
– Meaning: Explaining that the investment can be easily converted into cash.
– Example: “If you need easy access to funds, this stock offers high liquidity.”
10. “Our goal is to maximize your after-tax returns.”
– Meaning: Aiming to help the client keep more of their earnings by minimizing taxes.
– Example: “By choosing tax-efficient options, we aim to maximize your after-tax returns.”
11. “This mortgage has a fixed interest rate.”
– Meaning: Explaining that the interest rate will stay the same over the loan period.
– Example: “A fixed-rate mortgage provides consistent payments, which helps with budgeting.”
12. “You may be eligible for a first-time homebuyer program.”
– Meaning: Informing clients about programs that offer benefits for new homeowners.
– Example: “First-time homebuyer programs can help with lower down payments and reduced rates.”
13. “We’ll calculate the loan-to-value ratio for you.”
– Meaning: Offering to determine the loan amount relative to the home’s value.
– Example: “The loan-to-value ratio will impact your down payment and mortgage options.”
14. “This option has no penalty for early repayment.”
– Meaning: Clarifying that clients can pay off their mortgage early without fees.
– Example: “You have the flexibility to pay this off early with no prepayment penalty.”
15. “Your credit score will affect the mortgage rate we can offer.”
– Meaning: Informing clients that a higher credit score can mean a better interest rate.
– Example: “A higher credit score will help us secure a more competitive rate for you.”
16. “Would you like to see options with adjustable rates?”
– Meaning: Asking if the client is open to a mortgage with variable interest rates.
– Example: “An adjustable-rate mortgage could be a good fit if you plan to move within a few years.”
17. “Your monthly payment includes principal, interest, taxes, and insurance (PITI).”
– Meaning: Breaking down the components of a mortgage payment.
– Example: “Your payment will cover principal, interest, taxes, and insurance, or PITI.”
18. “We’ll run an affordability assessment.”
– Meaning: Conducting an analysis to determine what the client can afford.
– Example: “Our affordability assessment will ensure you’re within a comfortable budget range.”
19. “This mortgage term is 30 years, but we also offer shorter terms.”
– Meaning: Explaining the length of the loan, with shorter options available.
– Example: “If you want to build equity faster, consider a 15-year mortgage term.”
20. “Let’s discuss your down payment options.”
– Meaning: Talking about the different amounts a client can put down on a home.
– Example: “With a larger down payment, you can reduce your monthly mortgage payments.”
21. “We’ll set up a comprehensive financial plan for you.”
– Meaning: Offering a full overview of the client’s financial needs and goals.
– Example: “A comprehensive financial plan will cover savings, investments, and retirement.”
22. “Let’s establish your short-term and long-term goals.”
– Meaning: Helping clients clarify their financial objectives over different time horizons.
– Example: “Defining both short-term and long-term goals is key to effective planning.”
23. “This retirement account is tax-advantaged.”
– Meaning: Explaining that the account offers tax benefits.
– Example: “A tax-advantaged retirement account can help you save more over time.”
24. “Do you have a budget in place?”
– Meaning: Asking if the client has a plan for managing monthly expenses.
– Example: “A budget helps ensure you’re on track to reach your savings goals.”
25. “Would you like to set up an emergency fund?”
– Meaning: Recommending a reserve of funds for unexpected expenses.
– Example: “An emergency fund can cover expenses in case of job loss or unforeseen costs.”
26. “Your net worth statement gives an overall view of your assets and liabilities.”
– Meaning: Summarizing total assets minus liabilities to determine financial health.
– Example: “A net worth statement helps us see where you stand financially.”
27. “We recommend diversifying across asset classes.”
– Meaning: Suggesting a variety of investments to balance risk.
– Example: “Diversifying across asset classes can help protect against market fluctuations.”
28. “Let’s calculate your retirement income needs.”
– Meaning: Determining how much the client will need to sustain their lifestyle after retiring.
– Example: “Calculating your retirement income needs helps set realistic savings goals.”
29. “We’ll review your estate planning options.”
– Meaning: Discussing ways to manage and distribute assets after death.
– Example: “Estate planning ensures your assets are handled according to your wishes.”
30. “This plan will include wealth accumulation and preservation strategies.”
– Meaning: A strategy to help clients grow and protect their wealth.
– Example: “Our goal is to create a plan focused on both accumulation and preservation.”
Sign up and experience our high-quality English courses firsthand.
Take your career to the Next Level by Mastering Business English
