Finance Terms Assignment Help

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The study of how the investors allocate their assets over time under conditions of certainty and uncertainty is termed as Finance. The financial terms often mean different things to different organizations depending on their own particular accounting policies. Financial terminology can have slightly different meanings or interpretation in different countries. As a general rule for all the people who are not related to business or those who are non-financial business people if are not able to understand then they are given the explanation from the person or organization responsible for producing the figures and using the financial terms. Financial terminologies are confusing with figures and different methodology. A financial analyst, financial manager or the accountants very keenly explain the financial terms whenever they are asked about it.

Every company has its own accounting principles which they follow and they have their own financial terms which are being explained in their annual reports. To explain the various financial terminologies let us see the below example of a company ABC and its main source is dealing in the manufacture of the cement. The company is public and is trading under the symbol ABC with 1,000 shares outstanding.

Here are some of the financial terms used with the company:

a) Price Per Share – The price at which an investor buys one share of the company. Let the price per share of the company is trading at $50 per share.

b) Book Value – The assets of the company deducted from its liabilities is the book Value of the company. If our company’s asset is about $100,000 and ABC has a debt of say $20,000, then its book value is $100,000 -$20000 = $80,000.

c) Volume – It is the shares of the company traded daily.

d) Dividend - It is the amount of the money a stock is paying out to per share. Say, ABC pays out $4 per share every year, so the investor will receive a cheque for $1 every 3 months for every share the investor owns.

e) Earnings per Share - It is the earning which a company produces at per outstanding share. If ABC has earned $10,000 last year then its earnings per share would be $10.

Above is the example for ABC Company, companies can use different terms and there are a lot of financial terms in this world.