

Have you ever wondered what all these financial terms are that you hear? Here is a brief list of different financial terms to help you understand the terms that are being used.A helpful way to remember the fundamentals is that nearly all finance revolves around four core concepts:
Assets, Liabilities, Income, and Cash flow.
Understanding those provides the foundation for investing, business finance, accounting, and personal wealth management.
Gross Income:
Net Income:
Asset
Liability
Equity
Revenue
Profit
Cash Flow
Capital
Investment
Dividend
Interest
Inflation
Principal
Return on Investment (ROI)
Net Worth
Liquidity
Balance Sheet
Income Statement
Diversification
Market Capitalization (Market Cap)
Credit Score
Total income before taxes and deductions.
Income remaining after taxes and deductions.
Anything of value owned by a person or business that can provide future economic benefit.
A debt or financial obligation owed to another person or organization.
The owner's share of a business after liabilities are deducted from assets.
The total income generated from sales of goods or services before expenses are deducted.
The money remaining after all expenses, taxes, and costs have been paid.
The movement of money into and out of a business or personal account.
Money or assets available for investment or business operations.
An asset purchased with the expectation of generating income or increasing in value.
A payment made by a company to its shareholders, usually from profits.
The cost of borrowing money or the earnings from lending money.
The general increase in prices over time, reducing purchasing power.
The original amount of money invested or borrowed, excluding interest.
A measure of profitability calculated by comparing gains to the cost of an investment.
The value of all assets owned minus all liabilities owed.
How quickly an asset can be converted into cash without losing significant value.
A financial statement showing assets, liabilities, and equity at a specific point in time.
A financial report showing revenue, expenses, and profits over a period.
Spreading investments across different assets to reduce risk.
The total value of a company's outstanding shares of stock.
A numerical rating that indicates a person's creditworthiness and borrowing risk.
Douglas Branch
1600 N. Panamerican Avenue • PO Drawer 1059 • Douglas, Arizona 85608
(520) 364-8401 • Fax (520) 364-2967
Hours of Operation:
Monday - Thursday: 9:00AM - 4:30 PM
Friday: 9:00AM - 6:00 PM
Benson Branch
182 E. 4th Street • PO Box 2317 • Benson, Arizona 85602:
(520) 586-7095 • Fax (520) 586-7097
Hours of Operation:
Monday - Friday: 9:00 AM - 4:30 PM
*Closed all Federal Holidays

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