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Have you ever wondered about all those financial terms that you hear?

Look below!

Here is a brief list of different financial terms to help you understand the terms that are being used.

Gross Income: Total income before taxes and deductions.
Net Income: Income remaining after taxes and deductions.
Asset: Anything of value owned by a person or business that can provide future economic benefit.
Liability: A debt or financial obligation owed to another person or organization.
Equity: The owner's share of a business after liabilities are deducted from assets.
Revenue: The total income generated from sales of goods or services before expenses are deducted.
Profit: The money remaining after all expenses, taxes, and costs have been paid.
Cash Flow: The movement of money into and out of a business or personal account.
Capital: Money or assets available for investment or business operations.
Investment: An asset purchased with the expectation of generating income or increasing in value.
Dividend: A payment made by a company to its shareholders, usually from profits.
Interest: The cost of borrowing money or the earnings from lending money.
Inflation: The general increase in prices over time, reducing purchasing power.
Principal: The original amount of money invested or borrowed, excluding interest.
Return on Investment (ROI): A measure of profitability calculated by comparing gains to the cost of an investment.
Net Worth: The value of all assets owned minus all liabilities owed.
Liquidity: How quickly an asset can be converted into cash without losing significant value.
Balance Sheet: A financial statement showing assets, liabilities, and equity at a specific point in time.
Income Statement: A financial report showing revenue, expenses, and profits over a period.
Diversification: Spreading investments across different assets to reduce risk.
Market Cap: The total value of a company's outstanding shares of stock.
Credit Score: A numerical rating that indicates a person's creditworthiness and borrowing risk.