In it financial world, it is common to find a large number of technical words and phrases which can be difficult to understand for those who are not familiar with financial language.
To help solve this problem, we have created a financial dictionary containing a list of common words and phrases used in the financial world, along with their definitions and explanations.
financial dictionary:
TO
It is a person or entity to whom money is owed. The creditor is the lender, who is the one who provides the money or credit. The debtor is the person or entity that receives the money or credit and has the obligation to return it.
It is the process of paying a loan or debt in regular installments, which include interest and a part of the principal owed. Amortization is used to pay off a loan over time, gradually reducing the balance owed.
It is the use of debt or loans to increase the return on an investment. Financial leverage allows investors to earn a higher return on a smaller investment, but it also carries higher risk.
It is a document issued by a bank in which it guarantees the solvency of a debtor and promises to pay in case of default.
It is an independent entity that evaluates the solvency and risk of debt issuers, such as bonds or shares. Rating agencies issue credit ratings that indicate the risk of investing in a specific issuer.
Reserve a part of the income for future use, with the aim of accumulating capital.
It is a computer program designed to be executed in a web browser. Web applications run on a server and are accessed through a web browser.
It is a mobile payment system developed by Apple. It allows users to make payments online or in physical stores with their Apple devices.
It is a European Union security regulation that requires customers to provide two forms of authentication when conducting online transactions. This includes, for example, the password and a verification code sent to the customer's phone.
It is an independent agency of the European Union whose objective is to guarantee harmonized regulation and supervision of banks and financial institutions in the EU. The EBA aims to protect consumers and ensure financial stability in the EU.
B.
- Balance
It is an accounting statement that summarizes the financial situation of a company or person at a given time. The balance sheet includes a list of an entity's assets, liabilities, and net worth.
- Bank
It is a financial institution that offers services such as deposits, loans, payments and investment services. Banks can also issue credit cards and checks.
- central bank
It is a governmental or independent body in charge of regulating the monetary and fiscal policy of a country, as well as issuing and controlling the supply of currency.
- Investment bank
It is a financial institution specialized in investment services, such as the purchase and sale of shares, bonds and other financial assets.
A financial institution that offers banking services exclusively online or through mobile applications.
It is a bank that offers banking services through the internet. Customers can perform online banking transactions, such as checking their balance and making transfers.
- mobile bank
It is a banking service that allows customers to carry out banking transactions through a mobile application.
- world Bank
It is an international organization that aims to help developing countries achieve sustainable economic growth and reduce poverty.
A bank that does not charge commissions for the banking services it offers to its customers.
- ECB (European Central Bank)
It is the central bank of the European Union and is responsible for monetary policy and financial stability in the countries of the euro zone.
- BIC (bank identifier code)
It is an 8 or 11 character code that uniquely identifies a bank worldwide.
- blockchain
It is a distributed ledger technology that allows transactions to be recorded securely and transparently. Blockchain is mainly used in cryptocurrency, but it is also being used in other fields such as asset management and documentation.
- Backup
It is a data backup. It is a backup of the data stored on a device, to be able to restore it in case of loss or failure of the original device.
- Balance of trade
It is an accounting statement that summarizes the imports and exports of a country in a given period. The trade balance reflects the difference between a country's exports and imports and can be used to measure its economic performance.
- Hoax
It is false or misleading information that is intentionally disseminated through digital media to deceive or cause alarm among people. Hoaxes can be dangerous as they can influence important decisions and cause economic and social damage.
It is a characteristic phenomenon called buskers (also known as street musicians) when they connect with the fans of their tunes who follow them to every corner of a city. There is also a threat to buskers today: the disappearance of cash.
C.
- ATM
A machine that is used to perform banking transactions, such as withdrawing cash, depositing money, paying bills, among other services.
- foreign currency exchange
The transaction of exchanging one currency for another.
- Cashback
An incentive in which a portion of the money spent on a transaction is returned to the buyer.
An ID card for students that offers them discounts on various products and services around the world.
An identification card for young people that offers them discounts on various products and services in their country of origin.
- EMV chip
A security chip used in bank cards to authenticate the transaction.
A company or entity that offers financial products or services in a fraudulent or deceptive manner.
The collection of a transaction without the need to use a Point of Sale Terminal (POS) through mobile applications or other technological tools.
- CVV code
A three- or four-digit security code found on the back of credit and debit cards, used to verify card authenticity for online or phone transactions.
- binding code
A security code used in online banking applications and mobile payment applications to link a bank account or credit card to a user account.
- ISIN code
A 12-character identification code used to uniquely identify marketable securities, such as stocks, bonds, and mutual funds.
- Pin code
A personal identification number used to authenticate debit and credit card transactions.
A digital cryptocurrency wallet that stores private keys offline, making them less vulnerable to hacking.
- maintenance fee
A fee that some banks charge customers to keep their bank account active and in good standing.
- commissions
The fees that banks and other financial institutions charge for the services they offer, such as money transfers, credit card issuance, among others.
- Teller commissions
The fees charged by some ATMs for the use of their services, especially when using debit or credit cards from another bank or country.
A payment technology that allows transactions to be made without the need for physical contact between the card or device and the payment terminal.
A form of digital currency that uses cryptography to ensure the security and authenticity of transactions.
A loan of money that is granted to a person or entity with the obligation to repay it within a term and with previously agreed interests.
A bank account that can be opened, managed and used entirely online, without the need to go to a bank branch.
A bank account that is managed entirely online and does not charge fees for the services it offers.
An account that is opened in a bank or financial institution to store and manage money.
A bank account for freelancers and professionals to manage their business finances.
A bank account designed for children and adolescents that allows them to learn to manage their money and save.
A bank account designed for young people that offers conditions and services adapted to their needs and profile.
A specific bank account for self-employed workers and freelancers that allows them to manage their business finances more efficiently.
- Shared Account
A bank account that is shared between two or more people, such as couples, roommates or family members, and that allows you to manage shared expenses.
- Savings account
A bank account used to store money and earn interest on the balance, often at a higher interest rate than a checking account.
- account for entrepreneurs
A bank account designed for entrepreneurs and small businesses, which offers special services and conditions to help them in their business activity.
- overdraft account
An option offered by some banks to allow customers to spend more money than they have in their account, but with additional commission and interest.
- wallet account
An account that is used to store money to make purchases online or in physical stores, with the possibility of top-up with money from a bank account.
- premium account
A bank account that offers exclusive services and conditions, such as personalized attention, account manager and credit cards with higher limits and additional benefits.
- Dues
The amounts of money that are paid periodically for a service or product, such as loan interest, bank commissions, among others.
Educational programs that teach participants about cryptocurrencies, how they work, and how to invest in them.
D.
It is a fiscal obligation in which taxpayers must inform the tax administration about the income and expenses they have had during the fiscal year, and pay the corresponding taxes.
AND
They are people who start a business project with the aim of creating value and generating income.
It is the set of activities, processes and strategies that are used to create and develop new companies or businesses.
It is the action of undertaking or starting a business project with the aim of creating value and generating income.
It is a form of entrepreneurship that seeks to solve social and environmental problems through innovative and sustainable solutions, thus creating a positive impact on society.
F
It is the set of financial resources that are used to finance business projects of entrepreneurs, which can be obtained through different sources of financing, such as investors, seed capital, public funds, among others.
It is a term used to refer to companies that use technology to offer innovative financial services, such as mobile payments, peer-to-peer lending, online financial advice, among others.
They are investment funds that replicate the behavior of a specific stock index and that seek to obtain a return similar to that of the market.
They are the financial resources that a company needs to finance its daily operations and maintain its level of activity, such as the payment of salaries, the payment of suppliers, the maintenance of inventories, among others.
G.
It is a mobile payment service that allows users to make payments with their smartphone in physical and online stores.
h
It is a digital wallet that is used to store cryptocurrencies online, that is connected to the internet and that can be more vulnerable to computer attacks than a cold wallet.
It is a container or container that is used to store money and save, such as a piggy bank or a safe.
Yo
It is allocating money or resources to an activity or project with the aim of obtaining a financial return. The investment can be made in different assets, such as stocks, bonds, real estate, cryptocurrencies, among others.
It is a form of investment that involves buying and selling cryptocurrencies, such as Bitcoin, Ethereum, Litecoin, among others. The value of cryptocurrencies is highly volatile and subject to extreme market changes, which can lead to high returns or significant losses for investors.
J
- financial justice
It is a concept that refers to equity and transparency in the access and use of financial services by all citizens, regardless of their socioeconomic level.
k
- Know your customer (KYC)
It is a process that banks and other financial institutions use to verify the identity of their customers and comply with laws and regulations regarding the prevention of money laundering and financing of terrorism.
L
- Credit line
It is a type of loan that allows a person or company to access a certain amount of money in a flexible way, that is, it can be used and returned several times over a certain period.
- treasury bill
It is a debt title issued by the Public Treasury of a country, which is used to finance the fiscal deficit and which is characterized by being an investment instrument with low risk and profitability.
m
They are virtual currencies that are used to carry out transactions digitally, such as Bitcoin or Ethereum.
They are units of value that are used in the digital world to carry out transactions in a similar way to physical currencies, but without a physical representation.
It refers to women who start a business or company in order to generate income and own their own project.
No.
It refers to women who start a business or company in order to generate income and own their own project.
They are those businesses that are developed in the digital field, such as online stores, mobile applications, websites and other forms of business that use technology.
They are those businesses that are developed with the aim of providing an opportunity to entrepreneurs, offering them a business model or franchise so that they can start their own project.
The acronym NFT means "Non-Fungible Token" or non-fungible token in Spanish. They are a type of digital asset used to represent ownership of an object or piece of art online.
Ñ
EITHER
- Pay order
It is a document that is used to transfer funds from one bank account to another, usually to make payments to suppliers or to send money to family and friends.
- Overdraft:
It is a term in English that refers to a checking account that has a negative balance due to the fact that the credit limit has been exceeded or there are not enough funds to cover the payments made.
P
Payment method that allows financial transactions to be made through a mobile phone or smartphone, using technologies such as NFC or QR codes.
Online payment service that allows financial transactions to be carried out safely and quickly over the Internet, using a personal or business account associated with a credit card or bank account.
Q
- Bankruptcy
It is a term that is used to refer to the situation in which a company or individual cannot pay its debts and is forced to close its operations and liquidate its assets.
R.
- Bank receipt
It is a document issued by a bank to prove a transaction, such as a deposit, withdrawal or payment. Bank receipts often include detailed information about the transaction, such as the date, amount, and accounts involved.
- Credit risk
It is the risk that a financial entity or lender does not receive payment for a loan or debt that it has granted to a client. Credit risk can be mitigated by careful assessment of the customer's creditworthiness and the adoption of adequate guarantee and protection measures.
S
Set of measures and techniques used to protect cryptocurrency transactions and storage from possible theft or fraud.
Policies that cover damages and losses that a home and its contents may suffer due to different situations, such as fires, thefts, floods, among others.
Policies that cover damage that electric scooters may cause or suffer, including civil liability, damage to third parties, theft or own damage.
Mobile payment service offered by the watch brand Swatch, which allows purchases to be made with a compatible smartwatch in establishments that accept contactless payments.
you
Means of payment issued by a bank or financial institution that allows users to make purchases or withdraw cash from ATMs.
Credit or debit cards specially designed for young people, with conditions and limits adapted to their needs and consumption profile.
Card that returns a percentage of the amount of the purchases made with it, in the form of credit in the associated account or in cash.
Bank cards that are recharged with a previously established balance and that allow purchases or cash withdrawals until the available balance is exhausted.
Bank cards that are generated and used exclusively for online purchases, without the need to have an associated physical card.
Bank cards designed to make purchases and cash withdrawals abroad, with conditions and commissions adapted to this type of operation.
Bank cards that allow you to make online purchases safely and without the need to share personal bank details.
Bank card that allows you to make purchases on credit, that is, financing the amount of the purchase and paying interest for it.
Bank card that allows you to make purchases or cash withdrawals with the money available in the associated account.
Equivalent Annual Rate, which indicates the real cost of a financial product, including applicable interest and commissions.
Nominal Interest Rate, which indicates the interest applicable to a loan or financial product.
Point of Sale terminals that do not require a bank account to receive card payments.
Work modality that is carried out remotely, using telematic means and without the need to physically go to the office.
Banking operations that allow money to be sent from one account to another, either within the same bank or between different banks.
Transfers that are made between bank accounts in different countries and that involve currency exchange.
OR
- Usury
Illegal practice of lending money at an exorbitant interest rate.
- unit of account
It is a measure to express the value of a good or service. Example: the euro is a unit of account used in the Eurozone.
V
- Nominal value
The value of a stock or bond as it appears on its title, as opposed to its market value.
- Volatility
It is the measure of the variability of asset prices. High volatility indicates that prices vary frequently and by large magnitudes.
W
a piece of software or device that allows users to store, manage, and send their cryptocurrency.
X
AND
- Yield
English term that refers to the performance of a financial asset, such as a bond or a share.
z
-Euro zone
It is a monetary area comprising 19 countries of the European Union that have adopted the euro as their common currency.
