Financial Terms

Financial Planning

It involves setting financial goals, assessing assets and liabilities, evaluating risk tolerance, and developing strategies to reach those goals. This process requires a deep understanding of financial concepts such as budgeting, saving, investing, and managing debt.

Welcome to our lesson on financial planning. As a knowledgeable professor in finance, I want to discuss the importance of this term and how it can benefit individuals and companies alike. Financial planning involves a thorough analysis of your financial situation, followed by a personalized plan to help you reach your goals. This includes setting objectives, evaluating assets and liabilities, determining risk tolerance, and devising appropriate strategies.

To effectively plan for your financial future, it is crucial to have a solid grasp of key financial concepts. These include budgeting, which involves creating a spending plan to meet your needs and wants. Saving, which entails setting aside money for future expenses or investments. Investing, which involves purchasing assets with the expectation of generating income or profit. And lastly, managing

Devaluation

This action is usually taken to achieve a more favorable balance of trade and increase competitiveness in the international market. Devaluation, a term often used in the wo...

Financial Reporting Framework (FRF)

It includes accounting principles, standards, and guidelines that must be followed in recording and reporting financial data. It is important for businesses to have a solid u...

Customs duty

A duty, also known as a tariff, is a tax that is charged on goods imported into or exported out of a country. These duties are typically paid by the importer and exporter, a...

EBITD

EBITD, also known as Earnings Before Interest, Tax, and Depreciation, is a financial metric that assesses a company's financial performance. It is calculated by subtracting ...

Key Information Memorandum (KIM)

It is an important tool for investors to make informed decisions and understand the risks associated with a particular investment. A Key Information Memorandum, or KIM, is a...

Half Stock

This usually happens when a company's assets are liquidated and the proceeds are distributed among shareholders. Another term commonly used in finance is Dividend Yield, whic...