Top Banking and Finance Definitions


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Latest updated Banking definitions

Embedded Value (EV) Definition

The embedded value of a life insurance business is an estimate of the value of both its net assets and the income stream expected from policies already in force. Did [...]

Quick Ratio Definition

Quick ratio or acid test ratio is the indicator of business short term obligations or current liquidity. The ratio is calculated by dividing the difference of assets and inventory to [...]

Trading Definition

Trading is the frequent sale and purchase of marketable securities to generate profit. The trade of stock in the US and some other countries is regulated by SEC. There’s plenty [...]

Selling / Merchandising Definition

Sales’ enable the initiation of transfer of ownership of an item, or the entitlement to a service, in exchange for money. The process includes informing the client about, and qualifying [...]

Capital Gain Definition

Capital gain is a profit earned by a business by selling its products higher than the purchase or manufacturing cost or a profit earned by a disposal of its assets. [...]

Transaction Servicing Definition

Transaction Servicing includes all the steps and operations required to capture, post, process and completion of a financial transaction. Completion includes settlement of all debts and money disbursed to the [...]

Approval Conditions Management Definition

The ability to ensure approval conditions requested by Credit Adjudication/PFS Risk Management are met prior to funding. More on banking definitions later this week, when I write my next post. [...]

Annual Report Definition

This is the document describing the financial health of a public organization. The major portion of this document consists of reports including the income statement, balance sheet and cash flow [...]

Opportunity Cost Definition

Opportunity cost is the cost incurred for computing the best utilization of your income or asset. For example if you decide to invest in a security that yields a 2% [...]

Risk framework Definition

The model of risks in the organisation, typically detailing the various classes of risk and the degree of risk management expected. I hope you enjoy today’s terms. Reading up on [...]

DoS (Denial of Service) Definition

A denial of service (DoS) attack is an incident in which a user or organization is deprived of the services of a resource they would normally expect to have. Typically [...]

Option Definition

Option is a term used in securities. This option gives the investor the right, but not the obligation to buy (call) or sell (put) stocks or bonds at a said [...]

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