As an entrepreneur, you need to stay updated with the latest business news to stay ahead of the competition. To do this, you must be familiar with the jargon used in business news to understand the reports and analysis. In this article, we will discuss ten must-know business news vocabulary words for every entrepreneur.
1. Market Capitalization
Market capitalization refers to the total market value of a company’s outstanding shares of stock. It is calculated by multiplying the number of outstanding shares by the current market price of the stock. Market capitalization is used to determine the value of a company and is considered a good indicator of a company’s size.
2. Gross Domestic Product (GDP)
Gross Domestic Product (GDP) is the total value of all goods and services produced within a country’s borders in a given period. GDP is considered a key indicator of a country’s economic health and is used to measure the standard of living of its citizens.
3. Fiscal Year
A fiscal year is a 12-month period used by companies and governments to report financial results. A fiscal year does not necessarily correspond to the calendar year and can start on any date chosen by the organization.
4. Initial Public Offering (IPO)
An initial public offering (IPO) is when a company offers its shares of stock to the public for the first time. IPOs are often used to raise capital for expansion or to pay off debt.
5. Revenue
Revenue is the total income generated by a company from its primary business activities. It includes all sales, fees, and other sources of income.
6. EBITDA
EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It is a measure of a company’s profitability and cash flow before accounting for non-cash expenses such as depreciation and amortization.
7. Dividend
A dividend is a portion of a company’s profits paid out to its shareholders. Dividends are generally paid out regularly and are considered a good indicator of a company’s financial health.
8. Bear Market
A bear market is a term used to describe a market in which stock prices are falling and investor confidence is low. It is usually characterized by a sustained period of declining stock prices.
9. Bull Market
A bull market is a term used to describe a market in which stock prices are rising and investor confidence is high. It is usually characterized by a sustained period of increasing stock prices.
10. Interest Rate
An interest rate is the cost of borrowing money. It is expressed as a percentage of the borrowed amount and is usually paid to the lender as part of the loan agreement.
In conclusion, being familiar with these ten business news vocabulary words is essential for every entrepreneur. Understanding the jargon used in business news reports and analysis will help you make more informed decisions for your business. Keep these terms in mind as you stay up-to-date with the latest business news.
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