Beta – Definition

Definition of beta (finance): Beta represents the correlation between movements in the price of a security, and price movements in the broader market for similar securities. What is beta? Beta …

Acquisitions – Definition

Definition of acquisitions: Where a company or organisation gains control and ownership of a company, trade, or a collection of specific assets and liabilities. What is an acquisition? An acquisition …

Economics Definitions

This page holds our Financial Expert™ Definitions of economics jargon and terms. Cut through complex economic concepts with our easy explainer guides. Each definition page is much more than a …

Bull Market – Definition

Definition of a bull market: a prolonged period of optimism and price increases in the financial markets. What is a bull market? A bull market is a prolonged period of …

Monetary Policy – Definition

Definition of monetary policy: The policies and programmes put in place typically by a central bank to control the money supply of an economy. What is monetary policy? Monetary policy …

Macroeconomics – Definition

Definition of macroeconomics: The field of economics which attempts to model the behaviour of an economy, rather than the behaviour of individual participants. What is macroeconomics? Economics is an attempt …

Inflation – Definition

Definition of inflation (economics): A measure of the general rise in consumer prices over time. What is inflation? Prices of good and services tend to go up over time. Inflation …

Globalisation – Definition

Definition of globalisation: The trend which has seen a seismic increase in trade, commerce, ideas and culture across international borders. What is globalisation? Globalisation refers to the idea that as …

Game Theory – Definition

Definition of game theory: the study of how strategic decisions are logically made in a competitive environment where the actions of one participant can impact the success of another. The …

Fringe Benefits – Definition

Definition of fringe benefits (business): The perks and benefits that businesses offer their employees beyond financial remuneration such as salaries and bonus. What are fringe benefits? Fringe benefits are a …

Free Market – Definition

Definition of a free market: a market in which buyers and sellers can transact with free choice, perfect information and without restriction. What is a free market? A free market …

Economic Moat – Definition

Definition of economic moat: A specific and persistent advantage which a company holds over existing or potential new competitors. What is an economic moat? An economic moat is a metaphor …

Command Economy – Definition

Definition of command economy: A economic model, in contrast to capitalism, in which all decisions over which goods and services are produced and in what quantity is centrally controlled, typically …

Business Definitions

This page holds our Financial Expert™ Definitions of business jargon and terms. Cut through business jargon with our easy explainer guides. Each definition page is much more than a business …

Demand – Definition

Definition of demand: the measure of market participants level of desire to buy goods or services at different prices. What is demand? Demand is an economics concept which you’ll frequently …

Comparative Advantage – Definition

Definition of comparative advantage: the efficiency and effectiveness with which an economy can produce a good or service relative to other economies. What is comparative advantage? Comparative advantage is a …

Unsecured Loan – Definition

Definition of unsecured loan: a borrowing arrangement where the lender seeks no collateral or security over the assets of the borrower to repossess in the event that the borrower defaults …

Subsidiary – Definition

Definition of subsidiary: a company which is primarily owned by another company, rather than external shareholders. What is a subsidiary? A subsidiary is a descriptive term for a company in …

Outsourcing – Definition

Definition of outsourcing: The purchase of ready-made goods or services from other businesses rather than producing them in-house from scratch. What is outsourcing? In plain English, outsourcing is when a …

Accounting Definitions

This page holds our Financial Expert™ Definitions of accounting jargon and terms. Cut through accounting jargon with our explainers. Each definition page is much more than an accounting definition. Beyond …

Code of Ethics – Definition

Definition of code of ethics (business): A reference guide providing guidance to employees to help them understand expected behaviours and guide them through moral dilemmas. What is a code of …

Business Ethics – Definition

Definition of business ethics: A strand of applied ethics, which explores moral dilemmas and ethical decision-making in a business context. What is business ethics? Business ethics is a practical branch …

Break-Even Analysis – Definition

Definition of break-even: The point at which the net income generated from an investment decision has covered the costs. You’ll often read the term ‘break-even’ in financial management books & …

Bankruptcy – Definition

Definition of bankruptcy: The legal process initiated when an individual or company is unable to repay their debts. What is bankruptcy? Bankruptcy means different things in different countries. Bankruptcy is …

Variable Cost – Definition

Definition of variable cost: an expense which increases or decreases proportionately to revenue. What is a variable cost? A variable cost is also known as a direct cost, because of …

Turnover – Definition

Definition of turnover (accounting): Income. Turnover is used interchangeably with revenue and gross income in the context of financial reporting. What is turnover? Turnover is an accounting term used most …

Overheads – Definition

Definition of overheads: A business cost which is not directly linked to production or the provision of a service. What are overheads? Overhead is a name given to the collection …