Your Vocabulary Finance - management of money

- capital involved in a project

- loan of money for a particular purpose

- money resources of a state, company or person

Finance house (company)

– organization providing finance for hire-purchase agreements.

Financial accountant

– accountant whose primary responsibility is the management of the finances of an organization and the preparation of its annual accounts.

Financial adviser

– a person who offers financial advice to someone else, especially one who advises on investment.

-- organization, usually a merchant bank, which advises the board of a company during a take-over.

Financial capital

– the liquid as opposed to physical assets of a company.

Financial futures

– futures contract in currencies or interest rates.

Financial institution

– an organization that collects funds from individuals, other organizations or government agencies and invest these funds or lends them on to borrowers.

Financial instrument

– formal financial document.

Financial intermediary

– bank, building, society, finance house, insurance, company, investment trust etc. that holds funds borrowed from lenders in order to make loans to borrowers.

-- person or organization that sells insurance but is not directly employed by an insurance company.

Financial year

– any year connected with finance, e.g. a company’s accounting period or a year for which budgets are made up.

-- specific period relating to corporation tax.

Financial ratio

– ratios between particular groups of the assets or liabilities of an enterprise and corresponding totals of assets or liabilities; or between assets and liabilities and flows like turnover or revenue.

Financier

– person who uses his one money to finance a business deal or venture or who makes arrangements for such a deal.

You’ve studied the definitions taken from a dictionary. Refer to some other sources to find more information about the concepts mentioned above.

Ex. 1. Think of the nouns that are most commonly used with these verbs. Give your own sentences with the combinations of words.

to generate, to adopt, to utilize, to perform, to involve, to seek, to provide, to facilitate.

Ex. 2. Give Russian equivalents to the following.

Grant loans, accept deposits, facilitate securities transfers, raising corporate funds, obtain funds, dividend policies, merger and acquisition activities, leasing, the realm of the capital budget, the cash budget, security trading, portfolio managers, stocks, bonds, stock and index options, warrants, financial futures, bank teller, financial analyst, a loan officer, depository institution, mortgage servicing specialist, insurance company, accounts payable staff, treasurer, brokerage house, investment counselor.

Ex. 3. Match the word with its definition.

rate, portfolio, quotation, option, warrant, exchange rate, brokerage, deposit, merger, mortgage, counselor, interest rate.

1. The value of a currency expressed in terms of another currency.

2. Numerical proportion between two sets of things.

3. Charge made for borrowing a sum of money, expressed as a percentage of the total sum loaned.

4. Indication of the price at which a seller might be willing to offer goods for sale.

5. Person giving professional guidance on personal problems.

6. Range of investments held by a person, company, etc.

7. Broker’s fee or commission, which is usually calculated as a percentage of the sum involved in the contract.

8. Combining of two or more commercial organizations into one in order to increase efficiency and to avoid competition.

9. Right in property created as security for loan.

10. Money left with a bank for safe keeping or to earn interest.

11. Finance security that offers the owner the right to subscribe for the ordinary shares of a company at a fixed price.

12. Right to buy or sell a fixed quality of a commodity, currency, or security at a particular date at a particular price.

Ex. 4. Match each word on the left with its opposite on the right hand side.

increase expends profit private debit spend lend liabilities sell direct

assets save public borrow decrease revenues purchase loss indirect credit

Ask your partner as many questions as you can using the words above.

Ex. 5. Insert prepositions.

Financial planning process

Financial planning is an important aspect … the firm’s operation and livelihood since it provides road maps … guiding, coordinating and controlling the firm’s actions in order to achieve its objectives. Two key aspects … the financial planning process are cash planning and profit planning. Cash planning involves the preparation of the firm’s cash budget; profit planning is usually done … means of proforma financial statements.

The financial planning process begins … long-run, or strategic, financial plans that in turn guide the formulation of short-run, or operating, plans and budgets. Generally, the short-run plans and budgets implement the firm’s long-run strategic objectives.

Long-run (strategic) financial plans are planned long-term financial actions and the anticipated financial impact of those action. Such plans tend to cover periods ranging … two … 10 years. Long-run financial plans consider proposed fixed-assets outlays, research and development activities, marketing and product developing actions and major sources of financing.

Short-run (operating) financial plans are planned short-term financial actions and the anticipated financial impact … those actions. These plans most often cover a one- to two-year period. Key inputs include the sales forecast and various forms of operating and financial data. Key outputs include a number … operating budgets, the cash budget and proforma financial statements.

Read the text once again and answer the following questions: What are two key aspects of financial planning? What do short-run and long-run plans include?

Ex. 6. Join the halves. Translate the sentences into Russian.

1. Financial markets provide the mechanism for

2. Investment analysis focuses on

3. When a company obtains capital from external sources

4. Equity financing and debt financing provide

5. Working capital refers to

6. Financial management is concerned with

7. Transactions is short-term debt instruments that

8. Major securities traded in the capital market

9. When prices rise,

10. Finance involves

11. More experienced individuals would be eligible for

1. the funds used to keep business working or operating.

2. carrying out the allocation of financial resources.

3. take place in the money market.

4. include bonds and both common and preferred stock.

5. the financing can be either on a short-term or a long-term arrangement.

6. how individuals or portfolio managers select appropriate financial and real assets.

7. important means by which a corporation may obtain its capital.

8. how firms acquire and allocate funds.

9. loan officer, branch manager, or senior analyst.

10. the securing of funds for all phases of business operations.

11. the same goods, cost more in terms of dollars, and the dollar’s value in term of those goods falls.

Ex. 7. Translate the text into Russian in written form.