Vocabulary for IELTS Academic (Band 8-9) - Finance

Here, you will learn some English words related to Finance that are necessary for the Academic IELTS exam.

review-disable

review

flashcard-disable

flashcard

spelling-disable

spelling

quiz-disable

quiz

start-learning
Vocabulary for IELTS Academic (Band 8-9)
option [noun]

a contract that gives the holder the right, but not the obligation, to buy or sell an asset at a predetermined price within a specified time frame

Ex:
book [noun]

the official record of financial transactions and accounts for a business, including ledgers, journals, and other accounting documents

Ex: The small business owner relied on digital accounting software to maintain an organized and up-to-date book , streamlining financial management .

an act of spending less money during difficult financial times

Ex: During the recession , our family had to start belt-tightening .

the rhythmic pattern of economic growth and decline, consisting of phases such as expansion, peak, contraction, and trough

Ex: The trough of the business cycle represents the lowest point , with economic activity bottoming out , and typically precedes a new phase of expansion .
cash cow [noun]

a service or product that provides a business or company with a stable income

Ex: The popular gaming franchise has proven to be a cash cow for the studio , allowing them to fund other projects .

the amount that was profited or lost in an organization or company after everything was calculated

Ex: The company 's bottom line improved significantly after implementing cost-cutting measures .

a financial officer responsible for managing and overseeing the financial accounts and budgets of an organization

Ex: The university comptroller is responsible for managing the institution 's budget , allocating resources efficiently , and maintaining financial records .
buyout [noun]

the acquisition of a company or a controlling interest in a company's shares, often initiated by an outside entity or a group of investors, resulting in a change of ownership and control

Ex: The management team proposed a management-led buyout , aiming to take the company private and streamline operations for greater efficiency .
equity [noun]

the value of an asset after deducting all claims, debts, or liens against it

Ex: Homeowners often borrow against the equity of their houses .
hedge [noun]

a thing or method that protects one against potential problems, particularly financial ones

Ex: The company implemented a currency hedge to mitigate the impact of exchange rate fluctuations on its international transactions .
top line [noun]

a company's gross sales or revenues, before any costs or expenses are deducted

Ex: Management is focused on growing the top line through strategic initiatives and new product launches .

the movement of money in and out of a business or financial system, indicating its liquidity and financial well-being

Ex: During periods of economic uncertainty , businesses often focus on maintaining a healthy cash flow to enhance financial resilience .

a decline in something's price or value

Ex: Depreciation of property values in the neighborhood has made it difficult for homeowners to sell their houses .
cartel [noun]

an agreement among independent entities, often businesses, to control prices, production, and distribution in a specific industry, reducing competition and increasing market power

Ex: The automobile manufacturers cartel strategically coordinates production levels and pricing to maintain stability within the industry .
takeover [noun]

the acquisition of a company, leading to a change in ownership and often involving the purchase of a substantial portion of its shares

Ex: Shareholders celebrated the successful takeover , which significantly increased the value of their investments .

a financial market where long-term debt or equity-backed securities are bought and sold

Ex: Companies often raise capital through the issuance of stocks or bonds in the capital market to finance their expansion projects .

the act of buying a company and then selling its assets separately, often at a profit, without regard for the company's long-term viability

Ex: Shareholders accused the management of engaging in asset stripping to enrich themselves at the expense of the company 's long-term sustainability .