Banking/Investing/Financial terms 5

📚 Important Words to Know
balance of payments — a record of all economic transactions between a country and the rest of the world over a period
venture capital — financing provided to startups and early-stage companies with high growth potential in exchange for equity
private equity — investment capital used to acquire or invest in companies that are not publicly listed on a stock exchange
hedge — an investment or strategy used to reduce the risk of adverse price movements in an asset
derivatives — financial contracts whose value is derived from the performance of an underlying asset or index
capital gains — profit made from selling an asset at a higher price than it was purchased for
dividend — a portion of a company's profits paid regularly to shareholders as a return on their investment
IPO (Initial Public Offering) — the first sale of a company's shares to the public on a stock exchange
leverage — the use of borrowed capital to increase the potential return of an investment
portfolio — a collection of financial investments such as stocks, bonds, and cash equivalents held by an investor