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Your Financial Glossary
Don’t waste time—manage your money better! To stay on top of financial news and hold your own in coffee break conversations, check out the easiest finance and investment glossary around. Unsure about a term? Look it up here!
Summary
Has
Active
A resource that holds economic value, such as real estate, a bank book, etc.
Action
A stock represents a share of a company, giving its holder ownership rights over the capital. Owning shares means owning part of the company.
Shareholder
An individual who holds one or more shares.
Arbitration
A simultaneous transaction involving the selling and buying of an asset. When the asset’s price differs across markets, profit can be made.
Life insurance
A medium and long-term savings product used to save and grow capital for oneself or designated beneficiaries. At the end of the contract, the policyholder or their beneficiaries receive the invested amounts, including gains and excluding fees.
B
Bitcoin
The leading cryptocurrency worldwide. It operates on a blockchain network, facilitating secure and transparent financial transactions.
Blockchain
A technology that stores and transmits information transparently, securely, and without a central authority. It enables the exchange of digital assets like cryptocurrencies.
Stock exchange
A digital marketplace where financial securities such as shares and bonds are traded based on supply and demand.
Speculative bubble
A situation where an asset’s price rises excessively, eventually leading to a sudden drop or the « bursting » of the bubble.
Business Angel
Investors who provide capital to small businesses, financing their growth.
C
CAC40
The primary stock market index in France, comprising 40 French companies such as Bouygues, Engie, EDF, and Carrefour.
Debt
A creditor’s right over a debtor, which requires the debtor to repay the debt by a specified date.
Tax credit
An amount subtracted from taxes due, typically in exchange for specific expenses or investments, sometimes leading to partial or full refunds.
Crowdfunding
A fundraising method where a group of individuals finances a project via an internet platform, bypassing traditional financial channels.
Tax deduction
Legal tax benefits that individuals and businesses can claim to reduce their tax liability under certain conditions.
D
Deflation
A general decrease in the prices of goods and services due to economic conditions, in contrast to inflation.
Dividend
A payment made by a company to its shareholders from its profits, based on available funds.
Dow Jones
A stock market index on the New York Stock Exchange consisting of 30 major American companies, including American Express, Apple, and Boeing.
Leverage
A financial strategy of borrowing to increase return on investment, such as using rental income to offset mortgage payments.
Precautionary savings
An easily accessible reserve of money intended to cover unexpected life expenses like medical bills or accidents.
E
ETF
A financial instrument traded on the stock exchange that tracks the real-time performance of stock market indices like the CAC 40, S&P 500, or NASDAQ.
Ethereum
A decentralized platform enabling users to create smart contracts—automated agreements enforced by a computer protocol.
Euro Stoxx 50
A stock index for the Eurozone, comprising 50 major European companies like AXA, Philips, Siemens, and BBVA.
F
FCPI
An Investment Innovation Fund that pools resources to invest in innovative French SMEs.
FCPR
A Risk Investment Fund that pools money for venture capital operations, such as investing in young companies.
FIP
A Local Investment Fund that invests in SMEs operating in specific geographic areas selected by the fund.
Flat tax
Also known as the Single Flat-Rate Levy, this tax applies a 30% rate to capital income from sources like securities sales, interest, dividends, and bonds.
I
Investment funds
A financial vehicle that pools and invests money in securities, allowing investors to share in profits.
Pension fund
A retirement-focused investment fund used to save and grow money for future pension payouts.
Euro funds
Secure investments within life insurance policies, managed by insurers and guaranteed to deliver a positive return.
Forex
The Foreign Exchange market, where currencies are traded at constantly fluctuating exchange rates.
T
Tax fraud
The illegal and deliberate avoidance of taxes owed to the government, punishable by legal action.
Wealth management
A suite of services aimed at growing assets based on individual needs, constraints, and financial goals.
GFF
A civil company focused on acquiring, operating, and managing forested land.
Girardin industrial
An investment scheme that offers a 110% tax reduction for investing in SMEs in France’s overseas departments and regions (DROMs).
Hedge Fund
A high-risk investment fund that can generate significant returns, typically with high management and performance fees.
Tax fraud
The illegal and deliberate avoidance of taxes owed to the government, punishable by legal action.
Wealth management
A suite of services aimed at growing assets based on individual needs, constraints, and financial goals.