# Finance & Accounting Expert

https://hienglishquiz.com/vocabulary/professional-specialized-c2-finance-and-accounting-vocab

- CEFR: C2 (Proficient)
- Theme: Professional & Specialized
- Words: 22
- Premium: no
- Locked: no

Expert finance vocabulary for markets and risk, including arbitrage, derivatives, securitization and the yield curve that traders watch every day.

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## Word list

* **tranche** /træntʃ/: One portion of a larger sum of money, loan or investment, released in stages. — “The first **tranche** of funding arrived in January.”
* **arbitrage** /ˈɑrbɪˌtrɑʒ/: The practice of buying and selling the same asset in different markets to profit from a price difference. — “Traders used **arbitrage** to profit from the price gap between markets.”
* **hedge** /hɛdʒ/: An investment made to reduce the risk of losing money on another investment. — “The airline bought fuel contracts as a **hedge** against rising prices.”
* **derivative** /dərˈɪvətɪv/: A financial contract whose value depends on the price of another asset. — “The fund used a **derivative** to bet on falling interest rates.”
* **actuarial** /ˌækˌtʃuˈɛriəl/: Relating to the calculation of financial risk, especially for insurance and pensions, using statistics. — “The pension fund relies on **actuarial** calculations to set contributions.”
* **forensic** /fərˈɛnsɪk/: Describes financial analysis used to investigate fraud or a crime. — “A **forensic** review uncovered years of hidden losses.”
* **solvency** /ˈsɔlvənsi/: A company's ability to pay all of its long-term debts. — “Investors questioned the bank's **solvency** after the losses were revealed.”
* **securitization** /sɪˌkjʊrətəˈzeɪʃən/: Turning a group of loans or debts into tradable financial securities. — “The bank used **securitization** to sell bundles of mortgage debt to investors.”
* **impairment** /ˌɪmˈpɛrmənt/: A formal recognition that an asset's value has permanently dropped below its recorded value. — “The company recorded an **impairment** after the factory's value fell sharply.”
* **novation**: Legally replacing one party in a contract with a new party, who takes on the same rights and duties. — “Through **novation**, a new supplier took over all the original contract's obligations.”
* **mark to market**: Valuing an asset at what it would fetch today. — “**Mark to market** turned a paper profit into a paper disaster overnight.”
* **off-balance-sheet**: Held in a way that keeps it out of the main accounts. — “The obligations were **off-balance-sheet** and entirely legal.”
* **subordinated debt**: Borrowing that is repaid only after other debts are settled. — “**Subordinated debt** paid a good rate for an obvious reason.”
* **covenant breach**: Failing to meet a condition attached to a loan. — “One **covenant breach** made the whole facility repayable on demand.”
* **transfer pricing**: The prices charged between parts of the same company. — “**Transfer pricing** moved the profit to wherever the tax was lowest.”
* **goodwill impairment**: A write-down when an acquisition proves worth less than paid. — “The **goodwill impairment** was larger than the original purchase price.”
* **beta** /ˈbeɪtə/: A measure of how much an investment moves with the market. — “A **beta** above one means it amplifies whatever the market does.”
* **yield curve**: The relationship between interest rates and how long money is lent for. — “An inverted **yield curve** is the signal everyone watches and nobody heeds.”
* **basis point**: One hundredth of one per cent. — “Twenty-five **basis point** moves are what central banks live by.”
* **going concern qualification**: An auditor's warning that a company may not survive the year. — “A **going concern qualification** closes more doors than the losses do.”
* **window dressing**: Arranging accounts to look better at the reporting date. — “Some **window dressing** at the year end is normal and still dishonest.”
* **creative accounting**: Using accounting rules to present a misleading picture. — “**Creative accounting** stayed just inside the standards for eleven years.”

## Related

- Vocabulary library: https://hienglishquiz.com/vocabulary
- Section guide: https://hienglishquiz.com/vocabulary/llms.txt