Learn essential finance terms And vocabulary – Free English lessons online

Have gone up and the euros have crashed. Again, what a waste, right? Hello, welcome. My name is Imelda and todays. Lesson is for all those who feel struggle or who have who actually have to struggle to understand or to teach

CURRENCY

someone some basic financial tones. If you are one such person, relax, my child, your prayers have been answered because today, we will be learning basic financial vocabulary. And of course I have, I would have some people who would say these words, what a big deal? I know these words. Well, you may want to stick around as I will be showing or teaching how some of these words are used as idioms in day-to-day lives which are not related to finance. So, stay tuned, and let’s begin. First word I have for you is currency. What is the currency? Currency is a form of money used in various countries. Now, there are six different currencies, which are recognized

FORMS OF CURRENCY

throughout the world. When I say recognized, I mean that if by any chance you get whole of that particular currency, you may want to go to a bank and they will exchange it for you because they will respect that currency and give you a local form of money. So what are the six forms of currency? Which are valued or respected throughout the world or recognize through other world? Here they are. The first one is US dollars. Popularly known as USD. Then we have the British pound and it the symbol looks very similar to L. We have euros from eurozone. We have Japanese yen. We have Australian dollars and Canadian dollars. Right now, these are the six forms of currency used recognize throughout

PRICE

the world. Trust me, and I know you may not believe me, but Chinese remember is coming up first, and it is actually gaining popularity. So, maybe in couple of years, Chinese remember, may be would be considered as another form of recognized currency throughout the world. Okay, so now we have currency. Obviously, I’m talking about money that you can use to buy or sell an item. So what do you call

SALE

that particular amount of money when you buy a seller item, you call it price. Again, price has two different forms the price that you pay to buy an item that’s called cost price and the price you give an item for that’s called the selling price. However, people use different word, the people use a different form of word for price. You make come up with a question or you may hear the question? How much is this item worth for, or this particular artifact is worth a million dollar. So fries sometimes is used or is replaced with the word. What? Now, if you want to use price in a non-financial tone, you will use you

PROFIT

will heal statements. Like I paid a heavy price for being his or her partner or the freedom fighters of third, world countries better heavy price to gain independence by giving up their life. So here price is used as an idiom because they’re talking about the sacrifice, they have to make to get something, right, okay? Now when you do, when you have cost price selling price, that means you’re using money to buy and sell an item. But what’s the activity called? The activity is called sale. Now, sale has various meaning and I’m sure you would, you would see this word

GAIN

sale in many shopping areas and it would say 50% sale 100% say, or 80% sale. But 100% sale is quite optimistic. Yeah, I know. 50% 80%, but that’s a different meaning. I’m talking about the basic definition of sale, where it talks about the activity through which you do a

BREAKDOWN

transaction or that means you buy or sell a product. Now, if you remember a couple of seconds ago, I said transaction, what does a transaction transact if sale is an activity transaction, is a process It’s a process through which this buying and selling of services or products are take place. The transaction is a process. There are sale is an activity, of course what happens in profit, what happens in a process you gain or lose something, you do something, right? So what do you get when you do a sale when you buy and sell an item? You may end up having a profit that means if I buy an item, let’s say for ten dollars but I sell it for $12. I made a profit agree, right? A different word for profit is okay. I can say I made a gain of

DISCOUNT

$12 or $2, but if I buy an item for 10 and sell it for 8, I made a loss of $2. So anytime if you are, if you’re selling fries, is above your cost price, you make a profit. If you’re selling fries is lower than your cost price. You make a loss, but there are times when you buy an item for $10 and you sell nice and for $10. What’s that point called? It’s a break, even point. That means you’re not making a profit, you’re not making a loss. It’s very common term for business people. Right, because there is a minimum point or there’s this cost price that they will have set that you know dude beyond this if I sell it any lesser I’m gonna make a loss. So let’s say I buy an item for my buy a book for a thousand dollars. I know I read it and then I say, oh you know what? I need to make some corrections. I need to do this. I need to do that. I beautify the book. I laminate the book, good job. Probably in thousand rupees. I added a thousand dollars. I added another $200 making the book look nice. Now, I actually invested thousand two hundred dollars, right? So anytime if a person comes and tells mehey dude can you give me that book for like thousand dollars? No, I can’t. Because I need a minimum of thousand two hundred dollars to at least not have a loss. So that that point is called a break even point. So that’s a very simple top but it’s very, very effective because you need to decide what to break, even point or what to break even are fries when you’re transacting with your wife. Now kidding, relax. That will talk about later. So moving on to the next word I have is discount. Remember I talked about sale and I needed told you that oh sale, I know I know shopping shopping. I know yes. Why. Because this count means a lower

DOMESTIC PRODUCT 

price. That means maybe on a book or a lovely dress cost me around $80, but it’s on this count and now it’s costing me. Only $60. That means it has gone lower than the offered price. Again this count has various words, they say it as offer price or the it’s they say as a sale price. Okay. Now, how do you use a discount in the day-to-day life or not later to finance? You will hear or if you want to say to someone that, hey, don’t discount me or, hey, don’t discount my effort, it actually means don’t underestimate me. So that actually the word discount means, you’re underestimating the value of a product but some people use it as hey, dude, you know what, don’t discover me, I can do better than that. Hey dude, you know what, don’t discount my effort, I actually put in a lot of effort to give you what I have. So sometimes you feel used to discount, not related to finance and that means you are underestimating someone great moving on. To the next word I have is gross. Yes, it’s gross and not gross, it’s gross. A lot of people confuse this word as cross now. It’s gross, like feel it’s gross. Now it’s gross. Gross means in totality or total and you’ll hear the term or read the term GDP. What’s GDP GDP is gross. Domestic product means total products and services produce in a particular period of time in a particular place. So that’s she grows, domestic product or GDP, what grows it does not have any reduction, it has all the taxes, all the charges that it is involved with and it means in total sometimes you will hear people say my gross profit was $10,000 when they say gross profit. If you go to a shop and they say the gross price is $10,000 or your gross salary is, let’s say $5,000 a month. It means the talking about salary in total and they’re not talking about taxes that that’s killer by the way, okay? So that is your gross but if it’s your growth and I’m not talking about your taxes or your deductions and if I deduct all those things, what you will have is net. So my ideas salary people, or if you’re going for an interview, you may want to ask this question. Thank you for this opportunity. What is my gross salary? They will say perhaps, well, to be productive really lucky. They may say you’re gross salary stamp thousand dollars. Oh, nice. I love it. But hold on for a second. You need to ask. What is my net salary? Why? Because your net salary will minus away all your taxes and fees and any other, sorry, any other deduction. And guess what? For all, you know, your net salary is just $2,000 out that hurts. Yes, that hurts. Yes, that hurts. So, if you’re talking about salary, if you’re talking about profit, if you’re talking about any business transaction, these two words are very, very important because this these two words can be a deal breaker, all right? So, I hope you learned these beautiful vocabulary, this beautiful word. And next time, perhaps, when you open up a financial newspaper or a magazine, you are a little more clear of what these words actually mean. Now, I’m sure these words are not those great words used in financial or your finance MBA, but these are the basic words, you may want to start with. I hope this lesson was very useful to you. I will be back soon with another new lesson until then have fun learning English. 

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