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Investing and investments

annuity

noun

an amount of money that is invested in order to earn interest that is then paid to someone each year for the rest of their life

arbitrage

noun

the process of buying things, especially currencies or company shares, in one place and selling them in another at the same time for profit

blue chip

noun

a company or investment that makes a lot of money and is safe to invest in

bond

noun

a document given to someone who invests money in a government or company, promising to pay back the money with interest

capital

noun

money or property that you use to start a business or invest to earn more money

capital gains tax

noun

a tax that you pay on the profit you get from selling property or from money you have invested

capital-intensive

adjective

a capital-intensive business or activity needs to have a lot of money invested in it

chit fund

noun

a kind of savings scheme used in India. Each person pays in a certain amount every month over a period of time and a prize decided by auction is given each month.

contrarian

noun

someone who invests money in the opposite way to most other people, for example buying shares in companies that are doing badly, because they think that the situation will change

debenture

noun

an official arrangement with a company in which the company promises to pay a fixed rate of interest on money you have invested in it

derivative

noun

a type of investment that will gain in value if the price of a product changes in an expected way

disinvestment

noun

the act of taking money out of a particular country, industry, or business, and investing it somewhere else

divestment

noun

the process of selling shares or assets or of taking back money that you have invested

drawdown

noun

a reduction in the value of an investment

equity capital

noun

money raised for a business by selling shares or by keeping some of the money earned by the business

friendly society

noun

an organization in the UK that saves money for people who give small amounts of money regularly

fund

noun

a financial organization that manages an amount of money by investing it

fund manager

noun

someone whose job is managing and investing money for a financial organization

futures

noun

contracts to buy or sell shares, goods, or currency at an agreed price to be delivered at a time in the future

gilt-edged

adjective

gilt-edged investments are considered to be very safe and reliable

hedge fund

noun

a financial organization that invests money that has a high risk of being lost but which may make a very large profit

investment

noun

money used in a way that may earn you more money, for example money used for buying property or shares in a company

investment

noun

an amount of money that is invested

investment

noun

the process of spending money in order to improve something or make it more successful

investment

noun

something that you are willing to spend money on now because it will give you benefits in the future

investment bank

noun

in the United States, a bank that buys and sells large quantities of securities (=documents showing that someone owns a small part of a company)

investment trust

noun

a company whose business is investing the money that it receives from its customers

investor

noun

a person or organization that invests money

inward investment

noun

money that is invested in a country by a person or organization from another country

junk bond

noun

a bond that pays a lot of interest but has a high level of risk

limited liability

noun

the legal position of having to pay only a limited amount of the debts of a company that you have invested in

margin

noun

an amount of money that you give a stockbroker to pay for possible losses on money that they invest for you

mature

verb

if an investment matures, the person who owns it receives back the money that they invested and the interest that it has earned after a fixed period of time

maturity

noun

the time when the interest and profits on money that has been invested must be paid

OEIC

noun

Open Ended Investment Company: a company that invests its money in other companies and has no limit on the numbers of its own shares that it can make available for sale

offshore

adjective

relating to or involving money invested in another country

pay out

to provide money from an amount invested over a period of time

performance

noun

the degree of success of an investment in making money for you

portfolio

noun

all the investments that a person or company has made

private equity

noun

money invested in private companies whose shares cannot be bought on the stock exchange

prospectus

noun

a document providing details about a business to people who are interested in investing in it

pump-priming

noun

money that is invested in something to encourage it to develop, or to encourage other people to invest in it

reinvest

verb

to invest income back into a business instead of taking it as profit

return

verb

to produce a particular amount of profit on money that has been invested

return

noun

a profit on money that you have invested

rollover

noun

a situation in which the money earned from investing in something is invested again in a similar thing

savings

noun

money that you have saved in a bank or invested so that you can use it later

share

noun

one of the equal parts of a company that you can buy as a way of investing money

short-selling

noun

the practice of selling borrowed securities and then buying them again at a lower price

simple interest

noun

interest earned on money that you have invested, calculated once a year on the principal (=the amount of money originally invested)

stake

noun

the part of a business that you own because you have invested money in it

stakeholder

noun

a person or company that has invested in a business and owns part of it

supply-side economics

noun

economic policies that involve reducing taxes in order to encourage people to invest more money

tax shelter

noun

somewhere you can invest your money without having to pay tax on the profits

tipster

noun

someone who gives information about which horse is likely to win a race

tracker fund

noun

money invested in all of the companies on a particular list

trust

noun

an arrangement in which a person or an organization manages someone else’s money or property

trust

noun

money or property that someone manages for a person or an organization according to a legal arrangement

trust

noun

an organization that manages money or property so that it can help other people or organizations

trust fund

noun

an amount of money invested and managed for someone, often a child, by another person or organization

unearned income

noun

money that you get from something that you have invested in, for example property or shares

venture capital

noun

money invested in a new business that may or may not be successful

white knight

noun

a person or company that invests money in another company in order to prevent it being sold to a larger organization

short sell

verb

speculator

noun

mom jeans

a style of loose-fitting jeans with a high waist, often considered unfashionable

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endies

Employed but with No Disposable Income or Savings: people who are in work but only earn just enough to live on

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