Business Finance Terminologies

Life insurance

These are financial intermediaries that sells life insurance

Capital market

These are markets deals with long term securities

Money market

These are markets deals with  short term  securities

Depository institutions

it refers to financial institutions that accepts deposits from surplus unit.

Financial institutions

 it refers to a company  engaged in the business dealing with  financial monetary transactions such as deposits & loans.

Primary market

 it consist of underwriters, issuers & instruments

Financial instruments

it refers to a monetary contract between two parties  which can be traded

Cooperative bank

these are bank owned by the members of the cooperative

Financial market

 it refers to a market place where trading of securities occur including

Stock market , bond market, forex market

Health insurance

 Type of insurance  that pay the medical expenses and exchanges  for premiums.

Pawn  shops

1.These are agencies where people  and some small business “ pawn “Their assets  in exchanges of amount much smaller that the value  of assets.

Pension fund companies

it refers to the selling of contract to provide income  to policy holders  during their retirement years

Professional  insurance

an insurance that covers the protections of all professionals such as doctors, nurses, teachers & other

Credit insurance

it is a kind of insurance that give protections from lenders & it is associated with loans or credit cards.

Thrift bank

is a type of financial institutions that specializes in offering savings & originating home mortgage for consumers

Sale finance companies

refers to a finance companies that provide installment credit  to buyers of a big ticket items like cars & household appliances

Growth funds

These are funds  with invest in assets that are expected to reap large capital gains

Finance companies

these are profit oriented  financial institutions that borrow and lend funds to households & business

Non- depository institutions

it refers to institutions which obtains fund by issuing deposits issue contracts that are not deposits

Income funds

these are funds which invest in stock , that are regularly pay dividends  and in notes & bonds that are regularly  pay interest.

Allocation

– It means determining where to use funds currently that are available to the firm.

Acquisition

– It means obtaining funds from the right sources at the right time

Efficient – Utilization

It refers to financial resources that are economically use