c5

vulnerable

An adjective to show something is at risk or open to danger

liquidity

Money or cash

highly leveraged

An adjective to show the situation when the major part of an investment is funded by borrowed money

liquidation

A situation when a failing company stops operating and its assets are sold to pay its debts

breakness

Extremely fast

reform

To change something to make it better

financial engineering

The use of various mathematical tools to maximise profits from financial investments

misleading

An adjective to show something that is wrong or inaccurate

wholesale funding

A debt method that banks use in addition to savers’ deposits to finance operations

management buyout

An activity when the managers of a company decide to break away from that company and buy part of it in order to run it separately

resignation

When someone leaves their job voluntarily

organic

An adjective to show how a company develops without buying other businesses

slowdown

An adjective to show when shares bought on a financial market are paid for with real money

receivership

A situation when a company that is bankrupt is put under the control of an individual by the courts

mortgage lender

The amount of money an investor risks losing if the investment does badly, for example on the stock market

The number of shares in a company needed to veto certain decisions at the AGM

• blocking minority

exposure

A firm or enterprise which develops a new product or service

A period when demand for products and services decreases

recession

The buying or selling of an option

option trade

The right to buy shares at a specific price in the future

call option

outbound acquisition

An activity when a company in your country takes over a company in a foreign country

free float

The right to buy or sell shares, bonds, etc., at a particular price/date

credit crunch

A reduction in loan availability or tighter loan conditions

market maker

A business that buys and sells securities

• corporate lending

Money which is lent to companies

loan exposure

The total amount of money a financial institution has lent to customers

An activity when a foreign company buys a company in your country

An activity when a foreign company buys a company in your country

all time peak

A situation when something (e.g., a share) reaches its highest historical point

credit squeeze

A limitation of credit; usually a government measure designed to reduce inflation, by methods such as increasing interest rates

put option

The right to sell shares at a specific price in the future, which you buy because you think prices will fall below that price

robust

Strong and stable

healthy

An adjective to show the large return on capital investment