So, let's start with the basics:
Return on Investment
Return on Investment (ROI) tells us how profitable an investment we made has been. The return on investment ratio is calculated by subtracting the initial cost of the investment from its final value, then dividing this new number by the cost of the investment, and finally, multiplying it by 100. It is useful as a measure for comparing investments.
Base Rate
The base interest rate of a central bank (such as the European Central Bank or the U.S. Federal Reserve) reflects the direction of its monetary policy. It allows central banks to influence money market conditions, direct lending rates to companies and households, and ultimately the general price level in an economy.
General Index of a Stock Exchange
The general index of a stock exchange tracks the performance of the shares listed on it on average and is measured in units/points. For example, if the general index last year closed at 1,000 points and this year it is at 2,000, on average the prices of stocks as a whole doubled.
Accrued Interest
Interest that has not been paid or received between the predetermined coupon payment dates of a bond is called accrued interest.
Treasury Bills
These are government short-term debt instruments issued to finance the State's activities. Their selling price is less than their nominal value and they usually involve less risk than other products on financial markets. In Greece they have a duration of 3, 6 or 12 months.
Euro Area
The euro area, or eurozone, is the economic and monetary union of 20 European Union (EU) member states that have adopted the euro as their common currency. Monetary policy in the euro area is conducted by the European Central Bank (ECB), which is governed by a president and the board of the governors of national central banks.
Daily Limits
These are the maximum amounts that can be used per day for specific banking transactions, such as withdrawals, purchases, transfers between bank accounts, etc.
Custodian
A credit institution or investment firm that safeguards the securities of its clients and has the obligation to return them to clients upon their request is called a custodian. A custodian may hold any financial instrument on behalf of its clients.
Balance Sheet
The accounting list that sets out all assets and liabilities of a company, as well as the company's own funds for a specific period of time, is known as a balance sheet.
Deposits
The money placed in bank accounts for savings and for financial management purposes constitute bank deposits and are divided into various types, such as sight deposits, time deposits, savings, etc., with a corresponding interest rate and terms of use, depending on the type of deposit.
Ledger Balance
This is the total balance of a bank account as accounted for at a given time, though it may differ from the available balance, as an amount may have been blocked to complete pending transactions.
Share
Shares are units of ownership in a company. Depending on the number of shares a shareholder owns, the shareholder has a proportional ownership in the issuing company. The right to participate in profits, the right to issue new shares, the right to the proceeds of liquidation, as well as the right to vote in the General Meeting of the company and participate in its management, are some of the rights of shareholders, depending on the type of share.
Monetary Inflation
This is the inflation that is created by constantly increasing money circulation combined with lowering interest rates in order to stimulate a country's economy, which is likely to lead to price inflation, that is, an increase in the general level of prices for goods and services in an economy.
Borrowed Funds
Debts of a company such as loans, credits and advances, which are recorded in its balance sheet and are considered necessary for it to function properly, are called liabilities or borrowed funds. They are used to finance business activity and the production process.
Bonds
Bonds are debt securities issued by the State or private organizations and are used to borrow funds from investors. The principal is returned at maturity of the bonds, while the issuer of the bond undertakes to pay periodically a certain amount of money (coupon) throughout the product term.
Standing Order
The bank receives the relevant order from an account’s beneficiary to automatically go ahead with a series of regular transactions on their behalf, in line with the parameters they have set. Standing orders free up time and help you avoid late payments.
Asset Liquidity
Asset liquidity refers to how easy it is to buy or resell an asset without affecting its value. Assets such as real estate or works of art are less liquid, while cash is considered the most liquid asset.
Foreign Exchange
Currencies, as well as securities such as cheques, bills of exchange, promissory notes, etc. that are payable in another country (abroad), are called foreign exchange.
Savings Account
This is the most common bank deposit account available to individuals. It is usually used for saving or financial management, i.e. for amounts that we want to have readily available.
Current Account
A deposit account available to individuals usually used for financial management, i.e. for amounts that we want to have readily available, providing in addition the option of issuing a cheque book and/or an overdraft facility.
Sight Account
Sight accounts are deposit accounts that offer professionals and businesses the ability to instantly service their transactions through cash and cheques.
Mortgage
The collateral a borrower provides to guarantee that they will pay back the money they have borrowed is called a mortgage. Usually it's properties that are mortgaged, until a loan is fully repaid.
Statement of Account Activity
Statements are copies of the activity of bank accounts which are either retrieved, and then printed or saved, by account holders through digital networks, or sent by post to the address registered with the bank.
Portfolio
The set of assets that an investor owns is called a portfolio and can include financial instruments (such as stocks, bonds, mutual funds) and cash. A portfolio can also contain a wider range of assets, including real estate, artworks, and private investments.
Digital Currency
Any currency that does not exist in physical form, i.e. is not printed like traditional currency, but is stored or exchanged over the internet is called digital currency/money or electronic currency/money. Transactions with digital currencies are performed instantly. Most digital currencies, such as Bitcoin, Ethereum, Litecoin, etc., are encrypted.
Maturity
The maturity date of any security, promissory note, bond, time deposit, and so on, i.e. the date on which the holder of the security will receive the nominal value, is called maturity.
