Fachsprache II

Option

Offer the buyer the right but not the obligation to buy or sell an asset at the strike price

Commodities

Raw materials or primary products such as metals, cereals, coffe that are traded on special markets

Heding

making contracts to buy or sell commodities or financial assets at a prearranged price, as a protection against price changes

Speculation

Buying assets in the hope of capital gain by selling them later at a higher price

Interest rate swap

An agreement to exchange future interest payments with another company or financial institution

Currency rate swap

An agreement between two parties who exchange principal and fixed rate interest payments on a loan in one currency for principal and fixed rate interest payments on an equal loan in another currency

Shareholder's equity

All the money belonging to the company's owners

Intangibles

Assets whose value can only be turned into cash with difficulty

Additional paid-in capital

Capital that shareholders have contributed to the company above the nominal or par value of the stock

Accrued expenses

Expenses such as wages, taxes and interest that have not yet been paid at the date of the balance sheet

Total receivables

Money owed by customers for goods and service purchases made on credit

Accounts payable

Money owed by suppliers for purchases made on credit

Prepaid expenses

Money paid in advance for goods and services

Retained earnings

Profits that have not been distributed to shareholders

Property

Tangible assets such as offices, machines, etc.

Goodwill

The difference between the purchase price of aquired companies and their net tangible assets

Total liabilities

The amount of money owed that the company will have to pay out

Market leader

The firm with the largest market share

Market challenger

The company with the second largest market share

Market followers

Competitors who present no threat to the market leader