Dictionary of

third edition

A & C Black � London

www.acblack.com

Originally published by Peter Collin Publishing in 1991

Second edition published 1999Third edition published 2003

Reprinted 2005

A & C Black Publishers Ltd38 Soho Square, London W1D 3HB

© P. H. Collin 1991, 1999© Bloomsbury Publishing Plc 2003© A & C Black Publishers Ltd 2005

All rights reserved. No part of this publication may be reproducedin any form or by any means without the permission of the publishers.

A CIP record for this book is available from the British Library

eISBN-13: 978-1-4081-0227-5

ISBN-10: 0 7136 7739 2ISBN-13: 978 0 7136 7739 3

A & C Black uses paper produced with elemental chlorine-free pulp,harvested from managed sustainable forests.

Text typeset by A & C BlackPrinted in Italy by Legoprint

Preface to the first editionThis dictionary provides a basic vocabulary of terms used in the fields ofbanking, investment, the Stock Exchange, and general finance. It covers bothBritish and American usage.The main words and phrases are defined in simple English, and manyexamples are given to show how the words may be used in context. In somecases, the definitions are expanded by explanatory comments. We also givequtoations from newspapers and financial magazines from various parts ofthe world.The supplements at the back of the book offer additional information.

Preface to the second editionThe vocabulary of banking and finance, like that of so many moderndisciplines, moves forward rapidly, and we have expanded and edited thetext of the dictionary to keep pace with current changes. We have also madea further selection of recent quotations from newspapers and magazines.At the same time, to make the dictionary more useful to students, we nowgive phonetic transcriptions for all the headwords.

Preface to the third editionThe text and supplements have been thoroughly revised for this new editionand many new entries have been included to reflect recent changes in thefield of banking and finance.We are grateful to Stephen Curtis for his help with this edition. Thanks arealso due to Katy McAdam, Joel Adams, Daisy Jackson, Sarah Lusznat, JillGarner and Sandra Anderson for the excellent presentation of the text.

Pronunciation Guide

The following symbols have been used to show the pronunciation of the mainwords in the dictionary.

Stress is indicated by a main stress mark ( � ) and a secondary stress mark ( � ) . Notethat these are only guides, as the stress of the word changes according to its positionin the sentence.

Vowels Consonants� back b buckɑ� harm d deadɒ stop ð othera type d� jumpaυ how f fareaə hire � goldaυə hour h headɔ� course j yellowɔ annoy k cabe head l leaveeə fair m mixe make n nileυ go ŋ sing�� word p printi� keep r resti happy s saveə about ʃ shop fit t takeə near tʃ changeu annual θ theftu� pool v valueυ book w workυə tour x loch' shut � measure

z zone

A

A /�sŋ�(ə)l �e/, AA /�d�b(ə)l �e/,AAA /�trp(ə)l �e/ noun letters thatshow how reliable a particular share,bond or company is considered to be �These bonds have a AAA rating.

‘…the rating concern lowered its rating tosingle-A from double-A, and its senior debtrating to triple-B from single-A’ [Wall StreetJournal]COMMENT: The AAA rating is given byStandard & Poor’s or by Moody’s, and in-dicates a very high level of reliability for acorporate or municipal bond in the US

A1 /e �wɒn/ adjective � ship which isA1 at Lloyd’s a ship which is in the bestpossible condition according to Lloyd’sRegisterAAD abbreviation Arab accountingdinarABA abbreviation American BankersAssociationabandonment /ə�b�ndənmənt/noun an act of giving up voluntarilysomething that you own, such as an op-tion or the right to a propertyabatement /ə�betmənt/ noun an actof reducingABA transit number /�e bi� e�tr�nzt �n�mbə/ noun a number allo-cated to an American financial institu-tion, such as a bank (NOTE: The numberappears on US cheques in the topright-hand corner, above the ‘checkrouting symbol’.)ABI abbreviation Association of BritishInsurersabove par /ə�b�v �pɑ�/ adjective re-ferring to a share with a market pricehigher than its par valueabove the line /ə�b�v ðə �lan/ ad-jective, adverb 1. COMPANIES formingpart of normal income and expenditurebefore tax � Exceptional items arenoted above the line in company ac-counts. 2. relating to revenue items in a

government budget 3. ADVERTISING re-lating to advertising for which paymentis made (such as an ad in a magazine ora stand at a trade fair) and for which acommission is paid to an advertisingagency. Compare below the line

absolute /��bsəlu�t/ adjective com-plete or totalabsolute monopoly /��bsəlu�t mə-�nɒpəli/ noun a situation where onlyone producer produces or only one sup-plier supplies something � The com-pany has an absolute monopoly ofimports of French wine. � The sup-plier’s absolute monopoly of the prod-uct meant that customers had to accepthis terms.absolute title /��bsəlu�t �tat(ə)l/noun a form of ownership of a pieceof land in which the owner’s right isguaranteed by being registered with theLand Registry (NOTE: Absolute titlealso exists to leasehold land, givingthe proprietor a guaranteed validlease.)absorb /əb�zɔ�b/ verb to take in asmall item so that it forms part of alarger one � overheads have absorbedall our profits all our profits have gonein paying overhead expenses � to ab-sorb a loss by a subsidiary to include asubsidiary company’s loss in the groupaccounts � a business which has beenabsorbed by a competitor a small busi-ness which has been made part of alarger oneabsorption /əb�zɔ�pʃən/ noun theprocess of making a smaller businesspart of a larger one, so that the smallercompany in effect no longer existsabsorption costing /əb�zɔ�pʃən�kɒstŋ/ noun a form of costing for aproduct that includes both the directcosts of production and the indirectoverhead costs as well

absorption rate /əb�zɔ�pʃən ret/noun a rate at which overhead costs areabsorbed into each unit of productionabstract /��bstr�kt/ noun a shortform of a report or document � to makean abstract of the company accountsa/c, acc abbreviation accountaccelerate /ək�seləret/ verb 1. tomake something go faster 2. to reducethe amount of time before a maturitydateaccelerated depreciation /ək-�seləretd dpri�ʃ�eʃ(ə)n/ noun asystem of depreciation which reducesthe value of assets at a high rate in theearly years to encourage companies, as aresult of tax advantages, to invest in newequipment

COMMENT: This applied in the UK until1984; until then companies could depreci-ate new equipment at 100% in the firstyear of purchase.

acceleration /ək�selə�reʃ(ə)n/ nounthe act of making an unpaid balance orbond repayment become payableimmediatelyaccept /ək�sept/ verb 1. to take some-thing which is being offered � to acceptdelivery of a shipment to take goodsinto the warehouse officially when theyare delivered 2. to say ‘yes’ or to agreeto something � She accepted the offer ofa job in Australia. � He accepted £2000in lieu of notice. � 60% of shareholdershave accepted the offer.acceptable /ək�septəb(ə)l/ adjectivewhich can be accepted � Both partiesfound the offer acceptable. � The termsof the contract of employment are notacceptable to the candidate. � The offeris not acceptable to the shareholders.acceptance /ək�septəns/ noun 1. theact of signing a bill of exchange to showthat you agree to pay it � to present abill for acceptance to present a bill forpayment by the person who has ac-cepted it 2. � acceptance of an offerthe act of agreeing to an offer � to givean offer a conditional acceptance toaccept an offer provided that specificthings happen or that specific terms ap-ply � we have their letter of accep-tance we have received a letter fromthem accepting the offer 3. a bill whichhas been accepted 4. the act of accepting

an offer of new shares for which youhave appliedacceptance credit /ək�septəns�kredt/ noun an arrangement of creditfrom a bank, where the bank acceptsbills of exchange drawn on the bank bythe debtor: the bank then discounts thebills and is responsible for paying themwhen they mature; the debtor owes thebank for the bills but these are coveredby letters of creditacceptance sampling /ək�septəns�sɑ�mplŋ/ noun the process of testing asmall sample of a batch to see if thewhole batch is good enough to beacceptedaccepting house /ək�septŋ �haυs/,acceptance house /ək�septəns �haυs/noun a firm (usually a merchant bank)which accepts bills of exchange (i.e.promises to pay them) at a discount, inreturn for immediate payment to the is-suer, in this case the Bank of EnglandAccepting Houses Committee/ək�septŋ �haυzz kə�mti/ noun themain London merchant banks, which or-ganise the lending of money with theBank of England. They receive slightlybetter discount rates from the Bank.acceptor /ək�septə/ noun a personwho accepts a bill of exchange by sign-ing it, thus making a commitment to payit by a specified dateaccess /��kses/ noun � to have ac-cess to something to be able to obtainor reach something � She has access tolarge amounts of venture capital. � verbto call up data which is stored in a com-puter � She accessed the address file onthe computer.Access /��kses/ a credit card systemformerly operated by some Britishbanks, part of the MasterCard networkaccess fee /��kses fi�/ noun a feecharged to bank customers for using on-line servicesaccess time /��kses tam/ noun thetime taken by a computer to find datastored in itaccident insurance /��ksd(ə)ntn�ʃυərəns/ noun insurance which willpay the insured person when an accidenttakes placeaccident policy /��ksd(ə)nt�pɒlsi/ noun an insurance contract

absorption rate 2 accident policy

which provides a person with accidentinsuranceaccommodation /ə�kɒmə�deʃ(ə)n/noun 1. money lent for a short time 2. �to reach an accommodation withcreditors to agree terms for settlementwith creditorsaccommodation address /ə-�kɒmə�deʃ(ə)n ə�dres/ noun an ad-dress used for receiving messages, butwhich is not the real address of thecompanyaccommodation bill /ə�kɒmə-�deʃ(ə)n �bl/ noun a bill of exchangewhere the person signing (the ‘drawee’)is helping another company (the‘drawer’) to raise a loanaccordance /ə�kɔ�dns/ noun � inaccordance with in agreement orconformity with, as a result of whatsomeone has said should be done � Inaccordance with your instructions wehave deposited the money in your cur-rent account. � I am submitting theclaim for damages in accordance withthe advice of our legal advisers.accord and satisfaction /ə�kɔ�dən s�ts�f�kʃən/ noun the payment bya debtor of (part of) a debtaccordingly /ə�kɔ�dŋli/ adverb inagreement with what has been decided� We have received your letter and havealtered the contract accordingly.according to /ə�kɔ�dŋ tu�/ preposi-tion 1. in accordance with � The com-puter was installed according to themanufacturer’s instructions. � Theshares were bought according to writteninstructions from the client. 2. as statedor shown by someone

‘…the budget targets for employment andgrowth are within reach according to the latestfigures’ [Australian Financial Review]

account /ə�kaυnt/ noun 1. a record offinancial transactions over a period oftime, such as money paid, received, bor-rowed or owed � Please send me youraccount or a detailed or an itemised ac-count. 2. (in a shop) an arrangementwhich a customer has to buy goods andpay for them at a later date, usually theend of the month � to have an accountor a charge account or a credit accountwith Harrods � Put it on my account orcharge it to my account. � They are oneof our largest accounts. � to open an

account (of a customer.) to ask a shopto supply goods which you will pay forat a later date � to open an account, toclose an account (of a shop) to start orto stop supplying a customer on credit �to settle an account to pay all themoney owed on an account � to stop anaccount to stop supplying a customeruntil payment has been made for goodssupplied 3. � on account as part of a to-tal bill � to pay money on account topay to settle part of a bill � advance onaccount money paid as a part payment4. a customer who does a large amountof business with a firm and has an ac-count with it � Smith Brothers is one ofour largest accounts. � Our sales peo-ple call on their best accounts twice amonth. 5. � to keep the accounts towrite each sum of money in the accountbook � The bookkeeper’s job is to enterall the money received in the accounts.6. STOCK EXCHANGE a period duringwhich shares are traded for credit, and atthe end of which the shares bought mustbe paid for (NOTE: On the LondonStock Exchange, there are twenty-fouraccounts during the year, each runningusually for ten working days.) 7. notice� to take account of inflation, to takeinflation into account to assume thatthere will be a specific percentage of in-flation when making calculations �verb � to account for to explain and re-cord a money transaction � to accountfor a loss or a discrepancy � The repshave to account for all their expenses tothe sales manager.account aggregation /ə�kaυnt��re��eʃ(ə)n/ noun a service for on-line banking customers, which allowsthem to group various accounts, includ-ing credit card accounts, togetheraccountancy /ə�kaυntənsi/ noun thework of an accountant � They are study-ing accountancy or They are accoun-tancy students. (NOTE: The US term isaccounting in this meaning.)accountant /ə�kaυntənt/ noun a per-son who keeps a company’s accounts ordeals with an individual person’s tax af-fairs � The chief accountant of a manu-facturing group. � The accountant hasshown that there is a sharp variance inour labour costs. � I send all my incometax queries to my accountant.

accommodation 3 accountant

accountant’s opinion /ə-�kaυntənts ə�pnjən/ noun a report ofthe audit of a company’s books, carriedout by a certified public accountantaccount book /ə�kaυnt bυk/ noun abook with printed columns which isused to record sales and purchasesaccount day /ə�kaυnt de/ noun aday on which shares which have beenbought must be paid for (usually a Mon-day ten days after the end of an ac-count). Also called settlement dayaccount end /ə�kaυnt end/ noun theend of an accounting periodaccount executive /ə�kaυnt �-�zekjυtv/ noun 1. an employee wholooks after customers or who is the linkbetween customers and the company 2.an employee of an organisation suchas a bank, public relations firm oradvertising agency who is responsiblefor looking after particular clients andhandling their business with theorganisationaccounting /ə�kaυntŋ/ noun thework of recording money paid, re-ceived, borrowed or owed � accountingmethods � accounting procedures � anaccounting machine � The auditorshave introduced a new accountingsystem.

‘…applicants will be professionally qualifiedand have a degree in Commerce or Accounting’[Australian Financial Review]

accounting period /ə�kaυntŋ�pəriəd/ noun a period of time at theend of which the firm’s accounts aremade upAccounting Standards Board /ə-�kaυntŋ �st�ndədz bɔ�d/ noun acommittee set up by British accountinginstitutions to monitor methods used inaccountingaccount number /ə�kaυnt �n�mbə/noun a special number given to anaccount, either a bank account (in whichcase it appears on cheques) or a cus-tomer accountaccount reconcilement /ə�kaυnt�rekən�salmənt/ noun same as bankreconciliationaccounts department /ə�kaυntsd�pɑ�tmənt/ noun a department in acompany which deals with money paid,received, borrowed or owed

accounts manager /ə�kaυnts�m�nd$ə/ noun the manager of an ac-counts departmentaccounts payable /ə�kaυnts�peəb(ə)l/ noun money owed by acompanyaccounts receivable /ə�kaυnts r-�si�vəb(ə)l/ noun money owed to acompanyaccount statement /ə�kaυnt�stetmənt/ noun a written documentfrom a bank showing the balance of anaccount at the end of a periodaccount trading /ə�kaυnt �tredŋ/noun buying shares and selling the sameshares during an account, which meansthat the dealer has only to pay the differ-ence between the price of the sharesbought and the price obtained for themwhen they are soldaccrete /ə�kri�t/ verb to have some-thing added to it, especially (of a fund)to have interest added to itaccretion /ə�kri�ʃ(ə)n/ noun the pro-cess of adding interest to a fund over aperiod of timeaccrual /ə�kru�əl/ noun 1. the act ofnoting financial transactions when theytake place, and not when payment ismade 2. a gradual increase by addition �accrual of interest the automatic addi-tion of interest to capitalaccruals basis /ə�kru�əlz �bess/,accruals concept /ə�kru�əlz�kɒnsept/ noun a method of preparingaccounts in which revenues and costsare both reported during the period towhich they refer and not during the pe-riod when payments are received ormadeaccrue /ə�kru�/ verb to increase andbe due for payment at a later date � In-terest accrues from the beginning of themonth.accrued dividend /ə�kru�d �dv-�dend/ noun a dividend earned since thelast dividend was paidaccrued interest /ə�kru�d �ntrəst/noun interest which has been earned byan interest-bearing investment � Ac-crued interest is added quarterly.acct abbreviation accountaccumulate /ə�kju�mjυlet/ verb togrow in quantity by being added to, or toget more of something over a period of

accountant’s opinion 4 accumulate

accumulated depreciation 5 active account

time � We allow dividends to accumu-late in the fund.accumulated depreciation /ə-�kju�mjυletd d�pri�ʃi�eʃ(ə)n/ nounthe total amount by which an asset hasbeen depreciated since it was purchasedaccumulated profit /ə-�kju�mjυletd �prɒft/ noun a profitwhich is not paid as dividend but istaken over into the accounts of the fol-lowing yearaccumulated reserves /ə-�kju�mjυletd r�z%�vz/ plural nounreserves which a company has put asideover a period of yearsaccumulation /ə�kju�mjυ�leʃ(ə)n/noun the process of growing larger bybeing added to, or of getting more andmore of somethingaccumulation unit /ə�kju�mjυ-�leʃ(ə)n �ju�nt/ noun a type of unitin a unit trust, which produces dividendswhich are used to form more units(as opposed to an income unit, whichproduces dividends which the investorreceives as income)ACD abbreviation authorized corporatedirectorACH abbreviation US automatedclearing houseachieve /ə�tʃi�v/ verb to succeed indoing something, to do something suc-cessfully � The company has achievedgreat success in the Far East. � Weachieved all our objectives in 2001.

‘…the company expects to move to profits ofFFr 2m next year and achieve equally rapidgrowth in following years’ [Financial Times]

acid test ratio /��sd �test �reʃəυ/noun same as liquidity ratioACP state noun an African, Carib-bean and Pacific state which is linked tothe European Community through theLomé Convention (1985)acquire /ə�kwaə/ verb to buy � to ac-quire a company � We have acquired anew office building in the centre oftown.acquirer /ə�kwaərə/ noun a personor company which buys somethingacquisition /��kw�zʃ(ə)n/ nounsomething bought � The chocolate fac-tory is our latest acquisition. � Thecompany has a record of making profit-

able acquisitions of traders in the retailsector.acquisition accounting /��kw-�zʃ(ə)n ə�kaυntŋ/ noun a fullconsolidation, where the assets of asubsidiary company which has beenpurchased are included in the parentcompany’s balance sheet, and the pre-mium paid for the goodwill is writtenoff against the year’s earningsacross-the-board /ə�krɒs ðə �bɔ�d/adjective applying to everything or ev-eryone � an across-the-board price in-crease or wage increaseacross-the-board tariff increase/ə�krɒs ði� bɔ�d �t�rf �nkri�s/ nounan increase in duty which applies to awhole range of itemsact /�kt/ noun a law passed by parlia-ment which must be obeyed by the peo-ple � verb 1. to work � He has agreedto act as an agent for an American com-pany. � The solicitor is acting for us oron our behalf. 2. to do something � Theboard will have to act quickly if thecompany’s losses are going to be re-duced. � to act on something to dowhat you have been asked to do bysomeone � to act on a letter � The law-yers are acting on our instructions.ACT abbreviation Advance Corpora-tion Taxaction /��kʃən/ noun 1. a thing whichhas been done � to take action to dosomething � You must take action if youwant to stop people cheating you. 2. �to take industrial action to do some-thing (usually to go on strike) to showthat you are not happy with conditionsat work 3. a case in a law court where aperson or company sues another personor company � to take legal action tosue someone � an action for libel or alibel action � an action for damages �She brought an action for wrongful dis-missal against her former employer.active /��ktv/ adjective involvingmany transactions or activities � an ac-tive demand for oil shares � an activeday on the Stock Exchange � Computershares are very active.active account /��ktv ə�kaυnt/noun an account, such as a bank accountor investment account, which is used(i.e. money is deposited and withdrawn)frequently

active partner /��ktv �pɑ�tnə/noun a partner who works in a companythat is a partnershipactivity /�k�tvti/ noun the fact ofbeing active or busy � a low level ofbusiness activity � There was a lot ofactivity on the Stock Exchange. �monthly activity report a report by adepartment on what has been done dur-ing the past month

‘…preliminary indications of the level ofbusiness investment and activity during theMarch quarter will provide a good picture ofeconomic activity in the year’[Australian Financial Review]

activity chart /�k�tvti tʃɑ�t/ nouna plan showing work which has beendone, made so that it can be compared toa previous plan showing how muchwork should be doneact of God /��kt əv ��ɒd/ nounsomething you do not expect to happen,and which cannot be avoided, such as astorm or a flood (NOTE: Acts of God arenot usually covered by insurance poli-cies.)actual adjective /��ktʃuəl/ real or cor-rect � What is the actual cost of oneunit? � The actual figures for directors’expenses are not shown to the share-holders. � noun a physical commoditywhich is ready for delivery (as opposedto futures)actual price /��ktʃuəl �pras/ noun aprice for a commodity which is for im-mediate deliveryactuals /��ktʃuəlz/ plural noun realfigures � These figures are the actualsfor last year.actuarial /��ktʃu�eəriəl/ adjectivecalculated by an actuary � The premi-ums are worked out according to actu-arial calculations.actuarial tables /��ktʃu�eəriəl�teb(ə)lz/ noun lists showing how longpeople of certain ages are likely to live,used to calculate life assurance premi-ums and annuitiesactuary /��ktʃuəri/ noun a personemployed by an insurance company orother organisation to calculate the riskinvolved in an insurance, and thereforethe premiums payable by people takingout insurance

COMMENT: In the UK, actuaries are quali-fied after passing the examinations of theInstitute of Actuaries.

ACU abbreviation Asian Currency Unitadaptable /ə�d�ptəb(ə)l/ adjectiveable to change or be changedadaptation /��d�p�teʃ(ə)n/ nounthe process of changing something, or ofbeing changed, to fit new conditions �adaptation to new surroundingsADB abbreviation 1. African Develop-ment Bank 2. Asian Development Bankadd /�d/ verb to put figures together tomake a total � If you add the interest tothe capital you will get quite a largesum. � Interest is added monthly.added value /��dd �v�lju�/ noun anamount added to the value of a productor service, equal to the difference be-tween its cost and the amount receivedwhen it is sold. Wages, taxes, etc. arededucted from the added value to givethe profit. � Value Added Taxadding machine /��dŋ mə�ʃi�n/noun a machine which adds numbersaddition /ə�dʃ(ə)n/ noun an act ofputting numbers together � You don’tneed a calculator to do simple addition.additional /ə�dʃ(ə)nəl/ adjective ex-tra which is added � additional costs �They sent us a list of additional charges.� Some additional clauses were addedto the contract. � Additional duty willhave to be paid.additional borrowing /ə-�dʃ(ə)n(ə)l �bɒrəυŋ/ noun extra bor-rowing in addition to money alreadyborrowedadditional premium /ə�dʃ(ə)nəl�pri�miəm/ noun a payment made tocover extra items in an existinginsuranceadditional voluntary contribu-tions /ə�dʃ(ə)n(ə)l �vɒlənt(ə)rikɒntr�bju�ʃ(ə)nz/ plural noun extrapayments made voluntarily by an em-ployee to a pension scheme (on top ofthe normal contributions, up to a maxi-mum of 15% of gross earnings). Abbre-viation AVCsaddress /ə�dres/ noun the details ofnumber, street and town where an officeis located or a person lives � My busi-ness address and phone number areprinted on the card. � verb 1. to write

active partner 6 address

addressee 7 adjustment credit

the details of an address on an envelopeor package � a letter addressed to themanaging director � an incorrectly ad-dressed package � Please address yourenquiries to the manager. 2. to saysomething to someone � The chairmanaddressed the meeting.addressee /�dre�si�/ noun a personto whom a letter or package is addressedaddressing machine /ə�dresŋ mə-�ʃi�n/ noun a machine which puts ad-dresses on envelopes automaticallyaddress list /ə�dres lst/ noun a listof names and addresses of people andcompaniesadd up /��d ��p/ verb 1. to put severalfigures together to make a total � Hemade a mistake in adding up the columnof figures. � the figures do not add upthe total given is not correct 2. to makesense � The complaints in the letter justdo not add up.add up to /��d ��p tυ/ verb to make atotal of � The total expenditure adds upto more than £1,000.adequacy /��dkwəsi/ noun the factof being large enough or good enoughfor somethingadequate /��dkwət/ adjective largeor good enough � to operate withoutadequate cover to act without beingcompletely protected by insuranceadjudicate /ə�d$u�dket/ verb togive a judgement between two parties inlaw or to decide a legal problem � toadjudicate a claim � to adjudicate in adispute � he was adjudicated bank-rupt he was declared legally bankruptadjudication /ə�d$u�d�keʃ(ə)n/noun the act of giving a judgement or ofdeciding a legal problemadjudication of bankruptcy /ə-�d$u�dkeʃ(ə)n əv �b�ŋkr�ptsi/ nouna legal order making someone bankruptadjudication tribunal /ə�d$u�d-�keʃ(ə)n tra�bju�n(ə)l/ noun a groupwhich adjudicates in industrial disputesadjudicator /ə�d$u�dketə/ noun aperson who gives a decision on a prob-lem � an adjudicator in an industrialdisputeadjust /ə�d$�st/ verb to change some-thing to fit new conditions � Prices areadjusted for inflation.

‘…inflation-adjusted GNP moved up at a 1.3%annual rate’ [Fortune]‘Saudi Arabia will no longer adjust itsproduction to match short-term supply withdemand’ [Economist]‘…on a seasonally-adjusted basis, output oftrucks, electric power, steel and paperdecreased’ [Business Week]

adjustable /ə�d$�stəb(ə)l/ adjectivewhich can be adjustedadjustable peg /ə�d$�stəb(ə)l pe�/noun a method of pegging one currencyto another, which allows the exchangerate to be adjusted from time to timeadjustable rate mortgage /ə-�d$�stəb(ə)l ret �mɔ��d$/ noun amortgage where the interest ratechanges according to the current marketrates. Abbreviation ARMadjustable rate preferred stock/ə�d$�stəb(ə)l ret pr�f%�d �stɒk/noun a preference shares on which divi-dends are paid in line with the interestrate on Treasury bills. AbbreviationARPSadjusted balance /ə�d$�std�b�ləns/ noun a balance in a bank ac-count which is adjusted to take accountof debits and credits during a period.This balance can then be used as a basisfor calculating bank charges.adjusted gross income /ə�d$�std�rəυs �nk�m/ noun US a person’stotal annual income less expenses,pension contributions, capital losses,etc., used as a basis to calculate federalincome tax. Abbreviation AGIadjuster /ə�d$�stə/ noun a personwho calculates losses for an insurancecompanyadjustment /ə�d$�stmənt/ noun 1.the act of adjusting � to make anadjustment to salaries � an adjustmentof prices to take account of rising costs2. a slight change � Details of tax ad-justments are set out in the encloseddocument. 3. an entry in accounts whichdoes not represent a receipt or payment,but which is made to make the accountscorrect 4. a change in the exchangerates, made to correct a balance of pay-ment deficitadjustment credit /ə�d$�stmənt�kredt/ noun a short-term loan fromthe Federal Reserve to a commercialbank

adjustment trigger /ə�d$�stmənt�tr�ə/ noun a factor such as a certainlevel of inflation which triggers an ad-justment in exchange ratesadjustor /ə�d$�stə/ noun same asadjusteradminister /əd�mnstə/ verb to or-ganise, manage or direct the whole of anorganisation or part of one � She admin-isters a large pension fund. � It will bethe HR manager’s job to administer theinduction programme.administered price /əd�mnstədpras/ noun US a price fixed by a man-ufacturer which cannot be varied by aretailer (NOTE: The UK term is resaleprice maintenance.)administration /əd�mn�streʃ(ə)n/noun 1. the action of organising, con-trolling or managing a company 2. aperson or group of people who manageor direct an organisation � It is up to theadministration to solve the problem, notthe government. 3. an appointment by acourt of a person to manage the affairsof a companyadministration costs /əd�mn-�streʃ(ə)n �kɒsts/, administrationexpenses /əd�mn�streʃ(ə)n k-�spensz/ plural noun the costs ofmanagement, not including production,marketing or distribution costsadministration order /əd�mn-�streʃ(ə)n �ɔ�də/ noun 1. an order by acourt, by which a debtor repays hisdebts in instalments 2. an order by acourt to appoint an administrator for acompanyadministrative receiver /əd-�mnstrətv r�si�və/ noun a personappointed by a court to administer theaffairs of a companyadministrator /əd�mnstretə/noun 1. a person who directs the workof other employees in a business � Afterseveral years as a college teacher, shehopes to become an administrator. 2. aperson appointed by a court to managethe affairs of someone who dies withoutleaving a willadmission charge /əd�mʃ(ə)ntʃɑ�d$/ noun the price to be paid beforegoing into an area or building, e.g. to seean exhibitionADR abbreviation American Deposi-tary Receipt

ad valorem /�d və�lɔ�rəm/ adjectivefrom a Latin phrase meaning ‘accordingto value’, showing that a tax is calcu-lated according to the value of the goodstaxed � ad valorem duty � ad valoremtax

COMMENT: Most taxes are ‘ad valorem’.For example VAT is calculated as a per-centage of the charge made, and incometax is a percentage of income earned.

ad valorem duty /��d və�lɔ�rəm�dju�ti/ noun the duty calculated on thesales value of the goodsad valorem tax /��d və�lɔ�remt�ks/ noun tax calculated according tothe value of the goods taxedadvance /əd�vɑ�ns/ noun 1. moneypaid as a loan or as a part of a paymentto be made later � She asked if shecould have a cash advance. � We paidher an advance on account. 2. anincrease 3. � in advance early, beforesomething happens � freight payable inadvance � prices fixed in advance � ad-jective early, or taking place beforesomething else happens � advancepayment � Advance holiday bookingsare up on last year. � You must giveseven days’ advance notice of with-drawals from the account. � verb 1. tolend � The bank advanced him£100,000 against the security of hishouse. 2. to increase � Prices generallyadvanced on the stock market. 3. tomake something happen earlier � Thedate of the AGM has been advancedto May 10th. � The meeting with theGerman distributors has been advancedfrom 11.00 to 09.30.Advance Corporation Tax /əd-�vɑ�ns �kɔ�pə�reʃ(ə)n t�ks/ noun atax (abolished in 1999) which was paidby a company in advance of its maincorporation tax payments. It was paidwhen dividends were paid to sharehold-ers and was deducted from the main taxpayment when that fell due. It appearedon the tax voucher attached to a divi-dend warrant. Abbreviation ACTadverse /��dv%�s/ adjective unfa-vourable � adverse balance of trade asituation in which a country importsmore than it exports � adverse tradingconditions bad conditions for tradeadverse action /��dv%�s ��kʃən/noun a decision which has unfavourableconsequences for employees � The new

adjustment trigger 8 adverse action

bonus system was considered adverseaction by underachievers in theorganisation.advertising agency /��dvətazŋ�ed$ənsi/ noun an office which plans,designs and manages advertising forother companiesadvertising budget /��dvətazŋ�b�d$t/ noun money planned forspending on advertising � Our advertis-ing budget has been increased.advice /əd�vas/ noun an opinion as towhat action to take � The accountant’sadvice was to send the documents to thepolice. � to take legal advice to ask alawyer to say what should be done � asper advice 1. according to what is writ-ten on the advice note 2. advising that abill of exchange has been drawnadvise /əd�vaz/ verb 1. to tell some-one what has happened � We have beenadvised that the shipment will arrivenext week. 2. to suggest to someonewhat should be done � The lawyer ad-vised us to send the documents to thepolice.advise against /əd�vaz ə��enst/verb to suggest that something shouldnot be done � The HR manager advisedagainst dismissing the staff withoutnotice.adviser /əd�vazə/, advisor noun aperson who suggests what should bedone � He is consulting the company’slegal adviser.advisory /əd�vaz(ə)ri/ adjective asan adviser � He is acting in an advisorycapacity.advisory board /əd�vaz(ə)ri bɔ�d/noun a group of advisorsadvisory funds /əd�vaz(ə)ri f�ndz/plural noun funds placed with a fi-nancial institution to invest on behalf ofa client, the institution investing them atits own discretionAER abbreviation Annual EquivalentRateAEX abbreviation Amsterdam StockExchangeAFBD abbreviation Association ofFutures Brokers and DealersAffärsvärlden General Indexnoun an index of prices on the Stock-holm Stock Exchange

affect /ə�fekt/ verb to cause somechange in something, especially to havea bad effect on something � The newgovernment regulations do not affect us.affiliate /ə�fliət/ noun a companywhich partly owns another company, oris partly owned by the same holdingcompany as anotheraffiliated /ə�flietd/ adjective con-nected with or owned by another com-pany � Smiths Ltd is one of ouraffiliated companies.affinity card /ə�fnti kɑ�d/ noun acredit card where a percentage of eachpurchase made is given by the creditcard company to a stated charityaffluent /��fluənt/ adjective rich �Our more affluent clients prefer the lux-ury model. � the affluent rich people �the mass affluent people with morethan £50,000 in liquid assetsaffluent society /��fluənt sə�saəti/noun a type of society where most peo-ple are richafford /ə�fɔ�d/ verb to be able to payfor or buy something � We could not af-ford the cost of two telephones. � Thecompany cannot afford the time to trainnew staff. (NOTE: Only used after can,cannot, could, could not, able to)afghani /�f��ɑ�ni/ a unit of currencyused in AfghanistanAfrican Development Bank/��frkən d�veləpmənt/ noun a bankset up by African countries to providelong-term loans to help agriculturaldevelopment and improvement of theinfrastructure. Abbreviation ADB(NOTE: The bank now has non-Africanmembers.)afterdate /�ɑ�ftədet/ noun a bill ofexchange payable at a date later thanthat on the billaftermarket /�ɑ�ftəmɑ�kt/ noun amarket in new shares, which starts im-mediately after trading in the shares be-gins (i.e. a secondary market)after tax /�ɑ�ftər �t�ks/ adverb aftertax has been paidafter-tax profit /�ɑ�ftə �t�ks �prɒft/noun profit after tax has been deductedAG abbreviation Aktiengesellschaftagainst /ə��enst/ preposition 1. inview of the fact that something else isowed or has been pledged � Can I have

advertising agency 9 against

aged debtors analysis 10 agree

an advance against next month’s sal-ary? � The bank advanced him £10,000against the security of his house. 2.compared with

‘…investment can be written off against themarginal rate of tax’ [Investors Chronicle]

aged debtors analysis /�ed$d�detəz ə�n�ləss/, ageing schedule/�ed$ŋ �ʃedju�l/ noun a list whichanalyses a company’s debtors, showingthe number of days their payments areoutstanding

COMMENT: An ageing schedule shows allthe debtors of a company and lists (usu-ally in descending order of age) all thedebts that are outstanding. The debtorswill be shown as: £X at 30 days, £Y at 60days, £Z at 90 days, etc.

agency /�ed$ənsi/ noun 1. an officeor job of representing another companyin an area � They signed an agencyagreement or an agency contract. 2. anoffice or business which arranges thingsfor other companies 3. US a security is-sued by a government agency, such as aFederal Home Loan Bankagency bank /�ed$ənsi b�ŋk/ nouna bank which does not accept deposits,but acts as an agent for another (usuallyforeign) bankagency bill /�ed$ənsi bl/ noun a billof exchange drawn on the local branchof a foreign bankagency broker /�ed$ənsi �brəυkə/noun a dealer who acts as the agent foran investor, buying and selling for acommissionagent /�ed$ənt/ noun 1. a person whorepresents a company or another personin an area � to be the agent for BMWcars 2. a person in charge of an agency� an advertising agent � The estateagent sent me a list of properties forsale. � Our trip was organised throughour local travel agent. 3. � (business)agent US the chief local official of atrade union � Management would onlydiscuss the new payment scheme withagents officially representing theworkers.agent bank /�ed$ənt b�ŋk/ noun abank which uses the credit card systemset up by another bankagent de change noun the Frenchword for stockbroker

agente de cambio y bolsa nounthe Spanish word for stockbrokeragente di cambio noun the Italianword for stockbrokeragent’s commission /�ed$əntskə�mʃ(ə)n/ noun money, often a per-centage of sales, paid to an agentaggregate /���r�ət/ adjective total,with everything added together � ag-gregate outputaggregate demand /���r�ət d-�mɑ�nd/ noun total demand for goodsand services from all sectors of theeconomy, such as individuals, compa-nies and the government � Economistsare studying the recent fall in aggregatedemand. � As incomes have risen, sohas aggregate demand.aggregate risk /���r�ət �rsk/noun the risk which a bank runs in lend-ing to a customeraggregate supply /���r�ət sə-�pla/ noun all goods and services on themarket � Is aggregate supply meetingaggregate demand?AGI abbreviation 1. US adjusted grossincome 2. annual gross incomeagio /��d$əυ/ noun 1. a charge madefor changing money of one currencyinto another, or for changing banknotesinto cash 2. the difference between twovalues, such as between the interestcharged on loans made by a bank andthe interest paid by the bank on deposits,or the difference between the values oftwo currencies, or between a gold coinand paper currency of the same facevalueAGM abbreviation Annual GeneralMeetingagree /ə��ri�/ verb 1. to decide and ap-prove something together with anotherperson or other people � The figureswere agreed between the two parties. �We have agreed the budgets for nextyear. � He has agreed your prices. �The terms of the contract are still to beagreed. 2. � to agree on something tocome to a decision that is acceptable toeveryone about something � We allagreed on the need for action. 3. � toagree to something to say that you ac-cept something that is suggested � Aftersome discussion he agreed to our plan.� to agree to do something to say thatyou will do something � She agreed to

agreed 11 allocation

be chairman. � Will the finance directoragree to resign?agreed /ə��ri�d/ adjective which hasbeen accepted by everyone � We pay anagreed amount each month. � Theagreed terms of employment are laiddown in the contract.agreed price /ə��ri�d pras/ noun aprice which has been accepted by boththe buyer and selleragreed takeover bid /ə��ri�d�tekəυvə bd/ noun a takeover bidwhich is accepted by the target companyand recommended by its directors to itsshareholdersagreement /ə��ri�mənt/ noun aspoken or written contract betweenpeople or groups which explains howthey will act � a written agreement� an unwritten or verbal agreement� to draw up or to draft an agreement �to break an agreement � to sign anagreement � to reach an agreement orto come to an agreement on something� a collective wage agreement

‘…after three days of tough negotiations thecompany has reached agreement with its 1,200unionized workers’ [Toronto Star]

agreement among underwriters/ə��ri�mənt ə�m�ŋ ��ndəratəz/ nouna document which forms a syndicate ofunderwriters, linking them to the issuerof a new share issueagree with /ə��ri� wð/ verb 1. to saythat your opinions are the same as some-one else’s � I agree with the chairmanthat the figures are lower than normal.2. to be the same as � The auditors’ fig-ures do not agree with those of the ac-counts department.AICPA abbreviation American Insti-tute of Certified Public AccountantsAIM abbreviation alternative invest-ment marketAIMA abbreviation Alternative Invest-ment Management Associationair carrier /�eə �k�riə/ noun a com-pany which sends cargo or passengersby airair forwarding /�eə �fɔ�wədŋ/ nounthe process of arranging for goods to beshipped by airair freight /�eə fret/ noun the trans-portation of goods in aircraft, or goods

sent by air � to send a shipment by airfreight � Air freight tariffs are rising.air freight charges /�eə fret�tʃɑ�d$z/, air freight rates /�eə fretrets/ plural noun money charged forsending goods by airairmail /�eəmel/ noun a postal servicewhich sends letters or parcels by air � tosend a package by airmail � Airmailcharges have risen by 15%. � verb tosend letters or parcels by air � We air-mailed the document to New York.airmail envelope /�eəmel�envələυp/ noun a very light envelopefor sending airmail lettersairmail sticker /�eəmel �stkə/ nouna blue sticker with the words ‘air mail’,which can be stuck on an envelope orparcel to show that it is being sent by airairmail transfer /�eəmel �tr�nsf%�/noun an act of sending money from onebank to another by airmailairport tax /�eəpɔ�t t�ks/ noun a taxadded to the price of an air ticket tocover the cost of running an airportAktie noun the German word for shareAktiengesellschaft noun the Ger-man word for public limited company.Abbreviation AGalien corporation /�eliən �kɔ�pə-�reʃ(ə)n/ noun US a company which isincorporated in a foreign countryall-in policy /�ɔ�l n �pɒlsi/ noun aninsurance policy which covers all risksall-in rate /�ɔ�l n �ret/ noun 1. aprice which covers all the costs con-nected with a purchase, such as deliv-ery, tax and insurance, as well as thecost of the goods themselves 2. a wagewhich includes all extra payments, suchas bonuses and merit payallocate /��ləket/ verb 1. to providea particular amount from a total sum ofmoney for a particular purpose � We al-locate 10% of revenue to publicity. �$2,500 was allocated to office furniture.2. to divide something in various waysand share it out � How are we going toallocate the available office space?allocation /��lə�keʃ(ə)n/ noun theprocess of providing sums of money forparticular purposes, or a sum providedfor a purpose � the allocation of fundsto a project

allocation rate 12 alternative

allocation rate /��lə�keʃ(ə)n ret/noun the percentage of a payment that isactually invested in a fund after initialcharges have been taken into accountallonge /��lɒn$/ noun a piece of pa-per attached to a bill of exchange, sothat more endorsements can be writtenon itAll Ordinaries Index /ɔ�l�ɔ�d(ə)n(ə)riz �ndeks/ noun the indexof prices on the Australian Stock Ex-change. Abbreviation AO Index, AOall or none /�ɔ�l ɔ� �n�n/ noun abuying order which stipulates that thewhole order has to be bought at a certainprice and no parts of the order can beexecuted separately. Abbreviation AONallot /ə�lɒt/ verb to share out � to allotshares to give a certain number ofshares to people who have applied forthemallotment /ə�lɒtmənt/ noun 1. theprocess of sharing out something, espe-cially money between various depart-ments, projects or people � Theallotment of funds to each project is theresponsibility of the finance director. 2.the act of giving shares in a new com-pany to people who have applied forthem � share allotment � payment infull on allotmentallow /ə�laυ/ verb 1. to say that some-one can do something � Junior mem-bers of staff are not allowed to use thechairman’s lift. � The company allowsall members of staff to take six days’holiday at Christmas. 2. to give � toallow 5% discount to members of staff3. to agree to or accept legally � to al-low a claim or an appealallowable /ə�laυəb(ə)l/ adjective le-gally acceptedallowable expenses /ə�laυəb(ə)lk�spensz/ plural noun business ex-penses which can be claimed against taxallowance /ə�laυəns/ noun 1. moneywhich is given for a special reason �a travel allowance or a travelling al-lowance 2. part of an income whichis not taxed � allowances against taxor tax allowances � personal allow-ances 3. money removed in the formof a discount � an allowance for depre-ciation � an allowance for exchangeloss

‘…the compensation plan includes base,incentive and car allowance totalling $50,000+’[Globe and Mail (Toronto)]

allowance for bad debt /ə�laυənsfə b�d �det/ noun provision made in acompany’s accounts for debts whichmay never be paidallow for /ə�laυ fɔ�/ verb 1. to give adiscount for something, or to add an ex-tra sum to cover something � to allowfor money paid in advance � Add on anextra 10% to allow for postage andpacking. � delivery is not allowed fordelivery charges are not included 2. toinclude something in your calculations� allow 28 days for delivery calculatethat delivery will take up to 28 daysall-risks policy /�ɔ�l �rsks �pɒlsi/noun an insurance policy which coversrisks of any kind, with no exclusionsAll-Share Index /ɔ�l �ʃeə �ndeks/noun an index based on the market priceof about 700 companies listed on theLondon Stock Exchange (NOTE: The fullname is the Financial Times Actu-aries All-Share Index.)alpha /��lfə/ noun 1. an anticipatedperformance of a share, compared to themarket in general 2. a rate of return on aunit trust or mutual fund, compared withtypical returns for that category of trust.� betaalphabetical order /��lfəbetk(ə)l�ɔ�də/ noun the arrangement of records(such as files and index cards) in the or-der of the letters of the alphabet (A, B,C, D, etc.)alpha shares /��lfə ʃeəz/, alpha se-curities /��lfə s�kjυərtiz/, alphastocks /��lfə stɒks/ plural noun sharesin the main companies listed on theLondon Stock Exchange (about 130companies, whose shares are frequentlytraded, normally in parcels of 1000shares) (NOTE: Transactions in alphastocks are listed on SEAQ.)alternate account /ɔ�l�t%�nət ə-�kaυnt/ noun a bank account where theseveral signatories can each signcheques without asking another to vali-date their signaturealternative /ɔ�l�t%�nətv/ adjectiveother, which can take the place of some-thing � to find someone alternativeemployment to find someone anotherjob

Alternative Investment Market/ɔ�l�l%�nətv n�vestmənt �mɑ�kt/noun a London stock market, regulatedby the London Stock Exchange, dealingin shares in smaller companies whichare not listed on the main London StockExchange. Abbreviation AIM (NOTE:The AIM is a way in which smallercompanies can sell shares to the in-vesting public without going to the ex-pense of obtaining a full share listing.)Alternative Minimum Tax /ɔ�l-�l%�nətv �mnməm �t�ks/ noun US afederal tax on certain capital gains andother income above normal taxable in-come. Abbreviation AMTalternative order /ɔ�l�t%�nətv�ɔ�də/ noun an order to do one of twothings (such as buy or sell stock at cer-tain prices)aluminium /��lə�mniəm/ noun ametal which is frequently traded oncommodity exchanges such as the Lon-don Metal Exchange (NOTE: The USspelling is aluminum.)a.m. /e �em/ adverb in the morning,before 12 midday � The flight leaves at9.20 a.m. � Telephone calls before 6a.m. are charged at the cheap rate.(NOTE: The US spelling is A.M.)American Bankers Association/ə�merkən �b�ŋkəz ə�səυsieʃ(ə)n/noun an association which representsUS banks and promotes good practice.Abbreviation ABAAmerican Depositary Receipt /ə-�merkən d�pɒztri r�si�t/ noun adocument issued by an Americanbank to US citizens, making them un-registered shareholders of companiesin foreign countries. The documentallows them to receive dividends fromtheir investments, and ADRs can them-selves be bought or sold. AbbreviationADR

COMMENT: Buying and selling ADRs iseasier for American investors than buyingor selling the actual shares themselves,as it avoids stamp duty and can be carriedout in dollars without incurring exchangecosts.

American Institute of Banking/ə�merkən �nsttju�t əv �b�ŋkŋ/noun part of the ABA which organisestraining for bank staff. AbbreviationAIB

American Institute of CertifiedPublic Accountants /ə�merkən�nsttju�t əv �s%�tfad �p�blk ə-�kaυntənts/ noun an official organisa-tion representing CPAs. AbbreviationAICPAAmerican Stock Exchange /ə-�merkən �stɒk ks�tʃend$/ noun thesmaller of the two Stock Exchangesbased in New York (the other is theNew York Stock Exchange or NYSE).Abbreviation Amex (NOTE: Also calledCurb Exchange or Little Board, asopposed to the Big Board, or NYSE.)Amex /��meks/ abbreviation Ameri-can Stock Exchange (informal.)AmEx /��meks/ abbreviation Ameri-can Expressamortisable /��mɔ��tazəb(ə)l/ ad-jective which can be amortised � Thecapital cost is amortisable over a periodof ten years.amortisation /ə�mɔ�ta�zeʃ(ə)n/,amortising noun an act of amortising �amortisation of a debtamortise /ə�mɔ�taz/, amortize verb1. to repay a loan by regular payments,most of which pay off the interest on theloan at first, and then reduce the princi-pal as the repayment period progresses� The capital cost is amortised over fiveyears. 2. to depreciate or to write downthe capital value of an asset over a pe-riod of time in a company’s accountsamount /ə�maυnt/ noun a quantity ofmoney � A small amount has been de-ducted to cover our costs. � A largeamount is still owing. � What is theamount to be written off? � She has asmall amount invested in gilt-edgedstock. � verb � to amount to to make atotal of � Their debts amount to over£1m.amount paid up /ə�maυnt ped ��p/noun an amount paid for a new issue ofshares, either the total payment or thefirst instalment, if the shares are offeredwith instalment paymentsamount to /ə�maυnt tυ/ verb to makea total of � Their debts amount to over£1m.Amsterdam Stock Exchange/��mstəd�m �stɒk ks�tʃend$/ nounthe main stock exchange in the Nether-lands. Business is transacted by‘hoekmen’ (marketmakers) or directly

Alternative Investment Market 13 Amsterdam Stock Exchange

between banks on the AmsterdamInterprofessional Market (AIM). Abbre-viation AEX

analogue computer /��nəlɒ� kəm-�pju�tə/ noun a computer which workson the basis of electrical impulses repre-senting numbersanalyse /��nəlaz/, analyze verb toexamine someone or something in detail� to analyse a statement of account � toanalyse the market potentialanalysis /ə�n�ləss/ noun a detailedexamination and report � a job analysis� market analysis � Her job is to pro-duce a regular sales analysis. (NOTE:The plural is analyses.)

analyst /��nəlst/ noun a person whoanalyses � a market analyst � a systemsanalystangel /�end$əl/ noun a person whoprovides backing for a stage perfor-mance, such as a play or musical, andreceives a percentage dividend when thestart-up costs have been coveredangel network /�end$əl �netw%�k/noun a network of backers, organisedthrough a central office which keeps adatabase of suitable investors and putsthem in touch with entrepreneurs whoneed financial backingannounce /ə�naυns/ verb to tellsomething to the public � to announcethe first year’s trading results � The di-rector has announced a programme ofinvestment.announcement /ə�naυnsmənt/noun an act of telling something in pub-lic � the announcement of a cutback inexpenditure � the announcement of theappointment of a new managing direc-tor � The managing director made anannouncement to the staff.annual /��njuəl/ adjective for oneyear � an annual statement of income �They have six weeks’ annual leave. �The company has an annual growth of5%. � We get an annual bonus. � on anannual basis each year � The figuresare revised on an annual basis.

‘…real wages have risen at an annual rate ofonly 1% in the last two years’ [Sunday Times]

‘…the remuneration package will include anattractive salary, profit sharing and a companycar together with four weeks’ annual holiday’[Times]

annual accounts /��njuəl ə-�kaυnts/ plural noun the accounts pre-pared at the end of a financial year �The annual accounts have been sent tothe shareholders.annual depreciation /��njuəl�dpri�ʃi�eʃ(ə)n/ noun a reduction inthe book value of an asset at a particularrate per year. � straight linedepreciationAnnual Equivalent Rate /��njuəl�kwvələnt �ret/ noun a figure whichshows what the interest rate on an ac-count would be if interest was paid for afull year and compounded. AbbreviationAERAnnual General Meeting /��njuəl�d$en(ə)rəl �mi�tŋ/ noun an annualmeeting of all shareholders of a com-pany, when the company’s financial sit-uation is presented by and discussedwith the directors, when the accounts forthe past year are approved and whendividends are declared and audited. Ab-breviation AGM (NOTE: The US term isannual meeting or annual stock-holders’ meeting.)annual gross income /��njuəl�rəυs �nk�m/ noun total annual in-come before any deductions or exclu-sions. Abbreviation AGIannual income /��njuəl �nk�m/noun money received during a calendaryearannualised /��njuəlazd/, annual-ized adjective shown on an annual basis

‘…he believes this may have caused theeconomy to grow at an annualized rate of almost5 per cent in the final quarter of last year’[Investors Chronicle]

annualised percentage rate/��njuəlazd pə�sentd$ ret/ noun ayearly percentage rate, calculated bymultiplying the monthly rate by twelve(NOTE: The annualised percentage rateis not as accurate as the Annual Per-centage Rate (APR), which includesfees and other charges.)annually /��njuəli/ adverb each year� The figures are updated annually.annual management charge/��njuəl �m�nd$mənt tʃɑ�d$/ noun acharge made by the financial institutionwhich is managing an accountannual management fee /��njuəl�m�nd$mənt fi�/ noun an annual

analogue computer 14 annual management fee

Annual Percentage Rate 15 application

charge made for running a fund, usuallycalculated as a percentage of the amountinvestedAnnual Percentage Rate /��njuəlpə�sentd$ ret/ noun a rate of interest(such as on a hire-purchase agreement)shown on an annual compound basis,and including fees and charges. Abbre-viation APR

COMMENT: Because hire purchaseagreements quote a flat rate of interestcovering the whole amount borrowed or amonthly repayment figure, the ConsumerCredit Act, 1974, forces lenders to showthe APR on documentation concerninghire purchase agreements, so as to givean accurate figure of the real rate of inter-est as opposed to the nominal rate. TheAPR includes various fees charged (suchas the valuation of a house for mortgage).It may also vary according to the sum bor-rowed – a credit card company will quotea lower APR if the borrower’s credit limit islow.

annual percentage yield /��njuəlpə�sentd$ �ji�ld/ noun the annual rateof compound interest earned by an ac-count. Abbreviation APYannual report /��njuəl r�pɔ�t/ nouna report of a company’s financial situa-tion at the end of a year, sent to all theshareholdersannual rest system /��njuəl �rest�sstəm/ noun a system by which extrapayments or overpayments made to re-duce the amount borrowed on a mort-gage are credited to the account onlyonce a yearannual return /��njuəl r�t%�n/ nounan official report which a registeredcompany has to make each year to theRegistrar of Companiesannuitant /ə�nju�tənt/ noun a per-son who receives an annuityannuity /ə�nju�ti/ noun money paideach year to a retired person, usually inreturn for a lump-sum payment. Thevalue of the annuity depends on howlong the person lives, as it usually can-not be passed on to another person. An-nuities are fixed payments, and losetheir value with inflation, whereas apension can be index-linked. � to buy orto take out an annuity � He has a gov-ernment annuity or an annuity from thegovernment.

COMMENT: When a person retires, he orshe is required by law to purchase a ‘com-pulsory purchase annuity’ with the fundsaccumulated in his or her pension fund.This provides a taxable income for therest of his or her life, but usually it is afixed income which does not change withinflation.

annuity certain /ə�nju�ti �s%�tən/noun an annuity that provides paymentsfor a certain number of years, regardlessof life or death of the annuitantantedate /��nt�det/ verb to put anearlier date on a document � The in-voice was antedated to January 1st.anti- /�nti/ prefix againstanticipate /�n�tspet/ verb to ex-pect something to happenanticipated balance /�n�tspetd�b�ləns/ noun a balance which is fore-cast from a deposit when it maturesanti-dumping /��nti �d�mpŋ/ ad-jective which protects a country againstdumping � anti-dumping legislationanti-inflationary /��nti n-�fleʃ(ə)n(ə)ri/ adjective which tries torestrict inflation � anti-inflationarymeasuresanti-trust /��nti �tr�st/ adjective at-tacking monopolies and encouragingcompetition � anti-trust measuresanti-trust laws /��nti �tr�st lɔ�z/,anti-trust legislation /��nti �tr�st�led$�sleʃ(ə)n/ plural noun laws in theUS which prevent the formation ofmonopoliesAO abbreviation All-Ordinaries IndexAOB abbreviation any other businessAON abbreviation all or noneAPACS abbreviation Association forPayment Clearing Servicesappendix /ə�pendks/ noun addi-tional pages at the back of a bookapplicant /��plkənt/ noun a personwho applies for something � an appli-cant for a job or a job applicant � anapplicant to an industrial tribunal �There were thousands of applicants forshares in the new company.application /��pl�keʃ(ə)n/ noun 1.the act of asking for something, usuallyin writing, or a document in whichsomeone asks for something, e.g. a job� shares payable on application � She

sent off six applications for job or sixjob applications. 2. effort or diligence �She has shown great application in herwork on the project.application form /��pl�keʃ(ə)nfɔ�m/ noun a form to be filled in whenapplying for a new issue of shares or fora jobapply /ə�pla/ verb 1. to ask for some-thing, usually in writing � to apply inwriting � to apply in person � Themore ambitious of the office workerswill apply for the management traineeprogramme. � About fifty people haveapplied for the job, but there is only onevacancy. 2. to affect or to relate to �This clause applies only to deals outsidethe EU. (NOTE: [all senses] applies –applying – applied)

appoint /ə�pɔnt/ verb to choosesomeone for a job � We have appointeda new distribution manager. � They’veappointed Janet Smith (to the post of)manager. (NOTE: You appoint a personto a job.)

appointment /ə�pɔntmənt/ nounthe act of being appointed to a job, or ofappointing someone to a job � on hisappointment as manager when he wasmade managerapportion /ə�pɔ�ʃ(ə)n/ verb to shareout something, e.g. costs, funds orblame � Costs are apportioned accord-ing to projected revenue.apportionment /ə�pɔ�ʃ(ə)nmənt/noun the sharing out of costsappraisal /ə�prez(ə)l/ noun a calcu-lation of the value of someone orsomething

‘…we are now reaching a stage in industry andcommerce where appraisals are becoming partof the management culture. Most managers nowtake it for granted that they will appraise and beappraised’ [Personnel Management]

appraise /ə�prez/ verb to assess or tocalculate the value of something orsomeoneappraisee /ə�pre�zi�/ noun an em-ployee who is being appraised by his orher manager in an appraisal interviewappreciate /ə�pri�ʃiet/ verb 1. tonotice how good something is � Thecustomer always appreciates efficientservice. 2. (of currency, shares, etc.) toincrease in value

appreciation /ə�pri�ʃi�eʃ(ə)n/ noun1. an increase in value � The apprecia-tion of the dollar against the peseta.Also called capital appreciation 2. theact of valuing something highly � Hewas given a rise in appreciation of hisexcellent work.appro /��prəυ/ noun same as ap-proval (informal.) � to buy somethingon appro to buy something which youwill only pay for if it is satisfactoryappropriate adjective /ə�prəυpriət/suitable � I leave it to you to take ap-propriate action. � verb /ə�prəυpriet/to put a sum of money aside for a spe-cial purpose � to appropriate a sum ofmoney for a capital projectappropriation /ə�prəυpri�eʃ(ə)n/noun the act of putting money aside fora special purpose � appropriation offunds to the reserveappropriation account /ə�prəυpri-�eʃ(ə)n ə�kaυnt/ noun the part of aprofit and loss account which showshow the profit has been dealt with, e.g.,how much has been given to the share-holders as dividends and how much isbeing put into the reservesapproval /ə�pru�v(ə)l/ noun 1. the actof saying or thinking that something isgood � to submit a budget for approval2. � on approval in order to be able touse something for a period of time andcheck that it is satisfactory before pay-ing for it � to buy a photocopier onapprovalapprove /ə�pru�v/ verb 1. � to ap-prove of something to think somethingis good � The chairman approves of thenew company letter heading. � Thesales staff do not approve of interfer-ence from the accounts division. 2. toagree to something officially � to ap-prove the terms of a contract � The pro-posal was approved by the board.approved securities /ə�pru�vd s-�kjυərtiz/ plural noun state bondswhich can be held by banks to form partof their reserves (NOTE: The list of thesebonds is the ‘approved list’.)approximate /ə�prɒksmət/ adjec-tive not exact, but almost correct � Thesales division has made an approximateforecast of expenditure.approximately /ə�prɒksmətli/ ad-verb not quite exactly, but close to the

application form 16 approximately

figure shown � Expenditure on market-ing is approximately 10% down on theprevious quarter.approximation /ə�prɒks�meʃ(ə)n/noun a rough calculation � Each de-partment has been asked to provide anapproximation of expenditure for nextyear. � The final figure is only anapproximation.APR abbreviation Annual PercentageRateAPY abbreviation annual percentageyieldArab accounting dinar /��rəb ə-�kaυntŋ �di�nɑ�/ noun a unit used foraccounting purposes between membercountries of the Arab Monetary Fund.Abbreviation AADarb abbreviation arbitrageur (informal.)arbitrage /�ɑ�b�trɑ�$/ noun the busi-ness of making a profit from the differ-ence in value of various assets, e.g. by:selling foreign currencies or commodi-ties on one market and buying on an-other at almost the same time to profitfrom different exchange rates; buyingcurrencies forward and selling them for-ward at a later date, to benefit from adifference in prices; buying a securityand selling another security to the samebuyer with the intention of forcing upthe value of both securitiesarbitrage fund /�ɑ�btrɑ�$ f�nd/noun a fund which tries to take advan-tage of price discrepancies for the sameasset in different marketsarbitrage syndicate /�ɑ�btrɑ�$�sndkət/ noun a group of people whotogether raise the capital to invest in ar-bitrage dealsarbitrageur /�ɑ�btred$ə/, arbi-trager /�ɑ�btrɑ��$%�/ noun a personwhose business is arbitrage

COMMENT: Arbitrageurs buy shares incompanies which are potential takeovertargets, either to force up the price of theshares before the takeover bid, or simplyas a position while waiting for the take-over bid to take place. They also sellshares in the company which is expectedto make the takeover bid, since one of theconsequences of a takeover bid is usuallythat the price of the target company riseswhile that of the bidding company falls.Arbitrageurs may then sell the shares inthe target company at a profit, either to

one of the parties making the takeoverbid, or back to the company itself.

arbitration /�ɑ�b�treʃ(ə)n/ noun thesettling of a dispute by an outside partyagreed on by both sides � to take a dis-pute to arbitration or to go to arbitra-tion � arbitration in an industrialdispute � The two sides decided to sub-mit the dispute to arbitration or to referthe question to arbitration.area code /�eəriə kəυd/ noun a spe-cial telephone number which is given toa particular area � The area code forcentral London is 0207.area manager /�eəriə �m�nd$ə/noun a manager who is responsible for acompany’s work in a specific part of thecountryarithmetic average /��rθmetk��v(ə)rd$/ noun same as averageARM abbreviation adjustable ratemortgagearmed robbery /ɑ�md �rɒbəri/ nouna robbery where the robber is armedwith a gunarm’s length /ɑ�mz �leŋθ/ adjective� arm’s length transaction a transac-tion which is carried out by two partieswith no connection between them (re-sulting in a fair market value for theitem sold) � to deal with someone atarm’s length to deal as if there were nofinancial link between the two parties(as when a company buys a service fromone of its own subsidiaries)around /ə�raυnd/ preposition 1. ap-proximately � The office costs around£2,000 a year to heat. � His salary isaround $85,000. 2. with a premium ordiscount � 5 points around with a5-point premium and a 5-point discount,both calculated on the spot priceARPS abbreviation adjustable rate pre-ferred stockarrangement fee /ə�rend$mənt fi�/noun a charge made by a bank to a cli-ent for arranging credit facilitiesarrears /ə�rəz/ plural noun 1. moneywhich is owed, but which has not beenpaid at the right time � a salary with ar-rears effective from January 1st � Weare pressing the company to pay arrearsof interest. � You must not allow themortgage payments to fall into arrears.2. � in arrears owing money which

approximation 17 arrears

arrive 18 ask for

should have been paid earlier � Thepayments are six months in arrears. �He is six weeks in arrears with his rent.arrive /ə�rav/ verb to reach a place �The consignment has still not arrived. �The shipment arrived without any docu-mentation. � The plane arrives in Syd-ney at 04.00. � The train leaves Paris at09.20 and arrives at Bordeaux twohours later. (NOTE: You arrive at or in aplace or town, but only in a country.)arrive at /ə�rav ət/ verb to work outand agree on something � They veryquickly arrived at an acceptable price.� After some discussion we arrived at acompromise.article /�ɑ�tk(ə)l/ noun 1. a product orthing for sale � to launch a new articleon the market � a black market in lux-ury articles 2. a section of a legal agree-ment such as a contract or treaty � Seearticle 8 of the contract.article 8 currency /�ɑ�tk(ə)l �et�k�rənsi/ noun a strong convertible cur-rency (according to the IMF)articled clerk /�ɑ�tk(ə)ld �klɑ�k/noun a clerk who is bound by contractto work in a solicitor’s office for someyears to learn the law (NOTE: Such asperson is now officially called a traineesolicitor, though the old term is stillused)articles of association /�ɑ�tk(ə)lzəv əsəυsi�eʃ(ə)n/ plural noun a docu-ment which lays down the rules for acompany regarding such matters as theissue of shares, the conduct of meetingsand the appointment of directors � Thisprocedure is not allowed under the arti-cles of association of the company.articles of incorporation/�ɑ�tk(ə)lz əv nkɔ�pə�reʃ(ə)n/ pluralnoun US a document which sets up acompany and lays down the relationshipbetween the shareholders and the com-pany (NOTE: The UK term is Memoran-dum of Association.)articles of partnership /�ɑ�tk(ə)lzəv �pɑ�tnəʃp/ plural noun same aspartnership agreementasap /�e es e �pi�, �es�p/, ASAPabbreviation as soon as possibleascending tops /ə�sendŋ �tɒps/noun a term used by chartists to refer toan upward trend in the market, where

each peak is higher than the precedingoneASEAN abbreviation Association ofSoutheast Asian NationsA shares /�e ʃeəz/ plural noun ordi-nary shares with limited voting rights orno voting rights at all

COMMENT: A company may be set upwith two classes of share: ‘A’ shares,which are available to the general inves-tor, and ‘B’ shares which are only boughtby certain individuals, such as the founderand his family. Such division of shares isbecoming less usual nowadays.

Asian /�e$(ə)n/ adjective relating orbelonging to AsiaAsian Currency Unit /�e$(ə)n�k�rənsi �ju�nt/ noun a unit of accountfor dollar deposits held in Singapore andother Asian markets. Abbreviation ACUAsian Development Bank/�e$(ə)n d�veləpmənt b�ŋk/ noun abank set up by various Asian countries,with other outside members, to assistcountries in the region with money andtechnical advice. Abbreviation ADBAsian dollar /�e$(ə)n �dɒlə/ noun anAmerican dollar deposited in Singaporeand other Asian markets, and traded inSingaporeAsian dollar bonds /�e$(ə)n �dɒləbɒndz/ plural noun bonds issued inAsian dollarsAsian monetary unit /�e$(ə)n�m�nt(ə)ri �ju�nt/ noun a unit used infinancial dealings between members ofthe Asian Clearing Unionask /ɑ�sk/ verb 1. to put a question tosomeone � He asked the informationoffice for details of companies exhibit-ing at the motor show. � Ask thesalesgirl if the bill includes VAT. 2. totell someone to do something � Heasked the switchboard operator to gethim a number in Germany. � She askedher secretary to fetch a file from themanaging director’s office. � Customsofficials asked him to open his case.asked price /�ɑ�skt pras/ noun aprice at which a commodity or stock isoffered for sale by a seller (also called‘offer price’ in the UK)ask for /�ɑ�sk fɔ�/ verb 1. to say thatyou want or need something � Theyasked for more time to repay the loan. 2.

asking price 19 associate bank

to put a price on something for sale �They are asking £24,000 for the car.asking price /�ɑ�skŋ pras/ noun aprice which the seller is hoping will bepaid for the item being sold � the askingprice is £24,000as per /��z p%�/ � perassay mark /��se mɑ�k/ noun amark put on gold or silver items to showthat the metal is of the correct qualityassess /ə�ses/ verb to calculate thevalue of something or someone � to as-sess damages at £1,000 � to assess aproperty for the purposes of insuranceassessment /ə�sesmənt/ noun a cal-culation of value � a property assess-ment � a tax assessment � They made acomplete assessment of each employee’scontribution to the organisation.assessor /ə�sesə/ noun a person whoadvises a tribunalasset /��set/ noun something whichbelongs to a company or person, andwhich has a value � Her assets are only£640 as against liabilities of £24,000.

‘…many companies are discovering that awell-recognised brand name can be a pricelessasset that lessens the risk of introducing a newproduct’ [Duns Business Month]COMMENT: A company’s balance sheetwill show assets in various forms: currentassets, fixed assets, intangible assets,etc.

asset allocation /��set �lə-�keʃ(ə)n/ noun the work of decidinghow much money should be spent onthe purchase of different types of invest-ment, such as growth units or incomeunits, depending on the particular needsof the individual investorasset-backed securities /��setb�kt si�kjυərtiz/ plural noun shareswhich are backed by the security ofassetsasset backing /��set �b�kŋ/ nouna support for a share price provided bythe value of the company’s assets � hehas an excess of assets over liabilities �her assets are only £640 as against lia-bilities of £24,000asset management account/��set �m�nd$mənt ə�kaυnt/ nounan account with a stockbroker whichalso acts as a bank account, and hascredit card facilities as well. Also calledcentral assets account

asset play /��set ple/ noun a sharewhich seems to be undervalued basedon its asset value and so is an attractivebuyasset stripper /��set �strpə/noun a person who buys a company tosell its assetsasset stripping /��set �strpŋ/noun the practice of buying a companyat a lower price than its asset value, andthen selling its assetsasset value /��set �v�lju�/ noun thevalue of a company calculated by add-ing together all its assetsassign /ə�san/ verb 1. to give some-thing to someone by means of an offi-cial legal transfer � to assign a right tosomeone � to assign shares to someone2. to give someone a job of work to doand make him or her responsible for do-ing it � He was assigned the task ofchecking the sales figures.assignation /��s��neʃ(ə)n/ noun alegal transfer � the assignation ofshares to someone � the assignation ofa patentassignee /��sa�ni�/ noun a personwho receives something which has beenassigned to him or herassignment /ə�sanmənt/ noun 1.the legal transfer of a property or right �the assignment of a patent or of a copy-right � to sign a deed of assignment 2. aparticular task given to someone � Herfirst assignment was to improve thecompany’s image. � The oil team is onan assignment in the North Sea.assignor /��sa�nɔ�/ noun a personwho assigns something to someoneassigns /ə�sanz/ plural noun peopleto whom property has been assigned �his heirs and assigns the people whohave inherited his property and had ittransferred to themassociate /ə�səυsiət/ adjective linked� noun 1. a person who works in thesame business as someone � She is abusiness associate of mine. 2. a personor company linked to another in a take-over bid 3. same as associatecompany

associate bank /ə�səυsiət �b�ŋk/noun a bank which is part of a groupsuch as Visa or MasterCard

associate company /ə�səυsiət�k�mp(ə)ni/ noun a company which ispartly owned by another companyassociated company /ə�səυsietd�k�mp(ə)ni/ noun a company which ispartly owned by another company(though less than 50%), which exertssome management control over it or hasa close trading relationship with it �Smith Ltd and its associated company,Jones Brothersassociate director /ə�səυsiət da-�rektə/ noun a director who attendsboard meetings, but has not been electedby the shareholdersassociation /ə�səυsi�eʃ(ə)n/ noun agroup of people or companies with thesame interest � an employers’ associa-tion � Our company has applied to jointhe trade association. � The manufac-turers’ association has sent a letter tothe minister.Association for Payment Clear-ing Services /ə�səυsieʃ(ə)n fə�pemənt �klərŋ �s%�vsz/ noun anorganisation which deals with theclearing of payments in the UK. Abbre-viation APACS

Association of British Insurers/ə�səυsieʃ(ə)n əv �brtʃ n�ʃυərəz/noun an organisation reprenting Britishcompanies which are authorised totransact insurance business. Abbrevia-tion ABI

Association of Chartered Cer-tified Accountants /ə�səυsieʃ(ə)nəv �tʃɑ�təd �s%�tfad ə�kaυntənts/noun an organisation whose membersare certified accountants. AbbreviationACCA

Association of Futures Brokersand Dealers /ə�səυsieʃ(ə)n əv�fju�tʃəz �brəυkəz ən �di�ləz/ noun aself-regulating organisation which over-sees the activities of dealers in futuresand options. Abbreviation AFBD

Association of Southeast AsianNations /ə�səυsieʃ(ə)n əv �saυθi�st�e$(ə)n �neʃ(ə)nz/ noun an organisa-tion formed originally in 1967 to pro-mote economic growth, social andeducational development and generalstability in Southeast Asia. AbbreviationASEAN (NOTE: The current membersare: Brunei, Indonesia, Laos, Malaysia,

Myanmar, Philippines, Singapore,Thailand and Vietnam.)assumable mortgage /ə-�sju�məb(ə)l �mɔ��d$/ noun US amortgage which can be passed to an-other person, such as a person buyingthe property from the mortgagorassume /ə�sju�m/ verb to take foryourself � He has assumed responsibil-ity for marketing. � The company willassume all risks.assumption /ə�s�mpʃən/ noun 1. theact of taking for yourself � assumptionof risks 2. the transfer of the rest of amortgage to someoneassurance /ə�ʃυərəns/ noun a type ofinsurance which pays compensation foran event that is certain to happen atsome time, especially for the death ofthe insured person. Also called life as-surance, life insuranceassure /ə�ʃυə/ verb to insure some-one, or someone’s life, so that the insur-ance company will pay compensationwhen that person dies � He has paid thepremiums to have his wife’s life assured.(NOTE: Assure, assurer and assur-ance are used in Britain for insurancepolicies relating to something whichwill certainly happen (such as death);for other types of policy (i.e. thoseagainst something which may or maynot happen, such as an accident) usethe terms insure, insurer and insur-ance.)assurer /ə�ʃυərə/, assuror noun aninsurer or a company which insuresAST abbreviation Automated ScreenTradingASX abbreviation Australian StockExchangeat best /��t �best/ adverb � buy atbest an instruction to a stockbroker tobuy securities at the best price available,even if it is high � sell at best an in-struction to a stockbroker to sell sharesat the best price possibleat call /�t �kɔ�l/ adverb immediatelyavailableATM abbreviation automated tellermachine

‘…the major supermarket operator is planning anew type of bank that would earn 90% of itsrevenue from fees on automated teller machinetransactions. With the bank setting up ATMs at7,000 group outlets nationwide, it would have a

associate company 20 ATM

branch network at least 20 times larger than anyof the major banks’ [Nikkei Weekly]

ATM alliance /�e ti� �em ə�laəns/noun a group of banks whose cards canbe used at the same ATMsATS abbreviation automatic transferserviceat sight /�t �sat/ noun immediately,when it is presented � a bill of exchangepayable at sightattaché /ə�t�ʃe/ noun a junior diplo-mat who does special workattachment order /ə�t�tʃmənt�ɔ�də/ noun an order from a court tohold a debtor’s property to prevent it be-ing sold until debts are paidattract /ə�tr�kt/ verb to make some-one want to join or come to something �The company is offering free holidays inSpain to attract buyers. � We have diffi-culty in attracting skilled staff to thispart of the country.attractive /ə�tr�ktv/ adjectivewhich attracts � attractive prices priceswhich are cheap enough to make buyerswant to buy � attractive salary a goodsalary to make high-quality applicantsapply for the jobattributable profit /ə�trbjυtəb(ə)l�prɒft/ noun a profit which can beshown to come from a particular area ofthe company’s operationsauction /�ɔ�kʃən/ noun 1. a method ofselling goods where people want to buycompete with each other by saying howmuch they will offer for it, and the itemis sold to the person who makes thehighest offer � Their furniture will besold in the auction rooms next week. �They announced a sale by auction of thefire-damaged stock. � The equipmentwas sold by auction or at auction. � toput an item up for auction to offer anitem for sale at an auction 2. a methodof selling government stock, where allstock on issue will be sold, and the high-est price offered will be accepted (as op-posed to tendering, where not all thestock may be sold if the tender pricesare too low) � verb to sell something atan auction � The factory was closed andthe machinery was auctioned off.auction system /�ɔ�kʃən �sstəm/noun a system where prices are agreedas the result of marketmakers offeringstock for sale on the trading floor (as op-

posed to a quote system, where pricesare quoted on a computerised screen)audit /�ɔ�dt/ noun 1. the examinationof the books and accounts of a company� to carry out the annual audit 2. a de-tailed examination of something in or-der to assess it � A thorough job auditwas needed for job evaluation. � Amanpower audit showed up a desperatelack of talent. � verb to examine thebooks and accounts of a company �Messrs Smith have been asked to auditthe accounts. � The books have not yetbeen audited.auditing /�ɔ�dtŋ/ noun the work ofexamining the books and accounts of acompanyauditor /�ɔ�dtə/ noun a person whoaudits

COMMENT: Auditors are appointed by thecompany’s directors and voted for by theAGM. In the USA, audited accounts areonly required by corporations which areregistered with the SEC, but in the UK alllimited companies with a turnover over acertain limit must provide audited annualaccounts.

auditors’ fees /�ɔ�dtəz fi�z/ pluralnoun fees paid to a company’s auditors,which are approved by the shareholdersat an AGMauditors’ qualification /�ɔ�dtəz�kwɒlf�keʃ(ə)n/ noun a form ofwords in a report from the auditors of acompany’s accounts, stating that in theiropinion the accounts are not a true re-flection of the company’s financial posi-tion. Also called qualification ofaccounts

auditors’ report /�ɔ�dtəz r�pɔ�t/noun a report written by a company’sauditors after they have examined theaccounts of the company (NOTE: If theauditors are satisfied, the report certi-fies that, in their opinion, the accountsgive a ‘true and fair’ view of the com-pany’s financial position.)

audit trail /�ɔ�dt trel/ noun the re-cords that show all the stages of a trans-action, e.g. a purchase, a sale or acustomer complaint, in the order inwhich they happened (NOTE: An audittrail can be a useful tool for prob-lem-solving and, in financial markets,may be used to ensure that the dealers

ATM alliance 21 audit trail

have been fair and accurate in theirproceedings.)austral /�ɔ�str(ə)l/ noun a unit of cur-rency used in ArgentinaAustralian Stock Exchange /ɒ-�streliən �stɒk k�stʃend$/ noun thenational stock exchange of Australia,made up of six exchanges (in Adelaide,Brisbane, Hobart, Melbourne, Perth andSydney). Abbreviation ASXAUT abbreviation authorised unit trustauthenticate /ɔ��θentket/ verb tosay that something is true or genuine,especially to state that gold is of a cor-rect qualityauthentication /ɔ��θent�keʃ(ə)n/noun 1. an action of checking thatsomething is true, such as an instructionsent to a bank by email 2. a method ofproving the identity of a person orcompany

COMMENT: Authentication is particularlyimportant on the Internet where you donot actually see the person or premises ofa company when making a purchase. IfCompanyX wants to prove to Internet cus-tomers that they are really CompanyXand not a fraudster, they must ask an in-dependent authenticator to issue themwith a unique certificate of authentication.A visitor to the CompanyX website canask to see this certificate and will beshown the unique number supplied by thetrustworthy independent authenticator.Authentication is normally only used oncommercial web sites that are sellinggoods.

authorisation /�ɔ�θəra�zeʃ(ə)n/,authorization noun permission orpower to do something � Do you haveauthorisation for this expenditure? �He has not been given authorisation toact on our behalf.authorise /�ɔ�θəraz/, authorize verb1. to give permission for something tobe done � to authorise payment of£10,000 2. to give someone the author-ity to do something � to authorisesomeone to act on the company’s behalfauthorised /�ɔ�θərazd/, authorizedadjective permittedauthorised capital /�ɔ�θərazd�k�pt(ə)l/ noun an amount of capitalwhich a company is allowed to have, asstated in the memorandum ofassociation

authorised corporate director/�ɔ�θərazd �kɔ�p(ə)rət da�rektə/noun the person who is in charge of anOpen-ended investment company. Ab-breviation ACDauthorised dealer /�ɔ�θərazd�di�lə/ noun a person or company (suchas a bank) that is allowed by the coun-try’s central bank to buy and sell foreigncurrencyauthorised stock /�ɔ�θərazd �stɒk/noun same as authorised capitalauthorised unit trust /�ɔ�θərazd�ju�nt tr�st/ noun the official namefor a unit trust which has to be managedaccording to EU directives. Abbrevia-tion AUTauthorities /ɔ��θɒrtiz/ plural nounthe government, the people in controlauthority /ɔ��θɒrti/ noun the powerto do something � a manager with au-thority to sign cheques � He has no au-thority to act on our behalf. � Onlysenior managers have the authority toinitiate these changes.authority to purchase /ɔ��θɒrti tə�p%�tʃs/ noun a bill drawn up and pre-sented with shipping documentation tothe purchaser’s bank, allowing the bankto purchase the billautomaker /�ɔ�təυmekə/ noun US acompany that manufactures cars (NOTE:The UK term is car maker.)automated /�ɔ�təmetd/ adjectiveworked automatically by machines � afully automated car assembly plantAutomated Clearing House/�ɔ�təmetd �klərŋ haυs/ noun anorganisation set up by the federal au-thorities to settle transactions carried outby computer, such as automatic mort-gage payments, and trade payments be-tween businesses. Abbreviation ACHAutomated Screen Trading/�ɔ�təmetd �skri�n �tredŋ/ noun asystem where securities are bought, soldand matched automatically by com-puter. Abbreviation ASTautomated teller machine/�ɔ�təm�tk �telŋ mə�ʃi�n/ noun amachine which gives out money when aspecial card is inserted and special in-structions given. Abbreviation ATMautomatic /�ɔ�tə�m�tk/ adjectivewhich works or takes place without any

austral 22 automatic

person making it happen � There is anautomatic increase in salaries on Janu-ary 1st.automatically /�ɔ�tə�m�tkli/ ad-verb without a person giving instruc-tions � The invoices are sent outautomatically. � Addresses are typed inautomatically. � A demand note is sentautomatically when the invoice isoverdue.automatic data processing/�ɔ�təm�tk �detə �prəυsesŋ/ noundata processing done by a computerautomatic transfer service/�ɔ�təm�tk �tr�nsfə �s%�vs/ nounUS a service by which money can betransferred automatically from a cus-tomer’s savings account to cover anoverdraft in a current account. Abbrevi-ation ATSautomatic vending machine/�ɔ�təm�tk �vendŋ mə�ʃi�n/ noun amachine which provides drinks, ciga-rettes etc., when a coin is put inautomation /�ɔ�tə�meʃ(ə)n/ nounthe use of machines to do work withvery little supervision by peopleavailability /ə�velə�blti/ noun thefact of being easy to obtain � offer sub-ject to availability the offer is validonly if the goods are availableavailability float /ə�velə�bltifləυt/ noun 1. a time between the mo-ment a cheque is deposited and the timethe money will have cleared 2. theamount of money in an account repre-sented by deposits which have not yetclearedavailable /ə�veləb(ə)l/ adjectivewhich can be obtained or bought � anitem which is no longer available �funds which are made available for in-vestment in small businesses � Thisproduct is available in all branches.available capital /ə�veləb(ə)l�k�pt(ə)l/ noun capital which is readyto be usedavailable funds /ə�veləb(ə)l�f�ndz/ plural noun funds held by abank which it can use for loans or otherinvestmentsaval /ə�vɑ�l/ noun a term used in Eu-rope to refer to a bill or promissory notewhich is guaranteed by a third party

AVC abbreviation average variablecostaverage /��v(ə)rd$/ noun 1. a num-ber calculated by adding several figurestogether and dividing by the number offigures added � the average for the lastthree months or the last three months’average � sales average or average ofsales 2. � on average, on an average ingeneral � On average, £15 worth ofgoods are stolen every day. 3. the shar-ing of the cost of damage or loss of aship between the insurers and the own-ers � adjective equal to the average of aset of figures � the average increase insalaries � The average cost per unit istoo high. � The average sales per repre-sentative are rising. � verb 1. to amountto something when the average of a setof figures is worked out � Price in-creases have averaged 10% per annum.� Days lost through sickness have aver-aged twenty-two over the last fouryears. 2. to work out an average figurefor something

‘…a share with an average rating might yield 5per cent and have a PER of about 10’[Investors Chronicle]

‘…the average price per kilogram for thisseason to the end of April has been 300 cents’[Australian Financial Review]

average adjuster /��v(ə)rd$ ə-�d$�stə/ noun a person who calculateshow much of a maritime insurance is tobe paid by the insurer against a claimaverage adjustment /��v(ə)rd$ ə-�d$�stmənt/ noun a calculation of theshare of the cost of damage or loss of aship that an insurer has to payaverage balance /��v(ə)rd$�b�ləns/ noun the balance in an accountcalculated over a periodaverage daily balance /��v(ə)rd$�deli �b�ləns/ noun the balance in anaccount calculated by taking the finalbalances for each day, and averagingthem (NOTE: The average daily balanceis used for the purpose of calculatinginterest or bank charges.)

average due date /��v(ə)rd$ dju��det/ noun the average date when sev-eral different payments fall dueaverage out /��v(ə)rd$ �aυt/ verbto come to a figure as an average � Itaverages out at 10% per annum. � Salesincreases have averaged out at 15%.

automatically 23 average out

averager /��vərd$ə/ noun a personwho buys the same share at varioustimes and at various prices to get an av-erage valueaverage-sized /��vərd$ �sazd/ ad-jective of a similar size to most others,not very large or very small � They arean average-sized company. � He has anaverage-sized office.averaging /��vərd$ŋ/ noun buyingor selling shares at different times and atdifferent prices to establish an averagepriceavoid /ə�vɔd/ verb to try not to dosomething � My aim is to avoid payingtoo much tax. � We want to avoid directcompetition with Smith Ltd. � The com-pany is struggling to avoid bankruptcy.(NOTE: You avoid something or avoiddoing something.)avoidance /ə�vɔdəns/ noun the actof trying not to do something or not topay something � tax avoidanceavoirdupois /��vwɑ� dju �pwɑ�/noun a non-metric system of weightsused in the UK, the USA and othercountries, whose basic units are theounce, the pound, the hundredweightand the ton (NOTE: The system is nowno longer officially used in the UK)

COMMENT: Avoirdupois weight is dividedinto drams (16 drams = 1 ounce); ounces

(16 ounces = one pound); pounds (100pounds = 1 hundredweight); hundred-weight (20 hundredweight = 1 ton). Avoir-dupois weights are slightly heavier thantroy weights with the same names: the av-oirdupois pound equals 0.45kg, whereasthe troy pound equals 0.37kg.

award /ə�wɔ�d/ noun something givenby a court, tribunal or other officialbody, especially when settling a disputeor claim � an award by an industrialtribunal � The arbitrator’s award wasset aside on appeal. � The latest payaward has been announced. � verb todecide the amount of money to be givento someone � to award someone a sal-ary increase � He was awarded£10,000 damages in the libel case. �The judge awarded costs to the defen-dant. � to award a contract to some-one to decide that someone will begiven the contractaway /ə�we/ adverb not here, some-where else � The managing director isaway on business. � My secretary isaway sick. � The company is movingaway from its down-market image. �the bid is away from the market USthe bid is lower than the quoted marketlevelax /�ks/ noun US the financial adviserwho is the current expert on a particularstock or market sector (informal.)

averager 24 ax

B

B2B /�bi� tə �bi�/ adjective referring toadvertising or marketing that is aimed atother businesses rather than at consum-ers (NOTE: The word is most commonlyused of business-to-business dealingsconducted over the Internet.)

B2C /�bi� tə �si�/ adjective referring toadvertising or marketing that is aimed atconsumers rather than at other busi-nesses (NOTE: The word is most com-monly used of business-to-consumerdealings conducted over the Internet.)

baby bonds /�bebi bɒndz/ pluralnoun US bonds in small denominations(e.g. $100) which the small investor canafford to buybaby boom /�bebi bu�m/ noun a pe-riod, such as after a war, when morechildren are born than usualbaby boomer /�bebi �bu�mə/noun a person born during the periodfrom 1945 to 1965, when the populationof the UK and the USA increasedrapidlyback /b�k/ noun the opposite side tothe front � Write your address on theback of the envelope. � Please endorsethe cheque on the back. � adjective re-ferring to the past � a back payment �adverb so as to make things as theywere before � He will pay back themoney in monthly instalments. � Thestore sent back the cheque because thedate was wrong. � The company wentback on its agreement to supply at £1.50a unit. � verb 1. to help someone, espe-cially financially � The bank is backingus to the tune of £10,000. � She is look-ing for someone to back her project. 2.� to back a bill to sign a bill promisingto pay it if the person it is addressed to isnot able to do so

‘…the businesses we back range from start-upventures to established companies in need offurther capital for expansion’ [Times]

back and filling /�b�k ən �flŋ/ ad-jective referring to a market whereprices rise and fall slightlybackdate /b�k�det/ verb 1. to put anearlier date on a document such as acheque or an invoice � Backdate yourinvoice to April 1st. 2. to make some-thing effective from an earlier date thanthe current date � The pay increase isbackdated to January 1st.back door /b�k �dɔ�/ noun � by theback door by buying a listed companyon order to acquire a listing on a StockExchange (which is cheaper than apply-ing for a new listing)back-end load /�b�k end �ləυd/noun a management charge or commis-sion which is levied when the investorsells out of the fundback-end loaded /�b�k end�ləυdd/ adjective referring to an insur-ance or investment scheme where com-mission is charged when the investorwithdraws his or her money from thescheme. Compare front-end loaded

backer /�b�kə/ noun 1. a person orcompany that backs someone � One ofthe company’s backers has withdrawn.2. � the backer of a bill the person whobacks a billbackhander /�b�k�h�ndə/ noun abribe or money given to persuade some-one to do something for you (informal.)� He was accused of taking backhand-ers from the company’s suppliers.backing /�b�kŋ/ noun support, espe-cially financial support � She has thebacking of an Australian bank. � Thecompany will succeed only if it has suffi-cient backing. � She gave her backingto the proposal.

‘…the company has received the backing of anumber of oil companies who are willing to payfor the results of the survey’ [Lloyd’s List]

back interest /b�k �ntrəst/ nouninterest which has not yet been paidbacklog /�b�klɒ�/ noun an amount ofwork, or of items such as orders or let-ters, which should have been dealt withearlier but is still waiting to be done �The warehouse is trying to cope with abacklog of orders. � We’re finding ithard to cope with the backlog ofpaperwork.back office /b�k �ɒfs/ noun US 1.the part of a broking firm where thepaperwork involved in buying and sell-ing shares is processed 2. the part of abank where cheques are processed,statements of account drawn up andother administrative tasks are done 3.the general administration departmentof a companyback orders /�b�k �ɔ�dəz/ pluralnoun orders received and not yet ful-filled, usually because the item is out ofstock � It took the factory six weeks toclear all the accumulated back orders.back out /�b�k �aυt/ verb to stopbeing part of a deal or an agreement �The bank backed out of the contract. �We had to cancel the project when ourGerman partners backed out.back pay /�b�k pe/ noun a salarywhich has not been paid � I am owed£500 in back pay.back payment /�b�k �pemənt/noun 1. a payment which is due but hasnot yet been paid 2. the act of payingmoney which is owedback rent /�b�k rent/ noun a rent duebut not paid � The company owes£100,000 in back rent.back tax /�b�k t�ks/ noun tax whichis owedback-to-back credit /�b�k tə �b�k�kredt/ noun 1. credit facilities for thepurchase of goods, where the credit isasked for by the purchaser, but isgranted to a middleman, who buys thegoods, then sells them on to the finalpurchaser, and uses the credit as a basisfor obtaining further credit facilities 2.credit in a currency allowed to a foreigntrader on the basis of credit which hasbeen granted by a bank in the trader’sown countryback-to-back loan /�b�k tə �b�kləυn/ noun a loan from one company toanother in one currency arranged

against a loan from the second companyto the first in another currency. Alsocalled parallel loan (NOTE:Back-to-back loans are (used by inter-national companies to get round ex-change controls.)back up /�b�k ��p/ verb 1. to supportor help � The finance director said themanaging director had refused to backhim up in his argumen � He broughtalong a file of documents to back up hisclaim. 2. to go into reverse 3. � to backup a portfolio to sell long-term bondsand replace them by short-term bondsbackup /�b�k�p/ adjective supportingor helping � We offer a free backup ser-vice to customers. � After a series ofsales tours by representatives, the salesdirector sends backup letters to all thecontacts.backup copy /�b�k�p �kɒpi/ noun acopy of a computer disk to be kept incase the original disk is damagedbackup credit /�b�k�p �kredt/noun credit provided by banks for aeurocurrency notebackup line /�b�k�p lan/ nouncredit provided by banks against the se-curity of commercial bills of exchangewhich are about to maturebackup withholding /�b�k�p wθ-�həυldŋ/ noun US a tax retained frominvestment income so that the IRS issure of getting the tax dueback wages /�b�k wed$z/ pluralnoun same as back paybackwardation /�b�kwə�deʃ(ə)n/noun 1. a penalty paid by the sellerwhen postponing delivery of shares tothe buyer (NOTE: The opposite isforwardation.) 2. a situation where thespot price of a commodity or currency ishigher than the futures price 3. the dif-ference between the spot and futurespricesbackward integration /�b�kwədnt��reʃ(ə)n/ noun a process of ex-pansion in which a business which dealswith the later stages in the productionand sale of a product acquires a businessthat deals with an earlier stage in thesame process, usually a supplier �Buying up rubber plantations is part ofthe tyre company’s backward integra-tion policy. � Backward integration willensure cheap supplies but forward inte-

back interest 26 backward integration

gration would bring us nearer to themarket. Also called vertical integra-tion (NOTE: The opposite is forwardintegration.)

BACS /b�ks/ noun a company set upto organise the payment of direct debits,standing orders, salary cheques andother payments generated by computers.It operates for all the British clearingbanks and several building societies; itforms part of APACS. Full formBankers’ Automated ClearingServicesbad /b�d/ adjective not goodbad bargain /b�d �bɑ��n/ noun anitem which is not worth the price askedbad buy /b�d �ba/ noun a thingbought which was not worth the moneypaid for itbad cheque /b�d �tʃek/ noun acheque which is returned to the drawerfor any reasonbad debt /b�d �det/ noun a debtwhich will not be paid, usually becausethe debtor has gone out of business, andwhich has to be written off in the ac-counts � The company has written off£30,000 in bad debts.bad debt provision /b�d �det prə-�v$(ə)n/ noun money put aside in ac-counts to cover potential bad debtsbaht /bɑ�t/ noun a unit of currencyused in Thailandbailee /�be�li�/ noun a person who re-ceives property by way of bailmentbailment /�belmənt/ noun a transferof goods by someone (the bailor) tosomeone (the bailee) who then holdsthem until they have to be returned tothe bailor (NOTE: Putting jewels in abank’s safe deposit box is an exampleof bailment.)

bailor /�be�lɔ�/ noun a person whotransfers property by way of bailmentbail out /�bel �aυt/ verb 1. to rescue acompany which is in financial difficul-ties 2. � to bail someone out to paymoney to a court as a guarantee thatsomeone will return to face charges �She paid $3,000 to bail him out.

‘…the government has decided to bail outthe bank which has suffered losses to the extentthat its capital has been wiped out’[South China Morning Post]

bail-out /�belaυt/ noun a rescue of acompany in financial difficultiesbalance /�b�ləns/ noun 1. the amountwhich has to be put in one of the col-umns of an account to make the totaldebits and credits equal � balance inhand cash held to pay small debts �balance brought down or forward theclosing balance of the previous periodused as the opening balance of the cur-rent period � balance carried down orforward the closing balance of the cur-rent period 2. the rest of an amountowed � You can pay £100 deposit andthe balance within 60 days. � balancedue to us the amount owed to us whichis due to be paid � verb 1. to be equal(i.e. the assets owned must always equalthe total liabilities plus capital) � theFebruary accounts do not balance thetwo sides are not equal � to balance offthe accounts to make the two sides ofan account balance at the end of an ac-counting period, by entering a debit bal-ance in the credit side or a credit balancein the debit side, and carrying the bal-ance forward into the next period 2. tocalculate the amount needed to make thetwo sides of an account equal � I havefinished balancing the accounts forMarch. 3. to plan a budget so that ex-penditure and income are equal � Thepresident is planning for a balancedbudget.balance certificate /�b�ləns s%�-�tfkət/ noun a share certificate givento an investor who has sold part of his orher shareholding and shows the numberof shares which he or she has retainedbalanced budget /� b�lənst�b�d$t/ noun a budget where expendi-ture and income are equalbalance of payments /�b�ləns əv�pemənts/ noun a comparison betweentotal receipts and payments arisingfrom a country’s international trade ingoods, services and financial transac-tions. Abbreviation BOP

balance of payments deficit/�b�ləns əv �peməntz �defst/ nouna situation when a country imports morethan it exportsbalance of payments surplus/�b�ləns əv �pemənts �s%�pləs/ nouna situation where a country sells more toother countries than it buys from them

BACS 27 balance of payments surplus

balance of trade 28 Bank

balance of trade /�b�ləns əv �tred/noun a record of the internationaltrading position of a country in mer-chandise, excluding invisible trade.Also called trade balancebalance sheet /�b�ləns ʃi�t/ noun astatement of the financial position of acompany at a particular time, such as theend of the financial year or the end of aquarter, showing the company’s assetsand liabilities � Our accountant hasprepared the balance sheet for the firsthalf-year. � The company balance sheetfor the last financial year shows a worseposition than for the previous year. �The company balance sheet for 1984shows a substantial loss.

COMMENT: The balance sheet shows thestate of a company’s finances at a certaindate. The profit and loss account showsthe movements which have taken placesince the end of the previous accountingperiod. A balance sheet must balance,with the basic equation that assets (i.e.what the company owns, including moneyowed to the company) must equal liabili-ties (i.e. what the company owes to itscreditors) plus capital (i.e. what it owes toits shareholders). A balance sheet can bedrawn up either in the horizontal form,with (in the UK) liabilities and capital onthe left-hand side of the page (in the USA,it is the reverse) or in the vertical form,with assets at the top of the page, fol-lowed by liabilities, and capital at the bot-tom. Most are usually drawn up in thevertical format, as opposed to the moreold-fashioned horizontal style.

balancing item /�b�lənsŋ �atəm/,balancing figure /�b�lənsŋ �f�ə/noun an item introduced into a balancesheet to make the two sides balancebalboa /b�l�bəυə/ noun a unit of cur-rency used in Panamaballoon /bə�lu�n/ noun a loan wherethe last repayment is larger than theothersballoon mortgage /bə�lu�n�mɔ��d$/ noun US a mortgagewhere the final payment (called a ‘bal-loon payment’) is larger than the othersballot /�b�lət/ noun 1. an electionwhere people vote for someone bymarking a cross on a paper with a list ofnames � Six names were put forwardfor three vacancies on the committee soa ballot was held. 2. a selection made by

taking papers at random out of a box �The share issue was oversubscribed, sothere was a ballot for the shares. � verbto take a vote by ballot � The union isballoting for the post of president.ballot box /�b�lət bɒks/ noun asealed box into which ballot papers areputballot paper /�b�lət �pepə/ noun apaper on which the voter marks a crossto show who they want to vote forBaltic Futures Exchange /�bɔ�ltk�fju�tʃəz ks�tʃend$/ noun an in-stitution in London specialising in thechartering of shipping for sea freightand planes for airfreight, and also incommodity futures, such as wheat, bar-ley, potatoes and pigs. AbbreviationBFEbanca noun the Italian word for bankBanca d’Italia noun the central bankof Italybancassurer /�b�ŋkə�sjυərə/ nouna bank offering a range of financial ser-vices to its customers, including insur-ance from a subsidiary insurancecompanybanco noun the word for bank inSpanish and PortugueseBanco de España noun the centralbank of SpainBanco de Portugal noun the centralbank of Portugalband /b�nd/ noun a range of figureswith an upper and a lower limit, towhich something, e.g. the amount ofsomeone’s salary or the exchange valueof a currency, is restricted but withinwhich it can move � a salary bandbank /b�ŋk/ noun a business whichholds money for its clients, lends moneyat interest, and trades generally inmoney � the First National Bank � theRoyal Bank of Scotland � She put allher earnings into the bank. � I have hada letter from my bank telling me my ac-count is overdrawn. � verb to depositmoney into a bank or to have an accountwith a bank � He banked the cheque assoon as he received it. � where do youbank? where do you have a bank ac-count? � I bank at or with BarclaysBank noun a German word meaningbank

bankable 29 banker’s reference

bankable /�b�ŋkəb(ə)l/ adjectivewhich a bank will accept as security fora loanbankable paper /�b�ŋkəb(ə)l�pepə/ noun a document which a bankwill accept as security for a loanbank account /�b�ŋk ə�kaυnt/ nounan account which a customer has with abank, where the customer can depositand withdraw money � to open a bankaccount � to close a bank account �How much money do you have in yourbank account? � If you let the balancein your bank account fall below £100,you have to pay bank charges. (NOTE:The US term is banking account.)bank advance /�b�ŋk əd�vɑ�ns/noun same as bank loan � She askedfor a bank advance to start her business.bank balance /�b�ŋk �b�ləns/ nounthe state of a bank account at any partic-ular time � Our bank balance went intothe red last month.bank base rate /b�ŋk �bes ret/noun a basic rate of interest, on whichthe actual rate a bank charges on loansto its customers is calculatedbank bill /�b�ŋk bl/ noun 1. GB abill of exchange by one bank telling an-other bank (usually in another country)to pay money to someone 2. GB same asbanker’s bill 3. US same as banknotebank book /�b�ŋk bυk/ noun a book,given by a bank, which shows moneywhich you deposit or withdraw fromyour savings account (also called a‘passbook’)bank borrowing /b�ŋk �bɒrəυŋ/noun money borrowed from a bank �The new factory was financed by bankborrowing.bank card /�b�ŋk kɑ�d/ noun a creditcard or debit card issued to a customerby a bank for use instead of cash whenbuying goods or services (NOTE: Thereare internationally recognised rulesthat govern the authorisation of the useof bank cards and the clearing and set-tlement of transactions in which theyare used.)bank charges /�b�ŋk �tʃɑ�d$z/ plu-ral noun charges which a bank makesfor carrying out work for a customer(NOTE: The US term is servicecharge.)

bank charter /b�ŋk �tʃɑ�tə/ noun anofficial government document allowingthe establishment of a bankbank cheque /�b�ŋk tʃek/ noun abank’s own cheque, drawn on itself andsigned by a bank officialbank clerk /�b�ŋk klɑ�k/ noun a per-son who works in a bank, but is not amanagerbank credit /�b�ŋk �kredt/ nounloans or overdrafts from a bank to acustomerbank deposits /b�ŋk d�pɒztz/plural noun all money placed in banksby private or corporate customersbank discount rate /b�ŋk�dskaυnt ret/ noun a rate charged bya bank for a loan where the interestcharges are deducted when the loan ismadebank draft /�b�ŋk drɑ�ft/ noun anorder by one bank telling another bank,usually in another country, to paymoney to someonebanker /�b�ŋkə/ noun 1. a personwho is in an important position in abank 2. a bank � the company’s bankeris Barclaysbanker’s acceptance /�b�ŋkəz ək-�septəns/ noun a bill of exchange guar-anteed by a bankBankers’ Automated ClearingServices /�b�ŋkəz �ɔ�təmetd�klərŋ �s%�vsz/ plural noun full formof BACS. Compare CHAPSbanker’s bill /�b�ŋkəz bl/ noun anorder by one bank telling another bank,usually in another country, to paymoney to someonebanker’s draft /�b�ŋkəz �drɑ�ft/noun a draft payable by a bank in cashon presentationbanker’s lien /�b�ŋkəz �li�ən/ nounthe right of a bank to hold some prop-erty of a customer as security againstpayment of a debtbanker’s order /�b�ŋkəz �ɔ�də/noun an order written by a customerasking a bank to make a regular pay-ment � He pays his subscription bybanker’s order.banker’s reference /�b�ŋkəz�ref(ə)rəns/ noun details of a com-pany’s bank, account number, etc., sup-

plied so that a client can check if thecompany is a riskBank Examiner /�b�ŋk ��z�mnə/noun US an official of one of theFederal Reserve Banks who examinesthe working of companies who apply tobecome banks, and who supervises therunning of banks within the ReserveBank’s districtBank for International Settle-ments /�b�ŋk fə ntə�n�ʃ(ə)nəl�set(ə)lmənts/ noun a bank (based inBasle) which acts as the clearing bankfor the central banks of various coun-tries through which they settle their cur-rency transactions, and which also actson behalf of the IMF. Abbreviation BISbank giro /�b�ŋk �d$arəυ/ noun amethod used by clearing banks to trans-fer money rapidly from one account toanotherbank giro credit /b�ŋk �d$arəυ�kredt/ noun a cash or cheque paymentto an organisation or person which usu-ally takes three working days to process.Abbreviation BGCbank holiday /b�ŋk �hɒlde/ nouna weekday which is a public holidaywhen the banks are closed � New Year’sDay is a bank holiday. � Are we paidfor bank holidays in this job?bank identification number/b�ŋk �adentf�keʃ(ə)n �n�mbə/noun internationally organised six-digitnumber which identifies a bank forcharge card purposes. Abbreviation BINbanking /�b�ŋkŋ/ noun the businessof banks � He is studying banking. �She has gone into banking. � a bankingcrisis a crisis affecting the banksbanking account /�b�ŋkŋ ə-�kaυnt/ noun US an account which acustomer has with a bankBanking Code /�b�ŋkŋ kəυd/ nouna voluntary code of practice adopted bybanks and building societies in theirdealings with their customersbanking hours /�b�ŋkŋ aυəz/ plu-ral noun the hours when a bank is openfor its customers � You cannot getmoney out of the bank after bankinghours.banking service /�b�ŋkŋ �s%�vs/noun the various ways in which a bankcan help a customer, such as operating

accounts, making transfers, payingstanding orders and selling foreigncurrencybank line /�b�ŋk lan/ noun same asline of creditbank loan /�b�ŋk ləυn/ noun a loanmade by a bank to a customer, usuallyagainst the security of a property or as-set � He asked for a bank loan to starthis business. Also called bankadvancebank manager /�b�ŋk �m�nd$ə/noun the person in charge of a branch ofa bank � They asked their bank man-ager for a loan.bank mandate /b�ŋk �m�ndet/noun a written order to a bank, asking itto open an account and allow someoneto sign cheques on behalf of the accountholder, and giving specimen signaturesand relevant informationbanknote /�b�ŋknəυt/ noun 1. apiece of printed paper money (in Eng-land, issued by the Bank of England; inScotland, commercial banks can issuenotes) � a counterfeit £20 note � Hepulled out a pile of used notes. (NOTE:The US term is bill.) 2. US anon-interest bearing note, issued by aFederal Reserve Bank, which can beused as cashBank of England /�b�ŋk əv�ŋ�lənd/ noun the British central bank,owned by the state, which, together withthe Treasury, regulates the nation’sfinances

COMMENT: The Bank of England issuesbanknotes which carry the signatures ofits officials. It is the lender of last resort tocommercial banks and supervises bank-ing institutions in the UK Its Monetary Pol-icy Committee is independent of thegovernment and sets interest rates. TheGovernor of the Bank of England is ap-pointed by the government.

Bank of Japan /�b�ŋk əv d$ə�p�n/noun the central bank of Japan. Abbre-viation BOJbank on /�b�ŋk ɒn/ verb to feel surethat something will happen � He isbanking on getting a loan from his fa-ther to set up in business. � Do not bankon the sale of your house.bank rate /�b�ŋk ret/ noun 1. thediscount rate of a central bank 2. for-merly, the rate at which the Bank of

Bank Examiner 30 bank rate

bank reconciliation 31 bargain

England lent to other banks (then alsocalled the Minimum Lending Rate(MLR), and now called the base rate)bank reconciliation /b�ŋk�rekənsli�eʃ(ə)n/ noun the act ofmaking sure that the bank statementsagree with the company’s ledgersbank reference /�b�ŋk �ref(ə)rəns/noun same as banker’s referencebank release /�b�ŋk r�li�s/ nounsame as release notebank reserves /b�ŋk r�z%�vz/noun cash and securities held by a bankto cover depositsbank return /�b�ŋk r�t%�n/ noun aregular report from a bank on its finan-cial positionbankroll /�b�ŋkrəυl/ verb to providethe money that enables something orsomeone to survive (informal.) � Howlong can he go on bankrolling hisdaughter’s art gallery?bankrupt /�b�ŋkr�pt/ noun, adjec-tive (a person) who has been declared bya court not to be capable of paying his orher debts and whose affairs are put intothe hands of a receiver � a bankruptproperty developer � She was adjudi-cated or declared bankrupt. � He wentbankrupt after two years in business. �verb to make someone become bankrupt� The recession bankrupted my father.bankruptcy /�b�ŋkr�ptsi/ noun thestate of being bankrupt � The recessionhas caused thousands of bankruptcies.(NOTE: The plural is bankruptcies.)

COMMENT: In the UK, bankruptcy is ap-plied only to individual persons, but in theUSA the term is also applied to corpora-tions. In the UK, a bankrupt cannot holdpublic office (for example, they cannot beelected an MP) and cannot be the directorof a company. They also cannot borrowmoney. In the USA, there are two types ofbankruptcy: involuntary, where the credi-tors ask for a person or corporation to bemade bankrupt; and voluntary, where aperson or corporation applies to be madebankrupt (in the UK, this is called volun-tary liquidation).

bankruptcy order /�b�ŋkr�ptsi�ɔ�də/ noun same as declaration ofbankruptcybank statement /�b�ŋk �stetmənt/noun a written statement from a bank

showing the balance of an account at aspecific datebank syndicate /�b�ŋk �sndkət/noun a group of major internationalbanks which group together to under-write a massive loanbank transfer /�b�ŋk �tr�nsf%�/noun an act of moving money from abank account to another accountBankwire /�b�ŋkwaə/ noun US asystem operated by a group of banks topass information among member banksbanque noun the French word forbankbanque d’affaires noun the Frenchword for merchant bankBanque de France noun the CentralBank of Francebar /bɑ�/ noun 1. a place where youcan buy and drink alcohol � The salesreps met in the bar of the hotel. 2. athing which stops you doing something� Government legislation is a bar toforeign trade.bar-bell /�bɑ� bel/ noun US a portfoliowhich concentrates on very long-termand very short-term bonds only. Com-pare ladderbar chart /�bɑ� tʃɑ�t/ noun a chartwhere values or quantities are shown ascolumns of different heights set on abase line, the different lengths express-ing the quantity of the item or unit. Alsocalled bar graph, histogramBarclays Index /�bɑ�kli�z �ndeks/noun an index of prices on the NewZealand Stock Exchangebar code /�bɑ� kəυd/ noun a systemof lines printed on a product which,when read by a computer, give a refer-ence number or pricebargain /�bɑ��n/ noun 1. an agree-ment on the price of something � tostrike a bargain or to make a bargain �to drive a hard bargain to be a difficultperson to negotiate with � it is a badbargain it is not worth the price 2.something which is cheaper than usual� That car is a (real) bargain at £500.3. a sale and purchase of one lot ofshares on the Stock Exchange � verb totry to reach agreement about something,especially a price, usually with each per-son or group involved putting forwardsuggestions or offers which are dis-

cussed until a compromise is arrived at �You will have to bargain with the dealerif you want a discount. � They spent twohours bargaining about or over theprice. (NOTE: You bargain with some-one over or about or for something.)bargain hunter /�bɑ��n �h�ntə/noun a person who looks for cheapdealsbargain hunting /�bɑ��n �h�ntŋ/noun looking for cheap goods or shares,which no one has noticedbargaining /�bɑ��nŋ/ noun the actof trying to reach agreement aboutsomething, e.g. a price or a wage in-crease for workersbargaining position /�bɑ��nŋ pə-�zʃ(ə)n/ noun the offers or demandsmade by one group during negotiationsbargaining power /�bɑ��nŋ�paυə/ noun the strength of one personor group when discussing prices orwage settlementsbargain offer /�bɑ��n �ɒfə/ noun thesale of a particular type of goods at acheap price � This week’s bargain offer– 30% off all carpet prices.bargain price /�bɑ��n pras/ noun acheap price � These carpets are for saleat a bargain price.bargain sale /�bɑ��n sel/ noun thesale of all goods in a store at cheappricesbargains done /�bɑ��nz d�n/ pluralnoun the number of deals made on theStock Exchange during a daybarrels per day /�b�rəlz pə �de/plural noun a figure used to show theoutput of an oilfieldbarren /�b�rən/ adjective referring tomoney which is not earning any interestbarrier /�b�riə/ noun anything whichmakes it difficult for someone to dosomething, especially to send goodsfrom one place to another � to imposetrade barriers on certain goods to re-strict the import of some goods bycharging high duty � They consideredimposing trade barriers on some foodproducts. � to lift trade barriers fromimports to remove restrictions on im-ports � The government has lifted tradebarriers on foreign cars.

‘…a senior European Community official hasdenounced Japanese trade barriers, saying they

cost European producers $3 billion a year’[Times]‘…to create a single market out of the ECmember states, physical, technical and taxbarriers to free movement of trade betweenmember states had to be removed. ImposingVAT on importation of goods from othermember states was seen as one such tax barrier’[Accountancy]

barrier to entry /�b�riə tυ �entri/noun a factor that makes it impossibleor unprofitable for a company to try tostart selling its products in a particularmarket (NOTE: Barriers to entry may becreated, for example, when companiesalready in a market have patents thatprevent their goods from being copied,when the cost of the advertisingneeded to gain a market share is toohigh, or when an existing product com-mands very strong brand loyalty.)barter /�bɑ�tə/ noun 1. a system inwhich goods are exchanged for othergoods and not sold for money 2. a sys-tem in which advertising space or timeis exchanged for goods from the adver-tiser � verb to exchange goods for othergoods and not for money � They agreeda deal to barter tractors for barrels ofwine.

‘…under the barter agreements, Nigeria willexport 175,000 barrels a day of crude oil inexchange for trucks, food, planes andchemicals’ [Wall Street Journal]

barter agreement /�bɑ�tə ə-��ri�mənt/ noun an agreement to ex-change goods by barter � The companyhas agreed a barter deal with Bulgaria.bartering /�bɑ�tərŋ/ noun the act ofexchanging goods for other goods andnot for moneybase noun /bes/ 1. the lowest or firstposition � Turnover increased by 200%,but started from a low base. 2. a placewhere a company has its main office orfactory, or a place where a businessper-son’s office is located � The companyhas its base in London and branches inall the European countries. � He has anoffice in Madrid which he uses as a basewhile travelling in Southern Europe. �verb /bes/ 1. � to base something onsomething to calculate something usingsomething as your starting point or basicmaterial for the calculation � We basedour calculations on the forecast turn-over. � based on calculating from �based on last year’s figures � based on

bargain hunter 32 base

population forecasts 2. to set up a com-pany or a person in a place � The Euro-pean manager is based in our Londonoffice. � Our overseas branch is basedin the Bahamas. � adjective lowest orfirst, and used for calculating others

‘…the base lending rate, or prime rate, is therate at which banks lend to their top corporateborrowers’ [Wall Street Journal]‘…other investments include a large stake inthe Chicago-based insurance company’[Lloyd’s List]

base currency /�bes �k�rənsi/ nouna currency against which exchange ratesof other currencies are quoted � turn-over increased by 200%, but startingfrom a low basebase metals /bes �met(ə)lz/ pluralnoun ordinary metals used in industry,such as aluminium and leadbase rate /�bes ret/ noun same asbank base ratebase-weighted index /�bes�wetd �ndeks/ noun an index whichis weighted according to the base yearbase year /�bes jə/ noun the firstyear of an index, against which changesoccurring in later years are measuredbasic /�besk/ adjective 1. normal 2.most important 3. simple, or from whicheverything starts � She has a basicknowledge of the market. � To work atthe cash desk, you need a basic qualifi-cation in maths.basic balance /�besk �b�ləns/noun the balance of current account andlong-term capital accounts in a coun-try’s balance of paymentsbasic banking service /�besk�b�ŋkŋ �s%�vs/ noun basic service of-fered by banks to their customers, inconnection with operating theiraccountsbasic commodities /�besk kə-�mɒdtiz/ plural noun ordinary farmproduce, produced in large quantities,e.g. corn, rice or sugarbasic discount /�besk �dskaυnt/noun a normal discount without extrapercentages � Our basic discount is20%, but we offer 5% extra for rapidsettlement.basic industry /�besk �ndəstri/noun the most important industry of acountry, e.g. coal, steel or agriculture

basic pay /�besk �pe/ noun a nor-mal salary without extra paymentsbasic product /�besk �prɒd�kt/noun the main product made from a rawmaterialbasic rate tax /�besk ret �t�ks/noun the lowest rate of income taxbasics /�besks/ plural noun simpleand important facts or principles � Shehas studied the basics of foreign ex-change dealing. � to get back to basicsto consider the main facts or principlesagainbasic salary /�besk �s�ləri/ nounsame as basic pay

basic wage /�besk �wed$/ nounsame as basic pay � The basic wage is£110 a week, but you can expect to earnmore than that with overtime.basis /�bess/ noun 1. a point or num-ber from which calculations are made �We forecast the turnover on the basis ofa 6% price increase. 2. the generalterms of agreement or general principleson which something is decided or done� This document should form the basisfor an agreement. � We have three peo-ple working on a freelance basis. � on ashort-term, long-term basis for a shortor long period � He has been appointedon a short-term basis. (NOTE: [allsenses] The plural is bases.)

basis point /�bess pɔnt/ noun anone hundredth of a percentage point(0.01%), the basic unit used in measur-ing market movements or interest ratesbasis price /�bess pras/ noun 1.the price agreed between buyer andseller on the over-the- counter market 2.the price of a bond shown as its annualpercentage yield to maturitybasis swap /�bess swɒp/ noun theexchange of two financial instruments,each with a variable interest calculatedon a different ratebasket /�bɑ�skt/ noun 1. a containermade of thin pieces of wood, metal,plastic, etc. � a basket of apples 2. US agroup of prices or currencies taken as astandard � the price of the averageshopping basket � The pound has fallenagainst a basket of European curren-cies. � The market basket has risen by6%.

base currency 33 basket

‘…the weekly adjusted average total basketprice of œ37.89 was just 3p more than the weekbefore Christmas’ [The Grocer]

basket of currencies /�bɑ�skt əv�k�rənsiz/ noun same as currencybasketbatch /b�tʃ/ noun 1. a group of itemswhich are made at one time � Thisbatch of shoes has the serial number25–02. 2. a group of documents whichare processed at the same time � To-day’s batch of invoices is ready to bemailed. � The accountant signed abatch of cheques. � We deal with the or-ders in batches of fifty at a time. � verbto put items together in groups � tobatch invoices or chequesbatch number /�b�tʃ �n�mbə/ nouna number attached to a batch � Whenmaking a complaint always quote thebatch number on the packet.batch processing /�b�tʃ�prəυsesŋ/ noun a system of data pro-cessing where information is collectedinto batches before being loaded into thecomputerbatch production /�b�tʃ prə-�d�kʃən/ noun production in batchesBBA abbreviation British Bankers’Associationbear /beə/ noun STOCK EXCHANGE aperson who sells shares, commodities orcurrency because he or she thinks theirprice will fall and it will be possible tobuy them again more cheaply later(NOTE: The opposite is bull.) � takinga bear position acting on the assump-tion that the market is likely to fall �verb 1. to give interest � governmentbonds which bear 5% interest 2. to havesomething, especially to have somethingwritten on it � an envelope which bearsa London postmark � a letter bearingyesterday’s date � The cheque bears thesignature of the company secretary. �The share certificate bears his name. 3.to pay costs � The costs of the exhibi-tion will be borne by the company. �The company bore the legal costs ofboth parties. (NOTE: bearing – bore –has borne)bear covering /�beə �k�vərŋ/ nounSTOCK EXCHANGE a point in a marketwhere dealers who sold stock short, nowbuy back (at lower prices) to cover theirpositions

bearer /�beərə/ noun a person whoholds a cheque or certificate � thecheque is payable to bearer the chequewill be paid to the person who holds it,not to any particular name written on itbearer bond /�beərə bɒnd/, bearersecurity noun a bond which is payableto the bearer and does not have a namewritten on itbearing /�beərŋ/ adjective whichbears, which produces � certificatesbearing interest at 5% � inter-est-bearing depositsbearish /�beərʃ/ adjective referringto a factor which tends to make marketprices fallbear market /�beə �mɑ�kt/ noun aperiod when share prices fall becauseshareholders are selling since they be-lieve the market will fall further (NOTE:The opposite is a bull market)bear position /�beə pə�zʃ(ə)n/ nounSTOCK EXCHANGE a short position, thatis, selling shares which you do not own(you will buy them later at a lower priceso as to be able to settle)bear raid /�beə red/ noun sellinglarge numbers of shares to try to bringdown pricesbear squeeze /�beə skwi�z/ noun 1.an action by banks to raise exchangerates, forcing currency bear sellers tobuy back currency at a loss (i.e. at ahigher price) 2. an operation bymarketmakers to increase the price ofshares, so as to force bears to buy athigher prices than they intendedbed-and-breakfast deal /�bed ən�brekfəst �di�l/ noun formerly, anarrangement where shares were soldone day and bought back the follow-ing day, in order to establish a profitor loss for tax declaration (NOTE:Doing such deals was called‘bed-and-breakfasting’.)

COMMENT: This is no longer possible,since a period of thirty days has to elapsebetween the sale and repurchase of thesame shares to allow a new price to beestablished.

bed-pepping /�bed �pepŋ/ noun anarrangement by which you sell existinginvestments and put the resulting cashinto a PEP. This establishes any gainson the investments, so that you can cal-

basket of currencies 34 bed-pepping

culate whether you should pay capitalgains tax.behavioural finance /b�hevjərəl�fan�ns/ noun a psychological view ofthe way people take financial decisionsBeige Book /be$ �bυk/ noun US areport on the financial position preparedby the district banks for the Federal Re-serve Board. � Blue Book, GreenBookbellwether /�belweðə/ noun a leadingshare which is thought of as an indicatorof market trends as a whole (such asLloyds in the UK)belly up /�beli ��p/ adverb � to gobelly up to fail or to go into liquidation(informal.)

below par /b�ləυ �pɑ�/ adjective re-ferring to a share with a market pricelower than its par valuebelow the line /b�ləυ ðə �lan/ ad-jective, adverb part of a budget refer-ring to receipts from redeemed debtsand from expenditure covered byborrowingsbelow-the-line expenditure /b-�ləυ ðə lan k�spendtʃə/ noun 1.payments which do not arise from acompany’s normal activities, e.g. redun-dancy payments 2. extraordinary itemswhich are shown in the profit and lossaccount below net profit after taxation,as opposed to exceptional items whichare included in the figure for profit be-fore taxationbelt and braces /�belt ən �bresz/,belt and suspenders /�belt ən səs-�pendəz/ noun � a belt and bracesperson a very cautious lender, one whoasks for extra collateral as well as guar-antees for a loanbenchmark /�bentʃmɑ�k/ noun apoint in an index which is important,and can be used to compare with otherfiguresbeneficial interest /�benfʃ(ə)l�ntrəst/ noun a situation where some-one is allowed to occupy or receive rentfrom a house without owning itbeneficial occupier /�benfʃ(ə)l�ɒkjυpaə/ noun a person who occupiesa property but does not own it fullybeneficial owner /�benfʃ(ə)l�əυnə/ noun a person who owns a prop-

erty which is being used by someoneelsebeneficiary /�ben�fʃəri/ noun a per-son who gains money from something �the beneficiaries of a willbenefit /�benft/ noun 1. paymentswhich are made to someone under a na-tional or private insurance scheme �She receives £75 a week as unemploy-ment benefit. � Sickness benefit is paidmonthly. � The insurance office sendsout benefit cheques each week. 2. some-thing of value given to an employee inaddition to their salary � verb 1. tomake better or to improve � A fallin inflation benefits the exchange rate.2. � to benefit from or by something tobe improved by something, to gain moremoney because of something � Exportshave benefited from the fall in the ex-change rate. � The employees havebenefited from the profit-sharingscheme.

‘…the retail sector will also benefit from theexpected influx of tourists’ [AustralianFinancial Review]‘…what benefits does the executive derive fromhis directorship? Compensation has increasedsharply in recent years and fringe benefitsfor directors have proliferated’ [DunsBusiness Month]‘…salary is negotiable to £30,000, plus car anda benefits package appropriate to this seniorpost’ [Financial Times]‘California is the latest state to enact a programforcing welfare recipients to work for theirbenefits’ [Fortune]

benefit in kind /�benft n �kand/noun a benefit other than money re-ceived by an employee as part of his orher total compensation package, e.g. acompany car or private health insurance.Such benefits are usually subject to tax.bequest /b�kwest/ noun something,e.g. property or money (but not freeholdland), given to someone in a will � Hemade several bequests to his staff.berhad noun a Malay word meaning’private’, used to describe a limitedcompany in Malaysia. AbbreviationBhd. � Sdnbest practice /�best �pr�kts/ nounthe most effective and efficient way todo something or to achieve a particularaim (NOTE: In business, best practice isoften determined by benchmarking,that is by comparing the method oneorganisation uses to carry out a task

behavioural finance 35 best practice

with the methods used by other similarorganisations and determining whichmethod is most efficient and effective.)

best-selling /�best �selŋ/ adjectivewhich sells better than any other �These computer disks are ourbest-selling line.bet /bet/ noun an amount depositedwhen you risk money on the result of arace or of a game � verb to risk moneyon the result of something � He bet£100 on the result of the election. � I betyou £25 the dollar will rise against thepound.beta /�bi�tə/ noun a measurement ofthe return on investment in a certainstock compared against a one percent-age point return on the stock market ingeneral: it shows the volatility in theprice of the share compared to the FTSEAll-Share Indexbeta shares /�bi�tə ʃeəz/, beta se-curities /�bi�tə s�kjυərtiz/, betastocks /�bi�tə stɒks/ plural noun agroup of about 500 shares which aretraded on the London Stock Exchange,but not as frequently as the alpha shares(NOTE: Prices of beta shares arequoted on SEAQ, but not the sharetransactions.)betting tax /�betŋ t�ks/ noun a taxlevied on betting on horses, dogs, etc.(NOTE: betting – bet – has bet)b/f abbreviation brought forwardBFE abbreviation Baltic FuturesExchangeBGC abbreviation bank giro creditBhd abbreviation berhadbi- /ba/ prefix twice � bi-monthlytwice a month � bi-annually twice ayearbid /bd/ noun 1. an offer to buy some-thing at a specific price. � takeover bid� to make a bid for something to offerto buy something � We made a bid forthe house. � The company made a bidfor its rival. � to make a cash bid to of-fer to pay cash for something � to put inor enter a bid for something to offer tobuy something, usually in writing 2. anoffer to sell something or do a piece ofwork at a specific price � She made thelowest bid for the job. � They asked forbids for the supply of spare parts. �verb to offer to buy � to bid for some-

thing (at an auction) to offer to buysomething � he bid £1,000 for the jew-els he offered to pay £1,000 for thejewelsbid basis /�bd �bess/ noun the pric-ing of unit trusts at a lower bid price toencourage buyersbidder /�bdə/ noun a person whomakes a bid, usually at an auction �Several bidders made offers for thehouse. � the property was sold to thehighest bidder to the person who hadmade the highest bid or who offered themost money � the tender will go to thelowest bidder to the person who offersthe best terms or the lowest price forservicesbidding /�bdŋ/ noun the act of mak-ing offers to buy, usually at an auction �the bidding started at £1,000 the firstand lowest bid was £1,000 � the bid-ding stopped at £250,000 the last bid,i.e. the successful bid, was for £250,000� the auctioneer started the biddingat £100 the auctioneer suggested thatthe first bid should be £100bid market /�bd �mɑ�kt/ noun amarket where there are more bids to buythan offers to sell (NOTE: The oppositeis an offered market.)bid-offer price /�bd �ɒfə pras/noun a price charged by unit trusts tobuyers and sellers of units, based on thebid-offer spreadbid-offer spread /�bd �ɒfə spred/noun the difference between buying andselling prices (i.e. between the bid andoffer prices)bid price /�bd pras/ noun a price atwhich investors sell shares or units in aunit trust (NOTE: The opposite, i.e. thebuying price, is called the offer price;the difference between the two is thespread.)bid rate /�bd ret/ noun a rate of in-terest offered on depositsBig Bang /b� �b�ŋ/ noun 1. thechange in practices on the London StockExchange, with the introduction of elec-tronic trading on October 27th 1986 2. asimilar change in financial practices inanother country

COMMENT: The changes included the ab-olition of stock jobbers and the removal ofthe system of fixed commissions. TheStock Exchange trading floor closed and

best-selling 36 Big Bang

deals are now done by phone or computeror on the Internet.

Big Blue /b� �blu�/ noun IBM (infor-mal.)Big Board /b� �bɔ�d/ noun USsame as New York Stock Exchange(informal.)

‘…at the close, the Dow Jones IndustrialAverage was up 24.25 at 2,559.65, while NewYork S.E. volume totalled 180m shares. Awayfrom the Big Board, the American S.E.Composite climbed 2.31 to 297.87’[Financial Times]

big business /b� �bzns/ nounvery large commercial firmsBig Four /b� �fɔ�/ noun 1. the fourlarge British commercial banks:Barclays, LloydsTSB, HSBC andNatwest (now joined by several formerbuilding societies that have becomebanks) 2. the four largest Japanese secu-rities houses: Daiwa, Nikko, Nomuraand YamaichiBig Three /b� �θri�/ noun US aname for the three big car makers inDetroit, i.e. General Motors (GM),Chrysler and Ford (informal.)bilateral /ba�l�t(ə)rəl/ adjective be-tween two parties or countries � Theminister signed a bilateral tradeagreement.bilateral clearing /ba�l�t(ə)rəl�klərŋ/ noun the system of annual set-tlements of accounts between certaincountries, where accounts are settled bythe central banksbilateral credit /ba�l�t(ə)rəl�kredt/ noun credit allowed by banksto other banks in a clearing system (tocover the period while cheques are be-ing cleared)bilateral netting /ba�l�t(ə)rəl�netŋ/ noun the settlement of contractsbetween two banks to give a newpositionbill /bl/ noun 1. a written list ofcharges to be paid � The sales assistantwrote out the bill. � Does the bill in-clude VAT? � The bill is made out toSmith Ltd. � The builder sent in his bill.� She left the country without payingher bills. 2. a list of charges in a restau-rant � Can I have the bill please? � Thebill comes to £20 including service. 3. awritten paper promising to pay money �bills payable (B/P) bills, especially bills

of exchange, which a company willhave to pay to its creditors � bills re-ceivable (B/R) bills, especially bills ofexchange, which are due to be paid by acompany’s debtors � due bills billswhich are owed but not yet paid. � billof exchange 4. US same as banknote� a $5 bill (NOTE: The UK term is noteor banknote.) 5. a draft of a new lawwhich will be discussed in Parliament 6.a small poster � ‘stick no bills’ the un-authorised putting up of posters is pro-hibited � verb to present a bill tosomeone so that it can be paid � Theplumbers billed us for the repairs.bill broker /�bl �brəυkə/ noun a dis-count house, a firm which buys and sellsbills of exchange for a feebilling /�blŋ/ noun the work of writ-ing invoices or billsbilling error /�blŋ �erə/ noun a mis-take in charging a sum to a credit cardbillion /�bljən/ one thousand million(NOTE: In the USA, it has always meantone thousand million, but in UK Eng-lish it formerly meant one million mil-lion, and it is still sometimes used withthis meaning. With figures it is usuallywritten bn: $5bn say ‘five billion dol-lars’.)

‘…gross wool receipts for the selling season toend June 30 appear likely to top $2 billion’[Australian Financial Review]‘…at its last traded price the bank wascapitalized at around $1.05 billion’[South China Morning Post]

bill of exchange /�bl əv ks-�tʃend$/ noun a document, signed bythe person authorising it, which tellsanother person or a financial institutionto pay money unconditionally to anamed person on a certain date (NOTE:Bills of exchange are usually usedfor payments in foreign currency.) �to accept a bill to sign a bill of ex-change to show that you promise to payit � to discount a bill to buy or sell abill of exchange at a lower price thanthat written on it in order to cash it later

COMMENT: A bill of exchange is adocument raised by a seller and signed bya purchaser, stating that the purchaseraccepts that he owes the seller money,and promises to pay it at a later date. Theperson raising the bill is the ‘drawer’; theperson who accepts it is the ‘drawee’. Theseller can then sell the bill at a discount to

Big Blue 37 bill of exchange

raise cash. This is called a ‘trade bill’. Abill can also be accepted (i.e. guaranteed)by a bank, and in this case it is called a‘bank bill’.

bill of lading /�bl əv �ledŋ/ noun alist of goods being shipped, which thetransporter gives to the person sendingthe goods to show that the goods havebeen loadedbill of sale /�bl əv �sel/ noun a docu-ment which the seller gives to the buyerto show that the sale has taken placeBIN abbreviation bank identificationnumberbind /band/ verb 1. to tie or to attach2. to make it a legal duty for someone orsomething to act in a particular way �The company is bound by its articles ofassociation. � He does not considerhimself bound by the agreement whichwas signed by his predecessor. (NOTE:[all senses] binding – bound)binder /�bandə/ noun 1. a stiff card-board cover for papers 2. US a tempo-rary agreement for insurance sent beforethe insurance policy is issued (NOTE:The UK term is cover note.)binding /�bandŋ/ adjective which le-gally forces someone to do something �a binding contract � This document isnot legally binding. � the agreement isbinding on all parties all parties sign-ing it must do what is agreedbirr /b%�/ noun a unit of currency usedin Ethiopiabirth rate /�b%�θ ret/ noun the num-ber of children born per 1,000 of thepopulationBIS abbreviation Bank for Interna-tional Settlementsblack /bl�k/ noun � in the black, intothe black in or into credit � The com-pany has moved into the black. � Mybank account is still in the black. � verbto forbid trading in specific goods orwith specific suppliers � Three firmswere blacked by the government. � Theunion has blacked a trucking firm.black economy /bl�k �kɒnəmi/noun goods and services which are paidfor in cash, and therefore not declaredfor tax. Also called hidden economy,parallel economy, shadow economyBlack Friday /bl�k �frade/ noun asudden collapse on a stock market

(NOTE: Called after the first major col-lapse of the US stock market on 24thSeptember, 1869.)blackleg /�bl�kle�/ noun an em-ployee who continues working whenthere is a strikeblack list /�bl�k lst/ noun 1. a list ofgoods, people or companies which havebeen blacked 2. a list of people consid-ered by an employer to be too dangerousor disruptive to employblacklist /�bl�klst/ verb to putgoods, people or a company on a blacklist � Their firm was blacklisted by thegovernment.black market /bl�k �mɑ�kt/ nounthe buying and selling of goods or cur-rency in a way which is not allowed bylaw � There is a flourishing black mar-ket in spare parts for cars. � You canbuy gold coins on the black market. � topay black market prices to pay highprices to get items which are not easilyavailableBlack Monday /bl�k �m�nde/ nounMonday, 19th October, 1987, whenworld stock markets crashedBlack Tuesday /bl�k �tju�zde/noun Tuesday, 29th October, 1929,when the US stock market crashedBlack Wednesday /bl�k �wenzde/noun Wednesday, 16th September,1992, when the pound sterling left theEuropean Exchange Rate Mechanismand was devalued against othercurrencies

COMMENT: Not always seen as ‘black’,since some people believe it was a goodthing that the pound left the ERM.

blank /bl�ŋk/ adjective with nothingwritten on it � noun a space on a formwhich has to be completed � Fill in theblanks and return the form to your localoffice.blank cheque /bl�ŋk �tʃek/ noun acheque with the amount of money andthe payee left blank, but signed by thedrawerblank endorsement /bl�ŋk n-�dɔ�smənt/ noun an endorsement whichconsists of a signature, and no otherdetailsblanket agreement /�bl�ŋkt ə-��ri�mənt/ noun an agreement whichcovers many different items

bill of lading 38 blanket agreement

blanket lien /�bl�ŋkt �li�ən/ nounUS a lien on a person’s property (in-cluding personal effects)blind trust /�bland tr�st/ noun atrust set up to run a person’s affairswithout the details of any transactionbeing known to the person concerned(NOTE: Blind trusts are set up by politi-cians to avoid potential conflicts of in-terest.)blip /blp/ noun bad economic figures(a higher inflation rate, lower exports,etc.), which only have a short-termeffect

‘…whether these pressures are just a cyclicalblip in a low inflation era, or whether the UK isdrifting back to the bad old days will be one ofthe crucial questions for the stock market thisyear’ [Financial Times]

block /blɒk/ noun 1. a series of itemsgrouped together � I bought a block of6,000 shares. 2. a series of buildingsforming a square with streets on allsides � They want to redevelop a blockin the centre of the town. � a block ofoffices, an office block a large buildingwhich only contains offices � verb tostop something taking place � He usedhis casting vote to block the motion. �The planning committee blocked the re-development plan.block booking /blɒk �bυkŋ/ nounbooking of several seats or rooms at thesame time � The company has a blockbooking for twenty seats on the plane orfor ten rooms at the hotel.blocked account /blɒkt ə�kaυnt/noun a bank account which cannot beused, usually because a government hasforbidden its useblocked currency /blɒkt �k�rənsi/noun a currency which cannot be takenout of a country because of governmentexchange controls � The company has alarge account in blocked roubles.block trading /blɒk �tredŋ/ nountrading in very large numbers of sharesblowout /�bləυaυt/ noun US a rapidsale of the whole of a new stock issue(informal.)Blue Book /blu� �bυk/ noun 1. GB anannual publication of national statisticsof personal incomes and spending pat-terns 2. US a document reviewing mon-etary policy, prepared for the FederalReserve

blue chip /�blu� tʃp/ noun a very safeinvestment, a risk-free share in a goodcompanyblue-chip investments /�blu� tʃpn�vestmənts/, blue-chip shares/�blu� tʃp �seəz/, blue-chips /�blu�tʃps/ plural noun low-risk shares ingood companiesblue-collar union /blu� �kɒlə�ju�njən/ noun a trade union formedmainly of blue-collar workersblue-collar worker /blu� �kɒlə�w%�kə/ noun a manual worker in afactoryBlue list /�blu� lst/ noun US a dailylist of municipal bonds and their ratings,issued by Standard & Poor’sblue sky laws /�blu� �ska lɔ�z/plural noun US state laws to protectinvestors against fraudulent traders insecuritiesbluetooth /�blu�tu�θ/ trademark atype of technology allowing for commu-nication between mobile phones, com-puters and the Internetbn /�bljən/ abbreviation billionboard /bɔ�d/ noun 1. � board of di-rectors � He sits on the board as a rep-resentative of the bank. � Two directorswere removed from the board at theAGM. 2. a group of people who run anorganisation, trust or society 3. � onboard on a ship, plane or train 4. ascreen on which share prices are posted(on the wall of the trading floor in aStock Exchange) � verb to go on to aship, plane or train � Customs officialsboarded the ship in the harbour.

‘CEOs, with their wealth of practicalexperience, are in great demand and can pickand choose the boards they want to serve on’[Duns Business Month]

board meeting /�bɔ�d �mi�tŋ/ nouna meeting of the directors of a companyboard of directors /�bɔ�d əv da-�rektəz/ noun 1. GB a group of direc-tors elected by the shareholders to run acompany � The bank has two represen-tatives on the board of directors. 2. USa group of people elected by the share-holders to draw up company policy andto appoint the president and other exec-utive officers who are responsible formanaging the company

‘…a proxy is the written authorization aninvestor sends to a stockholder meeting

blanket lien 39 board of directors

conveying his vote on a corporate resolution orthe election of a company’s board of directors’[Barrons]COMMENT: Directors are elected byshareholders at the AGM, though they areusually chosen by the chairman or chiefexecutive. A board will consist of a chair-man (who may be non-executive), a chiefexecutive or managing director, and a se-ries of specialist directors in charge of var-ious activities of the company (such asproduction director or sales director). Thecompany secretary will attend boardmeetings, but is not a director. Apart fromthe executive directors, who are in factemployees of the company, there may beseveral non-executive directors, ap-pointed either for their expertise and con-tacts, or as representatives of importantshareholders such as banks. Thesenon-executive directors are paid fees. Theboard of an American company may bemade up of a large number ofnon-executive directors and only one ortwo executive officers; a British board hasmore executive directors.

board order /�bɔ�d �ɔ�də/ noun anorder to a stockbroker to buy or sell at aparticular priceboardroom /�bɔ�dru�m/ noun a roomwhere the directors of a company meetboardroom battle /�bɔ�dru�m�b�t(ə)l/ noun an argument betweendirectorsboiler room /�bɔlə rυm/ noun aroom in which telephone sales execu-tives try to sell securities to potentialinvestorsBOJ abbreviation Bank of Japanbolivar /�bɒlvɑ�/ noun the unit of cur-rency used in Venezuelaboliviano /bə�lvi�ɑ�nəυ/ noun a unitof currency used in Bolivia (NOTE: Alsocalled the Bolivian peso.)bolsa noun the Spanish word for stockexchangeBombay Stock Exchange/�bɒmbe �stɒk ks�tʃend$/ noun themain stock exchange in India. Abbrevia-tion BSEbona fide /�bəυnə �fadi/ adjectivetrustworthy, which can be trusted � abona fide offer an offer which is madehonestlybonanza /bə�n�nzə/ noun greatwealth, or a source of great wealth �

The oil well was a bonanza for the com-pany. � Last year was a bonanza yearfor the electronics industry.bona vacantia /�bəυnə və�k�ntiə/noun a property with no owner, orwhich does not have an obvious owner,and which usually passes to the Crownbond /bɒnd/ noun 1. a contract docu-ment promising to repay money bor-rowed by a company or by thegovernment at a certain date, and payinginterest at regular intervals 2. � goods(held) in bond goods held by customsuntil duty has been paid � entry ofgoods under bond bringing goods intoa country in bond � to take goods outof bond to pay duty on goods so thatthey can be released by customs 3. aform of insurance fund which is linkedto a unit trust, but where there is noyield because the income is automati-cally added to the fund

COMMENT: Bonds are in effect anotherform of long-term borrowing by a com-pany or government. They can carry afixed interest or a floating interest, but theyield varies according to the price atwhich they are bought; bond prices go upand down in the same way as shareprices.

bonded /�bɒndd/ adjective held inbondbonded warehouse /�bɒndd�weəhaυs/ noun a warehouse wheregoods are stored until excise duty hasbeen paidbondholder /�bɒndhəυldə/ noun aperson who holds government bondsbondised /�bɒndazd/, bondized ad-jective referring to an insurance fundlinked to a unit trustbond market /�bɒnd �mɑ�kt/ noun amarket in which government or munici-pal bonds are tradedbond rating /�bɒnd �retŋ/ noun arating of the reliability of a company orgovernment or local authority which hasissued a bond (the highest rating isAAA)bond-washing /�bɒnd �wɒʃŋ/ nounselling securities cum dividend and buy-ing them back later ex dividend, or sell-ing US Treasury bonds with the interestcoupon, and buying them backex-coupon, so as to reduce tax

board order 40 bond-washing

bond yield /�bɒnd ji�ld/ noun incomeproduced by a bond, shown as a percent-age of its purchase pricebonus /�bəυnəs/ noun an extra pay-ment in addition to a normal paymentbonus issue /�bəυnəs �ʃu�/ noun ascrip issue or capitalisation issue, wherea company transfers money from re-serves to share capital and issues freeextra shares to the shareholders (thevalue of the company remains the same,and the total market value of sharehold-ers’ shares remains the same, the marketprice being adjusted to account for thenew shares). Also called share split(NOTE: The US term is stock dividendor stock split.)

bonus share /�bəυnəs ʃeə/ noun anextra share given to an existingshareholderbook /bυk/ noun 1. a set of sheets ofpaper attached together � a company’sbooks the financial records of a com-pany 2. � to make a book to have a listof shares which he or she is prepared tobuy or sell on behalf of clients

COMMENT: The books of account recorda company’s financial transactions. Theseare: sales (sales day book and sales re-turns book); purchases (purchases daybook and purchases returns book); cashpayments and receipts (cash book) andadjustments (journal). These books arecommonly known as the ‘books of primeentry’, but in addition, a company’s ac-counting records usually include the led-ger accounts (nominal ledger, salesledger and purchases ledger) which mayalso be referred to as ‘books of account’.

book debts /�bυk dets/ plural nountrade debts as recorded in a company’saccountsbookkeeper /�bυkki�pə/ noun a per-son who keeps the financial records of acompany or an organisationbookkeeping /�bυkki�pŋ/ noun thework of keeping the financial records ofa company or an organisationbookkeeping transaction/�bυkki�pŋ tr�n�z�kʃən/ noun atransaction (such as the issue of bonusshares) which involves changes to acompany’s books of accounts, but doesnot alter the value of the company inany way

book sales /�bυk selz/ plural nounsales as recorded in the sales bookbook-squaring /�bυk �skweərŋ/noun the process of reducing thedealer’s exposure to the market to nilbook value /�bυk v�lju�/ noun thevalue of an asset as recorded in the com-pany’s balance sheetbookwork /�bυkw%�k/ noun the keep-ing of financial recordsboom /bu�m/ noun 1. a time whensales, production or business activity areincreasing � a period of economic boom� the boom of the 1990s � the boomyears years when there is an economicboom 2. a time when anything is in-creasing � verb to expand or to becomeprosperous � business is booming �sales are boomingboomer /�bu�mə/ noun a person bornduring a baby boom � Most boomershave not saved enough money forretirement.boom industry /�bu�m �ndəstri/noun an industry which is expandingrapidlybooming /�bu�mŋ/ adjective whichis expanding or becoming prosperous �a booming industry or company � Tech-nology is a booming sector of theeconomy.boom share /�bu�m ʃeə/ noun ashare in a company which is expandingboost /bu�st/ noun help given to in-crease something � This publicity willgive sales a boost. � The governmenthopes to give a boost to industrial devel-opment. � verb to make something in-crease � We expect our publicitycampaign to boost sales by 25%. � Thecompany hopes to boost its marketshare. � Incentive schemes are boostingproduction.

‘…the company expects to boost turnover thisyear to FFr 16bn from FFr 13.6bn last year’[Financial Times]

BOP abbreviation balance of paymentsborder /�bɔ�də/ noun a frontier be-tween two countriesborderline case /�bɔ�dəlan kes/noun a worker who may or may not berecommended for a particular type oftreatment, such as for promotion ordismissal

bond yield 41 borderline case

border tax adjustment /�bɔ�dət�ks ə�d$�stmənt/ noun a deductionof indirect tax paid on goods being ex-ported or imposition of local indirect taxon goods being importedborrow /�bɒrəυ/ verb 1. to take moneyfrom someone for a time, possibly pay-ing interest for it, and repaying it at theend of the period � She borrowed£1,000 from the bank. � The companyhad to borrow heavily to repay its debts.� They borrowed £25,000 against thesecurity of the factory. 2. to buy at spotprices and sell forward at the same timeborrower /�bɒrəυə/ noun a personwho borrows � Borrowers from thebank pay 12% interest.borrowing /�bɒrəυŋ/ noun the actionof borrowing money � The new factorywas financed by bank borrowing.

‘…we tend to think of building societiesas having the best borrowing rates andindeed many do offer excellent terms’[Financial Times]

borrowing costs /�bɒrəυŋ kɒsts/plural noun the interest and othercharges paid on money borrowedborrowing power /�bɒrəυŋ �paυə/noun the amount of money which acompany can borrowborrowings /�bɒrəυŋz/ plural nounmoney borrowed � The company’sborrowings have doubled.

COMMENT: Borrowings are sometimesshown as a percentage of shareholders’funds (i.e. capital and money in reserves);this gives a percentage which is the ‘gear-ing’ of the company.

borrow short /�bɒrəυ ʃɔ�t/ verb toborrow for a short periodborsa noun the Italian word for stockexchangeBörse noun the German word forstock exchangebottom /�bɒtəm/ noun the lowest partor point � sales have reached rock bot-tom the very lowest point of all � thebottom has fallen out of the marketsales have fallen below what previouslyseemed to be the lowest point �rock-bottom price the lowest price ofall � to go bottom up to crash or to gointo liquidation � verb to reach the low-est pointbottom feeder /�bɒtəm �fi�də/ nouna someone who tries to buy shares when

they are falling or have fallen substan-tially, in the hope that they will riseagain (informal.)bottom fishing /�bɒtəm �fʃŋ/ nounthe act of buying shares when they arefalling or have fallen substantially, inthe hope that they will rise again (infor-mal.)bottom line /�bɒtəm �lan/ noun 1.the last line on a balance sheet indicat-ing profit or loss 2. the final decision ona matter � The bottom line was that anyworkers showing dissatisfaction withconditions would be fired.bought /bɔ�t/ � buybought deal /bɔ�t �di�l/ noun amethod of selling shares in a new com-pany or selling an issue of new shares inan existing company, where securitieshouses guarantee to buy all the shareson offer at a fixed pricebought ledger /�bɔ�t �led$ə/ noun abook in which purchases are recordedbought ledger clerk /�bɔ�t �led$ə�klɑ�k/ noun an office worker who dealswith the bought ledger or the salesledgerbounce /baυns/ verb to be returned bythe bank to the person who has tried tocash it, because there is not enoughmoney in the payer’s account to pay it �He paid for the car with a cheque thatbounced.bounty /�baυnti/ noun a governmentsubsidy made to help an industrybourse noun the French word forstock exchange (NOTE: In English, theword is often used of European stockexchanges in general.)boutique /bu��ti�k/ noun 1. a sectionof a department store selling up-to-dateclothes 2. a small financial institutionoffering specialist advice or servicesbox file /�bɒks fal/ noun a cardboardbox for holding documentsbox number /�bɒks �n�mbə/ noun areference number used when asking formail to be sent to a post office or whenasking for replies to an advertisement tobe sent to the newspaper’s offices �Please reply to Box No. 209.boycott /�bɔkɒt/ noun a refusal tobuy or to deal in certain products � Theunion organised a boycott against or ofimported cars. � verb to refuse to buy

border tax adjustment 42 boycott

or deal in a product � We are boycottingall imports from that country. � themanagement has boycotted the meet-ing the management has refused to at-tend the meetingbracket /�br�kt/ noun a group ofitems or people taken together � peoplein the middle-income bracket peoplewith average incomes, not high or low �she is in the top tax bracket she paysthe highest level of taxbracket together /�br�kt tə��eðə/verb to treat several items together inthe same way � In the sales reports, allthe European countries are bracketedtogether.branch /brɑ�ntʃ/ noun the local officeof a bank or large business, or a localshop which is part of a large chainbranch manager /brɑ�ntʃ�m�nd$ə/ noun a person in charge of abranch of a company

‘…a leading manufacturer of business,industrial and commercial products requires abranch manager to head up its mid-westernCanada operations based in Winnipeg’[Globe and Mail (Toronto)]

branch office /brɑ�ntʃ �ɒfs/ noun aless important office, usually in a differ-ent town or country from the mainofficebrand loyalty /br�nd �lɔəlti/ nounthe feeling of trust and satisfaction thatmakes a customer always buy the samebrand of productbrand name /�br�nd nem/ noun aname of a particular make of productbreach /bri�tʃ/ noun a failure to carryout the terms of an agreement � thecompany is in breach of contract ithas failed to carry out the duties of thecontractbreach of contract /�bri�tʃ əv�kɒntr�kt/ noun the failure to do some-thing which has been agreed in a con-tract � the company is in breach ofcontract the company has failed to dowhat was agreed in the contractbreach of trust /�bri�tʃ əv �tr�st/noun a situation where a person doesnot act correctly or honestly when peo-ple expect him or her tobreach of warranty /�bri�tʃ əv�wɒrənti/ noun 1. the act of supplyinggoods which do not meet the standardsof the warranty applied to them 2. a fail-

ure to do something which is a part of acontractbreak /brek/ noun 1. a sharp fall inshare prices 2. a lucky deal or good op-portunity � verb 1. � to break even tobalance costs and receipts, but not makea profit � Last year the company onlyjust broke even. � We broke even in ourfirst two months of trading. 2. to fail tocarry out the duties of a contract � Thecompany has broken the contract or theagreement by selling at a lower price. �to break an engagement to do some-thing not to do what has been agreed 3.to cancel a contract � The company ishoping to be able to break the contract.(NOTE: [all verb senses] breaking –broke – has broken)break down /�brek �daυn/ verb 1. tostop working because of mechanicalfailure � The fax machine has brokendown. 2. to stop � Negotiations brokedown after six hours. 3. to show all theitems in a total list of costs or expendi-ture � We broke the expenditure downinto fixed and variable costs.breakdown /�brekdaυn/ noun 1. anact of stopping working because of me-chanical failure � We cannot communi-cate with our Nigerian office because ofthe breakdown of the telephone lines. 2.an act of stopping talking � a break-down in wage negotiations 3. an act ofshowing details item by item � Give mea breakdown of investment costs.breakeven point /brek�i�v(ə)npɔnt/ noun a point at which sales covercosts, but do not show a profitbreak-out /�brek aυt/ noun a move-ment of a share price above or below itsprevious trading levelbreakpoint /�brekpɔnt/ noun alevel of deposits in an account that trig-gers a new higher level of interestbreak up /�brek ��p/ verb to splitsomething large into small sections �The company was broken up and sepa-rate divisions sold off.break-up value /�brek �p �v�lju�/noun 1. the value of the material of afixed asset � What would the break-upvalue of our old machinery be? � Scrapmerchants were asked to estimate thetractors’ break-up value. 2. the value ofvarious parts of a company takenseparately

bracket 43 break-up value

Bretton Woods Agreement nounan international agreement reached in1944, setting up the International Mone-tary Fund and the World Bank, and asystem of fixed exchange rates betweencurrenciesbribe /brab/ noun money given se-cretly and usually illegally to someonein authority to get them to help � Theminister was dismissed for takingbribes. � verb to pay someone moneysecretly and usually illegally to get themto do something for youbricks-and-mortar /�brks ən�mɔ�tə/ adjective 1. conducting busi-ness in the traditional way in buildingssuch as shops and warehouses and notbeing involved in e-commerce. Com-pare clicks-and-mortar 2. referring tothe fixed assets of a company, especiallyits buildingsbridge finance /�brd$ �fan�ns/noun loans to cover short-term needsbridging loan /�brd$ŋ ləυn/ noun ashort-term loan to help someone buy anew house when the old one has not yetbeen sold (NOTE: The US term isbridge loan.)

bring /brŋ/ verb to come to a placewith someone or something � Hebrought his documents with him. � Thefinance director brought her assistant totake notes of the meeting. (NOTE: bring-ing – brought) � to bring a lawsuitagainst someone to tell someone to ap-pear in court to settle an argumentbring down /�brŋ �daυn/ verb 1. toreduce � Petrol companies havebrought down the price of oil. 2. sameas bring forwardbring forward /�brŋ �fɔ�wəd/ verb1. to make something take place earlier� to bring forward the date of repay-ment � The date of the next meeting hasbeen brought forward to March. 2. totake an account balance from the end ofthe previous period as the starting pointfor the current period � Balancebrought forward: £365.15bring in /�brŋ �n/ verb to earn anamount of interest � The shares bring ina small amount.brisk /brsk/ adjective characterisedby a lot of activity � sales are brisk � abrisk market in technology shares � The

market in oil shares is particularlybrisk.British Bankers’ Association/�brtʃ �b�ŋkəz ə�səυsieʃ(ə)n/ nounan organisation representing Britishbanks. Abbreviation BBAbroad tape /brɔ�d �tep/ noun US anews service giving general informationabout securities and commoditiesbroker /�brəυkə/ noun 1. a dealer whoacts as a middleman between a buyerand a seller 2. � (stock)broker a personor firm that buys and sells shares orbonds on behalf of clientsbrokerage /�brəυkərd$/ noun 1.payment to a broker for a deal carriedout 2. same as brokingbrokerage firm /�brəυkərd$ f%�m/,brokerage house /�brəυkərd$ haυs/noun a firm which buys and sells sharesfor clientsbrokerage rebates /�brəυkərd$�ri�bets/ plural noun the percentage ofthe commission paid to a broker whichis returned to the customer as an incen-tive to do more businessbroker-dealer /�brəυkə �di�lə/ nouna dealer who makes a market in shares(i.e. buys shares and holds them for re-sale) and also deals on behalf of investorclientsbroker’s commission /�brəυkəzkə�mʃ(ə)n/ noun the payment to a bro-ker for a deal which he or she has car-ried out (NOTE: Formerly, thecommission charged by brokers on theLondon Stock Exchange was fixed, butsince 1986, commissions have beenvariable.)broking /�brəυkŋ/ noun the businessof dealing in stocks and sharesBSA abbreviation Building SocietiesAssociationBSE Index /�bi� es �i� �ndeks/ nounan index of prices on the Indian StockExchange. Full form Bombay StockExchange IndexB shares /�bi� ʃeəz/ plural noun ordi-nary shares with special voting rights(often owned by the founder of a com-pany and his family). See Comment at Asharesbuck /b�k/ noun US a dollar (infor-mal.) � to make a quick buck to make a

Bretton Woods Agreement 44 buck

profit very quickly � verb � to buckthe trend to go against the trendbucket shop /�b�kt ʃɒp/ noun 1.US a dishonest stockbroking firm wherecustomers’ orders to buy and sell stockare treated as bets on the rise and fall ofprices 2. a firm of brokers or dealers thatsells shares that may be worthless 3. abrokerage firm which tries to push thesale of certain securities

‘…at last something is being done about thethousands of bucket shops across the nationthat sell investment scams by phone’[Forbes Magazine]

budget /�b�d$t/ noun 1. a plan of ex-pected spending and income for a periodof time � to draw up a budget for sala-ries for the coming year � We haveagreed the budgets for next year. 2. �the Budget the annual plan of taxes andgovernment spending proposed by a fi-nance minister. In the UK, the budget isdrawn up by the Chancellor of the Ex-chequer. � The minister put forward abudget aimed at boosting the economy.� to balance the budget to plan incomeand expenditure so that they balance �The president is planning for a balancedbudget. � adjective cheap � budgetprices low prices � verb to plan proba-ble income and expenditure � We arebudgeting for £10,000 of sales nextyear.

‘…he budgeted for further growth of 150,000jobs (or 2.5 per cent) in the current financialyear’ [Sydney Morning Herald]‘…the Federal government’s budget targetsfor employment and growth are withinreach according to the latest figures’ [AustralianFinancial Review]

budget account /�b�d$t ə�kaυnt/noun a bank account where you planincome and expenditure to allow forperiods when expenditure is high, bypaying a set amount each monthbudgetary /�b�d$t(ə)r/ adjectivereferring to a budgetbudgetary control /�b�d$t(ə)rikən�trəυl/ noun controlled spending ac-cording to a planned budgetbudgetary policy /�b�d$t(ə)ri�pɒlsi/ noun the policy of planning in-come and expenditurebudgetary requirements/�b�d$t(ə)ri r�kwaəməntz/ pluralnoun the rate of spending or income re-quired to meet the budget forecasts

budget deficit /�b�d$t �defst/noun 1. a deficit in a country’s plannedbudget, where income from taxationwill not be sufficient to pay for the gov-ernment’s expenditure 2. a deficit inpersonal finances where a householdwill borrow to finance large purchaseswhich cannot be made out of incomealonebudget department /�b�d$t d-�pɑ�tmənt/ noun a department in alarge store which sells cheaper goodsbudgeting /�b�d$tŋ/ noun the prep-aration of budgets to help plan expendi-ture and incomebudget surplus /�b�d$t �s%�pləs/noun a situation where there is morerevenue than was planned for in thebudgetbudget variance /�b�d$t�veəriəns/ noun the difference betweenthe cost as estimated for a budget andthe actual costbuffer stocks /�b�fə stɒks/ pluralnoun stocks of a commodity bought byan international body when prices arelow and held for resale at a time whenprices have risen, with the intention ofreducing sharp fluctuations in worldprices of the commoditybuilding and loan association/�bldŋ ən �ləυn əsəυsi�eʃ(ə)n/ nounUS same as savings and loanBuilding Societies Association/�bldŋ sə�saətiz ə�səυsieʃ(ə)n/noun an organisation representingbuilding societies. Abbreviation BSABuilding Societies Ombudsman/�bldŋ sə�saətiz �ɒmbυdzmən/ nounan official whose duty is to investigatecomplaints by members of the publicagainst building societies (NOTE: Allbuilding societies belong to the Build-ing Societies Ombudsman Scheme.)

building society /�bldŋ sə�saəti/noun a financial institution which ac-cepts and pays interest on deposits, andlends money to people who are buyingproperty against the security of theproperty which is being bought � Weput our savings into a building societyor into a building society account. � Ihave an account with the NationwideBuilding Society. � I saw the buildingsociety manager to ask for a mortgage.

bucket shop 45 building society

COMMENT: Building societies mainly in-vest the money deposited with them asmortgages on properties, but a percent-age is invested in government securities.Societies can now offer a range of bank-ing services, such as cheque books,standing orders, overdrafts, etc., and nowoperate in much the same way as banks.Indeed, many building societies havechanged from ‘mutual status’, where theowners of the society are its investors andborrowers, to become publicly-ownedbanks whose shares are bought and soldon the stock exchange. The comparableUS institutions are the savings & loan as-sociations, or ‘thrifts’.

build into /�bld �ntu�/ verb to in-clude something in something which isbeing set up � You must build all theforecasts into the budget. � we havebuilt 10% for contingencies into ourcost forecast we have added 10% to ourbasic forecast to allow for items whichmay appear suddenlybuild up /�bld ��p/ verb 1. to createsomething by adding pieces together �She bought several shoe shops andgradually built up a chain. 2. to expandsomething gradually � to build up aprofitable business � to build up a teamof sales representativesbuildup /�bld�p/ noun a gradual in-crease � a buildup in sales or a salesbuildup � There will be a big publicitybuildup before the launch of the newmodel. � There has been a buildup ofcomplaints about customer service.bulk buying /b�lk �baŋ/ noun theact of buying large quantities of goodsat low pricesbulk carrier /b�lk �k�riə/ noun aship which carries large quantities ofloose goods such as corn or coalbulk purchase /b�lk �p%�tʃs/ nounan act of buying a large quantity ofgoods at low pricesbull /bυl/ noun STOCK EXCHANGE aperson who believes the market willrise, and therefore buys shares, com-modities or currency to sell at a higherprice later (NOTE: The opposite is abear.)

‘…lower interest rates are always a bull factorfor the stock market’ [Financial Times]

bulldog bond /�bυldɒ� bɒnd/ nouna bond issued in sterling in the UK mar-

ket by a non-British corporation.Compare samurai bond, Yankeebondbullet /�bυlt/ noun US a repayment ofthe capital of a loan when it maturesbullet bond /�bυlt bɒnd/ nounUS a eurobond which is only redeemedwhen it is mature (NOTE: Bullet bondsare used in payments between centralbanks and also act as currency back-ing.)bullet loan /�bυlt ləυn/ noun US aloan which is repaid in a single paymentbullion /�bυliən/ noun a gold or silverbars � A shipment of gold bullion wasstolen from the security van. � The priceof bullion is fixed daily.bullion bank /�bυliən b�ŋk/ noun abank which holds bullion for customersbullish /�bυlʃ/ adjective optimistic,feeling that prices of shares will rise

‘…another factor behind the currency market’sbullish mood may be the growing realisationthat Japan stands to benefit from the currentcombination of high domestic interest ratesand a steadily rising exchange rate’ [FarEastern Economic Review]‘…currency traders chose to ignore betterunemployment statistics from France, preferringto focus on the bullish outlook for the dollar’[Times]

bull market /�bυl �mɑ�kt/ noun a pe-riod when share prices rise because peo-ple are optimistic and buy shares (NOTE:The opposite is a bear market.)bull position /�bυl pə�zʃ(ə)n/ nounSTOCK EXCHANGE a strategy of buyingshares in the hope that they will risebumping /�b�mpŋ/ noun 1. US alay-off procedure that allows an em-ployee with greater seniority to displacea more junior employee � The economicrecession led to extensive bumping incompanies where only the most quali-fied were retained for some jobs. � Thetrade unions strongly objected to bump-ing practices since they considered thatmany employees were being laid off un-fairly. 2. the situation where a senioremployee takes the place of a junior (ina restaurant)Bund noun a German governmentbondBundesobligation noun a Germanmedium-term note, which cannot bebought by non-German buyers

build into 46 Bundesobligation

bundle /�b�nd(ə)l/ noun � to make abundle to make a lot of money (infor-mal.)bundling /�b�nd(ə)lŋ/ noun the ac-tion of selling various financial servicestogether as a package, such as a mort-gage and house insurancebuoyant /�bɔənt/ adjective referringto a market where share prices are risingcontinuouslybureau de change /�bjυərəυ də�ʃɒn$/ noun an office where you canchange foreign currencybusiness /�bzns/ noun 1. work inbuying, selling or doing other things tomake a profit � We do a lot of businesswith Japan. � Business is expanding. �Business is slow. � Repairing cars is90% of our business. � We did morebusiness in the week before Christmasthan we usually do in a month. � Strikesare very bad for business. � What’syour line of business? � to be in busi-ness to run a commercial firm � onbusiness doing commercial work � Shehad to go abroad on business. � Thechairman is in Holland on business. 2. acommercial company � He owns asmall car repair business. � She runs abusiness from her home. � I set up inbusiness as an insurance broker. 3. af-fairs discussed � The main business ofthe meeting was finished by 3 p.m.business address /�bzns ə�dres/noun the details of number, street andtown where a company is locatedbusiness agent /�bzns �ed$ənt/noun US the chief local official of atrade unionbusiness call /�bzns kɔ�l/ noun avisit to talk to someone about businessbusiness card /�bzns kɑ�d/ noun acard showing a businessperson’s nameand the name and address of the com-pany he or she works forbusiness centre /�bzns �sentə/noun the part of a town where the mainbanks, shops and offices are locatedbusiness computer /�bzns kəm-�pju�tə/ noun a powerful small com-puter programmed for special businessusesbusiness correspondence/�bzns kɒr�spɒndəns/ noun lettersconcerned with a business

business correspondent /�bznskɒr�spɒndənt/ noun a journalist whowrites articles on business news fornewspapersbusiness customer /�bzns�k�stəmə/ noun company which has anaccount with a bankbusiness cycle /�bzns �sak(ə)l/noun the period during which trade ex-pands, slows down and then expandsagain. Also called trade cyclebusiness day /�bzns de/ noun aday (a normal weekday) when banksand stock exchanges are open forbusinessbusiness expenses /�bzns k-�spensz/ plural noun money spent onrunning a business, not on stock orassetsbusiness hours /�bzns aυəz/ plu-ral noun the time when a business isopen, usually 9.00 a.m. to 5.30 p.m.business magazine /�bzns�m��əzi�n/ noun a magazine dealingwith business affairsbusinessman /�bznsm�n/ noun aman engaged in businessbusiness plan /�bzns pl�n/noun a document drawn up to show howa business is planned to work, with cashflow forecasts, sales forecasts, etc., of-ten used when trying to raise a loan, orwhen setting up a new businessbusiness rate /�bzns ret/ noun taxlevied on business property (NOTE: TheUS term is local property tax.)business ratepayer /�bznəs �ret-�peə/ noun a business which pays localtaxes on a shop, office, factory, etc.business-to-business /�bzns tə�bzns/ adjective full form of B2Bbusiness-to-consumer /�bzns təkən�sju�mə/ adjective full form of B2Cbusiness transaction /�bznstr�n�z�kʃən/ noun an act of buying orsellingbusinesswoman /�bznsm�n/noun a woman engaged in businessbusted bonds /�b�std bɒndz/ nounold shares or bonds which are no longermarketable, though the certificates maystill have a value as collectors’ itemsbutterfly spread /�b�təfla spred/noun an act of buying two call options

bundle 47 butterfly spread

and selling two call options, with differ-ent dates and prices, all at the same timebuy /ba/ verb to get something by pay-ing money � to buy wholesale and sellretail � to buy for cash � He bought10,000 shares. � The company has beenbought by its leading supplier. (NOTE:buying – bought)buy back /�ba �b�k/ verb 1. to buysomething which you sold earlier � Shesold the shop last year and is now tryingto buy it back. 2. to buy its own sharesbuyback /�bab�k/ noun 1. a type ofloan agreement to repurchase bonds orsecurities at a later date for the sameprice as they are being sold 2. an inter-national trading agreement where acompany builds a factory in a foreigncountry and agrees to buy all its produc-tion 3. the continuation of a life assur-ance cover after a claim has been paidon critical illness under a policy thatprovides cover against both critical ill-ness and death

‘…the corporate sector also continued to returncash to shareholders in the form of buy-backs,while raising little money in the form of new orrights issues’ [Financial Times]

buydown /�badaυn/ noun US the ac-tion of paying extra money to a mort-gage in order to get a better rate in thefuturebuyer /�baə/ noun 1. a person whobuys � there were no buyers no onewanted to buy 2. a person who buysstock on behalf of a trading organisationfor resale or for use in productionbuyer’s market /�baəz �mɑ�kt/noun a market where products are soldcheaply because there are few peoplewho want to buy them (NOTE: The op-posite is seller’s market.)

buy forward /ba �fɔ�wəd/ verb tobuy foreign currency before you need it,in order to be sure of the exchange ratebuy in /�ba �n/ verb 1. (of a seller atan auction) to buy the thing which youare trying to sell because no one willpay the price you want 2. to buy stock tocover a position 3. (of a company) tobuy its own sharesbuying /�baŋ/ noun the act of gettingsomething for moneybuying department /�baŋ d-�pɑ�tmənt/ noun the department in acompany which buys raw materials orgoods for use in the companybuying power /�baŋ �paυə/ nounthe ability to buy � The buying power ofthe pound has fallen over the last fiveyears.buyout /�baaυt/ noun the purchase ofa controlling interest in a company

‘…we also invest in companies whose growthand profitability could be improved by amanagement buyout’ [Times]‘…in a normal leveraged buyout, the acquirerraises money by borrowing against the assets orcash flow of the target company’ [Fortune]

buy to let /�ba tə �let/ verb a situa-tion where a property is bought as an in-vestment to rent out rather than live inBV noun a Dutch public limitedcompany. Full form beslotenvenootschapbylaws /�balɔ�z/ plural noun US rulesgoverning the internal running of a cor-poration (the number of meetings, theappointment of officers, etc.) (NOTE: Inthe UK, these are called Articles ofAssociation.)by-product /�ba �prɒd�kt/ noun aproduct made as a result of manufactur-ing a main product

buy 48 by-product

C

CA abbreviation chartered accountantCAB abbreviation Citizens AdviceBureaucable /�keb(ə)l/ noun 1. a telegram, amessage sent by telegraph � He sent acable to his office asking for moremoney. 2. a spot exchange rate for thedollar and sterling � verb to send a mes-sage or money by telegraph � He cabledhis office to ask them to send moremoney. � The office cabled him £1,000to cover his expenses. � The money wascabled to the Spanish bank.cable address /�keb(ə)l ə�dres/noun a short address for sending cablescable transfer /�keb(ə)l �tr�nsf%�/noun a transfer of money by telegraphCAC 40 /�si� e si� �fɔ�ti/, CAC 40 in-dex noun an index of prices on the ParisStock Exchange, based on the prices offorty leading sharesCAD /k�d/ abbreviation cash againstdocumentscage /ked$/ noun US 1. the part of abroking firm where the paperwork in-volved in buying and selling shares isprocessed (NOTE: The UK term is backoffice.) 2. a section of a bank where ateller works (surrounded by glasswindows)caisse d’épargne noun the Frenchword for savings bankcaja popular noun the Spanish wordfor savings bankcalculate /�k�lkjυlet/ verb 1. to findthe answer to a problem using numbers� The bank clerk calculated the rate ofexchange for the dollar. 2. to estimate �I calculate that we have six months’stock left.calculation /�k�lkjυ�leʃ(ə)n/ nounthe answer to a problem in mathematics� According to my calculations, wehave six months’ stock left. � we are

£20,000 out in our calculations wehave made a mistake in our calculationsand arrived at a figure which is £20,000too much or too littlecalculator /�k�lkjυletə/ noun anelectronic machine which does calcula-tions such as adding, subtracting andmultiplying � He worked out the dis-count on his calculator.calendar /�k�lndə/ noun 1. abook or set of sheets of paper showingthe days and months in a year, oftenattached to pictures 2. a list of dates,especially a list of dates of new shareissuescalendar month /�k�lndə m�nθ/noun a whole month as on a calendar,from the 1st to the 30th or 31st � Ninetydays’ credit is almost three calendarmonths.calendar year /�k�lndə jə/ noun ayear from the 1st January to 31stDecembercall /kɔ�l/ noun 1. a conversation onthe telephone � to make a call to dialand speak to someone on the telephone� to take a call to answer the telephone� to log calls to note all details oftelephone calls made 2. a demand forrepayment of a loan by a lender 3. FIN ademand to pay for new shares whichthen become paid up 4. FIN a priceestablished during a trading session5. a visit � The salespeople make sixcalls a day. � verb 1. to ask for aloan to be repaid immediately 2. to tele-phone someone � I’ll call you at youroffice tomorrow. 3. � to call on some-one to visit someone � Our salespeoplecall on their best accounts twice amonth. 4. to ask for or order somethingto be done � to call a meeting � the un-ion called a strike the union told itsmembers to go on strike

callable bond /�kɔ�ləb(ə)l bɒnd/noun a bond which can be redeemed be-fore it maturescallable capital /�kɔ�ləb(ə)l�k�pt(ə)l/ noun the part of a com-pany’s capital which has not been calledupcall-back pay /�kɔ�l b�k pe/ nounpay given to an employee who has beencalled back to work after their normalworking hourscalled up capital /�kɔ�ld �p�k�pt(ə)l/ noun a share capital in acompany which has been called up butnot yet paid for

‘…a circular to shareholders highlights that thecompany’s net assets as at August 1, amountedto œ47.9 million – less than half the company’scalled-up share capital of œ96.8 million.Accordingly, an EGM has been called forOctober 7’ [Times]

call in /�kɔ�l �n/ verb to ask for a debtto be paidcall loan /�kɔ�l ləυn/ noun a bank loanrepayable at callcall money /�kɔ�l �m�ni/ noun moneyloaned for which repayment can be de-manded without notice. Also calledmoney at call, money on callcall option /�kɔ�l �ɒpʃən/ noun an op-tion to buy shares at a future date and ata specific price (NOTE: The opposite, anoption to sell, is a put option.)call-over price /�kɔ�l �əυvə pras/noun a price which is applied when sell-ing is conducted by a chairman, and notby open outcrycall price /�kɔ�l pras/ noun STOCKEXCHANGE a price to be paid on re-demption of a US bondcall purchase /�kɔ�l �p%�tʃs/, callsale /�kɔ�l sel/ noun STOCK EXCHANGEa transaction where the seller or pur-chaser can fix the price for futuredeliverycall rate /�kɔ�l ret/ noun 1. the num-ber of calls per day or per week which asalesperson makes on customers 2. arate of interest on money at callcall rule /�kɔ�l ru�l/ noun STOCK EX-CHANGE a price fixed on a Stock Ex-change at the end of a day’s trading andwhich remains valid until trading startsagain the next daycall up /�kɔ�l ��p/ verb to ask for sharecapital to be paid

calm /kɑ�m/ adjective quiet, not ex-cited � The markets were calmer afterthe government statement on the ex-change rate.cambio noun the Spanish word forforeign exchangecambiste noun the French word for aforeign exchange brokercancel /�k�nsəl/ verb 1. to stop some-thing which has been agreed or planned� to cancel an appointment or a meeting� The government has cancelled the or-der for a fleet of buses. � The manageris still ill, so the interviews planned forthis week have been cancelled. (NOTE:cancelling – cancelled) 2. � to cancela cheque to stop payment of a chequewhich has been signedcancellation /�k�nsə�leʃ(ə)n/ nounthe act of stopping something which hasbeen agreed or planned � the cancella-tion of an appointment � the cancella-tion of an agreementcancellation clause /�k�nsə-�leʃ(ə)n klɔ�z/ noun a clause in acontract which states the terms on whichthe contract may be cancelledcancel out /�k�nsəl �aυt/ verb (oftwo things) to balance each other or actagainst each other so that there is nochange in the existing situation � Thetwo clauses cancel each other out. �Higher costs have cancelled out the in-creased sales revenue.candlestick chart /�k�nd(ə)lstktʃɑ�t/ noun a chart similar to a barchart, but showing the opening andclose as well as the high and low figuresfor a particular period. These are shownas lines standing up on top of the bodyof the chart or hanging down beneath it,so that they look a little like the wick ona candle.cap /k�p/ noun 1. an upper limitplaced on something, such as an interestrate (the opposite, i.e. a lower limit, is a‘floor’) 2. same as capitalisation (in-formal.) � Last year the total market capof all the world’s gold companies fellfrom $71 billion to $46 billion. � verbto place an upper limit on something �to cap a local authority’s budget � tocap a department’s budget (NOTE: cap-ping – capped)CAP abbreviation Common Agricul-tural Policy

callable bond 50 CAP

capacity /kə�p�sti/ noun 1. theamount which can be produced, or theamount of work which can be done �industrial or manufacturing or produc-tion capacity � to work at full capacityto do as much work as possible 2. theamount of space 3. ability � She has aparticular capacity for detailed businessdeals with overseas companies. 4. (of aborrower.) the ability to pay back a loan5. � speaking in an official capacityspeaking officially

‘…analysts are increasingly convinced that theindustry simply has too much capacity’[Fortune]

capacity utilisation /kə�p�səti�ju�tla�zeʃ(ə)n/ noun the fact of us-ing something as much as possiblecap and collar /�k�p ən �kɒlə/ nounan agreement giving both an upper and alower limit to a loancapita /�k�ptə/ � per capitacapital /�k�pt(ə)l/ noun 1. themoney, property and assets used in abusiness � a company with £10,000capital or with a capital of £10,000 2.money owned by individuals or compa-nies, which they use for investment �flight of capital the rapid movement ofcapital out of one country because oflack of confidence in that country’s eco-nomic future

‘…issued and fully paid capital is $100 million,comprising 2340 shares of $100 each and997,660 ordinary shares of $100 each’[Hongkong Standard]

capital account /�k�pt(ə)l ə-�kaυnt/ noun 1. an account of dealingssuch as money invested in or taken outof the company by the owners of acompany 2. items in a country’s balanceof payments which do not refer to thebuying and selling merchandise, but re-fer to investments 3. the total equity in abusinesscapital adequacy /�k�pt(ə)l��dkwəsi/, capital adequacy ratio/�k�pt(ə)l ��dkwəsi �reʃiəυ/ nounthe amount of money which a bank hasto have in the form of shareholders’ cap-ital, shown as a percentage of its assets.Also called capital-to-asset ratio(NOTE: The amount is internationallyagreed at 8%.)capital allowances /�k�ptl ə-�laυənsz/ plural noun the allowancesbased on the value of fixed assets which

may be deducted from a company’sprofits and so reduce its tax liability

COMMENT: Under current UK law, depre-ciation is not allowable for tax on profits,whereas capital allowances, based on thevalue of fixed assets owned by the com-pany, are tax-allowable.

capital asset pricing model/�k�pt(ə)l ��set �prasŋ �mɒd(ə)l/noun method of calculating the ex-pected return on a share, by showingwhat percentage of future return is de-pendent on the movements of the stockmarket taken as a whole. AbbreviationCAPMcapital assets /�k�pt(ə)l ��sets/plural noun the property, machines andother assets, which a company owns anduses but which it does not buy and sellas part of its regular trade. Also calledfixed assetscapital base /�k�pt(ə)l �bes/ nounthe capital structure of a company(shareholders’ capital plus certain loansand retained profits) used as a way ofassessing the company’s worthcapital bonus /�k�pt(ə)l �bəυnəs/noun an extra payment by an insurancecompany which is produced by a capitalgaincapital city /�k�pt(ə)l �sti/ nounthe main city in a country, where thegovernment is locatedcapital commitments /�k�pt(ə)lkə�mtmənts/ plural noun expenditureon assets which has been authorised bydirectors, but not yet spent at the end ofa financial periodcapital employed /�k�pt(ə)l m-�plɔd/ noun an amount of capital con-sisting of shareholders’ funds plus thelong-term debts of a business. � returnon capital employedcapital equipment /�k�pt(ə)l -�kwpmənt/ noun equipment which afactory or office uses to workcapital expenditure /�k�pt(ə)l k-�spendtʃə/ noun money spent on fixedassets (property, machines and furni-ture). Also called capital investment,capital outlaycapital exports /�k�pt(ə)l�ekspɔ�ts/ plural noun the movement ofcapital out of a country (into overseasinvestments, or into loans to overseascountries)

capacity 51 capital exports

capital flow /�k�pt(ə)l �fləυ/ nounthe movement of investment capitalfrom one country to another. Also calledcapital movement, movement ofcapitalcapital gains /�k�pt(ə)l ��enz/plural noun money made by selling afixed asset or by selling shares (NOTE: Ifthe asset is sold for less than its pur-chase price, the result is a capitalloss.)

COMMENT: In the UK capital gains tax ispayable on the sale of assets, in particularshares and properties, above a certainminimum level.

capital gains tax /�k�pt(ə)l ��enzt�ks/ noun a tax paid on capital gains.Abbreviation CGTcapital goods /�k�pt(ə)l �υdz/ plu-ral noun machinery, buildings and rawmaterials which are used to make othergoodscapital-intensive industry/�k�pt(ə)l n�tensv �ndəstri/ nounan industry which needs a large amountof capital investment in plant to make itworkcapitalisation /�k�pt(ə)la-�zeʃ(ə)n/, capitalization noun thevalue of a company calculated bymultiplying the price of its shares onthe stock exchange by the number ofshares issued. Also called marketcapitalisation

‘…she aimed to double the company’s marketcapitalization’ [Fortune]

capitalisation issue noun same asbonus issuecapitalisation of reserves/�k�pt(ə)la�zeʃ(ə)n əv r�z%�vz/noun the issuing free bonus shares toshareholderscapitalise /�k�pt(ə)laz/, capitalizeverb 1. to invest money in a workingcompany � the company is capitalisedat £10,000 the company has a workingcapital of £10,000 2. to convert reservesor assets into capital

‘…at its last traded price the bank wascapitalized at around $1.05 billion with 60 percent in the hands of the family’[South China Morning Post]

capitalise on /�k�pt(ə)laz ɒn/ verbto make a profit from � We are seekingto capitalise on our market position.

capitalism /�k�pt(ə)lz(ə)m/ nounthe economic system in which each per-son has the right to invest money, towork in business and to buy and sell,with no restrictions from the statecapitalist /�k�pt(ə)lst/ adjectiveworking according to the principles ofcapitalism � the capitalist system � thecapitalist countries or world � noun aperson who invests capital in businessenterprisescapitalist economy /�k�pt(ə)lst�kɒnəmi/ noun an economy in whicheach person has the right to investmoney, to work in business and to buyand sell, with no restrictions from thestatecapital levy /�k�pt(ə)l �levi/ noun atax on the value of a person’s propertyand possessionscapital loss /�k�pt(ə)l �lɒs/ noun aloss made by selling assets (NOTE: Theopposite is capital gain.)capital market /�k�pt(ə)l �mɑ�kt/noun an international market wheremoney can be raised for investment in abusinesscapital movement /�k�pt(ə)l�mu�vmənt/ noun same as capital flowcapital outlay /�k�pt(ə)l �aυtle/noun same as capital expenditurecapital profit /�k�pt(ə)l �prɒft/noun a profit made by selling an assetcapital-protected fund /�k�pt(ə)lprə�tektd f�nd/ noun a fund whichguarantees the investor’s capital and atthe same time gives some growthcapital ratio /�k�pt(ə)l �reʃiəυ/noun same as capital adequacy ratiocapital requirements /�k�pt(ə)lr�kwaəmənts/ plural noun 1. theamount of capital which a firm needs tooperate normally 2. the amount of liquidassets needed by a bank to fulfil itsobligationscapital reserves /�k�pt(ə)l r-�z%�vz/ plural noun 1. money fromprofits, which forms part of the capi-tal of a company and can be used fordistribution to shareholders only when acompany is wound up. Also calledundistributable reserves 2. the sharecapital of a company which comes fromselling assets and not from normaltrading

capital flow 52 capital reserves

capital shares /�k�pt(ə)l ʃeəz/plural noun (on the Stock Exchange)shares in a unit trust which rise in valueas the capital value of the units rises, butdo not receive any income (NOTE: Theother form of shares in a split-level in-vestment trust are income shares,which receive income from the invest-ments, but do not rise in value.)capital structure /�k�pt(ə)l�str�ktʃə/ noun the way in which acompany’s capital is made up from vari-ous sourcescapital transfer tax /�k�pt(ə)l�tr�nsf%� �t�ks/ noun formerly, a taxon gifts or bequests of money orpropertyCAPM abbreviation capital asset pric-ing modelcapped floating rate note /�k�pt�fləυtŋ ret �nəυt/ noun a floating ratenote which has an agreed maximum ratecapped rate /�k�pt �ret/ verb amortgage rate which is guaranteed notto go above a certain level for a set pe-riod of time, although it can movedownwardscaptive market /�k�ptv �mɑ�kt/noun a market where one supplier has amonopoly and the buyer has no choiceover the product which he or she mustpurchasecapture /�k�ptʃə/ verb to take or getcontrol of something � to capture 10%of the market to sell hard, and so take a10% market share � to capture 20% ofa company’s shares to buy shares in acompany rapidly and so own 20% of itcarat /�k�rət/ noun 1. a measure ofthe quality of gold (pure gold being 24carat) � a 22-carat gold ring 2. a mea-sure of the weight of precious stones � a5-carat diamond

COMMENT: Pure gold is 24 carats and istoo soft to make jewellery. Most jewelleryand other items made from gold are notpure, but between 19 and 22 carats. 22carat gold has 22 parts of gold to twoparts of alloy.

card /kɑ�d/ noun a small piece of card-board or plastic, usually with informa-tion printed on it � He showed his staffcard to get a discount in the store.cardholder /�kɑ�d�həυldə/ noun aperson who holds a credit card or bankcash card

card index /�kɑ�d �ndeks/ noun a se-ries of cards with information written onthem, kept in special order so that the in-formation can be found easily � We usean alphabetical card-index system forstaff records.carpetbagger /�kɑ�pt�b��ə/ noun aperson who invests in a building societyor pension fund, hoping to benefit fromeventual windfall payments if the soci-ety is demutualised or the fund is boughtcarriage /�k�rd$/ noun the transport-ing of goods from one place to another� to pay for carriagecarriage forward /�k�rd$ �fɔ�wəd/noun a deal where the customer pays fortransporting the goodscarriage free /�k�rd$ �fri�/ noun thecustomer does not pay for the shippingcarriage paid /�k�rd$ ped/ noun adeal where the seller has paid for theshippingcarrier /�k�riə/ noun 1. a companywhich transports goods � We only usereputable carriers. 2. a vehicle or shipwhich transports goodscarry /�k�ri/ verb 1. to take from oneplace to another � a tanker carrying oilfrom the Gulf � The truck was carryinggoods to the supermarket. 2. to vote toapprove � the motion was carried themotion was accepted after a vote 3. toproduce � The bonds carry interest at10%. � noun the cost of borrowing tofinance a deal (NOTE: carries – carry-ing – carried)

carry forward /�k�ri �fɔ�wəd/ verbto take an account balance at the end ofthe current period or page as the startingpoint for the next period or pagecarry over /�k�ri �əυvə/ verb � tocarry over a balance to take a balancefrom the end of one page or period tothe beginning of the nextcarry-over /�k�ri �əυvə/ noun 1. thestock of a commodity held at the begin-ning of a new financial year 2. the factof not paying an account on settlementday, but later. Also called contangocarryover day /�k�ri�əυvə de/noun the first day of trading on a newaccount on the London Stock Exchangecartel /kɑ��tel/ noun a group of com-panies which try to fix the price or to

capital shares 53 cartel

regulate the supply of a product so thatthey can make more profitcash /k�ʃ/ noun money in the form ofcoins or notes � verb � to cash acheque to exchange a cheque for cashcashable /�k�ʃəb(ə)l/ adjectivewhich can be cashed � A crossedcheque is not cashable at any bank.cash account /�k�ʃ ə�kaυnt/ nounan account which records the moneywhich is received and spentcash advance /k�ʃ əd�vɑ�ns/ nouna loan in cash against a future paymentcash against documents /�k�ʃə�enst �dɒkjυmənts/ noun a systemwhereby a buyer receives documents forthe goods on payment of a bill ofexchangecash and carry /�k�ʃ ən �k�ri/noun 1. a large store selling goods atlow prices, where the customer payscash and takes the goods away immedi-ately � We get our supplies every morn-ing from the cash and carry. 2. buying acommodity for cash and selling thesame commodity on the futures market

‘…the small independent retailer who stocks upusing cash and carries could be hit hard by theloss of footfall associated with any increase insmuggled goods’ [The Grocer]

cash balance /�k�ʃ �b�ləns/ noun abalance in cash, as opposed to amountsowedcash basis /k�ʃ �bess/ noun amethod of preparing the accounts of abusiness, where receipts and paymentsare shown at the time when they aremade (as opposed to showing debts orcredits which are outstanding at the endof the accounting period). Also calledreceipts and payments basiscash book /�k�ʃ bυk/ noun a bookwhich records cash received and paidoutcash box /�k�ʃ bɒks/ noun metal boxfor keeping cashcash budget /�k�ʃ �b�d$t/ noun aplan of cash income and expenditurecash card /�k�ʃ kɑ�d/ noun a plasticcard used to obtain money from a cashdispensercash cow /�k�ʃ kaυ/ noun a productor subsidiary company that consistentlygenerates good profits but does not pro-vide growth

cash crop /�k�ʃ krɒp/ noun an agri-cultural crop grown for sale to otherbuyers or to other countries, rather thanfor domestic consumptioncash deal /�k�ʃ di�l/ noun a sale donefor cashcash desk /�k�ʃ desk/ noun theplace in a store where you pay for thegoods boughtcash discount /k�ʃ �dskaυnt/noun a discount given for payment incash. Also called discount for cashcash dispenser /�k�ʃ d�spensə/noun a machine which gives out moneywhen a special card is inserted and in-structions givencash dividend /k�ʃ �dvdend/noun a dividend paid in cash, as op-posed to a dividend in the form of bonussharescash economy /k�ʃ �kɒnəmi/noun a black economy, where goodsand services are paid for in cash, andtherefore not declared for taxcash float /�k�ʃ fləυt/ noun cash putinto the cash box at the beginning of theday or week to allow change to be givento customerscash flow /�k�ʃ fləυ/ noun cashwhich comes into a company from sales(cash inflow) or the money which goesout in purchases or overhead expendi-ture (cash outflow) � the company issuffering from cash flow problemscash income is not coming in fastenough to pay the expenditure going outcash flow forecast /�k�ʃ fləυ�fɔ�kɑ�st/ noun a forecast of when cashwill be received or paid outcash flow statement /�k�ʃ fləυ�stetmənt/ noun a report which showscash sales and purchasescashier /k��ʃə/ noun 1. a person whotakes money from customers in a shopor who deals with the money that hasbeen paid 2. a person who deals withcustomers in a bank and takes or givescash at the countercashier’s check /k��ʃəz tʃek/noun US a bank’s own cheque, drawnon itself and signed by a cashier or otherbank officialcash in /k�ʃ �n/ verb to sell shares orother property for cash

cash 54 cash in

cash in hand /�k�ʃ n �h�nd/ nounmoney and notes, kept to pay smallamounts but not deposited in the bankcash in on /�k�ʃ �n ɒn/ verb toprofit from � The company is cashing inon the interest in computer games.cash in transit /�k�ʃ n �tr�nzt/noun cash being moved from one bankor business to another � Cash-in-transitservices are an easy target for robbers.cash items /�k�ʃ �atəmz/ pluralnoun goods sold for cashcashless society /�k�ʃləs sə-�saəti/ noun a society where no oneuses cash, all purchases being made bycredit cards, charge cards, cheques ordirect transfer from one account toanothercash limit /k�ʃ �lmt/ noun 1. afixed amount of money which can bespent during a certain period 2. a maxi-mum amount someone can withdrawfrom an ATM using a cash cardcash market /k�ʃ �mɑ�kt/ noun thegilt-edged securities market (where pur-chases are paid for almost immediately,as opposed to the futures market)cash offer /�k�ʃ �ɒfə/ noun an offerto pay in cash, especially an offer to paycash when buying shares in a takeoverbidcash on delivery /�k�ʃ ɒn d-�lv(ə)ri/ noun payment in cash whengoods are delivered. Abbreviation CODcash payment /�k�ʃ �pemənt/noun payment in cashcash position /�k�ʃ pə�zʃ(ə)n/noun a state of the cash which a com-pany currently has availablecash positive /k�ʃ �pɒztv/ adjec-tive having cash in hand, as opposed tohaving debts and overdrafts

‘…as the group’s shares are already widely held,the listing will be via an introduction. It will alsobe accompanied by a deeply discounted £25mrights issue, leaving the company cash positive’[Sunday Times]

cash price /�k�ʃ pras/ noun a lowerprice or better terms which apply if thecustomer pays cashcash purchase /�k�ʃ �p%�tʃs/ nouna purchase made for cashcash register /�k�ʃ �red$stə/ nouna machine which shows and adds the

prices of items bought, with a drawer forkeeping the cash receivedcash reserves /�k�ʃ r�z%�vz/ pluralnoun a company’s reserves in cash de-posits or bills kept in case of urgentneed � The company was forced to fallback on its cash reserves.cash sale /�k�ʃ sel/ noun a transac-tion paid for in cashcash-strapped /�k�ʃ str�pt/ adjec-tive short of moneycash terms /�k�ʃ t%�mz/ plural nounlower terms which apply if the customerpays cashcash till /�k�ʃ tl/ noun same as cashregistercash transaction /�k�ʃ tr�n-�z�kʃən/ noun a transaction paid for incashcash transfer hatch /k�ʃ �tr�nsf%�h�tʃ/ noun a small door in an outsidewall, allowing cash to be passed through(as from a supermarket to a securityvan)cash up /�k�ʃ ��p/ verb to add up thecash in a shop at the end of the daycash voucher /�k�ʃ �vaυtʃə/ noun apiece of paper which can be exchangedfor cash � With every £20 of purchases,the customer gets a cash voucher to thevalue of £2.Cashwire /�k�ʃwaə/ noun US a sys-tem operated by a group of banks toclear payments between member bankscash with order /�k�ʃ wð �ɔ�də/noun terms of sale showing the paymenthas to be made in cash when the order isplaced. Abbreviation CWOcasting vote /�kɑ�stŋ �vəυt/ noun avote used by the chairman in the casewhere the votes for and against a pro-posal are equal � The chairman has thecasting vote. � He used his casting voteto block the motion.casual /�k�$uəl/ adjective not perma-nent, or not regularcasual labour /�k�$uəl �lebə/ nounworkers who are hired for a short periodcasual work /�k�$uəl w%�k/ nounwork where the workers are hired for ashort periodcasual worker /�k�$uəl �w%�kə/noun a worker who can be hired for ashort period

cash in hand 55 casual worker

cat /k�t/ � fat cat, dead-cat bouncecatalogue price /�k�t(ə)lɒ� pras/noun a price as marked in a catalogue orlistcatastrophe /kə�t�strəfi/ noun asudden disastercatastrophe bond /kə�t�strəfibɒnd/ noun a bond with very highinterest rate but, which may be worthless, or give a lower rate of interest, if adisaster such as an earthquake occursCAT standards /�k�t �st�ndədz/plural noun standards introduced by thegovernment as an incentive to offer sav-ers an even better deal, and to make iteasier to spot the best investment valuecaveat /�k�vi�t/ noun warning � toenter a caveat to warn someone legallythat you have an interest in a case, andthat no steps can be taken without yourpermissioncaveat emptor /�k�vi�t �emptɔ�/phrase a Latin phrse meaning ‘let thebuyer beware’, which indicates that thebuyer is responsible for checking thatwhat he or she buys is in good order

‘…the idea that buyers at a car boot sale shouldhave any rights at all is laughable. Even thosewho do not understand Latin know that caveatemptor is the rule’ [Times]

caveat venditor /�k�vi�t ven-�di�tɔ�/ phrase a Latin phrase meaning‘let the seller beware’, which indicatesthat the seller is legally bound to makesure that the goods he sells are in goodorderCBOT abbreviation Chicago Board ofTradeCBS All-Share /�si� bi� es �ɔ�l ʃeə/noun an index of prices on the Amster-dam Stock Exchange (NOTE: The CBSTendency also lists Amsterdam shareprices.)CCA abbreviation current costaccountingCD /si��di�/ abbreviation certificate ofdepositcedi /�si�di/ noun a unit of currencyused in Ghanaceiling /�si�lŋ/ noun the highest pointthat something can reach, e.g. the high-est rate of a pay increase � to fix a ceil-ing for a budget � There is a ceiling of$100,000 on deposits. � Output reachedits ceiling in June and has since fallen

back. � What ceiling has the govern-ment put on wage increases this year?ceiling price /�si�lŋ pras/ noun thehighest price that can be reachedcent /sent/ noun a small coin, one hun-dredth of a dollar � The stores are onlya 25-cent bus ride away. � They sell or-anges at 99 cents each. (NOTE: Cent isusually written ¢ in prices: 25¢, but notwhen a dollar price is mentioned:$1.25.)central /�sentrəl/ adjective organisedfrom one main pointcentral assets account /�sentrəl��sets ə�kaυnt/ noun same as assetmanagement accountcentral bank /�sentrəl b�ŋk/ nounthe main government-controlled bank ina country, which controls that country’sfinancial affairs by fixing main interestrates, issuing currency, supervising thecommercial banks and trying to controlthe foreign exchange ratecentral bank discount rate/�sentrəl b�ŋk �dskaυnt ret/ nounthe rate at which a central bank dis-counts bills, such as treasury billscentral bank intervention/�sentrəl b�ŋk �ntə�venʃ(ə)n/ nounan action by a central bank to changebase interest rates, to impose exchangecontrols or to buy or sell the country’sown currency in an attempt to influenceinternational money marketscentral government /�sentrəl���v(ə)nmənt/ noun the main govern-ment of a country (as opposed to munic-ipal, local, provincial or stategovernments)centralisation /�sentrəla�zeʃ(ə)n/,centralization noun the organisation ofeverything from a central pointcentralise /�sentrəlaz/, centralizeverb to organise from a central point �All purchasing has been centralised inour main office. � The group benefitsfrom a highly centralised organisationalstructure. � The company has becomevery centralised, and far more staffwork at headquarters.central office /�sentrəl �ɒfs/ nounthe main office which controls allsmaller officescentral purchasing /�sentrəl�p%�tʃsŋ/ noun purchasing organised

cat 56 central purchasing

by a central office for all branches of acompanycentral rate /�sentrəl ret/ noun anexchange rate of a currency against theUS dollar according to IMF rulescentre /�sentə/ noun 1. an importanttown � Sheffield is a major industrialcentre. � Nottingham is the centre forthe shoe industry. 2. a group of items inan account (NOTE: [all senses] The USspelling is center.)CEO abbreviation chief executiveofficercertain annuity /�s%�t(ə)n ə�nju�ti/noun an annuity which will be paid for acertain number of years onlycertificate /sə�tfkət/ noun an offi-cial document which shows that some-thing is owned by someone or thatsomething is truecertificated bankrupt /sə�tf-ketd �b�ŋkr�pt/ noun a bankruptwho has been discharged from bank-ruptcy with a certificate to show that heor she was not at faultcertificate of approval /sə�tfkətəv ə�pru�v(ə)l/ noun a document show-ing that an item has been approvedofficiallycertificate of authentication /sə-�tfkət əv ɔ��θent�keʃ(ə)n/ noun aunique number supplied to a companyby an independent source (an ‘authenti-cator’) to prove that the company is whothey claim to becertificate of authority /sə�tfkətəv ɔ��θɒrəti/ noun a certificate showingthat someone has the authority to dosomething, such as sign a chequecertificate of deposit /sə�tfkətəv d�pɒzt/ noun a document from abank showing that money has been de-posited at a certain guaranteed interestrate for a certain period of time. Abbre-viation CD

‘…interest rates on certificates of deposit mayhave little room to decline in August as demandfor funds from major city banks is likely toremain strong. After delaying for months, banksare now expected to issue a large volume ofCDs. If banks issue more CDs on theassumption that the official discount ratereduction will be delayed, it is very likely thatCD rates will be pegged for a longer period thanexpected’ [Nikkei Weekly]COMMENT: A CD is a bearer instrument,which can be sold by the bearer. It can be

sold at a discount to the value, so that theyield on CDs varies.

certificate of incorporation /sə-�tfkət əv n�kɔ�pə�reʃ(ə)n/ noun adocument issued by Companies Houseto show that a company has been legallyset up and officially registeredcertificate of origin /sə�tfkət əv�ɒrd$n/ noun a document showingwhere imported goods come from orwere madecertificate of quality /sə�tfkət əv�kwɒlti/ noun a certificate showing thegrade of a soft commoditycertificate of registration /sə-�tfkət əv �red$�streʃ(ə)n/ noun adocument showing that an item has beenregisteredcertificate of tax deducted /sə-�tfkət əv t�ks d�d�ktd/ noun adocument issued by a financial institu-tion showing that tax has been deductedfrom interest payments on an accountcertified accountant /�s%�tfad ə-�kaυntənt/ noun an accountant who haspassed the professional examinationsand is a member of the Chartered Asso-ciation of Certified Accountantscertified cheque /�s%�tfad �tʃek/,certified check noun a cheque which abank says is good and will be paid out ofmoney put aside from the payer’s bankaccountcertified public accountant/�s%�tfad �p�blk ə�kaυntənt/ nounUS an accountant who has passed pro-fessional examinationscertify /�s%�tfa/ verb to make an offi-cial declaration in writing � I certifythat this is a true copy. � The documentis certified as a true copy. (NOTE: certi-fies – certifying – certified)cession /�seʃ(ə)n/ noun giving upproperty to someone (especially acreditor)c/f abbreviation carried forwardCFA abbreviation Communautéfinancière africaineCFA franc /�si� ef e �fr�ŋk/ noun afranc with a fixed exchange rate againstthe euro, used in African countrieswhich were formerly French colonies(Benin, Burkina Faso, Cameroon, theCentral African Republic, Chad, Congo,

central rate 57 CFA franc

Equatorial Guinea, Gabon, Ivory Coast,Mali, Niger, Senegal and Togo)CFO abbreviation chief financialofficerCFP abbreviation CommunautéFrançaise du PacifiqueCFP franc /�si� ef pi� �fr�ŋk/ noun afranc with a fixed exchange rate againstthe euro, used in French territories in thePacificCGT abbreviation capital gains taxchairman /�tʃeəmən/ noun a personwho presides over the board meetings ofa company � the chairman of the boardor the company chairman � the chair-man’s report, the chairman’s state-ment an annual report from thechairman of a company to theshareholders

‘…the corporation’s entrepreneurial chairmanseeks a dedicated but part-time president. Thenew president will work a three-day week’[Globe and Mail (Toronto)]COMMENT: Note that in a UK company,the chairman is less important than themanaging director, although one personcan combine both posts. In the US, acompany president is less important thanthe chairman of the board.

chairman and managing direc-tor /�tʃeəmən ən �m�nd$ŋ da-�rektə/ noun a managing director whois also chairman of the board ofdirectorsChamber of Commerce/�tʃembər əv �kɒm%�s/ noun a groupof local business people who meet todiscuss problems which they have incommon and to promote commerce intheir townChancellor of the Exchequer/�tʃɑ�nsələr əv ði� ks�tʃekə/ noun GBa chief finance minister in the govern-ment (NOTE: The US term is Secretaryof the Treasury.)change /tʃend$/ noun 1. money incoins or small notes � to give someonechange for £10 to give someone coinsor notes in exchange for a ten poundnote 2. money given back by the seller,when the buyer can pay only with alarger note or coin than the amountasked � She gave me the wrong change.� You paid the £5.75 bill with a £10note, so you should have £4.25 change.� keep the change keep it as a tip (said

to, for example, waiters, taxi-drivers) �verb 1. � to change a £20 note to givesomeone smaller notes or coins in placeof a £20 note 2. to give one type of cur-rency for another � to change £1,000into dollars � We want to change sometraveller’s cheques. 3. � to changehands (of a business, property, etc.) tobe sold to a new owner � The shopchanged hands for £100,000.change machine /�tʃend$ mə�ʃi�n/noun a machine which gives smallchange for a note or larger coinchanger /�tʃend$ə/ noun a personwho changes moneychannel /�tʃ�n(ə)l/ verb to send in acertain direction � They are channellingtheir research funds into developing Eu-ropean communication systems. (NOTE:channelling – channelled)channel of distribution /�tʃ�n(ə)ləv �dstr�bju�ʃ(ə)n/ noun same as dis-tribution channelCHAPS noun a computerised systemfor clearing cheques organised by thebanks. Compare BACS. Full formClearing House Automated Pay-ments Systemchapter /�tʃ�ptə/ noun US a sectionof an Act of Congress

‘…the company filed under Chapter 11 of thefederal bankruptcy code, the largest failure everin the steel industry’ [Fortune]‘…the firm, whose trademark dates back to1871, has been desperately trying to cut costs tocompete with manufacturers in cheapercountries, but has also been hit by managementproblems. It said the filing for Chapter 11protection should have little impact oncustomers and employees and would allow it torestructure’ [Times]

Chapter 11 /�tʃ�ptə �ten/ noun asection of the US Bankruptcy ReformAct 1978, which allows a corporation tobe protected from demands made by itscreditors for a period of time, while it isreorganised with a view to paying itsdebts. The officers of the corporationwill negotiate with its creditors as to thebest way of reorganising the business.Chapter 7 /�tʃ�ptə �sevən/ noun asection of the US Bankruptcy ReformAct 1978, which sets out the rules forthe liquidation of an incorporatedcompanycharge /tʃɑ�d$/ noun 1. money whichmust be paid, or the price of a service �

CFO 58 charge

to make no charge for delivery � tomake a small charge for rental � Thereis no charge for this service or Nocharge is made for this service. � freeof charge free, with no payment tobe made 2. a debit on an account � Itappears as a charge on the accounts. 3.a guarantee of security for a loan, forwhich assets are pledged 4. being for-mally accused in a court � He appearedin court on a charge of embezzlingor on an embezzlement charge. � verb1. to ask for money to be paid � tocharge £5 for delivery � How muchdoes he charge? � he charges £16 anhour he asks to be paid £16 for anhour’s work 2. to pay for something byputting it on a charge account � Canyou charge the meal to my room? � Iwant to charge these purchases to thecompany account. 3. to take somethingas guarantee for a loan 4. to accusesomeone formally of having committeda crime � He was charged with embez-zling his clients’ money.chargeable /�tʃɑ�d$əb(ə)l/ adjectivewhich can be charged � repairs charge-able to the occupierchargeable gains /�tʃɑ�d$əb(ə)l��enz/ plural noun gains made by sell-ing an asset, such as shares, on whichcapital gains will be chargedcharge account /�tʃɑ�d$ ə�kaυnt/noun an arrangement which a customerhas with a store to buy goods and to payfor them at a later date, usually when theinvoice is sent at the end of the month(NOTE: The customer will make regularmonthly payments into the accountand is allowed credit of a multiple ofthose payments.)charge card /�tʃɑ�d$ kɑ�d/ noun atype of credit card (such as AmericanExpress) for which a fee is payable, butwhich does not allow the user to takeout a loan (he or she has to pay off thetotal sum charged at the end of eachmonth)chargee /tʃɑ��d$i�/ noun a personwho has the right to force a debtor topaycharges forward /�tʃɑ�d$z�fɔ�wəd/ noun charges which will bepaid by the customercharging period /�tʃɑ�d$ŋ�pəriəd/ noun a period of time during

which charges are made to a credit cardbefore they are charged to thecardholderchart /tʃɑ�t/ noun a diagram display-ing information as a series of lines,blocks, etc.charter /�tʃɑ�tə/ noun the action orbusiness of hiring transport for a specialpurpose � verb to hire for a special pur-pose � to charter a plane or a boat or abuschartered /�tʃɑ�təd/ adjective 1. re-ferring to a company which has been setup by charter, and not registered underthe Companies Act � a chartered bank2. � a chartered ship or bus or plane aship, bus or plane which has been hiredfor a special purposechartered accountant /�tʃɑ�təd ə-�kaυntənt/ noun an accountant who haspassed the professional examinationsand is a member of the Institute of Char-tered Accountants. Abbreviation CAChartered Association ofCertified Accountants /�tʃɑ�tədə�səυsieʃ(ə)n əv �s%�tfad ə-�kaυntənts/ noun a professional associ-ation of accountants in the UKchartered bank /�tʃɑ�təd �b�ŋk/noun a bank which has been set up bygovernment charter (formerly used inEngland, but now only done in the USAand Canada)Chartered Institute of Bankers/�tʃɑ�təd �nsttju�t əv �b�ŋkəz/ nouna professional association of bankers,providing training, professional exam-inations and qualifications which arerecognised worldwide. AbbreviationCIBcharter flight /�tʃɑ�tə flat/ noun aflight in an aircraft which has been hiredfor that purposecharter plane /�tʃɑ�tə plen/ noun aplane which has been charteredcharter value /�tʃɑ�tə �v�lju�/ nounthe value of a bank’s being able to con-tinue do business in the future, reflectedas part of its share pricecharting /�tʃɑ�tŋ/ noun the work ofusing charts to analyse stock markettrends and forecast future rises or fallschartist /�tʃɑ�tst/ noun a person whostudies stock market trends and fore-casts future rises or falls

chargeable 59 chartist

chattel mortgage /�tʃ�t(ə)l�mɔ��d$/ noun money lent against thesecurity of an item purchased, but notagainst real estatechattels /�tʃ�t(ə)lz/ plural noungoods, moveable property but not realestatecheap /tʃi�p/ adjective, adverb notcosting a lot of money or not expensive� to buy something cheap at a lowprice � He bought two companies cheapand sold them again at a profit. � theywork out cheaper by the box theseitems are cheaper per unit if you buy abox of themcheap labour /tʃi�p �lebə/ nounworkers who do not earn much moneycheaply /�tʃi�pli/ adverb without pay-ing much money � The salesman wasliving cheaply at home and claiming anenormous hotel bill on expenses.cheap money /tʃi�p �m�ni/ nounmoney which can be borrowed at a lowrate of interestcheapness /�tʃi�pnəs/ noun the factof being cheap � The cheapness of thepound means that many more touristswill come to London.cheap rate /�tʃi�p ret/ noun a ratewhich is not expensive � Cheap ratephone calls start at 8 p.m.cheat /tʃi�t/ verb to trick someone sothat he or she loses money � He cheatedthe Income Tax out of thousands ofpounds. � She was accused of cheatingclients who came to ask her for advice.check /tʃek/ noun 1. a sudden stop �to put a check on imports to stop someimports coming into a country 2. inves-tigation or examination � a routinecheck of the fire equipment � The audi-tors carried out checks on the petty cashbook. 3. US (in a restaurant) a bill 4.US same as cheque 5. US a mark onpaper to show that something is correct� Make a check in the box marked ‘R’.� verb 1. to stop or delay something �to check the entry of contraband into thecountry � to check the flow of moneyout of a country 2. to examine or to in-vestigate something � to check that aninvoice is correct � to check and signfor goods � she checked the computerprintout against the invoices she ex-amined the printout and the invoices tosee if the figures were the same 3. US to

mark something with a sign to show thatit is correct � check the box marked ‘R’(NOTE: The UK term is tick.)checkable /�tʃekəb(ə)l/ adjective USreferring to a deposit account on whichchecks can be drawncheck card /�tʃek kɑ�d/ noun US acard issued by a bank to use in ATMs,but also used in some retail outletscheck digit /tʃek �dd$t/ noun thelast digit of a string of computerised ref-erence numbers, used to validate thetransactionchecking account /�tʃekŋ ə-�kaυnt/ noun US same as current ac-count 1

checkoff /�tʃekɒf/ noun US a systemwhere union dues are automaticallydeducted by the employer from aworker’s pay cheque � Checkoffs areseen by most employees as worthwhileas long as their interests are well repre-sented by the union. � After checkoffsand tax deductions the workers’ pay hadbeen reduced by one third.check out /�tʃek �aυt/ verb to gothrough a checkout and pay for thegoods boughtcheckout /�tʃekaυt/ noun the placewhere goods are paid for in a shop or su-permarket � We have opened two morecheckouts to cope with the Saturdayrush.check routing symbol /tʃek�ru�tŋ �smbəl/ noun US a numbershown on an American cheque whichidentifies the Federal Reserve districtthrough which the cheque will becleared (similar to the British ‘bank sortcode’)check sample /�tʃek �sɑ�mp(ə)l/noun a sample to be used to see if aconsignment is acceptablecheque /tʃek/ noun a note to a bankasking them to pay money from your ac-count to the account of the personwhose name is written on the note � acheque for £10 or a £10 cheque (NOTE:The US spelling is check.) � to cash acheque to exchange a cheque for cash �to endorse a cheque to sign a chequeon the back to show that you accept it �to make out a cheque to someone towrite someone’s name on a cheque �Who shall I make the cheque out to? �to pay by cheque to pay by writing a

chattel mortgage 60 cheque

cheque, and not using cash or a creditcard � to pay a cheque into your ac-count to deposit a cheque � the bankreferred the cheque to the drawer thebank returned the cheque to the personwho wrote it because there was notenough money in the account to pay it �to sign a cheque to sign on the front ofa cheque to show that you authorise thebank to pay the money from your ac-count � to stop a cheque to ask a banknot to pay a cheque which has beensigned and sentcheque account /�tʃek ə�kaυnt/noun same as current account

cheque book /�tʃek bυk/ noun abooklet with new blank cheques (NOTE:The usual US term is checkbook.)

cheque card /�tʃek kɑ�d/, chequeguarantee card /�tʃek ��rən�ti� kɑ�d/noun a plastic card from a bank whichguarantees payment of a cheque up to acertain amount, even if the user has nomoney in his accountcheque requisition /�tʃek�rekwzʃ(ə)n/ noun an official notefrom a department to the company ac-counts staff asking for a cheque to bewrittencheque stub /tʃek st�b/ noun apiece of paper left in a cheque bookafter a cheque has been written andtaken outcheque to bearer /�tʃek tə �beərə/noun a cheque with no name written onit, so that the person who holds it cancash itChicago Board of Trade /ʃ-�kɑ��əυ bɔ�d əv �tred/ noun a com-modity market based in Chicago, trad-ing in metals, soft commodities andfinancial futures. Abbreviation CBOT

Chicago Mercantile Exchange/ʃ�kɑ��əυ �m%�kəntal ks�tʃend$/noun a commodity market based inChicago, trading in livestock futures,and in financial futures on the IMM.Abbreviation CME

Chicago School /ʃ�kɑ��əυ sku�l/noun a school of monetarists, basedat the University of Chicago, led byProfessor Milton Friedmanchickenfeed /�tʃkn�fi�d/ noun asmall amount of money (informal.)

chief /tʃi�f/ adjective most important� He is the chief accountant of an in-dustrial group. � She is the chief buyerfor a department store.chief cashier /tʃi�f k��ʃə/ noun amain cashier in a bankchief executive /tʃi�f ��zekjυtv/,chief executive officer /tʃi�f �-�zekjυtv �ɒfsə/ noun US the most im-portant director in charge of a company.Abbreviation CEOchief financial officer /tʃi�f fa-�n�nʃəl �ɒfsə/ noun an executive incharge of a company’s financial opera-tions, reporting to the CEO. Abbrevia-tion CFOchief operating officer /tʃi�f�ɒpəretŋ �ɒfsə/ noun a director incharge of all a company’s operations(same as a ‘managing director’). Abbre-viation COOChief Secretary to the Treasury/tʃi�f �sekrətri tə, tυ ði�/ noun GB agovernment minister responsible to theChancellor of the Exchequer for thecontrol of public expenditure (NOTE: Inthe USA, this is the responsibility of theDirector of the Budget.)Chinese walls /�tʃani�z �wɔ�lz/plural noun imaginary barriers betweendepartments in the same organisation,set up to avoid insider dealing or con-flict of interest (as when a merchantbank is advising on a planned takeoverbid, its investment department shouldnot know that the bid is taking place, orthey would advise their clients to investin the company being taken over)chip card /�tʃp kɑ�d/ noun same assmart cardCHIPS noun the computerised clearingbank system used in the US. Full formClearing House Interbank PaymentsSystemchop /tʃɒp/ noun a stamp, a markmade on a document to show that it hasbeen agreed, acknowledged, paid, orthat payment has been receivedChristmas bonus /�krsməs�bəυnəs/ noun an extra payment madeto staff at Christmaschronological order/�krɒnəlɒd$k(ə)l �ɔ�də/ noun the ar-rangement of records such as files andinvoices in order of their dates

cheque account 61 chronological order

churning /�tʃ%�nŋ/ noun 1. a practiceemployed by stockbrokers, where theybuy and sell on a client’s discretionaryaccount in order to earn their commis-sion (the deals are frequently of no ad-vantage to the client) 2. a practiceemployed by insurance salesmen wherethe salesman suggests that a clientshould change his insurance policysolely in order to earn the salesman acommission

‘…more small investors lose money throughchurning than almost any other abuse, yet mostpeople have never heard of it. Churning involvesbrokers generating income simply by buyingand selling investments on behalf of theirclients. Constant and needless churning earnsthem hefty commissions which bites into theinvestment portfolio’ [Guardian]

CIB abbreviation Chartered Institute ofBankersCIF, c.i.f. abbreviation 1. cost, insur-ance and freight 2. US customer identi-fication filecircular /�s%�kjυlə/ adjective sent tomany people � noun 1. a leaflet orletter sent to many people � They sentout a circular offering a 10% discount.� Senior management sent out a cir-cular to all the employees explainingthe changes in the payment scheme.2. a leaflet sent by a broker to clients,with information about companies andsharescircularise /�s%�kjυləraz/, circular-ize verb to send a circular to � Thecommittee has agreed to circularisethe members of the society. � Theycircularised all their customers with anew list of prices.circular letter /�s%�kjυlə �letə/ nouna letter sent to many peoplecircular letter of credit /�s%�kjυlə�letər əv �kredt/ noun a letter of creditsent to all branches of the bank whichissues itcirculate /�s%�kjυlet/ verb 1. � tocirculate freely (of money) to moveabout without restriction by the govern-ment 2. to send or to give out withoutrestrictions � to circulate money to is-sue money, to make money available tothe public and industry 3. to send infor-mation to � They circulated a new list ofprices to all their customers. � They cir-culated information about job vacanciesto all colleges in the area.

circulating capital /�s%�kjυletŋ�k�pt(ə)l/ noun capital in the form ofcash or debtors, raw materials, finishedproducts and work in progress which acompany requires to carry on itsbusinesscirculation /�s%�kjυ�leʃ(ə)n/ nounmovement � to put money into circu-lation to issue new notes to businessand the public � The amount of moneyin circulation increased more than wasexpected.circulation of capital /�s%�kjυ-�leʃ(ə)n əv �k�pt(ə)l/ noun a move-ment of capital from one investment toanothercircumstances /�s%�kəmst�nsz/plural noun a general situation, espe-cially insofar as it influences what a per-son can do or the way in whichsomething happens. � financialCitizens Advice Bureau/�stz(ə)nz əd�vas �bjυərəυ/ noun anoffice where people can go to get freeadvice on legal and administrative prob-lems. Abbreviation CABcity /�st/ noun 1. a large town � Thelargest cities in Europe are linked byhourly flights. 2. � the City (of Lon-don) the old centre of London, wherebanks and large companies have theirmain offices; the British financial centre� He works in the City or He is in theCity. � they say in the City that thecompany has been sold the Londonbusiness world is saying that the com-pany has been soldCity analyst /�sti ��nəlst/ noun aperson who studies the London stockmarketCity desk /�sti desk/ noun the de-partment in a British newspaper whichdeals with business newsCity editor /�sti �edtə/ noun thebusiness and finance editor of a Britishnewspapercivil /�sv(ə)l/ adjective referring to or-dinary peoplecivil action /�sv(ə)l ��kʃən/ noun acourt case brought by a person or a com-pany against someone who has donethem wrongcivil law /�sv(ə)l �lɔ�/ noun laws re-lating to people’s rights and to agree-ments between individuals

churning 62 civil law

civil servant /�sv(ə)l �s%�vənt/ nouna person who works in the civil servicecivil service /�sv(ə)l �s%�vs/ nounthe organisation and personnel whichadminister a country � You have topass an examination to get a job inthe civil service or to get a civil ser-vice job.claim /klem/ noun 1. an act of askingfor something that you feel you have aright to � the union put in a 6% wageclaim the union asked for a 6% increasein wages for its members 2. an act ofstating that something is a fact � Herclaim that she had been authorised totake the money was demonstrably false.3. an act of asking for money from aninsurance company when somethingyou insured against has taken place � toput in a claim to ask the insurance com-pany officially to pay damages � to putin a claim for repairs to the car � Sheput in a claim for £250,000 damagesagainst the driver of the other car. � tosettle a claim to agree to pay what isasked for � The insurance company re-fused to settle his claim for storm dam-age. � verb 1. to ask for money,especially from an insurance company� He claimed £100,000 damagesagainst the cleaning firm. � She claimedfor repairs to the car against her insur-ance policy. 2. to say that you have aright to something or that something isyour property � He is claiming posses-sion of the house. � No one claimed theumbrella found in my office. 3. to statethat something is a fact � He claims henever received the goods. � She claimsthat the shares are her property.claimant /�klemənt/ noun a personwho makes a claim against someone inthe civil courts (NOTE: This term hasnow replaced plaintiff. The other sidein a case is the defendant.)claim back /�klem �b�k/ verb to askfor money to be paid backclaimer /�klemə/ noun same asclaimantclaim form /�klem fɔ�m/ noun aform which has to be filled in whenmaking an insurance claimclaims department /�klemz d-�pɑ�tmənt/ noun a department of an in-surance company which deals withclaims

claims manager /�klemz�m�nd$ə/ noun the manager of aclaims departmentclaims reserve /�klemz r�z%�v/noun money set aside by an insurancecompany to meet costs of claims in-curred but not yet settledclass /klɑ�s/ noun 1. a category orgroup into which things are classified 2.US a type of common stock (NOTE:Class A stock is similar to the British Ashares.)classified advertisements/�kl�sfad əd�v%�tsmənts/, classi-fied ads /�kl�sfad ��dz/ plural nounadvertisements listed in a newspaper un-der special headings such as ‘propertyfor sale’ or ‘jobs wanted’ � Look in thesmall ads to see if anyone has a filingcabinet for sale.classified directory /�kl�sfadda�rekt(ə)ri/ noun a list of businessesgrouped under various headings such ascomputer shops or newsagentsclassify /�kl�sfa/ verb to put intoclasses or categories according to spe-cific characteristics (NOTE: classifies –classifying – classified)clause noun /klɔ�z/ a section of a con-tract � There are ten clauses in the con-tract of employment. � There is a clausein this contract concerning the em-ployer’s right to dismiss an employee. �According to clause six, payments willnot be due until next year. � verb to listdetails of the relevant parties to a bill ofexchangeclaw back /�klɔ� �b�k/ verb to takeback money which has been allocated �Income tax claws back 25% of pensionspaid out by the government. � Of the£1m allocated to the project, the gov-ernment clawed back £100,000 in taxes.clawback /�klɔ�b�k/ noun 1. moneytaken back, especially money takenback by the government from grants ortax concessions which had previouslybeen made 2. the allocation of newshares to existing shareholders, so as tomaintain the value of their holdingsclean /kli�n/ adjective with no prob-lems or no record of offencesclean bill of lading /�kli�n bl əv�ledŋ/ noun a bill of lading with nonote to say the shipment is faulty ordamaged

civil servant 63 clean bill of lading

clean float /�kli�n fləυt/ noun an actof floating a currency freely on the in-ternational markets, without any inter-ference from the governmentclear /klə/ adjective (of a period oftime) free, total � three clear days threewhole working days � Allow three cleardays for the cheque to be paid into youraccount. � verb 1. to sell somethingcheaply in order to get rid of stock �‘Demonstration models to clear’ 2. � toclear goods through customs to haveall documentation passed by customs sothat goods can enter or leave the countryclearance /�klərəns/ noun � to ef-fect customs clearance to clear goodsthrough customsclearance certificate /�klərəns sə-�tfkət/ noun a document showing thatgoods have been passed by customsclearance sale /�klərəns sel/ nouna sale of items at low prices to get rid ofstockcleared date /�kləd det/ noun adate on which a cheque has cleared andfunds have been removed from theaccountclearing /�klərŋ/ noun 1. � clearingof goods through customs passing ofgoods through customs 2. an act of pass-ing of a cheque through the banking sys-tem, transferring money from oneaccount to anotherclearing bank /�klərŋ b�ŋk/ nouna bank which clears cheques, especiallyone of the major British High Streetbanks, specialising in normal bankingbusiness for ordinary customers, such asloans, cheques, overdrafts and inter-est-bearing depositsclearing house /�klərŋ haυs/noun a central office where clearingbanks exchange cheques, or where stockexchange or commodity exchange trans-actions are settledClearing House Automated Pay-ments System /�klərŋ haυs�ɔ�təmetd �pemənts �sstəm/ nouna computerised system which is organ-ised by the banks and used for clearingcheques. Abbreviation CHAPSclearing house funds /�klərŋhaυs �f�ndz/ plural noun funds whichare in the process of passing through theclearing house system

clearing member /�klərŋ �membə/noun a member firm of a stock ex-change which is also a member of thestock exchange clearing houseclear off /�klər �ɒf/ verb � to clearoff a debt to pay all of a debtclear profit /klə �prɒft/ noun profitafter all expenses have been paid � Wemade $6,000 clear profit on the deal.clear title /klə �tat(ə)l/ noun title toproperty without any charges or otherencumbrancesclerical error /�klerk(ə)l �erə/ nouna mistake made by someone doing of-fice workclerical work /�klerk(ə)l w%�k/noun work done in an officeclerical worker /�klerk(ə)l �w%�kə/noun a person who works in an officeclerk /klɑ�k/ noun a person who worksin an officeclicks-and-mortar /�klks ən�mɔ�tə/ adjective conducting businessboth through e-commerce and also inthe traditional way in buildings such asshops and warehouses. Comparebricks-and-mortar

‘…there may be a silver lining for‘clicks-and-mortar’ stores that have both anonline and a high street presence. Many of theseare accepting returns of goods purchased onlineat their traditional stores. This is a service thatmay make them more popular as consumersbecome more experienced online shoppers’[Financial Times]

client /�klaənt/ noun a person withwhom business is done or who pays fora service � One of our major clients hasdefaulted on her payments.clientele /�kli�ɒn�tel/ noun all the cli-ents of a business or all the customers ofa shopclients’ account /�klaənts ə�kaυnt/noun an account with a bank for clientsof a solicitorclimb /klam/ verb to go up � Thecompany has climbed to No. 1 positionin the market. � Profits climbed rapidlyas the new management cut costs.close noun /kləυz/ the end of a day’strading on the Stock Exchange � At theclose shares had fallen 20%. � adjec-tive /kləυs/ � close to very near, almost� The company was close to bank-ruptcy. � We are close to meeting oursales targets. � verb /kləυz/ 1. � to

clean float 64 close

close a position to arrange your affairsso that you no longer have any liabilityto pay (e.g. by selling all your securitiesor when a purchaser of a futures con-tract takes on a sales contract for thesame amount to offset the risk) � toclose the accounts to come to the end ofan accounting period and make up theprofit and loss account 2. to bring some-thing to an end � she closed his build-ing society account she took all themoney out and stopped using the ac-count 3. � the shares closed at $15 atthe end of the day’s trading the price ofthe shares was $15close company /�kləυs �k�mp(ə)ni/noun a privately owned company con-trolled by a few shareholders (in theUK, less than five) where the publicmay own a small number of the shares(NOTE: The US term is close corpora-tion or closed corporation.)closed /kləυzd/ adjective 1. not openfor business, or not doing business �The office is closed on Mondays. �These warehouses are usually closed tothe public. � All the banks are closed onChristmas Day. 2. restrictedclosed economy /kləυzd �kɒnəmi/noun a type of economy where tradeand financial dealings are tightly con-trolled by the governmentclosed-end mortgage /�kləυzdend �mɔ��d$/ noun a mortgage wherethe borrower cannot use the property assecurity for other borrowings, such as asecond mortgage, and cannot repay themortgage early eitherclosed fund /kləυzd �f�nd/ noun afund, such as an investment trust, wherethe investor buys shares in the trust andreceives dividends (as opposed to anopen-ended trust, such as a unit trust,where the investor buys units, and hisinvestment is used to purchase furthersecurities for the trust)closed market /kləυzd �mɑ�kt/noun a market where a supplier dealsonly with one agent or distributor anddoes not supply any others direct � Theysigned a closed-market agreement withan Egyptian company.close down /�kləυz �daυn/ verb 1. toshut a shop, factory or service for a longperiod or for ever � The company isclosing down its London office. � The

accident closed down the station for aperiod. 2. (of a shop, factory or service)to stop doing business or operating

‘…the best thing would be to have a few moreplants close down and bring supply more in linewith current demand’ [Fortune]

closed shop /kləυzd �ʃɒp/ noun asystem where a company agrees to em-ploy only union members for specificjobs � The union is asking the manage-ment to agree to a closed shop.

COMMENT: Closed shops are illegal inmany countries.

close-ended /�kləυs �endd/,closed-end /�kləυzd end/ adjective re-ferring to an investment which has afixed capital, such as an investment trustclosely held /�kləυsli �held/ adjec-tive referring to shares in a companywhich are controlled by only a fewshareholdersclose off /�kləυz �ɒf/ verb to come tothe end of an accounting period andmake up the profit and loss accountclose out /�kləυz �aυt/ verb to end afutures contract by selling the relevantcommodity or financial instrumentclosing /�kləυzŋ/ adjective 1. final orcoming at the end 2. at the end of an ac-counting period � At the end of thequarter the bookkeeper has to calculatethe closing balance. � noun 1. � theclosing of an account the act of stop-ping supply to a customer on credit 2.the action of finalising a dealclosing bell /�kləυzŋ bel/ noun abell which is rung when a Stock Ex-change closes for businessclosing bid /�kləυzŋ bd/ noun thelast bid at an auction, the bid which issuccessfulclosing costs /�kləυzŋ kɒsts/plural noun US the costs involved infinalising a deal, especially a mortgageor other bank loanclosing date /�kləυzŋ det/ nounthe last date � The closing date for ten-ders to be received is May 1st.closing-down sale /�kləυzŋ �daυn�sel/ noun the sale of goods when ashop is closing for everclosing out /�kləυzŋ �aυt/ noun theending of a futures contract by sellingthe relevant commodity

close company 65 closing out

closing price /�kləυzŋ pras/ nounthe price of a share at the end of a day’stradingclosing statement /�kləυzŋ�stetmənt/ noun a statement of allcharges and fees involved in a mort-gage, made just before the mortgage issignedclosing stock /�kləυzŋ stɒk/ nounthe details of stock at the end of an ac-counting period � At the end of themonth the closing stock was 10% higherthan at the end of the previous month.closing time /�kləυzŋ tam/ nounthe time when a shop or office stopsworkclosure /�kləυ$ə/ noun the act ofclosingCM abbreviation US compoundingmethodCMBS abbreviation commercial mort-gage-backed securitiesCME abbreviation Chicago MercantileExchangeCML abbreviation Council of Mort-gage LendersC/N abbreviation credit noteCo. abbreviation company � J. Smith& Co.co- /kəυ/ prefix working or actingtogetherc/o abbreviation care ofCOB abbreviation Commission desOpérations de Bourseco-creditor /kəυ �kredtə/ noun aperson who is a creditor of the samecompany as you areCOD, c.o.d. abbreviation cash ondeliverycode /kəυd/ noun 1. a system of signs,numbers or letters which mean some-thing 2. a set of rulescode of practice /�kəυd əv�pr�kts/ noun 1. rules drawn up by anassociation which the members mustfollow when doing business 2. the for-mally established ways in which mem-bers of a profession agree to work �Advertisers have agreed to abide by thecode of practice set out by the advertis-ing council.co-director /�kəυ da�rektə/ noun aperson who is a director of the samecompany as you

co-financing /�kəυ �fan�nsŋ/ nounthe act of arranging finance for a projectfrom a series of sourcescohabit /kəυ�h�bt/ verb to live to-gether when not married � A womanwho cohabits may lose out financially ifher partner dies.cohabitant /kəυ�h�btənt/ noun aperson who lives with anothercohabitation /kəυ�h�b�teʃ(ə)n/noun living together, when not married� Most public-sector pension schemesdo not recognise cohabitation.coin /kɔn/ noun a piece of metalmoney � He gave me two 10-cent coinsin my change. � I need some 10p coinsfor the telephone. � coins of the realmthe coins which are legal tender in theUKcoincident indicator /kəυ-�nsd(ə)ns �ndketə/ noun an indica-tor which coincides with economicactivity (as opposed to leading indica-tors and lagging indicators)co-insurance /�kəυ n�ʃυərəns/noun an insurance policy where the riskis shared among several insurersCOLA abbreviation US cost-of-livingallowancecold /kəυld/ adjective without beingpreparedcold call noun /kəυld �kɔ�l/ a tele-phone call or sales visit where the sales-person has no appointment and theclient is not an established customer �verb to make a cold callcold caller /kəυld �kɔ�lə/ noun asalesman who makes cold callscold calling /kəυld �kɔ�lŋ/ noun theact of making cold calls on potentialcustomers

‘…the board is considering the introduction of aset of common provisions on unsolicited calls toinvestors. The board is aiming to permit the coldcalling of customer agreements for the provisionof services relating to listed securities. Coldcalling would be allowed when the investor isnot a private investor’ [Accountancy]

cold start /kəυld �stɑ�t/ noun the actof beginning a new business or openinga new shop with no previous turnover tobase it oncollapse /kə�l�ps/ noun 1. a suddenfall in price � the collapse of the marketin silver � the collapse of the dollaron the foreign exchange markets 2. a

closing price 66 collapse

sudden failure � the collapse of thepay negotiations � Investors lost thou-sands of pounds in the collapse of thecompany. � verb 1. to fall suddenly �The market in silver collapsed. � Theyen collapsed on the foreign exchangemarkets. 2. to fail suddenly � The com-pany collapsed with £250,000 in debts.� Talks between management and un-ions collapsed last night.collar /�kɒlə/ noun 1. purchasing fixedminimum and maximum rates (‘floors’and ‘caps’) of interest, dividends or re-payments at the same time 2. �white-collar

COMMENT: If a company has money invariable rate investments and wants toprotect its income, it will buy a floor; in-stead of paying the premium for this pur-chase it will simultaneously sell a cap, soeffectively creating a ‘collar’ round itsinvestments.

collateral /kə�l�t(ə)rəl/ adjectiveused to provide a guarantee for a loan �noun security, such as negotiable instru-ments, shares or goods, used to providea guarantee for a loan

‘…examiners have come to inspect thecollateral that thrifts may use in borrowing fromthe Fed’ [Wall Street Journal]

collateralise /kə�l�t(ə)rəlaz/, col-lateralize verb to secure a debt bymeans of a collateralcollateral loan /kə�l�t(ə)rəl ləυn/noun a loan secured on assetscolleague /�kɒli��/ noun a personwho works in the same organisation asanothercollect /kə�lekt/ verb 1. to get moneywhich is owed to you by making theperson who owes it pay � to collect adebt to go and make someone pay adebt 2. to take things away from a place� We have to collect the stock from thewarehouse. � adverb, adjective refer-ring to a phone call which the person re-ceiving the call agrees to pay forcollect call /kə�lekt kɔ�l/ noun a tele-phone call which the person receivingthe call agrees to pay forcollectibles /kə�lektb(ə)lz/ pluralnoun items which people collect, e.g.stamps, playing cards or matchboxescollecting agency /kə�lektŋ�ed$ənsi/ noun an agency which col-

lects money owed to other companiesfor a commissioncollection /kə�lekʃən/ noun 1. the actof getting money together, or of makingsomeone pay money which is owed �tax collection or collection of tax � billsfor collection bills where payment isdue 2. the fetching of goods � The stockis in the warehouse awaiting collection.� to hand something in for collectionto leave something for someone to comeand collectcollection charge /kə�lekʃəntʃɑ�d$/, collection rate /kə�lekʃənret/ noun a charge for collectingsomethingcollections /kə�lekʃənz/ plural nounmoney which has been collectedcollector /kə�lektə/ noun a personwho makes people pay money which isowed � He works as a debt collector.colon /�kəυlɒn/ noun a unit of cur-rency used in Costa Rica and ElSalvadorcolumn /�kɒləm/ noun a series ofnumbers arranged one underneath theother � to add up a column of figures �Put the total at the bottom of thecolumn.combine /�kɒmban/ noun a largefinancial or commercial group � aGerman industrial combineCOMECON /�kɒmikɒn/ noun for-merly, an economic alliance of countriesin Eastern Europe, including Bulgaria,Czechoslovakia, Hungary, Poland,Romania and the USSR, and also in-cluding Cuba, Vietnam and Mongolia.Full form Council for Mutual Eco-nomic AssistanceCOMEX abbreviation New York Com-modity ExchangeCOMIT index noun the index ofprices on the Milan Stock Exchangecommerce /�kɒm%�s/ noun the buy-ing and selling of goods and servicescommercial /kə�m%�ʃ(ə)l/ adjective1. referring to business 2. profitable �not a commercial proposition notlikely to make a profitcommercial aircraft /kə�m%�ʃ(ə)l�eəkrɑ�ft/ noun an aircraft used to carrycargo or passengers for paymentcommercial attaché /kə�m%�ʃ(ə)lə�t�ʃe/ noun a diplomat whose job is

collar 67 commercial attaché

to promote the commercial interests ofhis or her countrycommercial bank /kə�m%�ʃ(ə)lb�ŋk/ noun a bank which offers bank-ing services to the public, as opposed toa merchant bankcommercial bill /kə�m%�ʃ(ə)l bl/noun a bill of exchange issued by acompany (a trade bill) or accepted by abank (a bank bill) (as opposed to Trea-sury bills which are issued by thegovernment)commercial directory /kə�m%�ʃ(ə)lda�rekt(ə)ri/ noun a book which listsall the businesses and business people ina towncommercial district /kə�m%�ʃ(ə)l�dstrkt/ noun the part of a town whereoffices and shops are locatedcommercial failure /kə�m%�ʃ(ə)l�feljə/ noun a financial collapse orbankruptcycommercialisation /kə�m%�ʃ(ə)la-�zeʃ(ə)n/, commercialization nounthe act of making something into a busi-ness run for profit � the commerciali-sation of museumscommercialise /kə�m%�ʃəlaz/,commercialize verb to make some-thing into a business � The holidaytown has become unpleasantlycommercialised.commercial law /kə�m%�ʃ(ə)l �lɔ�/noun the laws regarding businesscommercial lawyer /kə�m%�ʃ(ə)l�lɔ�jə/ noun a person who specialises incompany law or who advises companieson legal problemscommercially /kə�m%�ʃ(ə)li/ adverbin a business way � not commerciallyviable not likely to make a profitcommercial mortgage /kə-�m%�ʃ(ə)l �mɔ��d$/ noun a mortgageon commercial property, such as offices,shops and factoriescommercial mortgage-backedsecurities /kə�m%�ʃ(ə)l �mɔ��d$b�kt s�kjυərtiz/ plural noun shareswhich are backed by the security of acommercial mortgage. AbbreviationCMBScommercial paper /kə�m%�ʃ(ə)l�pepə/ noun an IOU issued by a com-pany to raise a short-term loan. Abbrevi-ation CP

commercial port /kə�m%�ʃ(ə)l �pɔ�t/noun a port which has only goods trafficand no passengerscommercial property /kə�m%�ʃ(ə)l�prɒpəti/ noun a building, or buildings,used as offices or shopscommercial value /kə�m%�ʃ(ə)l�v�lju�/ noun the value that a thingwould have if it were offered for sale �‘sample only – of no commercialvalue’ these goods are intended only asa sample and would not be worth any-thing if soldcommingling /kə�mŋ�lŋ/ noun USthe action of mixing financial informa-tion from different sources so that nosingle source can be identified, as whenthe difference between personal finan-cial information and company financialinformation is blurredcommission /kə�mʃ(ə)n/ noun 1.money paid to a salesperson or agent,usually a percentage of the sales made �She gets 10% commission on everythingshe sells. � He is paid on a commissionbasis. � he charges 10% commissionhe asks for 10% of sales as his payment2. a group of people officially appointedto examine some problem � He is thechairman of the government commis-sion on export subsidies. � The govern-ment has appointed a commission ofinquiry to look into the problems ofsmall exporters.commission agent /kə�mʃ(ə)n�ed$ənt/ noun an agent who is paid apercentage of salescommission broker /kə�mʃ(ə)n�brəυkə/ noun a stockbroker who worksfor a commissionCommission des Opérations deBourse noun the body which super-vises the French Stock Exchanges (theequivalent of the British SIB or theAmerican SEC). Abbreviation COBcommissioner /kə�mʃ(ə)nə/ nounan important official appointed by agovernment or other authority, or amember of a commissionCommissioner of Inland Reve-nue /kə�mʃ(ə)nə əv �nlənd�revenju�/ noun a person appointedofficially to supervise the collection oftaxes, including income tax, capitalgains tax and corporation tax, but notVAT

commercial bank 68 Commissioner of Inland Revenue

commission house /kə�mʃ(ə)nhaυs/ noun a firm which buys or sells(usually commodities) for clients, andcharges a commission for this serviceCommission of the EuropeanCommunity /kə�mʃ(ə)n əv ði��jυərəpi�ən kə�mju�nti/ noun same asEuropean Commissioncommission rep /kə�mʃ(ə)n rep/noun a representative who is not paid asalary but receives a commission onsalescommission sale /kə�mʃ(ə)n sel/noun a sale where the salesperson ispaid a commissioncommit /kə�mt/ verb � to commityourself to to guarantee something, es-pecially a loan issue, or to guarantee todo somethingcommitment /kə�mtmənt/ noun anagreement by an underwriting syndicateto underwrite a Note Issuance Facilitycommitment fee /kə�mtmənt fi�/noun a fee paid to a bank which has ar-ranged a line of credit which has notbeen fully usedcommodity /kə�mɒdti/ noun some-thing sold in very large quantities, espe-cially a raw material such as a metal or afood such as wheat

COMMENT: Commodities are eithertraded for immediate delivery (as ‘actuals’or ‘physicals’), or for delivery in the future(as ‘futures’). Commodity markets deal ei-ther in metals (aluminium, copper, lead,nickel, silver and zinc) or in ‘soft’ items,such as cocoa, coffee, sugar and oil.

commodity exchange /kə�mɒdtiks�tʃend$/ noun a place where com-modities are bought and soldcommodity futures /kə�mɒdti�fju�tʃəz/ plural noun commoditiestraded for delivery at a later date � Sil-ver rose 5% on the commodity futuresmarket yesterday.commodity market /kə�mɒdti�mɑ�kt/ noun a place where people buyand sell commoditiescommodity trader /kə�mɒdti�tredə/ noun a person whose businessis buying and selling commoditiescommon /�kɒmən/ adjective belong-ing to several different people or toeveryone

Common Agricultural Policy/�kɒmən ���r�k�ltʃ(ə)rəl �pɒlsi/noun an agreement between members ofthe EU to protect farmers in EU coun-tries by paying subsidies to fix theprices of farm produce. AbbreviationCAPcommon carrier /�kɒmən �k�riə/noun a firm which carries goods or pas-sengers, and which anyone can usecommon dividend /�kɒmən�dvdend/ noun a dividend payable oncommon stockcommon equity /�kɒmən �ekwti/noun ordinary shares in a companycommon law /�kɒmən �lɔ�/ noun alaw as laid down in decisions of courts,rather than by statutecommon ownership /�kɒmən�əυnəʃp/ noun a situation where abusiness is owned by the employeeswho work in itcommon pricing /�kɒmən �prasŋ/noun the illegal fixing of prices byseveral businesses so that they allcharge the same pricecommon seal /�kɒmən si�l/, com-pany’s seal /�k�mp(ə)niz �si�l/ noun ametal stamp for stamping documentswith the name of the company to showthat they have been approved officially� to attach the company’s seal to adocumentcommon stock /�kɒmən �stɒk/noun US ordinary shares in a company,giving shareholders a right to vote atmeetings and to receive dividendsCommunauté financièreafricaine full form of CFA

Communauté Française duPacifique full form of CFP

commutation factors /�kɒmjυ-�teʃ(ə)n �f�ktəz/ plural noun factorsused to calculate the amount of pensionto be given up in exchange for a lumpsumcommute /kə�mju�t/ verb 1. to travelto work from home each day � He com-mutes from the country to his office inthe centre of town. � She spends twohours a day commuting to and fromwork. � We have bought a house withincommuting distance of London. 2. tochange a right into cash

commission house 69 commute

‘Commuting is never business use. A trip towork is personal and not deductible. Andmaking a business phone call or holding abusiness meeting in your car while you drivewill not change that fact’ [Nation’s Business]

Companies Act /�k�mp(ə)niz �kt/noun an Act of Parliament which regu-lates the workings of companies, statingthe legal limits within which companiesmay do their businessCompanies Registration Office/�k�mp(ə)niz red$�streʃ(ə)n �ɒfs/noun an office of the Registrar of Com-panies, the official organisation wherethe records of companies must be de-posited, so that they can be inspected bythe public. Abbreviation CRO (NOTE:Also called Companies’ House.)company /�k�mp(ə)ni/ noun a busi-ness organisation, a group of people or-ganised to buy, sell or provide a service,usually for profit � to put a companyinto liquidation to close a company byselling its assets for cash � to set up acompany to start a company legally

COMMENT: A company can be incorpo-rated (with memorandum and articles ofassociation) as a private limited company,and adds the initials ‘Ltd’ after its name, oras a public limited company, when itsname must end in ‘Plc’. Unincorporatedcompanies are partnerships such as firmsof solicitors, architects, accountants, etc.,and they add the initials ‘Co.’ after theirname.

company car /�k�mp(ə)ni �kɑ�/noun a car which belongs to a companyand is lent to an employee to use forbusiness or other purposescompany director /�k�mp(ə)ni da-�rektə/ noun a person appointed by theshareholders to help run a companycompany doctor /�k�mp(ə)ni�dɒktə/ noun 1. a doctor who works fora company and looks after sick workers� The staff are all sent to see the com-pany doctor once a year. 2. a specialistbusinessperson who rescues businesseswhich are in difficultiescompany flat /�k�mp(ə)ni fl�t/noun a flat owned by a company andused by members of staff from time totime (NOTE: The US term is companyapartment.)company law /�k�mp(ə)ni �lɔ�/ nounlaws which refer to the way companieswork

company pension scheme/�k�mp(ə)ni �penʃən ski�m/ nounsame as occupational pensionscheme � He decided to join the com-pany’s pension scheme.company promoter /�k�mp(ə)niprə�məυtə/ noun a person who organ-ises the setting up of a new companycompany registrar /�k�mp(ə)ni�red$strɑ�/ noun the person who keepsthe share register of a companycompany secretary /�k�mp(ə)ni�sekrt(ə)ri/ noun a person who is re-sponsible for a company’s legal and fi-nancial affairscomparable /�kɒmp(ə)rəb(ə)l/ ad-jective which can be compared � Thetwo sets of figures are not comparable.� which is the nearest company com-parable to this one in size? which com-pany is most similar in size to this one?� on a comparable-store basis whencomparing similar stores belonging todifferent companiescompare with /kəm�peə wð/ verbto examine two things to see where theyare the same and where they differ �How do the sales this year compare withlast year’s? � Compared with the previ-ous month, last month was terrific.compensate /�kɒmpənset/ verb togive someone money to make up for aloss or injury � In this case we will com-pensate a manager for loss of commis-sion. � The company will compensatethe employee for the burns suffered inthe accident. (NOTE: You compensatesomeone for something.)compensating balance/�kɒmpənset �b�ləns/ noun theamount of money which a customer hasto keep in a bank account in order to getfree services from the bankcompensation /�kɒmpən�seʃ(ə)n/noun 1. � compensation for damagepayment for damage done � compensa-tion for loss of office payment to adirector who is asked to leave a com-pany before their contract ends �compensation for loss of earningspayment to someone who has stoppedearning money or who is not able toearn money 2. US a salarycompensation deal /�kɒmpən-�seʃ(ə)n di�l/ noun a deal where anexporter is paid (at least in part) in

Companies Act 70 compensation deal

goods from the country to which he isexportingcompensation fund /�kɒmpən-�seʃ(ə)n f�nd/ noun a fund operatedby the Stock Exchange to compensateinvestors for losses suffered when mem-bers of the Stock Exchange defaultcompensation package/�kɒmpən�seʃ(ə)n �p�kd$/ noun thesalary, pension and other benefits of-fered with a job

‘…golden parachutes are liberal compensationpackages given to executives leaving acompany’ [Publishers Weekly]

compensatory /�kɒmpən�set(ə)ri/adjective which compensates forsomethingcompensatory financing/�kɒmpənset(ə)ri �fan�nsŋ/ nounfinance from the IMF to help a countryin difficultycompete /kəm�pi�t/ verb � to com-pete with someone or with a companyto try to do better than another person oranother company � We have to competewith cheap imports from the Far East. �They were competing unsuccessfullywith local companies on their home ter-ritory. � the two companies are com-peting for a market share or for acontract each company is trying to wina larger part of the market, trying to winthe contractcompetence framework/�kɒmpt(ə)ns �fremw%�k/ noun theset of duties or tasks performed as partof a job with the standards which shouldbe achieved in these dutiescompeting /kəm�pi�tŋ/ adjectivewhich competes � competing firmsfirms which compete with each other �competing products products from dif-ferent companies which have the sameuse and are sold in the same markets atsimilar pricescompetition /�kɒmpə�tʃ(ə)n/ noun1. a situation where companies or indi-viduals are trying to do better than oth-ers, e.g. trying to win a larger share ofthe market, or to produce a better orcheaper product or to control the use ofresources � keen competition strongcompetition � We are facing keen com-petition from European manufacturers.2. � the competition companies whichare trying to compete with your product

� We have lowered our prices to beatthe competition. � The competition havebrought out a new range of products.

‘…profit margins in the industries most exposedto foreign competition are worse than usual’[Sunday Times]‘…competition is steadily increasing and couldaffect profit margins as the company tries toretain its market share’ [Citizen (Ottawa)]

competitive /kəm�pettv/ adjective1. involving competition 2. intended tocompete with others, usually by beingcheaper or better � competitive price alow price aimed to compete with a rivalproduct � competitive product a prod-uct made or priced to compete with ex-isting products

‘…the company blamed fiercely competitivemarket conditions in Europe for a £14moperating loss last year’ [Financial Times]

competitive bid /kəm�pettv �bd/noun a method of auctioning new secu-rities, where various underwriters offerthe stock at competing pricescompetitive devaluation /kəm-�pettv �di�v�lju�eʃ(ə)n/ noun adevaluation of a currency to make acountry’s goods more competitive onthe international marketscompetitively /kəm�pettvli/ ad-verb � competitively priced sold at alow price which competes with the priceof similar products from othercompaniescompetitiveness /kəm�pettvnəs/noun the fact of being competitive

‘…farmers are increasingly worried by thegrowing lack of competitiveness fortheir products on world markets’ [AustralianFinancial Review]

competitive pricing /kəm�pettv�prasŋ/ noun the practice of puttinglow prices on goods so as to competewith other productscompetitive products /kəm-�pettv �prɒd�kts/ plural noun prod-ucts made to compete with existingproductscompetitor /kəm�pettə/ noun a per-son or company that is competing withanother � Two German firms are ourmain competitors.

‘…sterling labour costs continue to rise between3% and 5% a year faster than in most of ourcompetitor countries’ [Sunday Times]

complete /kəm�pli�t/ verb to sign acontract for the sale of a property and to

compensation fund 71 complete

exchange it with the other party, somaking it legalcompletion /kəm�pli�ʃ(ə)n/ noun theact of finishing something � completionof a contract the act of signing a con-tract for the sale of a property wherebythe buyer pays and the seller transfersownership to the buyercompletion date /kəm�pli�ʃ(ə)ndet/ noun a date when something willbe finishedcompliance /kəm�plaəns/ nounagreement to do what is orderedcompliance department /kəm-�plaəns d�pɑ�tmənt/ noun a depart-ment in a stockbroking firm whichmakes sure that the Stock Exchangerules are followed and that confidential-ity is maintained in cases where thesame firm represents rival clientscompliance officer /kəm�plaəns�ɒfsə/ noun an employee of a financialorganisation whose job is to make surethat the organisation complies with theregulations governing its businesscomply /kəm�pla/ verb to agree to dowhat is ordered (NOTE: complies –complying – complied) � to complywith a court order to obey an ordergiven by a courtcomposite /�kɒmpəzt/ adjectivemade up a various parts joined togethercomposite index /�kɒmpəzt�ndeks/ noun an index made from vari-ous indicescomposition /�kɒmpə�zʃ(ə)n/ nounan agreement between a debtor andcreditors, where the debtor settles a debtby repaying only part of itcompound /kəm�paυnd/ verb 1. toagree with creditors to settle a debt bypaying part of what is owed 2. to add to� The interest is compounded daily.compounded /kəm�paυndd/ adjec-tive added togethercompounded annual return/kəm�paυndd ��njuəl r�t%�n/ noun anet return on an investment, calculatedafter adding interest and deducting taxcompounded interest rate /kəm-�paυndd �ntrəst ret/ noun an interestrate showing the effect of adding theinterest to the capitalcompounding method /kəm-�paυndŋ �meθəd/ noun the method

used when compounding interest (daily,monthly, quarterly or annually). Abbre-viation CMcompound interest /�kɒmpaυnd�ntrəst/ noun interest which is addedto the capital and then earns interestitselfcomprehensive insurance/�kɒmprhensv n�ʃυərəns/, compre-hensive policy /�kɒmprhensv�pɒlsi/ noun an insurance policy whichcovers you against all risks which arelikely to happencompromise /�kɒmprəmaz/ nounan agreement between two sides, whereeach side gives way a little � Manage-ment offered £5 an hour, the unionasked for £9, and a compromise of£7.50 was reached. � verb to reach anagreement by giving way a little � Heasked £15 for it, I offered £7 and wecompromised on £10.comptroller /kən�trəυlə/ noun a fi-nancial controllerComptroller of the Currency/kən� trəυlə əv θə �k�rənsi/ noun anofficial of the US government responsi-ble for the regulation of US nationalbanks (that is, banks which are membersof the Federal Reserve)compulsory /kəm�p�lsəri/ adjectivewhich is forced or orderedcompulsory liquidation /kəm-�p�lsəri �lkw�deʃ(ə)n/ noun liquida-tion which is ordered by a courtcompulsory purchase /kəm-�p�lsəri �p%�tʃs/ noun the purchase ofan annuity with the fund built up in apersonal pension schemecompulsory winding up /kəm-�p�lsəri �wandŋ ��p/ noun liquidationwhich is ordered by a courtcomputable /kəm�pju�təb(ə)l/ ad-jective which can be calculatedcomputation /�kɒmpjυ�teʃ(ə)n/noun a calculationcomputational error/�kɒmpjυteʃ(ə)nəl �erə/ noun amistake made in calculatingcompute /kəm�pju�t/ verb to calcu-late, to do calculationscomputer /kəm�pju�tə/ noun anelectronic machine which calculates orstores information and processes itautomatically

completion 72 computer

computer bureau /kəm�pju�tə�bjυərəυ/ noun an office which offersto do work on its computers for compa-nies which do not own their owncomputerscomputer department /kəm-�pju�tə d�pɑ�tmənt/ noun a depart-ment in a company which manages thecompany’s computerscomputer error /kəm�pju�tər �erə/noun a mistake made by a computercomputer file /kəm�pju�tə fal/noun a section of information on a com-puter, e.g. the payroll, list of addressesor list of customer accountscomputerise /kəm�pju�təraz/,computerize verb to change somethingfrom a manual system to one using com-puters � We have computerised all ourrecords. � Stock control is now com-pletely computerised.computerised /kəm�pju�tərazd/,computerized adjective carried out bycomputers � a computerised invoicingor filing systemcomputer language /kəm�pju�tə�l�ŋ�wd$/ noun a system of signs,letters and words used to instruct acomputercomputer listing /kəm�pju�tə�lstŋ/ noun a printout of a list of itemstaken from data stored in a computercomputer magazine /kəm�pju�təm��ə�zi�n/ noun a magazine with arti-cles on computers and programscomputer manager /kəm�pju�tə�m�nd$ə/ noun a person in charge of acomputer departmentcomputer model /kəm�pju�tə�mɒd(ə)l/ noun a system for calculatinginvestment opportunities, used by fundmanagers to see the right moment to buyor sellcomputer program /kəm�pju�tə�prəυ�r�m/ noun instructions to acomputer telling it to do a particularpiece of work � to buy a graphics pro-gram � The accounts department is run-ning a new payroll program.computer programmer /kəm-�pju�tə �prəυ�r�mə/ noun a personwho writes computer programscomputer programming /kəm-�pju�tə �prəυ�r�mŋ/ noun the workof writing programs for computers

computer-readable /kəm�pju�tə�ri�dəb(ə)l/ adjective which can be readand understood by a computer � com-puter-readable codescomputer run /kəm�pju�tə r�n/noun a period of work done by acomputercomputer services /kəm�pju�tə�s%�vsz/ plural noun work using acomputer, done by a computer bureaucomputer system /kəm�pju�tə�sstəm/ noun a set of programs, com-mands, etc., which run a computercomputer time /kəm�pju�tə tam/noun the time when a computer is beingused, paid for at an hourly ratecomputing /kəm�pju�tŋ/ noun theoperating of computerscomputing speed /kəm�pju�tŋspi�d/ noun the speed at which a com-puter calculatesconcealment of assets /kən-�si�lmənt əv ��sets/ noun the act ofhiding assets so that creditors do notknow they existconcentration /�kɒnsən�treʃ(ə)n/noun 1. the action of grouping a largenumber of things together. Also calledmarket concentration 2. the action ofa bank in lending too much to one singlesector of the economy (NOTE: It is gen-erally thought that banks should notmake more than 10% of their loans toa single sector.)concern /kən�s%�n/ noun a businessor company � sold as a going concernsold as an actively trading companyconcert /�kɒnsət/ noun � to act inconcert (of several people) to work to-gether to achieve an aimconcert party /�kɒnsət �pɑ�ti/ nounan arrangement where several people orcompanies work together in secret (usu-ally to acquire another company througha takeover bid)concession /kən�seʃ(ə)n/ noun 1.the right to use someone else’s propertyfor business purposes 2. the right to bethe only seller of a product in a place �She runs a jewellery concession in a de-partment store. 3. an allowance, such asa reduction of tax or priceconcessionaire /kən�seʃə�neə/noun a person or business that has the

computer bureau 73 concessionaire

right to be the only seller of a product ina placeconcessionary fare /kən-�seʃ(ə)nəri feə/ noun a reduced farefor some types of passenger (such aspensioners, students or employees of atransport company)conciliation /kən�sli�eʃ(ə)n/ nounthe practice of bringing together theparties in a dispute with an independentthird party, so that the dispute can besettled through a series of negotiationscondition /kən�dʃ(ə)n/ noun 1.something which has to be carried out aspart of a contract or which has to beagreed before a contract becomes valid� on condition that provided that �They were granted the lease on condi-tion that they paid the legal costs. 2. ageneral state or the general way of lifein a certain place � item sold in goodcondition � Working in unhealthy cond� The union has complained of the badworking conditions in the factory. �What was the condition of the car whenit was sold? � Adverse trading condi-tions affected our profits.conditional /kən�dʃ(ə)n(ə)l/ adjec-tive provided that specific conditions aretaken into account � to give a condi-tional acceptance to accept, providedthat specific things happen or that spe-cific terms applyconditionality /kən�dʃ(ə)�n�lti/noun the fact of having conditionsattachedconditional offer /kən�dʃ(ə)nəl�ɒfə/ noun an offer to buy provided thatspecific terms applyconditions of employment /kən-�dʃ(ə)nz əv m�plɔmənt/ plural nounthe terms of a contract of employmentconditions of sale /kən�dʃ(ə)nz əv�sel/ plural noun agreed ways in whicha sale takes place, e.g. discounts orcredit termscondominium /�kɒndə�mniəm/noun US a system of ownership, wherea person owns an apartment in a build-ing, together with a share of the land,stairs, roof, etc.conference proceedings/�kɒnf(ə)rəns prə�si�dŋz/ plural nouna written report of what has taken placeat a conference

confidential report /�kɒnfdenʃəlr�pɔ�t/ noun a secret document whichmust not be shown to other peopleconfirm /kən�f%�m/ verb 1. to sayagain that something agreed before iscorrect � to confirm a hotel reservationor a ticket or an agreement or a booking� They wrote to confirm the details ofthe contract. 2. to say that letters ofcredit from foreign purchasers areagreed, and that the sellers will be paidfor orders placedconfirmation /�kɒnfə�meʃ(ə)n/noun 1. the act of writing to confirm thedetails of a transaction or agreement 2.an agreement that orders from foreignpurchasers will be paidconfiscation /�kɒnfs�keʃ(ə)n/noun the act of taking away someone’spossessions as a punishmentconflict of interest /�kɒnflkt əv�ntrəst/ noun a situation where a per-son or firm may profit personally fromdecisions taken in an official capacityconglomerate /kən��lɒmərət/ nouna group of subsidiary companies linkedtogether and forming a group, eachmaking very different types of productsconsensus /kən�sensəs/ noun anopinion which most people agree on �management by consensus � the WallStreet consensus the general opinionamong analysts on Wall Streetconsequential /�kɒns�kwenʃəl/ ad-jective which follows as a consequenceconsequential loss/�kɒnskwenʃəl �lɒs/ noun loss whichoccurs as the result of some other loss.Also called indirect lossconservative /kən�s%�vətv/ adjec-tive careful, not overestimating � Hisforecast of expenditure was very conser-vative or He made a conservative fore-cast of expenditure. � a conservativeestimate a calculation which probablyunderestimates the final figure � Theirturnover has risen by at least 20% in thelast year, and that is probably a conser-vative estimate.

‘…we are calculating our next budget income atan oil price of $15 per barrel. We know it is aconservative projection, but we do not want tocome in for a shock should prices dive at anytime during the year’ [Lloyd’s List]

conservatively /kən�s%�vətvli/ ad-verb not overestimating � The total

concessionary fare 74 conservatively

sales are conservatively estimated at£2.3m.conservator /kən�s%�vətər/ nounUS an official appointed by a court tomanage a person’s affairsconsider /kən�sdə/ verb to think se-riously about something � to considerthe terms of a contract to examine acontract and discuss whether the termsare acceptableconsideration /kən�sdə�reʃ(ə)n/noun 1. serious thought � We are givingconsideration to moving the head officeto Scotland. 2. something valuable ex-changed as part of a contractconsign /kən�san/ verb � to consigngoods to someone to send goods tosomeone for them to use or to sell foryouconsignation /�kɒnsa�neʃ(ə)n/noun the act of consigningconsignee /�kɒnsa�ni�/ noun a per-son who receives goods from someonefor their own use or to sell for the senderconsignment /kən�sanmənt/ noun1. the sending of goods to someone whowill sell them for you � goods onconsignment goods kept for anothercompany to be sold on their behalf for acommission 2. a group of goods sent forsale � A consignment of goods has ar-rived. � We are expecting a consign-ment of cars from Japan.

‘…some of the most prominent stores aregradually moving away from the traditionalconsignment system, under whichmanufacturers agree to repurchase any unsoldgoods, and in return dictate prices and salesstrategies and even dispatch staff to sell theproducts’ [Nikkei Weekly]

consignment note /kən�sanməntnəυt/ noun a note saying that goodshave been sentconsignor /kən�sanə/ noun a personwho consigns goods to someone

COMMENT: The goods remain the prop-erty of the consignor until the consigneesells or pays for them.

consolidate /kən�sɒldet/ verb 1. toinclude the accounts of several subsid-iary companies as well as the holdingcompany in a single set of accounts 2. togroup goods together for shipping 3. toremain at the same level for some time,before moving up again

consolidated accounts /kən-�sɒldetd ə�kaυnts/ plural noun ac-counts where the financial position ofseveral different companies (i.e. aholding company and its subsidiaries)are recorded togetherconsolidated balance sheet/kən�sɒldetd �b�ləns ʃi�t/ noun abalance sheets of subsidiary companiesgrouped together into the balance sheetof the parent companyconsolidated fund /kən�sɒldetdf�nd/ noun money in the Exchequerwhich comes from tax revenues and isused to pay for government expenditureconsolidated shipment /kən-�sɒldetd �ʃpmənt/ noun goods fromdifferent companies grouped togetherinto a single shipmentconsolidated stock /kən-�sɒldetd �stɒk/ noun full form ofconsols

consolidation /kən�sɒl�deʃ(ə)n/noun 1. the grouping together ofgoods for shipping 2. taking profitsfrom speculative investments and in-vesting them safely in blue-chipcompaniesconsols /�kɒnsɒlz/ plural noun gov-ernment bonds which pay interest but donot have a maturity dateconsortium /kən�sɔ�tiəm/ noun agroup of companies which work to-gether � A consortium of Canadiancompanies or A Canadian consortiumhas tendered for the job. (NOTE: Theplural is consortia.)

‘…the consortium was one of only four biddersfor the £2 billion contract to run the lines, seenas potentially the most difficult contract becauseof the need for huge investment’ [Times]

constructive notice /kən�str�ktv�nəυts/ noun 1. knowledge which thelaw says a person has of something(whether or not the person actuallyhas it) because certain information isavailable to him if he makes reasonableinquiry 2. US a printed notice publishedin a newspaper to inform the public thatsomething has taken placeconsular invoice /�kɒnsjυlə�nvɔs/ noun an invoice stamped by aconsul to show that goods being im-ported have correct documentation andare being shipped legally

conservator 75 consular invoice

consult /kən�s�lt/ verb to ask an ex-pert for advice � We consulted our ac-countant about our tax.consultancy /kən�s�ltənsi/ noun theact of giving specialist advice � a con-sultancy firm � She offers a consultancyservice.consultant /kən�s�ltənt/ noun aspecialist who gives advice � an engi-neering consultant � a managementconsultant � a tax consultantconsulting /kən�s�ltŋ/ adjectivegiving specialist advice � a consultingengineerconsulting actuary /kən�s�ltŋ��ktjuəri/ noun an independent actuarywho advises large pension fundsconsumable goods /kən-�sju�məb(ə)l ��υdz/, consumables/kən�sju�məb(ə)lz/ plural noun goodswhich are bought by members of thepublic and not by companies. Alsocalled consumer goodsconsumer /kən�sju�mə/ noun a per-son or company that buys and usesgoods and services � Gas consumersare protesting at the increase in prices.� The factory is a heavy consumer ofwater.consumer bank /kən�sju�mə�b�ŋk/ noun same as retail bankconsumer council /kən�sju�mə�kaυns(ə)l/ noun a group representingthe interests of consumersconsumer credit /kən�sju�mə�kredt/ noun the credit given by shops,banks and other financial institutions toconsumers so that they can buy goods(NOTE: Lenders have to be licensed un-der the Consumer Credit Act, 1974.The US term is installment credit.)Consumer Credit Act, 1974 /kən-�sju�mə �kredt �kt/ noun an Act ofParliament which licenses lenders, andrequires them to state clearly the fullterms of loans which they make, includ-ing the APRConsumer Credit CounsellingService /kən�sju�mə �kredt�kaυnsəlŋ �s%�vs/ noun a servicewhich advises people about problemswith items bought on creditconsumer durables /kən�sju�mə�djυərəb(ə)lz/ plural noun items whichare bought and used by the public, e.g.

washing machines, refrigerators orcookersconsumer goods /kən�sju�mə��υdz/ plural noun same as consum-able goodsconsumer lease /kən�sju�mə �li�s/noun a lease for the use or purchase ofan item of equipment to be used in thehomeconsumer panel /kən�sju�mə�p�n(ə)l/ noun a group of consumerswho report on products they have usedso that the manufacturers can improvethem or use what the panel says aboutthem in advertisingConsumer Price Index /kən-�sju�mə �pras �ndeks/ noun anAmerican index showing how prices ofconsumer goods have risen over aperiod of time, used as a way of measur-ing inflation and the cost of living.Abbreviation CPI (NOTE: The UK termis retail prices index.)

‘…analysis of the consumer price index for thefirst half of the year shows that the rate ofinflation went down by about 12.9 per cent’[Business Times (Lagos)]

consumer protection /kən�sju�məprə�tekʃən/ noun the activity of pro-tecting consumers against unfair or ille-gal tradersconsumer research /kən�sju�mər�s%�tʃ/ noun research into why con-sumers buy goods and what goods theymay want to buyconsumer resistance /kən�sju�mər�zstəns/ noun a lack of interest byconsumers in buying a new product �The new product met no consumer resis-tance even though the price was high.consumer society /kən�sju�mə sə-�saəti/ noun a type of society whereconsumers are encouraged to buy goodsconsumer spending /kən�sju�mə�spendŋ/ noun spending by privatehouseholds on goods and services

‘…companies selling in the UK market areworried about reduced consumer spending as aconsequence of higher interest rates andinflation’ [Business]

contango /kən�t�ŋ�əυ/ noun 1. thepayment of interest by a stockbroker forpermission to carry payment for sharesfrom one account to the next (NOTE:Contango is no longer applied on theLondon Stock Exchange because ofthe rolling account system, but it is still

consult 76 contango

applied on some other exchanges.) 2.a cash price which is lower than the for-ward pricecontango day /kən�t�ŋ�əυ de/noun formerly, the day when the rate ofcontango payments was fixedcontested takeover /kən�testd�tekəυvə/ noun a takeover bid wherethe board of the target company doesnot recommend it to the shareholdersand tries to fight it. Also called hostilebidcontingency /kən�tnd$ənsi/ noun apossible state of emergency when deci-sions will have to be taken quickly � toadd on 10% to provide for contingen-cies to provide for further expenditurewhich may be incurredcontingency fund /kən�tnd$ənsif�nd/ noun money set aside in case it isneeded urgentlycontingency plan /kən�tnd$ənsipl�n/ noun a plan which will be putinto action if something happens whichno one expects to happencontingent expenses /kən-�tnd$ənt k�spensz/ plural noun ex-penses which will be incurred only ifsomething happenscontingent liability /kən�tnd$əntlaə�blti/ noun a liability which mayor may not occur, but for which provi-sion is made in a company’s accounts,as opposed to ‘provisions’, wheremoney is set aside for an anticipatedexpenditurecontingent policy /kən�tnd$(ə)nt�pɒlsi/ noun an insurance policy whichpays out only if something happens(such as if a person named in the policydies before the person due to benefit)contingent reserves /kən-�tnd$ənt r�z%�vz/ plural noun moneyset aside to cover unexpected paymentscontinuous compounding /kən-�tnjυəs kəm�paυndŋ/ noun a systemwhere interest is calculated all the timeand added to the principalcontra /�kɒntrə/ verb � to contra anentry to enter a similar amount in theopposite side of an accountcontra account /�kɒntrə ə�kaυnt/noun an account which offsets anotheraccount, e.g. where a company’s sup-plier is not only a creditor in that com-

pany’s books but also a debtor becauseit has purchased goods on creditcontract noun /�kɒntr�kt/ 1. a legalagreement between two parties � todraw up a contract � to draft a contract� to sign a contract � the contract isbinding on both parties both partiessigning the contract must do what isagreed � under contract bound by theterms of a contract � The firm is undercontract to deliver the goods by Novem-ber. � to void a contract to make acontract invalid 2. � by private con-tract by private legal agreement 3. anagreement for the supply of a service orgoods � to enter into a contract tosupply spare parts � to sign a contractfor £10,000 worth of spare parts � toput work out to contract to decide thatwork should be done by another com-pany on a contract, rather than by em-ploying members of staff to do it � toaward a contract to a company, toplace a contract with a company todecide that a company shall have thecontract to do work for you � to tenderfor a contract to put forward an es-timate of cost for work under contract �the company is in breach of contractthe company has failed to do what wasagreed in the contract 4. (Stock Ex-change) a deal to buy or sell shares,or an agreement to purchase options orfutures � verb /kən�tr�kt/ to agree todo some work on the basis of a legallybinding contract � to contract to supplyspare parts or to contract for the supplyof spare parts � the supply of spareparts was contracted out to Smith LtdSmith Ltd was given the contract forsupplying spare parts � to contract outof an agreement to withdraw from anagreement with the written permissionof the other party

COMMENT: A contract is an agreementbetween two or more parties which cre-ates legal obligations between them.Some contracts are made ‘under seal’,i.e. they are signed and sealed by the par-ties; most contracts are made orally or inwriting. The essential elements of a con-tract are: (a) that an offer made by oneparty should be accepted by the other; (b)consideration (i.e. payment of money); (c)the intention to create legal relations. Theterms of a contract may be express or im-plied. A breach of contract by one party

contango day 77 contract

entitles the other party to sue for damagesor to ask for something to be done.

contracted in /kən�tr�ktd �n/ ad-jective referring to a member of anoccupational or personal pensionscheme who is also a member of SERPScontracted out /kən�tr�ktd �aυt/adjective referring to a member of anoccupational or personal pensionscheme who is not a member of SERPScontract for deed /�kɒntr�kt fə�di�d/ noun US a written agreementshowing the terms of the sale of a prop-erty, where the title is only transferred tothe purchaser after he has made a statednumber of monthly paymentscontracting party /kən�tr�ktŋ�pɑ�ti/ noun a person or company thatsigns a contractcontract law /�kɒntr�kt lɔ�/ nounlaws relating to private agreementscontract note /�kɒntr�kt nəυt/noun a note showing that shares havebeen bought or sold but not yet paid for,also including the commissioncontract of employment/�kɒntr�kt əv m�plɔmənt/ noun acontract between an employer and anemployee stating all the conditions ofwork. Also called employmentcontractcontractor /kən�tr�ktə/ noun a per-son or company that does work accord-ing to a written agreementcontractual /kən�tr�ktʃuəl/ adjec-tive according to a contract � contrac-tual conditionscontractual liability /kən-�tr�ktʃuəl �laə�blti/ noun a legalresponsibility for something as stated ina contractcontractually /kən�tr�ktjuəli/ ad-verb according to a contract � Thecompany is contractually bound to payour expenses.contractual obligation /kən-�tr�ktʃuəl �ɒbl��eʃ(ə)n/ noun some-thing that a person is legally forced todo through having signed a contractto do � to fulfil your contractualobligations to do what you have agreedto do in a contract � he is under nocontractual obligation to buy he hassigned no agreement to buy

contractual savings /kən-�tr�ktʃuəl �sevŋs/ plural noun sav-ings in the form of regular paymentsinto long-term investments such as pen-sion schemescontract work /�kɒntr�kt w%�k/noun work done according to a writtenagreementcontra entry /�kɒntrə �entri/ nounan entry made in the opposite side of anaccount to make an earlier entry worth-less, i.e. a debit against a creditcontrarian /kɒn�treəriən/ adjectivegoing against a trendcontrarian research /kɒn�treəriənr�s%�tʃ/ noun research that shows youshould buy shares against the currenttrendcontrarian stockpicking /kɒn-�treəriən �stɒkpkŋ/ noun choosingstocks and shares against the trend ofthe marketcontribute /kən�trbju�t/ verb togive money or add to money � Weagreed to contribute 10% of the profits.� They had contributed to the pensionfund for 10 years.contribution /�kɒntr�bju�ʃ(ə)n/noun money paid to add to a sumcontribution of capital /kɒntr-�bju�ʃ(ə)n əv �k�pt(ə)l/ noun moneypaid to a company as additional capitalcontributor /kən�trbjυtə/ noun aperson who gives moneycontributor of capital /kən-�trbjυtər əv �k�pt(ə)l/ noun a personwho contributes capitalcontributory /kən�trbjυt(ə)ri/ ad-jective which helps to cause � Fallingexchange rates have been a contribu-tory factor in the company’s loss ofprofits.contributory pension scheme/kən�trbjυt(ə)ri �penʃən ski�m/ nouna scheme where the worker pays a pro-portion of his or her salary into the pen-sion fundcontrol /kən�trəυl/ noun 1. the poweror ability to direct something � Thecompany is under the control of threeshareholders. � Top management exer-cises tight control over spending. � togain control of a business to buy morethan 50% of the shares so that you candirect the business 2. the act of restrict-

contracted in 78 control

ing or checking something or makingsure that something is kept in check �under control kept in check � Ex-penses are kept under tight control. �The company is trying to bring its over-heads back under control. � out of con-trol not kept in check � Costs have gotout of control. � verb 1. � to control acompany to be able to direct the busi-ness of a company, because you ownmore than 50% of the shares � The busi-ness is controlled by a company basedin Luxembourg. � The company is con-trolled by the majority shareholder. 2.to make sure that something is kept incheck or is not allowed to develop �The government is fighting to control in-flation or to control the rise in the costof living. (NOTE: controlling –controlled)

control key /kən�trəυl ki�/ noun akey on a computer which works part ofa programcontrolled /kən�trəυld/ adjectiveruled or kept in checkcontrolled economy /kən�trəυld -�kɒnəmi/ noun an economy where mostbusiness activity is directed by ordersfrom the governmentcontroller /kən�trəυlə/ noun 1. a per-son who controls something (especiallythe finances of a company) 2. US thechief accountant in a companycontrolling interest /kən�trəυlŋ�ntrəst/ noun � to have a controllinginterest in a company to own morethan 50% of the shares so that you candirect how the company is runconvergence /kən�v%�d$əns/ noun1. a situation where the economic fac-tors applying in two countries movecloser together, e.g. when basic interestrates, or budget deficits become moreand more similar 2. a situation wherethe price of a commodity on the futuresmarket moves towards the spot price assettlement date approachesconversion /kən�v%�ʃ(ə)n/ noun 1. achange 2. the action of changing con-vertible loan stock into ordinary sharesconversion discount /kən-�v%�ʃ(ə)n �dskaυnt/, conversion pre-mium /kən�v%�ʃ(ə)n �pri�miəm/ nounthe difference between the price of con-vertible stock and the ordinary sharesinto which they are to be converted

(NOTE: If the convertible stock ischeaper, the difference is a conver-sion premium; if the stock is dearer,the difference is a conversion dis-count.)conversion issue /kən�v%�ʃ(ə)n�ʃu�/ noun an issue of new bonds(called ‘conversion bonds’) timed to co-incide with the date of maturity of olderbonds, with the intention of persuadinginvestors to reinvestconversion of funds /kən�v%�ʃ(ə)nəv �f�ndz/ noun the act of using moneywhich does not belong to you for a pur-pose for which it is not supposed to beusedconversion period /kən�v%�ʃ(ə)n�pəriəd/ noun a time during which con-vertible loan stock may be changed intoordinary sharesconversion price /kən�v%�ʃ(ə)npras/, conversion rate /kən�v%�ʃ(ə)nret/ noun 1. a price at which preferenceshares are converted into ordinaryshares 2. a rate at which a currency ischanged into a foreign currencyconversion value /kən�v%�ʃ(ə)n�v�lju�/ noun a value of convertiblestock, including the extra value of theordinary shares into which they may beconvertedconvert /kən�v%�t/ verb 1. to changemoney of one country for money of an-other � We converted our pounds intoSwiss francs. 2. � to convert funds toyour own use to use someone else’smoney for yourselfconvertibility /kən�v%�tə�bləti/noun the ability of a currency to be ex-changed for another easilyconvertible ARM /kən�v%�təb(ə)l eɑ�r �em/ noun US an adjustable ratemortgage that can converted to a fixedrate mortgageconvertible currency /kən-�v%�təb(ə)l �k�rənsi/ noun a currencywhich can easily be exchanged foranotherconvertible debenture /kən-�v%�təb(ə)l d�bentʃə/ noun a deben-ture or loan stock which can be ex-changed for ordinary shares at a laterdateconvertible loan stock /kən-�v%�təb(ə)l �ləυn stɒk/ noun money

control key 79 convertible loan stock

lent to a company which can be con-verted into shares at a later dateconvertibles /kən�v%�təb(ə)lz/ plu-ral noun corporate bonds or preferenceshares which can be converted into ordi-nary shares at a set price on set datesconveyance /kən�veəns/ noun alegal document which transfers a prop-erty from the seller to the buyerconveyancer /kən�veənsə/ noun aperson who draws up a conveyanceconveyancing /kən�veənsŋ/ nounthe work of legally transferring a prop-erty from a seller to a buyerCOO abbreviation chief operatingofficercooling-off period /�ku�lŋ �ɒf�pəriəd/ noun (during an industrialdispute) a period when negotiationshave to be carried on and no action canbe taken by either sidecooperative /kəυ�ɒp(ə)rətv/ adjec-tive where the profits are shared amongthe workerscooperative bank /kəυ�ɒp(ə)rətvb�ŋk/ noun a bank which is owned byits members, who deposit money or whoborrow money as loanscooperative society /kəυ�ɒp(ə)rətv sə�saəti/ noun an organi-sation where customers and workers arepartners and share the profitscopper /�kɒpə/ noun a metal which istraded on commodity exchanges such asthe London Metal Exchangecoproperty /kəυ�prɒpəti/ noun own-ership of property by two or more peo-ple togethercoproprietor /�kəυprə�praətə/ nouna person who owns a property with an-other person or several other peoplecopyright /�kɒpirat/ noun a legalright which protects the creative work ofwriters and artists and prevents othersfrom copying or using it withoutauthorisation, and which also applies tosuch things as company logos and brandnamescopyright notice /�kɒpirat �nəυts/noun a note in a book showing whoowns the copyright and the date ofownershipcordoba /�kɔ�dəbə/ noun a unit ofcurrency used in Nicaragua

corner /�kɔ�nə/ noun 1. place wheretwo streets or two walls join � The PostOffice is on the corner of the High Streetand London Road. 2. a situation whereone person or a group controls the sup-ply of a certain commodity � The syndi-cate tried to create a corner in the silvermarket. � verb � to corner the marketto own most or all of the supply of acommodity and so control the price �The syndicate tried to corner the marketin silver.corner shop /�kɔ�nə ʃɒp/ noun asmall privately owned general storecorp abbreviation US corporationcorporate /�kɔ�p(ə)rət/ adjective 1.referring to corporations or companies,or to a particular company as a whole 2.referring to business in general � corpo-rate America � corporate Britain

‘…the prime rate is the rate at which banks lendto their top corporate borrowers’ [Wall StreetJournal]‘…if corporate forecasts are met, sales willexceed $50 million next year’ [Citizen(Ottawa)]

corporate bond /�kɔ�p(ə)rət bɒnd/noun a loan stock officially issued by acompany to raise capital, usually againstthe security of some of its assets (NOTE:The company promises to pay a cer-tain amount of interest on a set dateevery year until the redemption date,when it repays the loan.)corporate finance /�kɔ�p(ə)rət�fan�ns/ noun the financial affairs ofcompaniescorporate governance/�kɔ�p(ə)rət ���v(ə)nəns/ noun a the-ory of the way companies should be runcorporate image /�kɔ�p(ə)rət�md$/ noun an idea which a companywould like the public to have of itcorporate loan /�kɔ�p(ə)rət �ləυn/noun a loan issued by a corporationcorporate name /�kɔ�p(ə)rət �nem/noun the name of a large corporationcorporate plan /�kɔ�p(ə)rət �pl�n/noun a plan for the future work of awhole companycorporate planning /�kɔ�p(ə)rət�pl�nŋ/ noun 1. the process of plan-ning the future work of a whole com-pany 2. planning the future financialstate of a group of companies

convertibles 80 corporate planning

corporate profits /�kɔ�p(ə)rət�prɒfts/ plural noun the profits of acorporation

‘…corporate profits for the first quarter showeda 4 per cent drop from last year’[Financial Times]

corporate raider /�kɔ�p(ə)rət�redə/ noun a person or companywhich buys a stake in another companybefore making a hostile takeover bidcorporate resolution /�kɔ�p(ə)rət�rezə�lu�ʃ(ə)n/ noun a document signedby the officers of a corporation, namingthose persons who can sign cheques,withdraw cash and have access to thecorporation’s bank accountcorporate secretary /�kɔ�p(ə)rət�sekrət(ə)ri/ noun a person responsiblefor the corporation’s legal and financialaffairscorporate spinoffs /�kɔ�p(ə)rət�spnɒfs/ plural noun small companieswhich have been split off from largerorganisationscorporate taxpayers /�kɔ�p(ə)rət�t�kspeəz/ plural noun companies thatpay taxcorporation /�kɔ�pə�reʃ(ə)n/ noun1. a large company 2. US a companywhich is incorporated in the UnitedStates 3. a municipal authority

COMMENT: A corporation is formed byregistration with the Registrar of Com-panies under the Companies Act (in thecase of public and private companies) orother Acts of Parliament (in the case ofbuilding societies and charities).

corporation income tax/�kɔ�pəreʃ(ə)n �nk�m t�ks/ noun atax on profits made by incorporatedcompaniescorporation loan /�kɔ�pə�reʃ(ə)nləυn/ noun a loan issued by a localauthoritycorporation tax /�kɔ�pə�reʃ(ə)nt�ks/ noun a tax on profits and capitalgains made by companies, calculatedbefore dividends are paid. AbbreviationCTcorrection /kə�rekʃən/ noun 1. an actof making something correct � Shemade some corrections to the text of thespeech. 2. a change in the valuation ofsomething that is thought to be overval-ued or undervalued which results in itsbeing more realistically valued

‘…there were fears in October that shares wereovervalued and bears were ready to enter themarket. This only proved to be a smallcorrection’ [Investors Chronicle]

correspondent /�kɒr�spɒndənt/noun a journalist who writes articles fora newspaper on specialist subjects � Heis the Paris correspondent of the DailyTelegraph.correspondent bank /�kɒr-�spɒndənt b�ŋk/ noun a bank whichacts as an agent for a foreign bankcost /kɒst/ noun 1. the amount ofmoney which has to be paid for some-thing � What is the cost of a first classticket to New York? � Computer costsare falling each year. � We cannot af-ford the cost of two cars. � to covercosts to produce enough money in salesto pay for the costs of production � Thesales revenue barely covers the costs ofadvertising or the advertising costs. � tosell at cost to sell at a price which is thesame as the cost of manufacture or thewholesale cost 2. � cost of borrowingSame as borrowing costs � verb 1. tohave as its price � How much does themachine cost? � This cloth costs £10 ametre. 2. � to cost a product to calcu-late how much money will be needed tomake a product, and so work out its sell-ing pricecost, insurance, and freight/�kɒst n�ʃυərəns ən �fret/ noun theestimate of a price, which includes thecost of the goods, the insurance, and thetransport charges. Abbreviation CIF,c.i.f.cost accountant /�kɒst ə�kaυntənt/noun an accountant who gives managersinformation about their business costscost accounting /�kɒst ə�kaυntŋ/noun the process of preparing specialaccounts of manufacturing and salescostscost analysis /�kɒst ə�n�ləss/noun the process of calculating in ad-vance what a new product will costcost-benefit analysis /kɒst�benft ə�n�ləss/ noun the processof comparing the costs and benefits ofvarious possible ways of using availableresources. Also called benefit-costanalysiscost centre /�kɒst �sentə/ noun 1. aperson or group whose costs can be

corporate profits 81 cost centre

itemised and to which costs can be allo-cated in accounts 2. a unit, a process, oran individual that provides a serviceneeded by another part of an organisa-tion and whose cost is therefore ac-cepted as an overhead of the businesscost-cutting /�kɒst �k�tŋ/ adjectiveintended to reduce costs � We havetaken out the second telephone line as acost-cutting exercise. � noun the pro-cess of reducing costs � As a result ofcost-cutting, we have had to make threesecretaries redundant.cost-effective /�kɒst �fektv/ adjec-tive which gives good value when com-pared with the original cost � We findadvertising in the Sunday newspapersvery cost-effective.cost-effectiveness /�kɒst -�fektvnəs/, cost efficiency noun thequality of being cost-effective � Can wecalculate the cost-effectiveness of airfreight against shipping by sea?cost factor /�kɒst �f�ktə/ noun theproblem of costcost-income ratio /�kɒst �nk�m�reʃiəυ/ noun a ratio between the costsinvolved in running a business and theincome the business producescosting /�kɒstŋ/ noun a calculationof the manufacturing costs, and so theselling price, of a product � Thecostings give us a retail price of $2.95.� We cannot do the costing until wehave details of all the productionexpenditure.costly /�kɒstl/ adjective costing a lotof money, or costing too much money �Defending the court case was a costlyprocess. � The mistakes weretime-consuming and costly.cost of capital /�kɒst əv �k�pt(ə)l/noun interest paid on the capital used inoperating a businesscost of living /�kɒst əv �lvŋ/ nounmoney which has to be paid for basicitems such as food, heating or rent � toallow for the cost of living in the salaryadjustmentscost-of-living allowance /�kɒst əv�lvŋ ə�laυəns/ noun an addition tonormal salary to cover increases in thecost of living (NOTE: The US term isCOLA.)

cost-of-living bonus /�kɒst əv�lvŋ �bəυnəs/ noun money paid tomeet an increase in the cost of livingcost-of-living increase /�kɒst əv�lvŋ �nkri�s/ noun an increase in sal-ary to allow it to keep up with the in-creased cost of livingcost-of-living index /�kɒst əv�lvŋ �ndeks/ noun a way of measur-ing the cost of living which is shown asa percentage increase on the figure forthe previous year. It is similar to theconsumer price index, but includes otheritems such as the interest on mortgages.cost of sales /�kɒst əv �selz/ nounall the costs of a product sold, includingmanufacturing costs and the staff costsof the production department, beforegeneral overheads are calculated. Alsocalled cost of goods soldcost plus /kɒst �pl�s/ noun a systemof calculating a price, by taking the costof production of goods or services andadding a percentage to cover the sup-plier’s overheads and margin � We arecharging for the work on a cost plusbasis.cost price /�kɒst pras/ noun a sell-ing price which is the same as the price,either the manufacturing price or thewholesale price, which the seller paidfor the itemcost-push inflation /�kɒst �pυʃ n-�fleʃ(ə)n/ noun inflation caused by in-creased wage demands and increasedraw materials costs, which lead tohigher prices, which in turn lead to fur-ther wage demands. Also called costinflationcosts /kɒsts/ plural noun the expensesinvolved in a court case � The judgeawarded costs to the defendant. � Costsof the case will be borne by the prosecu-tion. � to pay costs to pay the expensesof a court casecouncil /�kaυnsəl/ noun an officialgroup chosen to run something or to ad-vise on a problemCouncil of Mortgage Lenders/�kaυnsəl əv �mɔ��d$ �lendəz/ nounan organisation which represents com-panies which provide mortgage lendingto the residential marketcounselling /�kaυnsəlŋ/ noun theact of giving professional advice to oth-ers on personal matters � An office is

cost-cutting 82 counselling

being set up for counselling employeeswho have professional or social prob-lems. � Counselling helps employeesget accustomed to their new environ-ment, by offering advice and guidance.(NOTE: The US spelling is counsel-ing.)

count /kaυnt/ verb 1. to add figurestogether to make a total � He countedup the sales for the six months to De-cember. 2. to include something � Didyou count my trip to New York as part ofmy sales expenses?counter- /kaυntə/ prefix againstcounterbid /�kaυntəbd/ noun ahigher bid in reply to a previous bid �When I bid £20 she put in a counterbidof £25.counter-claim /�kaυntə klem/ nouna claim for damages made in reply to aprevious claim � Jones claimed £25,000in damages against Smith, and Smithentered a counter-claim of £50,000 forloss of office. � The union negotiatorsentered a counter-claim for a reductionin work hours. � verb to put in a coun-ter-claim for something � Jonesclaimed £25,000 in damages and Smithcounter-claimed £50,000 for loss ofoffice.counterfeit /�kaυntəft/ adjective re-ferring to false or imitation money �Shops in the area have been asked tolook out for counterfeit £20 notes. �verb to make imitation moneycounterfoil /�kaυntəfɔl/ noun a slipof paper kept after writing a cheque, aninvoice or a receipt, as a record of thedeal which has taken placecountermand /�kaυntə�mɑ�nd/ verbto say that an order must not be carriedout � to countermand an ordercounter-offer /�kaυntər �ɒfə/ noun ahigher or lower offer made in reply toanother offer � Smith Ltd made an offerof £1m for the property, and Blacks re-plied with a counter-offer of £1.4m.

‘…the company set about paring costs andimproving the design of its product. It came upwith a price cut of 14%, but its counter-offer –for an order that was to have provided 8% of itsworkload next year – was too late and tooexpensive’ [Wall Street Journal]

counterparty /�kaυntəpɑ�ti/ nounthe other party in a deal

counterpurchase /�kaυntəp%�tʃs/noun an international trading deal,where a company agrees to use moneyreceived on a sale to purchase goods inthe country where the sale was madecountersign /�kaυntəsan/ verb tosign a document which has already beensigned by someone else � All ourcheques have to be countersigned by thefinance director. � The sales directorcountersigns all my orders.countertrade /�kaυntətred/ noun atrade which does not involve paymentof money, but something such as a bar-ter or a buy-back deal insteadcountervailing duty /�kaυntəvelŋ�dju�ti/ noun a duty imposed by a coun-try on imported goods, where the priceof the goods includes a subsidy from thegovernment in the country of origin.Also called anti-dumping dutycounting house /�kaυntŋ haυs/noun a department dealing with cash(dated.)count on /�kaυnt ɒn/ verb to expectsomething to happen or to be given toyou � They are counting on getting agood response from the TV advertising.� Do not count on a bank loan to startyour business.country bank /�k�ntri �b�ŋk/ nounUS a bank based in a town which has nooffice of the Federal Reservecountry broker /�k�ntri �brəυkə/noun a broking firm which is not basedin London (NOTE: Country brokers areoften independently run and chargelower commission than larger Londonfirms.)coupon /�ku�pɒn/ noun 1. a piece ofpaper used in place of money 2. a pieceof paper which replaces an order form 3.a slip of paper attached to a governmentbond certificate which can be cashed toprovide the annual interestcoupon ad /�ku�pɒn �d/ noun an ad-vertisement with a form attached, whichyou cut out and return to the advertiserwith your name and address for furtherinformationcoupon security /�ku�pɒn s-�kjυərti/ noun a government securitywhich carries a coupon and pays inter-est, as opposed to one which pays no in-terest but is sold at a discount to its facevalue

count 83 coupon security

covenant /�k�vənənt/ noun a legalcontract � verb to agree to pay a sum ofmoney each year by contract � to cove-nant to pay £10 per annumcover /�k�və/ noun 1. the proportionof a target audience reached by advertis-ing 2. the protection guaranteed by in-surance � to operate without adequatecover to operate without being pro-tected by enough insurance � to ask foradditional cover to ask the insurancecompany to increase the amount forwhich you are insured 3. an amount ofmoney large enough to guarantee thatsomething can be paid for � Do youhave sufficient cover for this loan? �verb 1. to provide protection by insur-ance against something � The insurancecovers fire, theft and loss of work. � thedamage was covered by the insurancethe damage was of a kind that the insur-ance policy protects against or the insur-ance company paid enough money toenable the damage to be repaired � to befully covered to have insurance againstall risks 2. to have, earn or provideenough money to pay for something �We do not make enough sales to coverthe expense of running the shop. �Breakeven point is reached when salescover all costs. � to cover a position tohave enough money to be able to pay fora forward purchase 3. to ask for securityagainst a loan which you are making

‘…three export credit agencies have agreed toprovide cover for large projects in Nigeria’[Business Times (Lagos)]

coverage /�k�v(ə)rd$/ noun US pro-tection guaranteed by insurance � Doyou have coverage against fire damage?

‘…from a PR point of view it is easier to getpress coverage when you are selling an industryand not a brand’ [PR Week]

covered bear /�k�vəd beə/ noun abear who holds the stock which he orshe is sellingcovering letter /�k�vərŋ �letə/,covering note /�k�vərŋ �nəυt/ noun aletter or note sent with documents to saywhy you are sending them � He sent acovering letter with his curriculum vi-tae, explaining why he wanted the job. �The job advertisement asked for a CVand a covering letter.cover note /�k�və nəυt/ noun a letterfrom an insurance company giving de-

tails of an insurance policy andconfirming that the policy existsCP abbreviation commercial paperCPI abbreviation Consumer PriceIndexcrash /kr�ʃ/ noun a financial collapse� The financial crash caused severalbankruptcies. � He lost all his money inthe crash of 1929. � verb to collapse fi-nancially � The company crashed withdebts of over £1 million.crawling peg /�krɔ�lŋ pe�/ noun amethod of controlling exchange rates,allowing them to move up or downslowlycreate /kri�et/ verb to make some-thing new � By acquiring small unprof-itable companies he soon created alarge manufacturing group. � The gov-ernment scheme aims at creating newjobs for young people.

‘…he insisted that the tax advantages hedirected towards small businesses will helpcreate jobs and reduce the unemployment rate’[Toronto Star]

creation /kri�eʃ(ə)n/ noun the pro-cess of making somethingcreative /kri�etv/ noun someonewho works in the conceptual or artisticside of a business

‘…agencies are being called on to produce greatcreative work and at the same time deliver valuefor money’ [Marketing Week]

creative accountancy /kri�etv ə-�kaυntənsi/, creative accounting/kri�etv ə�kaυntŋ/ noun an adapta-tion of a company’s figures to presenta better picture than is correct, usuallyintended to make a company more at-tractive to a potential buyer, or done forsome other reason which may not bestrictly legal

COMMENT: Creative accounting is theterm used to cover a number of account-ing practices which, although legal, maybe used to mislead banks, investors andshareholders about the profitability or li-quidity of a business.

creative financing /kri�etv�fan�nsŋ/ noun finding methods offinancing a commercial project that aredifferent from the normal methods ofraising moneycredere /�kredəri/ noun � delcredere agent

covenant 84 credere

credit /�kredt/ noun 1. a period oftime allowed before a customer has topay a debt incurred for goods or services� to give someone six months’ credit �to sell on good credit terms � on creditwithout paying immediately � to live oncredit � We buy everything on sixtydays credit. � The company exists oncredit from its suppliers. 2. an amountentered in accounts to show a decreasein assets or expenses or an increase in li-abilities, revenue or capital. In accounts,credits are entered in the right-hand col-umn. � to enter £100 to someone’scredit � to pay in £100 to the credit ofMr Smith Compare debit � account incredit an account where the credits arehigher than the debits � verb to putmoney into someone’s account, or tonote money received in an account � tocredit an account with £100 or to credit£100 to an accountcredit account /�kredt ə�kaυnt/noun an account which a customer haswith a shop which allows him or her tobuy goods and pay for them latercredit balance /�kredt �b�ləns/noun a balance in an account showingthat more money has been received thanis owed � The account has a credit bal-ance of £100.credit bank /�kredt b�ŋk/ noun abank which lends moneycredit bureau /�kredt �bjυərəυ/noun same as credit-referenceagencycredit card /�kredt kɑ�d/ noun aplastic card which allows you to borrowmoney and to buy goods without payingfor them immediately (you pay thecredit card company at a later date)credit card holder /�kredt kɑ�d�həυldə/ noun 1. a person who has acredit card 2. a plastic wallet for keep-ing credit cardscredit card issuer /�kredt kɑ�d�ʃuə/ noun a bank or other financial in-stitution that issues credit cardscredit card sale /�kredt kɑ�d �sel/noun the act of selling where the buyeruses a credit card to paycredit column /�kredt �kɒləm/noun the right-hand column in accountsshowing money receivedcredit control /�kredt kən�trəυl/noun a check that customers pay on

time and do not owe more than theircredit limitcredit entry /�kredt �entri/ noun anentry on the credit side of an accountcredit facilities /�kredt fə�sltiz/plural noun an arrangement with a bankor supplier to have credit so as to buygoodscredit freeze /�kredt fri�z/ noun aperiod when lending by banks is re-stricted by the governmentcredit history /�kredt �hst(ə)ri/noun a record of how a potential bor-rower has repaid his or her previousdebtscredit limit /�kredt �lmt/ noun thelargest amount of money which a cus-tomer can borrow � he has exceededhis credit limit he has borrowed moremoney than he is allowed tocredit line /�kredt lan/ noun anoverdraft, the amount by which a personcan draw money from an account withno funds, with the agreement of thebank � to open a credit line or line ofcredit to make credit available tosomeonecredit note /�kredt nəυt/ noun anote showing that money is owed to acustomer � The company sent thewrong order and so had to issue a creditnote. Abbreviation C/Ncreditor /�kredtə/ noun a person orcompany that is owed money, i.e. acompany’s creditors are its liabilitiescreditor nation /�kredtə �neʃ(ə)n/noun a country which has lent money toanother. Compare debtor nationcreditors’ committee /�kredtəzkə�mti/ noun a group of creditors of acorporation which is being reorganisedunder Chapter 11, who meet officials ofthe corporation to discuss the progressof the reorganisationcreditors’ meeting /�kredtəz�mi�tŋ/ noun a meeting of all the peo-ple to whom an insolvent companyowes money, to decide how to obtainthe money owedcredit rating /�kredt �retŋ/ nounan amount which a credit agency feels acustomer will be able to repaycredit-reference agency /�kredt�refər(ə)ns �ed$ənsi/ noun a company

credit 85 credit-reference agency

used by businesses and banks to assessthe creditworthiness of peoplecredit references /�kredt�refər(ə)nsz/ plural noun details ofpersons, companies or banks who havegiven credit to a person or company inthe past, supplied as references whenopening a credit account with a newsuppliercredit refusal /�kredt r�fju�z(ə)l/noun a decision not to give someonecredit (NOTE: Anyone who has been re-fused credit can ask to see the rea-sons for the decision.)credit risk /�kredt rsk/ noun a riskthat a borrower may not be able to repaya loancredit scoring /�kredt �skɔ�rŋ/noun a calculation made when assessingthe creditworthiness of someone orsomethingcredit-shelter trust /�kredt �ʃeltə�tr�st/ noun money put in trust in orderto escape federal estate tax

COMMENT: This type of trust is wheresomeone leaves half his estate to his wifeand puts the other half into a trust. Afterhis death, his wife can continue to enjoythe income from the trust, and when shedies her estate and also the trust pass toher heirs tax free.

credit side /�kredt sad/ noun theright-hand column of accounts showingmoney receivedcredit squeeze /�kredt skwi�z/noun a period when lending by thebanks is restricted by the governmentCrédit Suisse Index /�kredt �swi�s�ndeks/ noun an index of prices on theZurich stock exchangecredit threshold /�kredt�θreʃhəυld/ noun a limit for credit al-lowed to a customercredit transfer /�kredt �tr�nsf%�/noun an act of moving money from oneaccount to anothercredit union /�kredt �ju�njən/ nouna group of people who pay in regulardeposits or subscriptions which earn in-terest and are used to make loans toother members of the groupcreditworthiness /�kredt-�w%�ðinəs/ noun the ability of a cus-tomer to pay for goods bought on credit

creditworthy /�kredtw%�ði/ adjec-tive having enough money to be able tobuy goods on credit � We will do somechecks on her to see if she iscreditworthy.criminal action /�krmn(ə)l��kʃən/ noun a court case brought bythe state against someone who ischarged with a crimecriminal law /�krmn(ə)l �lɔ�/ nounlaws relating to crimecriminal record /�krmn(ə)l�rekɔ�d/ noun same as police recordcrisis /�krass/ noun a serious eco-nomic situation where decisions have tobe taken rapidly � a banking crisis �The government stepped in to try to re-solve the international crisis. � With-drawals from the bank have reachedcrisis level. � to take crisis measures totake severe measures rapidly to stop acrisis developingcrisis management /�krass�m�nd$mənt/ noun 1. management ofa business or a country’s economy dur-ing a period of crisis 2. actions taken byan organisation to protect itself whenunexpected events or situations occurthat could threaten its success or contin-ued operation (NOTE: Crisis situationsmay result from external factors suchas the development of a new productby a competitor or changes in legisla-tion, or from internal factors such as aproduct failure or faulty deci-sion-making, and often involve theneed to make quick decisions on thebasis of uncertain or incomplete infor-mation.)CRO abbreviation Companies Regis-tration Officecrore /krɔ�/ noun (in India) ten million(NOTE: One crore equals 100 lakh.)

‘…the company clocked a sales turnover ofRs.7.09 crore and earned a profit after tax ofRs.10.39 lakh on an equity base of Rs.14 lakh’[Business India]‘…the turnover for the nine months endedDecember 31 registered a 6.26 per cent increaseto Rs. 87.91 crores from Rs. 82.73 crores in thecorresponding period last year’ [The Hindu]

cross /krɒs/ verb � to cross a chequeto write two lines across a cheque toshow that it has to be paid into a bank

COMMENT: Crossed cheques have thewords ‘A/C payee’ printed in the spacebetween the two vertical lines: all British

credit references 86 cross

cheques are now printed in this way. Thismeans that the cheque can only be paidinto a bank, and only into the account ofthe person whose name is written on it – itcannot be endorsed to a third party.

cross-border /krɒs �bɔ�də/ adjectivefrom one country to another, coveringseveral countriescross-border capital flows /�krɒs�bɔ�də �k�pt(ə)l fləυz/ plural nounmovements of capital from one countryto anothercross-border listing /�krɒs �bɔ�də�lstŋ/ noun the listing of a security onstock exchanges in more than onecountrycrossed cheque /�krɒst �tʃek/ nouna cheque with two lines across it show-ing that it can only be deposited at abank and not exchanged for cashcross holding /krɒs �həυldŋ/ nouna situation where two companies ownshares in each other in order to stop ei-ther from being taken over � The twocompanies have protected themselvesfrom takeover by a system of crossholdings.cross out /krɒs �aυt/ verb to put aline through something which has beenwritten � She crossed out £250 and putin £500.cross rate /�krɒs ret/ noun an ex-change rate between two currencies ex-pressed in a third currencycross-selling /krɒs �selŋ/ noun theact of selling insurance or other finan-cial services at the same time as amortgagecrowding out /�kraυdŋ �aυt/ noun asituation where there is little money forprivate companies to borrow, becausethe government’s borrowings are veryheavycrown /kraυn/ noun a word used inEnglish to refer to the units of currencyof several countries, such as the CzechRepublic, Denmark, Norway andSweden,crown jewels /kraυn �d$u�əlz/ pluralnoun the most valuable assets of a com-pany (the reason why other companiesmay want to make takeover bids)crude petroleum /kru�d pə-�trəυliəm/ noun raw petroleum whichhas not been processed

cum /k�m/ preposition withcum all /k�m �ɔ�l/ adverb includingall entitlementscum coupon /k�m �ku�pɒn/ adverbwith a coupon attached or before inter-est due on a security is paidcum dividend /k�m �dvdend/,cum div /k�m �dv/ adverb includingthe next dividend still to be paidcum rights /k�m �rats/ adverb soldwith the right to purchase new shares ina rights issuecumulative /�kju�mjυlətv/ adjec-tive added to regularly over a period oftimecumulative interest /�kju�mjυlətv�ntrəst/ noun the interest which isadded to the capital each yearcumulative preference share/�kju�mjυlətv �pref(ə)rəns ʃeə/, cu-mulative preferred stock/�kju�mjυlətv pr�f%�d �stɒk/ noun apreference share which will have thedividend paid at a later date even if thecompany is not able to pay a dividend inthe current yearcurb exchange /�k%�b ks�tʃend$/same as American Stock Exchangecurrency /�k�rəns/ noun 1. money incoins and notes which is used in a par-ticular country 2. a foreign currency, thecurrency of another country (NOTE: Cur-rency has no plural when it refers tothe money of one country: He was ar-rested trying to take currency out of thecountry.)

‘…today’s wide daily variations in exchangerates show the instability of a system based on asingle currency, namely the dollar’ [Economist]‘…the level of currency in circulation increasedto N4.9 billion in the month of August’[Business Times (Lagos)]

currency backing /�k�rənsi�b�kŋ/ noun gold or government secu-rities which maintain the strength of acurrencycurrency band /�k�rənsi b�nd/noun the exchange rate levels betweenwhich a currency is allowed to movewithout full devaluationcurrency basket /�k�rənsi �bɑ�skt/noun a group of currencies, each ofwhich is weighted, calculated togetheras a single unit against which anothercurrency can be measured

cross-border 87 currency basket

currency clause /�k�rənsi clɔ�z/noun a clause in a contract which avoidsproblems of payment caused by changesin exchange rates, by fixing the ex-change rate for the various transactionscovered by the contractcurrency conversion systems/�k�rənsi kən�v%�ʃ(ə)n �sstəmz/ plu-ral noun computer software used to con-vert accounts from one currency toanother automaticallycurrency futures /�k�rənsi�fju�tʃəz/ plural noun purchases of for-eign currency for delivery at a futuredatecurrency movements /�k�rənsi�mu�vmənts/ plural noun changes inexchange rates between countriescurrency note /�k�rənsi nəυt/ nouna bank notecurrency reserves /�k�rənsi r-�z%�vz/ noun foreign money held by agovernment to support its own currencyand to pay its debtscurrency swap /�k�rənsi swɒp/noun an agreement to use a certain cur-rency for payments under a contract inexchange for another currency (the twocompanies involved can each buy one ofthe currencies at a more favourable ratethan the other)current /�k�rənt/ adjective referringto the present time � the current roundof wage negotiations

‘…crude oil output plunged during the pastmonth and is likely to remain at its current levelfor the near future’ [Wall Street Journal]

current account /�k�rənt ə�kaυnt/noun 1. an account in an bank fromwhich the customer can withdrawmoney when he or she wants. Currentaccounts do not always pay interest. �to pay money into a current accountAlso called cheque account (NOTE:The US term is checking account.) 2.an account of the balance of paymentsof a country relating to the sale or pur-chase of raw materials, goods and invis-ibles � current account balance ofpayments a record of imports and ex-ports, payments for services, and invis-ibles, etc.

‘…a surplus in the current account is of suchvital importance to economists and currencytraders because the more Japanese goods thatare exported, the more dollars overseas

customers have to pay for these products. Thatpushes up the value of the yen’ [Nikkei Weekly]‘…customers’ current deposit and currentaccounts also rose to $655.31 million at the endof December’ [Hongkong Standard]

current assets /�k�rənt ��sets/ plu-ral noun the assets used by a companyin its ordinary work, e.g. materials, fin-ished goods, cash and monies due, andwhich are held for a short time onlycurrent balance /�k�rənt �b�ləns/noun the balance in an account at thestart of a day’s trading. Also called led-ger accountcurrent cost accounting /�k�rənt�kɒst ə�kaυntŋ/ noun a method ofaccounting which notes the cost ofreplacing assets at current prices, ratherthan valuing assets at their original cost.Abbreviation CCAcurrent liabilities /�k�rənt laə-�bltiz/ plural noun the debts which acompany has to pay within the next ac-counting period. In a company’s annualaccounts, these would be debts whichmust be paid within the year and areusually payments for goods or servicesreceived.current price /�k�rənt �pras/ nountoday’s pricecurrent rate of exchange /�k�rəntret əv ks�tʃend$/ noun today’s rateof exchangecurrent yield /�k�rənt �ji�ld/ noun adividend calculated as a percentage ofthe current price of a share on the stockmarketcurve /k%�v/ noun a line which is notstraight, e.g. a line on a graph � Thegraph shows an upward curve.cushion /�kυʃ(ə)n/ noun moneywhich allows a company to pay intereston its borrowings or to survive a loss �We have sums on deposit which are auseful cushion when cash flow is tight.custodial /k��stəυdiəl/ adjective re-ferring to custody, to holding valuableitems for someonecustodial account /k��stəυdiəl ə-�kaυnt/ noun an account in whichmoney is held for someone, usually achild, by a custodiancustodian /k��stəυdiən/ noun a per-son or company that looks after valuableitems for someone, in particular moneyor other assets belonging to a child

currency clause 88 custodian

custody /�k�stədi/ noun control of athing under the law, as when holdingvaluables or share certificates in safe-keeping for someonecustom /�k�stəm/ noun 1. the use of ashop by regular shoppers � to losesomeone’s custom to do somethingwhich makes a regular customer go toanother shop 2. a thing which is usuallydone � It is the custom of the book tradeto allow unlimited returns for credit. �the customs of the trade the generalway of working in a tradecustom-built /�k�stəm blt/ adjec-tive made specially for one customer �He drives a custom-built Rolls Royce.customer /�k�stəmə/ noun a personor company that buys goods � The shopwas full of customers. � Can you servethis customer first please? � She’s aregular customer of ours. (NOTE: Thecustomer may not be the consumer orend user of the product.)

‘…unless advertising and promotion is done inthe context of an overall customer orientation, itcannot seriously be thought of as marketing’[Quarterly Review of Marketing]

customer appeal /�k�stəmər ə�pi�l/noun what attracts customers to aproductcustomer identification file/�k�stəmər �adentf�keʃ(ə)n fal/noun US a computer record which abank keeps on each customer, contain-ing information about the customer’scredit rating. Abbreviation CIFcustomer service department/�k�stəmə �s%�vs d�pɑ�tmənt/ nouna department which deals with custom-ers and their complaints and orderscustomise /�k�stəmaz/, customizeverb to change something to fit the spe-cial needs of a customer � We usecustomised computer terminals.customs /�k�stəmz/ plural noun thegovernment department which organisesthe collection of taxes on imports, or anoffice of this department at a port or air-port � He was stopped by customs. �Her car was searched by customs. � togo through customs to pass through thearea of a port or airport where customsofficials examine goods � to take some-thing through customs to carry some-thing illegal through a customs areawithout declaring it � the crates had togo through a customs examination the

crates had to be examined by customsofficialscustoms barrier /�k�stəmz �b�riə/noun customs duty intended to maketrade more difficultcustoms broker /�k�stəmz�brəυkə/ noun a person or company thattakes goods through customs for a ship-ping companycustoms clearance /�k�stəmz�klərəns/ noun 1. the act of passinggoods through customs so that they canenter or leave the country 2. a documentgiven by customs to a shipper to showthat customs duty has been paid and thegoods can be shipped � to wait for cus-toms clearancecustoms declaration /�k�stəmzdeklə�reʃ(ə)n/ noun a statement show-ing goods being imported on which dutywill have to be paid � to fill in a cus-toms declaration formcustoms duty /�k�stəmz �dju�ti/noun a tax on goods imported into acountrycustoms entry point /�k�stəmz�entri pɔnt/ noun a place at a borderbetween two countries where goods aredeclared to customscustoms examination /�k�stəmz��z�m�neʃ(ə)n/ noun an inspectionof goods or baggage by customsofficialscustoms formalities /�k�stəmzfɔ��m�ltiz/ plural noun a declarationof goods by the shipper and examinationof them by customscustoms officer /�k�stəmz �ɒfsə/noun a person working for the Customsand Excise Departmentcustoms official /�k�stəmz ə-�fʃ(ə)l/ noun a person working for theCustoms and Excise Departmentcustoms seal /�k�stəmz si�l/ noun aseal attached by a customs officer to abox, to show that the contents have notpassed through customscustoms tariff /�k�stəmz �t�rf/noun a list of taxes to be paid on im-ported goodscustoms union /�k�stəmz �ju�njən/noun an agreement between severalcountries that goods can travel betweenthem, without paying duty, while goods

custody 89 customs union

from other countries have to pay specialdutiescut /k�t/ noun 1. the sudden loweringof a price, salary or the number of jobs� price cuts or cuts in prices � he tooka cut in salary, he took a salary cut heaccepted a lower salary 2. a share in apayment � She introduces new custom-ers and gets a cut of the sales rep’s com-mission. � verb 1. to lower somethingsuddenly � We are cutting prices on allour models. � We have taken out thesecond telephone line in order to try tocut costs. � to cut (back) production toreduce the quantity of products made 2.to reduce the number of something � tocut jobs to reduce the number of jobs bymaking people redundant � he cut hislosses he stopped doing somethingwhich was creating a loss

‘…state-owned banks cut their prime rates apercentage point to 11%’ [Wall Street Journal]‘…the US bank announced a cut in its primefrom 10½ per cent to 10 per cent’[Financial Times]

cutback /�k�tb�k/ noun a reduction� cutbacks in government spendingcut down on /�k�t �daυn ɒn/ verb toreduce suddenly the amount of some-thing used � The government is cuttingdown on welfare expenditure. � The of-fice is trying to cut down on electricityconsumption. � We have installed net-worked computers to cut down onpaperwork.cut in /�k�t �n/ verb � to cut someonein on a deal to give someone a share inthe profits of a deal (informal.)

cutoff date /�k�tɒf det/ noun a datewhen something is stopped, such as thefinal date for receiving applications forshares, or the date when the current trad-ing account ends and the next accountbeginscut-price /�k�t �pras/ adjective soldat a cheaper price than usual � He madehis money selling cut-price goods in thelocal market. � You can get cut-pricepetrol in some petrol stations near theborder.cut-price store /�k�t pras �stɔ�/noun a store selling cut-price goodscut-throat competition /�k�t θrəυt�kɒmpə�tʃ(ə)n/ noun sharp competi-tion which cuts prices and offers highdiscountsCWO abbreviation cash with ordercycle /�sak(ə)l/ noun a period of timeduring which something leaves its origi-nal position and then returns to itcyclical /�sklk(ə)l/ adjective whichhappens in cycles

‘…consumer cyclicals such as general retailersshould in theory suffer from rising interest rates.And food retailers in particular have cyclicalexposure without price power’[Investors Chronicle]

cyclical factors /�sklk(ə)l �f�ktəz/plural noun the way in which a tradecycle affects businessescyclical stocks /�sklk(ə)l �stɒks/plural noun shares in companies whichmove in a regular pattern (such as sharesin a turkey producer might rise in theperiod before Christmas)

cut 90 cyclical stocks

D

daily /�deli/ adjective done every day� daily interest, interest calculateddaily or on a daily basis a rate of inter-est calculated each day and added to theprincipaldaily consumption /�deli kən-�s�mpʃən/ noun an amount used eachdaydaily sales returns /�deli selz/plural noun reports of sales made eachdayDaimyo bond /�damjəυ bɒnd/ nouna Japanese bearer bond which can becleared through European clearinghousesdalasi /də�lɑ�si/ noun a unit of cur-rency used in the Gambiadamp down /�d�mp �daυn/ verb toreduce � to damp down demand for do-mestic consumption of oildanger money /�dend$ə �m�ni/noun extra money paid to employees indangerous jobs � The workforce hasstopped work and asked for dangermoney. � He decided to go to work onan oil rig because of the danger moneyoffered as an incentive.data /�detə/ noun information avail-able on computer, e.g. letters or figures� All important data on employees wasfed into the computer. � To calculatethe weekly wages, you need data onhours worked and rates of pay. (NOTE:takes a singular or plural verb)data acquisition /�detə �kw-�zʃ(ə)n/ noun the act of gathering in-formation about a subjectdata bank /�detə b�ŋk/ noun a storeof information in a computerdatabase /�detəbes/ noun a set ofdata stored in an organised way in acomputer system � We can extract thelists of potential customers from ourdatabase.

data capture /�detə �k�ptʃə/, dataentry /�detə �entri/ noun same as dataacquisition

data mining /�detə �manŋ/ nounthe use of advanced software to searchonline databases and identify statisticalpatterns or relationships in the data thatmay be commercially usefuldata processing /�detə�prəυsesŋ/ noun the act of selectingand examining data in a computer toproduce information in a special formDatastream /�detəstri�m/ noun adata system available online, giving in-formation about securities, prices, stockexchange transactions, etc.date /det/ noun 1. the number of theday, month and year � I have receivedyour letter of yesterday’s date. � date ofreceipt the date when something is re-ceived 2. � to date up to now � interestto date interest up to the present time �verb to put a date on a document � Thecheque was dated March 24th. � Youforgot to date the cheque. � to date acheque forward to put a later date thanthe present one on a chequedated /�detd/ adjective 1. with a datewritten on it � Thank you for your letterdated June 15th. 2. out-of-date � Theunions have criticised management forits dated ideas.date draft /�det drɑ�ft/ noun a draftwhich has a certain maturity datedate of bill /�det əv �bl/ noun a datewhen a bill will maturedate of record /�det əv �rekɔ�d/noun the date when a shareholder mustbe registered to qualify for a dividenddate stamp /�det st�mp/ noun astamp with rubber figures which can bemoved, used for marking the date ondocuments

dawn raid /dɔ�n �red/ noun a suddenplanned purchase of a large number of acompany’s shares at the beginning of aday’s trading (NOTE: Up to 15% of acompany’s shares may be bought inthis way, and the purchaser must waitfor seven days before purchasing anymore shares. Sometimes a dawn raidis the first step towards a takeover ofthe target company.)DAX index noun an index of prices onthe Frankfurt stock exchange. Full formDeutsche Aktien indexday /de/ noun 1. a period of 24 hours� There are thirty days in June. � Thefirst day of the month is a public holi-day. � days of grace the time given to adebtor to repay a loan, to pay theamount purchased using a credit card, orto pay an insurance premium � Let’ssend the cheque at once since we haveonly five days of grace left. � Becausethe shopowner has so little cash avail-able, we will have to allow him addi-tional days of grace. � three clear daysthree whole working days � to give tenclear days’ notice � Allow four cleardays for the cheque to be paid into thebank. 2. a period of work from morningto night � she took two days off she didnot come to work for two days � sheworks three days on, two days off sheworks for three days, then has two days’holiday � to work an eight-hour day tospend eight hours at work each day 3.one of the days of the weekday book /�de bυk/ noun a book withan account of sales and purchases madeeach dayday order /�de �ɔ�də/ noun an orderto a stockbroker to buy or sell on a cer-tain dayday release /de r�li�s/ noun an ar-rangement where a company allows aworker to go to college to study for oneor two days each week � The juniorsales manager is attending a day re-lease course.day shift /�de ʃft/ noun a shiftworked during the daylight hours (fromearly morning to late afternoon)day trader /�de �tredə/ noun a per-son who buys shares and sells themwithin the same dayday work /�de w%�k/ noun work doneduring a day

DCF abbreviation discounted cash flowdead /ded/ adjective not workingdead account /ded ə�kaυnt/ nounan account which is no longer useddead-cat bounce /�ded k�t �baυns/noun a slight rise in a share price after asharp fall, showing that some investorsare still interested in buying the share atthe lower price, although further sharpfalls will followdeadline /�dedlan/ noun the date bywhich something has to be done � tomeet a deadline to finish something intime � to miss a deadline to finishsomething later than it was planned �We’ve missed our October 1st deadline.deadlock /�dedlɒk/ noun a pointwhere two sides in a dispute cannotagree � The negotiations have reacheddeadlock or a deadlock. � to break adeadlock to find a way to start discus-sions again after being at a point whereno agreement was possible � verb to beunable to agree to continue negotiations� talks have been deadlocked for tendays after ten days the talks have notproduced any agreementdead loss /ded �lɒs/ noun a total loss� The car was written off as a dead loss.deal /di�l/ noun a business agreement,affair or contract � The sales directorset up a deal with a Russian bank. � Thedeal will be signed tomorrow. � Theydid a deal with an American airline. �to call off a deal to stop an agreement �When the chairman heard about thedeal he called it off. � verb 1. � to dealwith to organise something � Leave itto the filing clerk – he’ll deal with it. �to deal with an order to work to supplyan order 2. to buy and sell � to dealwith someone to do business withsomeone � to deal in leather or op-tions to buy and sell leather or options �he deals on the Stock Exchange hiswork involves buying and selling shareson the Stock Exchange for clientsdealer /�di�lə/ noun 1. a person whobuys and sells � a used-car dealer 2. aperson or firm that buys or sells on theirown account, not on behalf of clientsdealer bank /�di�lər b�ŋk/ noun abank which deals on the stock exchangeor which deals in government securitiesdealing /�di�lŋ/ noun 1. the businessof buying and selling on the Stock Ex-

dawn raid 92 dealing

change, commodity markets or currencymarkets � dealing for or within the ac-count buying shares and selling thesame shares during an account, whichmeans that the dealer has only to pay thedifference between the price of theshares bought and the price obtained forthem when they are sold 2. the businessof buying and selling goods � to havedealings with someone to do businesswith someonedealing floor /�di�lŋ flɔ�/ noun 1. anarea of a broking house where dealing insecurities is carried out by phone, usingmonitors to display current prices andstock exchange transactions 2. a part ofa stock exchange where dealers trade insecuritiesdealing-only broker /�di�lŋ �əυnli�brəυkə/ noun a broker who buys andsells shares for clients, but does not pro-vide any advice and does not manageportfolios (as opposed to a full-servicebroker)dear /də/ adjective expensive, costinga lot of money � Property is very dearin this area.dear money /�də �m�ni/ nounmoney which has to be borrowed at ahigh interest rate, and so restricts expen-diture by companies. Also called tightmoneydeath benefit /�deθ �benft/ nouninsurance benefit paid to the family ofsomeone who dies in an accident atworkdeath duty /�deθ �dju�ti/ noun US atax paid on the property left by a deadperson. Also called death tax (NOTE:The UK term is inheritance tax.)

death in service /�deθ n �s%�vs/noun an insurance benefit or pensionpaid when someone dies while em-ployed by a companydeath tax /�deθ t�ks/ noun same asdeath dutydebenture /d�bentʃə/ noun agree-ment to repay a debt with fixed interestusing the company’s assets as security �The bank holds a debenture on thecompany.

COMMENT: In the UK, debentures are al-ways secured on the company’s assets.In the USA, debenture bonds are notsecured.

debenture bond /d�bentʃə bɒnd/noun US 1. a certificate showing that adebenture has been issued 2. an unse-cured loandebenture capital /d�bentʃə�k�pt(ə)l/ noun a capital borrowed bya company, using its fixed assets assecuritydebenture holder /d�bentʃə�həυldə/ noun a person who holds a de-benture for money lentdebenture stock /d�bentʃə stɒk/noun a capital borrowed by a company,using its fixed assets as securitydebit /�debt/ noun an amount enteredin accounts which shows an increase inassets or expenses or a decrease in lia-bilities, revenue or capital. In accounts,debits are entered in the left-hand col-umn. Compare credit � verb � to debitan account to charge an account with acost � His account was debited with thesum of £25.debitable /�debtəb(ə)l/ adjectivewhich can be debiteddebit balance /�debt �b�ləns/ nouna balance in an account showing thatmore money is owed than has been re-ceived � Because of large payments tosuppliers, the account has a debit bal-ance of £1,000.debit bureau /�debt �bjυərəυ/ nouna centralised system for checking a cus-tomer’s credit rating when he or shepresents a cheque as paymentdebit card /�debt kɑ�d/ noun a plas-tic card, similar to a credit card, butwhich debits the holder’s account im-mediately through an EPOS systemdebit column /�debt �kɒləm/ nounthe left-hand column in accounts show-ing the money paid or owed to othersdebit entry /�debt �entri/ noun anentry on the debit side of an accountdebit interest /�debt �ntrəst/ nounan interest on debts, such as overdraftsdebit note /�debt nəυt/ noun a noteshowing that a customer owes money �We undercharged Mr Smith and had tosend him a debit note for the extraamount.debits and credits /�debts ən�kredts/ plural noun money which acompany owes and money it receives, orfigures which are entered in the ac-

dealing floor 93 debits and credits

counts to record increases or decreasesin assets, expenses, liabilities, revenueor capitaldebit side /�debt sad/ noun aleft-hand column of accounts showingmoney owed or paid to othersdebt /det/ noun money owed for goodsor services � The company stoppedtrading with debts of over £1 million. �to be in debt to owe money � he is indebt to the tune of £250,000 he owes£250,000 � to get into debt to start toborrow more money than you can payback � the company is out of debt thecompany does not owe money any more� to pay back a debt to pay all themoney owed � to pay off a debt to fin-ish paying money owed � to reschedulea debt to arrange for the repayment of adebt to be put off to a later date � to ser-vice a debt to pay interest on a debt �The company is having problems in ser-vicing its debts. � debts due moneyowed which is due for repaymentdebt collection /�det kə�lekʃən/noun the act of collecting money whichis oweddebt collection agency /�det kə-�lekʃən �ed$ənsi/ noun a companywhich collects debts for other compa-nies for a commissiondebt collector /�det kə�lektə/ noun aperson who collects debtsdebt-convertible bond /�det kən-�v%�tb(ə)l �bɒnd/ noun a floating-ratebond which can be converted to a fixedrate of interest. � droplock bonddebt counselling /�det �kaυnsəlŋ/noun the work of advising people whoare in debt of the best ways to arrangetheir finances so as to pay off their debtsdebt instrument /�det �nstrυmənt/noun a document by which someonepromises to repay a debt (NOTE: Debt in-struments include such things asIOUs, CDs and bank notes.)

debtor /�detə/ noun a person whoowes moneydebtor nation /�detə �neʃ(ə)n/ nouna country whose foreign debts are largerthan money owed to it by othercountries

‘…the United States is now a debtor nation forthe first time since 1914, owing more toforeigners than it is owed itself’ [Economist]

debtor side /�detə sad/ noun thedebit side of an accountdebt-service ratio /det �s%�vs�reʃiəυ/ noun the debts of a companyshown as a percentage of its equitydebt servicing /�det �s%�vsŋ/ nounthe payment of interest on a debtdebt swap /�det swɒp/ noun amethod of reducing exposure to along-term Third World debt by selling itat a discount to another bankdecelerate /di��seləret/ verb to slowdowndeciding factor /d�sadŋ �f�ktə/noun the most important factor whichinfluences a decision � A deciding fac-tor in marketing our range of sportsgoods in the country was the rising stan-dard of living there.decile /�desal/ noun one of a series ofnine figures below which one tenth orseveral tenths of the total falldecimal /�desm(ə)l/ noun � correctto three places of decimals correct tothree figures after the decimal point(e.g. 3.485)decimalisation /�desm(ə)la-�zeʃ(ə)n/, decimalization noun theprocess of changing to a decimal systemdecimalise /�desm(ə)laz/, deci-malize verb to change something to adecimal systemdecimal point /�desm(ə)l pɔnt/noun a dot which indicates the divisionbetween the whole unit and its smallerparts (such as 4.75)

COMMENT: The decimal point is used inthe UK and USA. In most European coun-tries a comma is used to indicate a deci-mal, so 4,75% in Germany means 4.75%in the UK

decimal system /�desm(ə)l�sstəm/ noun a system of mathematicsbased on the number 10decision-maker /d�s$(ə)n �mekə/noun a person who takes decisionsdeclaration /�deklə�reʃ(ə)n/ nounan official statementdeclaration of bankruptcy/�dekləreʃ(ə)n əv �b�ŋkr�ptsi/ nounan official statement that someone isbankrupt

debit side 94 declaration of bankruptcy

declaration of income/�dekləreʃ(ə)n əv �nk�m/ noun sameas income tax returndeclare /d�kleə/ verb to make an offi-cial statement of something, or an-nounce something to the public � todeclare someone bankrupt � The com-pany declared an interim dividend of10p per share. � to declare goods tocustoms to state that you are importinggoods which are liable to duty � Cus-toms officials asked him if he had any-thing to declare. � to declare aninterest to state in public that you ownshares in a company being discussed orthat you are related to someone who canbenefit from your contactsdeclared /d�kleəd/ adjective whichhas been made public or officially stateddeclared value /d�kleəd �v�lju�/noun the value of goods entered on acustoms declarationdecline /d�klan/ noun 1. a gradualfall � the decline in the value of the dol-lar � a decline in buying power � Thelast year has seen a decline in realwages. 2. the final stage in the life cycleof a product when the sales and profit-ability are falling off and the product isno longer worth investing in � verb tofall slowly or decrease � Shares de-clined in a weak market. � New job ap-plications have declined over the lastyear. � The economy declined duringthe last government. � The purchasingpower of the pound declined over thedecade.

‘Saudi oil production has declined by threequarters to around 2.5m barrels a day’[Economist]‘…this gives an average monthly decline of 2.15per cent during the period’ [Business Times(Lagos)]‘…share prices disclosed a weak tendency rightfrom the onset of business and declined further,showing losses over a broad front’ [The Hindu]

decrease noun /�di�kri�s/ a fall or re-duction � The decrease in the prices ofconsumer goods is reflected in the fall inthe cost of living. � Exports have regis-tered a decrease. � Sales show a 10%decrease on last year. � verb /d�kri�s/to fall or to become less � Imports aredecreasing. � The value of the poundhas decreased by 5%.deduct /d�d�kt/ verb to take moneyaway from a total � to deduct £3 from

the price � to deduct a sum for expenses� After deducting costs the gross mar-gin is only 23%. � Expenses are still tobe deducted. � tax deducted at sourcetax which is removed from a salary, in-terest payment or dividend payment onshares before the money is paiddeductible /d�d�ktb(ə)l/ adjectivewhich can be deducted � these ex-penses are not tax-deductible tax hasto be paid on these expensesdeduction /d�d�kʃən/ noun the re-moving of money from a total, or theamount of money removed from a total� Net salary is salary after deduction oftax and social security. � The deductionfrom his wages represented the cost ofrepairing the damage he had caused tothe machinery. � deductions from sal-ary or salary deductions or deduc-tions at source money which acompany removes from salaries to giveto the government as tax, national insur-ance contributions, etc.deed /di�d/ noun a legal document orwritten agreementdeed of assignment /�di�d əv ə-�sanmənt/ noun a document which le-gally transfers a property from a debtorto a creditordeed of covenant /�di�d əv�k�vənənt/ noun a signed legal agree-ment by which someone agrees to cer-tain conditions, such as the payment of acertain sum of money each yeardeed of partnership /�di�d əv�pɑ�tnəʃp/ noun agreement which setsup a partnershipdeed of transfer /�di�d əv�tr�nsf%�/ noun a document whichtransfers the ownership of sharesdeep discount /�di�p �dskaυnt/noun a very large discount

‘…when it needed to make its financial resultslook good, it shipped a lot of inventory. It didthis by offering deep discounts to distributors’[Forbes]

deep discounted bonds /di�p�dskaυntd �bɒndz/ plural noun Euro-bonds which are issued at a very largediscount but which do not produce anyinterestdeep discounted rights issue/di�p ds�kaυntd rats/ noun a rightsissue where the new shares are priced at

declaration of income 95 deep discounted rights issue

a very low price compared to their cur-rent market value

‘…as the group’s shares are already widely held,the listing will be via an introduction. It will alsobe accompanied by a deeply discounted £25mrights issue, leaving the company cash positive’[Sunday Times]

defalcation /�di�f�l�keʃ(ə)n/ nounan illegal use of money by someonewho is not the owner but who has beentrusted to look after itdefault /d�fɔ�lt/ noun 1. a failure tocarry out the terms of a contract, espe-cially failure to pay back a debt � in de-fault of payment with no paymentmade � the company is in default thecompany has failed to carry out theterms of the contract 2. � by default be-cause no one else will act � he waselected by default he was elected be-cause all the other candidates withdrew� verb to fail to carry out the terms of acontract, especially to fail to pay back adebt � There was a major financial cri-sis when the bank defaulted. � to de-fault on payments not to makepayments which are due under the termsof a contractdefaulter /d�fɔ�ltə/ noun a personwho defaultsdefeasance /d�fi�z(ə)ns/ noun aclause (in a collateral deed) which saysthat a contract or bond or recognisancewill be revoked if something happens orif some act is performeddefence /d�fens/ noun 1. the actionof protecting someone or somethingagainst attack � The merchant bank isorganising the company’s defenceagainst the takeover bid. 2. the act offighting a lawsuit on behalf of a defen-dant (NOTE: [all senses] The US spell-ing is defense.)defence counsel /d�fens �kaυnsəl/noun a lawyer who represents the defen-dant in a lawsuitdefence document /d�fens�dɒkjυmənt/ noun a document pub-lished by a company which is the sub-ject of a takeover bid, saying why thebid should be rejecteddefend /d�fend/ verb to fight to pro-tect someone or something that is beingattacked � The company is defending it-self against the takeover bid. � Theyhired the best lawyers to defend themagainst the tax authorities. � to defend

a lawsuit to appear in court to state yourcase when accused of somethingdefendant /d�fendənt/ noun a per-son against whom a legal action is takenor who is accused of doing something toharm someone (NOTE: The other side ina case is the claimant.)defended takeover /d�fendd�tekəυvə/ noun same as contestedtakeoverdefensive shares /d�fensv ʃeəz/,defensive stocks /d�fensv stɒks/plural noun shares which are not likelyto fall in value because they are in stablemarket sectors, and which are thereforebought as protection against potentiallosses in more speculative investmentsdefer /d�f%�/ verb to put back to a laterdate, to postpone � We will have to de-fer payment until January. � The deci-sion has been deferred until the nextmeeting. (NOTE: deferring – deferred)deferment /d�f%�mənt/ noun the actof leaving until a later date � defermentof payment � deferment of a decisiondeferral /d�f%�rəl/ noun a postpone-ment, a putting back to a later date � taxdeferraldeferred /d�f%�d/ adjective put backto a later datedeferred coupon note /d�f%�d�ku�pɒn nəυt/ noun a bond where theinterest is not paid immediately, butonly after a certain datedeferred creditor /d�f%�d �kredtə/noun a person who is owed money by abankrupt but who is paid only after allother creditorsdeferred equity /d�f%�d �ekwti/noun a share ownership at a later date(i.e. as part of convertible loan stock)deferred interest bond /d�f%�d�ntrəst bɒnd/ noun same as deferredcoupon notedeferred payment /d�f%�d�pemənt/ noun 1. money paid laterthan the agreed date 2. payment forgoods by instalments over a long perioddeferred shares /d�f%�d �ʃeəz/, de-ferred stock /d�f%�d �stɒk/ nounshares which receive a dividend only af-ter all other dividends have been paiddeferred tax /d�f%�d �t�ks/ noun atax which may become payable at somelater date

defalcation 96 deferred tax

deficiency /d�fʃ(ə)nsi/ noun a lackof something, or the amount by whichsomething, e.g. a sum of money, is lessthan it should be � There is a £10 defi-ciency in the petty cash. � to make up adeficiency to put money into an accountto balance itdeficit /�defst/ noun the amount bywhich spending is higher than income �the accounts show a deficit the ac-counts show a loss � to make good adeficit to put money into an account tobalance itdeficit financing /�defst�fan�nsŋ/ noun a type of financialplanning by a government in which itborrows money to cover the differencebetween its tax income and itsexpendituredefined /d�fand/ adjective with spe-cific aimsdefined benefit plan /d�fand�beneft pl�n/, defined contributionplan /d�fand �kɒntr�bju�ʃ(ə)n pl�n/noun US a pension plan set up by cor-porations for their employeesdeflate /di��flet/ verb � to deflate theeconomy to reduce activity in the econ-omy by cutting the supply of moneydeflation /di��fleʃ(ə)n/ noun a gen-eral reduction in economic activity as aresult of a reduced supply of money andcredit, leading to lower prices � The oilcrisis resulted in worldwide deflation.(NOTE: The opposite is inflation.)

‘…the reluctance of people to spend is one ofthe main reasons behind 26 consecutive monthsof price deflation, a key economic ill that has ledto price wars, depressed the profit margins ofstate enterprises and hit incomes among therural population’ [Financial Times]

deflationary /di��fleʃ(ə)n(ə)ri/ ad-jective which can cause deflation � Thegovernment has introduced some defla-tionary measures in the budget.

‘…the strong dollar’s deflationary impact onEuropean economies as national governmentspush up interest rates’ [Duns Business Month]

deflator /di��fletə/ noun the amountby which a country’s GNP is reduced totake inflation into accountdefray /d�fre/ verb to provide moneyto pay costs � The company agreed todefray the costs of the exhibition.degearing /di���ərŋ/ noun a reduc-tion in gearing, reducing a company’s

loan capital in relation to the value of itsordinary sharesdel credere /del �kredər/ noun anamount added to a charge to cover thepossibility of not being paiddel credere agent /del �kredər�ed$ənt/ noun an agent who receives ahigh commission because he or sheguarantees payment by customersdelinquency /d�lŋkwənsi/ nounUS the fact of being overdue in paymentof an account, an interest payment, etc.delinquent /d�lŋkwənt/ adjectiveUS referring to an account or paymentof tax which is overduedelist /di��lst/ verb to remove a com-pany from a Stock Exchange listing (aswhen a company is ‘taken private’ whenan individual investor buys all theshares)delisting /di��lstŋ/ noun an action ofremoving a company from a Stock Ex-change listingdeliver /d�lvə/ verb to transportgoods to a customer � goods deliveredfree or free delivered goods goodstransported to the customer’s address ata price which includes transport costs �goods delivered on board goods trans-ported free to the ship or plane but not tothe customer’s warehousedelivered price /d�lvəd pras/noun a price which includes packingand transportdelivery /d�lv(ə)ri/ noun 1. thetransporting of goods to a customer �allow 28 days for delivery � parcelsawaiting delivery � free delivery or de-livery free � a delivery date � Deliveryis not allowed for or is not included. �We have a pallet of parcels awaiting de-livery. � to take delivery of goods toaccept goods when they are delivered �We took delivery of the stock into ourwarehouse on the 25th. 2. a consign-ment of goods being delivered � Wetake in three deliveries a day. � Therewere four items missing in the last deliv-ery. 3. the transport of a commodity to apurchaser 4. the transfer of a bill of ex-change or other negotiable instrument tothe bank which is due to make paymentdelivery month /d�lv(ə)ri m�nθ/noun a month in a futures contract whenactual delivery will take place

deficiency 97 delivery month

delivery note /d�lv(ə)ri nəυt/ nouna list of goods being delivered, given tothe customer with the goodsdelivery of goods /d�lv(ə)ri əv��υdz/ noun the transport of goods to acustomer’s addressdelivery order /d�lv(ə)ri �ɔ�də/noun the instructions given by the cus-tomer to the person holding her goods,to tell her where and when to deliverthemdelivery service /d�lv(ə)ri �s%�vs/noun a transport service organised by asupplier or a shop to take goods tocustomersdelivery time /d�lv(ə)ri tam/ nounthe number of days before somethingwill be delivereddelivery van /d�lv(ə)ri v�n/ noun avan for delivering goods to customersdelta shares /�deltə ʃeəz/, delta se-curities /�deltə s�kjυərtiz/, deltastocks /�deltə stɒks/ noun shares inabout 120 companies listed on the Lon-don Stock Exchange, but not on theSEAQ system because they are veryrarely tradeddemand /d�mɑ�nd/ noun 1. an act ofasking for payment � payable on de-mand which must be paid when pay-ment is asked for 2. the need thatcustomers have for a product or their ea-gerness to buy it � There was an activedemand for oil shares on the stock mar-ket. � The factory had to cut productionwhen demand slackened. � The officecleaning company cannot keep up withthe demand for its services. � there isnot much demand for this item notmany people want to buy it � this bookis in great demand or there is a greatdemand for this book many peoplewant to buy it � to meet or fill a de-mand to supply what is needed � Thefactory had to increase production tomeet the extra demand. � verb to askfor something and expect to get it � Shedemanded a refund. � The suppliers aredemanding immediate payment of theiroutstanding invoices. � The shop stew-ards demanded an urgent meeting withthe managing director.

‘…spot prices are now relatively stable in therun-up to the winter’s peak demand’[Economist]‘…the demand for the company’s productsremained strong throughout the first six months

of the year with production and sales showingsignificant increases’ [Business Times (Lagos)]‘…growth in demand is still coming from theprivate rather than the public sector’[Lloyd’s List]

demand bill /d�mɑ�nd bl/ noun abill of exchange which must be paidwhen payment is asked fordemand deposit /d�mɑ�nd d-�pɒzt/ noun US money in a deposit ac-count which can be taken out when youwant it by writing a chequedemand draft /d�mɑ�nd drɑ�ft/noun a draft which is to be paidimmediatelydemand-led inflation /d�mɑ�ndled n�fleʃ(ə)n/, demand-pull infla-tion /d�mɑ�nd pυl n�fleʃ(ə)n/ nouninflation caused by rising demand whichcannot be metdemand note /d�mɑ�nd nəυt/ nouna promissory note which must be paidwhen it is presenteddemand price /d�mɑ�nd pras/noun the price at which a quantity ofgoods will be boughtdemerge /di��m%�d$/ verb to separatea company into several separate partsdemerger /di��m%�d$ə/ noun the sep-aration of a company into several sepa-rate parts (especially used of companieswhich have grown by acquisition)demise /d�maz/ noun 1. a death �On his demise the estate passed to hisdaughter. 2. the act of granting a prop-erty on a leasedemonetisation /di��m�nta-�zeʃ(ə)n/, demonetization noun theact of stopping a coin or note being usedas moneydemonetise /di��m�ntaz/, demon-etize verb to stop a coin or note beingused as moneydemurrage /d�m�rd$/ noun moneypaid to a customer when a shipment isdelayed at a port or by customsdemutualisation /di��mju�tjuəla-�zeʃ(ə)n/, demutualization noun ofthe process by which a mutual society,such as building society, becomes apublicly owned corporationdemutualise /di��mju�tjuəlaz/,demutualize verb to stop having mu-tual status, by becoming a Plc and

delivery note 98 demutualise

selling shares to the general public onthe stock marketdenomination /d�nɒm�neʃ(ə)n/noun a unit of money (on a coin, bank-note or stamp) � We collect coins of alldenominations for charity. � Small de-nomination notes are not oftencounterfeited.department /d�pɑ�tmənt/ noun 1. aspecialised section of a large organisa-tion � Trainee managers work for awhile in each department to get an ideaof the organisation as a whole. 2. a sec-tion of a large store selling one type ofproduct � You will find beds in the fur-niture department. 3. a section of theBritish government containing severalministriesdepartmental /�di�pɑ�t�ment(ə)l/adjective referring to a departmentdepartmental manager/�di�pɑ�tment(ə)l �m�nd$ə/ noun themanager of a departmentDepartment for Work and Pen-sions /d�pɑ�tmənt fə �w%�k ən�penʃənz/ noun a British governmentdepartment responsible for services topeople of working age, pensioners andfamilies. Abbreviation DWPDepartment of Trade and Indus-try /d�pɑ�tmənt əv tred ənd�ndəstri/ noun a British governmentdepartment which deals with areas suchas commerce, international trade and thestock exchange. Abbreviation DTIdepartment store /d�pɑ�tməntstɔ�/ noun a large store with separatesections for different types of goodsdeposit /d�pɒzt/ noun 1. moneyplaced in a bank for safe keeping or toearn interest � deposit at 7 days’ noticemoney deposited which you can with-draw by giving seven days’ notice 2.money given in advance so that thething which you want to buy will not besold to someone else � to pay a depositon a watch � to leave £10 as deposit �verb 1. to put documents somewhere forsafe keeping � to deposit shares with abank � We have deposited the deeds ofthe house with the bank. � He depositedhis will with his solicitor. 2. to putmoney into a bank account � to deposit£100 in a current accountdeposit account /d�pɒzt ə�kaυnt/noun a bank account which pays interest

but on which notice has to be given towithdraw moneydepositary /d�pɒztəri/ noun US aperson or corporation which can placemoney or documents for safekeepingwith a depository. � American Deposi-tary Receipt (NOTE: Do not confusewith depository.)deposit multiplier /d�pɒzt�m�ltplaə/ noun a factor by which abank can increase deposits as a ratio ofits reservesdepositor /d�pɒztə/ noun a personwho deposits money in a bank, buildingsociety, etc.depository /d�pɒzt(ə)ri/ noun aperson or company with whom moneyor documents can be deposited (NOTE:Do not confuse with depositary.)deposit slip /d�pɒzt slp/ noun apiece of paper stamped by the cashier toprove that you have paid money intoyour accountdeposit-taking institution /d-�pɒzt �tekŋ �nst�tju�ʃ(ə)n/, de-pository institution /d�pɒzt(ə)ri�nst�tju�ʃ(ə)n/ noun an institutionsuch as a building society, bank orfriendly society, which is licensed to re-ceive money on deposit from private in-dividuals and to pay interest on itdepreciate /d�pri�ʃiet/ verb 1. to re-duce the value of assets in accounts �We depreciate our company cars overthree years. 2. to lose value � a sharewhich has depreciated by 10% over theyear � The pound has depreciated by5% against the dollar.

‘…this involved reinvesting funds on itemswhich could be depreciated against income forthree years’ [Australian Financial Review]‘…buildings are depreciated at two per cent perannum on the estimated cost of construction’[Hongkong Standard]‘…the euro’s downward drift sparked alarmedreactions from the European Central Bankwhich has seen the new currency depreciate byalmost 15% since its launch’ [Times]

COMMENT: Various methods of depreci-ating assets are used, such as the‘straight line method’, where the asset isdepreciated at a constant percentage ofits cost each year and the ‘reducing bal-ance method’, where the asset is depreci-ated at a constant percentage which isapplied to the cost of the asset after each

denomination 99 depreciate

of the previous years’ depreciation hasbeen deducted.

depreciation /d�pri�ʃi�eʃ(ə)n/ noun1. a loss of value � a share which hasshown a depreciation of 10% over theyear � the depreciation of the poundagainst the dollar 2. a reduction invalue, writing down the capital value ofan asset over a period of time in a com-pany’s accountsdepreciation rate /d�pri�ʃi�eʃ(ə)nret/ noun the rate at which an asset isdepreciated each year in the companyaccountsdepress /d�pres/ verb to reducesomething � Reducing the money sup-ply has the effect of depressing demandfor consumer goods.depressed area /d�prest �eəriə/noun a part of a country suffering fromdepressiondepressed market /d�prest�mɑ�kt/ noun a market where there aremore goods than customersdepression /d�preʃ(ə)n/ noun a pe-riod of economic crisis with high unem-ployment and loss of trade � Thecountry entered a period of economicdepression.dept abbreviation departmentderegulate /di��re�jυlet/ verb toremove government controls from anindustry � The US government deregu-lated the banking sector in the 1980s.deregulation /di��re�jυ�leʃ(ə)n/noun the reduction of government con-trol over an industry � the deregulationof the airlines

‘…after the slump in receipts last year thatfollowed liner shipping deregulation in the US,carriers are probably still losing money on theirtransatlantic services. But with a possiblecontraction in capacity and healthy tradegrowth, this year has begun in a much morepromising fashion than last’ [Lloyd’s List]

derivative instruments /d�rvətv�nstrυmənts/, derivatives /d-�rvətvz/ plural noun any forms oftraded security, such as option contracts,which are derived from ordinary bondsand shares, exchange rates or stock mar-ket indices

COMMENT: Derivatives traded on stockexchanges or futures exchanges includeoptions on futures or exchange rates orinterest rate. While they can be seen as a

way of hedging against possible swings inexchange rates or commodity prices, theycan also produce huge losses if the mar-ket goes against the trader.

descending tops /d�sendŋ �tɒps/plural noun a term used by chartists torefer to a falling market, where eachpeak is lower than the one beforedesignate adjective /�dez�nət/ ap-pointed to a job but not yet working �the chairman designate (NOTE: alwaysfollows a noun) � verb /�dez�net/ toappoint someone to a postdesigner /d�zanə/ adjective expen-sive and fashionable � designer jeansdesk /desk/ noun 1. a writing table inan office, usually with drawers for sta-tionery � a desk diary � a desk drawer� a desk light � a three-drawer deskdesk with three drawers 2. a section of anewspaperdesk pad /�desk p�d/ noun a pad ofpaper kept on a desk for writing notesdestabilise /di��steblaz/,destabilize verb to make somethingless stable � The comments by the spec-ulators were aimed at destabilising thecountry’s economy.destabilising /di��steblazŋ/,destabilizing adjective which makessomething less stabledetailed account /�di�teld ə�kaυnt/noun an account which lists every itemdetermine /d�t%�mn/ verb to fix, ar-range or decide � to determine prices orquantities � conditions still to bedeterminedDeutsches Bundesbank noun theGerman central bank, based in FrankfurtDeutschmark /�dɔtʃmɑ�k/ noun aunit of currency used before the euro inGermany (NOTE: When used with a fig-ure, usually written DM before the fig-ure: DM250 (say ‘two hundred and fiftyDeutschmarks’).)devaluation /�di�v�lju�eʃ(ə)n/noun a reduction in the value of a cur-rency against other currencies � the de-valuation of the randdevalue /di��v�lju�/ verb to reducethe value of a currency against othercurrencies � The pound has been deval-ued by 7%.develop /d�veləp/ verb 1. to plan andproduce � to develop a new product 2.

depreciation 100 develop

to plan and build an area � to developan industrial estatedeveloping country /d�veləpŋ�k�ntri/, developing nation /d-�veləpŋ �neʃ(ə)n/ noun a countrywhich is not fully industrialiseddevelopment /d�veləpmənt/ nounthe work of planning the production of anew product and constructing the firstprototypes � We spend a great deal onresearch and development.development area /d�veləpmənt�eəriə/, developement zone /d-�veləpmənt zəυn/ noun an area whichhas been given special help from a gov-ernment to encourage businesses andfactories to be set up theredeviate /�di�viet/ verb to turn awayfrom what is normal or usualdeviation /�di�vi�eʃ(ə)n/ noun achange of route or strategy � Advertis-ing in the tabloids will mean a deviationfrom our normal marketing strategy.devise /d�vaz/ noun the act of givingfreehold land to someone in a will(NOTE: Giving of other types of propertyis a bequest).dial /�daəl/ verb to call a telephonenumber on a telephone � to dial a num-ber � to dial the operator � to dial di-rect to contact a phone number withoutasking the operator to do it for you �You can dial New York direct fromLondon.differential /�dfə�renʃəl/ adjectivewhich shows a difference � noun � toerode wage differentials to reduce dif-ferences in salary graduallydifferential tariffs /�dfərenʃəl�t�rfs/ plural noun different tariffs fordifferent classes of goods as, e.g., whenimports from certain countries are taxedmore heavily than similar imports fromother countriesdifficulty /�dfk(ə)lti/ noun a prob-lem, or trouble in doing something �They had a lot of difficulty selling intothe European market. � We have hadsome difficulties with customs over theexport of computers.digit /�dd$t/ noun a single number �a seven-digit phone numberdigital /�dd$t(ə)l/ adjective con-verted into a form that can be processedby computers and accurately reproduced

digital cash /�dd$t(ə)l �k�ʃ/ noun aform of digital money that can be usedlike physical cash to make online pur-chases and is anonymous because thereis no way of obtaining informationabout the buyer when it is useddigital money /�dd$t(ə)l �m�ni/noun a series of numbers that has avalue equivalent to a sum of money in aphysical currencydigital wallet /�dd$t(ə)l �wɒlt/noun a piece of personalised softwareon the hard drive of a user’s computerthat contains, in coded form, such itemsas credit card information, digital cash,a digital identity certificate, and stand-ardised shipping information, and canbe used when paying for a transactionelectronically. Also called e-purse,electronic purse

diligence /�dld$əns/ noun � duediligence

dilute /da�lu�t/ verb to make lessvaluable � Conversion of the loan stockwill dilute the assets per share by 5%.dilution levy /da�lu�ʃ(ə)n �levi/noun an extra charge levied by fundmanagers on investors buying or sellingunits in a fund, to offset any potential ef-fect on the value of the fund of suchsales or purchasesdilution of shareholding /da-�lu�ʃ(ə)n əv �ʃeəhəυldŋ/ noun a sit-uation where the ordinary share capitalof a company has been increased, butwithout an increase in the assets so thateach share is worth less than before(NOTE: The US term is stockholding.)

dime /dam/ noun US ten cent coin(informal.)

diminish /d�mnʃ/ verb to becomesmaller � Our share of the market hasdiminished over the last few years.dinar /�di�nɑ�/ noun a unit of currencyused in some European countries (in-cluding Bosnia, Macedonia and Serbia)and in many Arabic countries: Algeria,Bahrain, Iraq, Jordan, Kuwait, Libya,Tunisia, South Yemen and Sudandip /dp/ noun a sudden small fall �Last year saw a dip in the company’sperformance. � verb to fall in price �Shares dipped sharply in yesterday’strading. (NOTE: dipping – dipped)

developing country 101 dip

direct /da�rekt/ verb to manage or or-ganise something � He directs ourSouth-East Asian operations. � She wasdirecting the development unit until lastyear. � adjective straight or without in-terference � adverb with no third partyinvolved � We pay income tax direct tothe government. � to dial direct to con-tact a phone number yourself withoutasking the operator to do it for you �You can dial New York direct from Lon-don if you want.direct action /da�rekt ��kʃən/ nouna strike or go-slow by a workforcedirect business /da�rekt �bzns/noun insurance business transacted be-tween an insurance company and theperson taking out the insurance (withoutgoing through a broker)direct cost /da�rekt �kɒst/ noun acost which can be directly related to themaking of a product, i.e. its productioncostdirect debit /da�rekt �debt/ noun asystem where a customer allows a com-pany to charge costs to his or her bankaccount automatically and where theamount charged can be increased or de-creased with the agreement of the cus-tomer � I pay my electricity bill bydirect debit.direction /da�rekʃən/ noun 1. theprocess of organising or managing � Hetook over the direction of a multina-tional group. 2. � directions for use in-structions showing how to usesomethingdirective /da�rektv/ noun an orderor command to someone to do some-thing (especially an order from theCouncil of Ministers or Commission ofthe European Union referring to a par-ticular problem in certain countries) �The Commission issued a directive onfood prices.directly /da�rektl/ adverb with nothird party involved � We deal directlywith the manufacturer, without using awholesaler.direct mail /da�rekt �mel/ noun thepractice of selling a product by sendingpublicity material to possible buyersthrough the post � These calculatorsare only sold by direct mail. � The com-pany runs a successful direct-mailoperation.

‘…all of those who had used direct marketingtechniques had used direct mail, 79% had usedsome kind of telephone technique and 63% hadtried off-the-page selling’ [Precision marketing]

direct-mail advertising /da�rektmel ��dvətazŋ/ noun advertising bysending leaflets to people through thepostdirect mailing /da�rekt �melŋ/noun the sending of publicity materialby post to possible buyersdirector /da�rektə/ noun 1. a senioremployee appointed by the shareholdersto help run a company, who is usually incharge of one or other of its main func-tions, e.g. sales or human relations, andusually, but not always, a member of theboard of directors � directors’ salariessalaries of directors (which have to belisted in the company’s profit and lossaccount) 2. the person who is in chargeof a project, an official institute or otherorganisation � the director of the gov-ernment research institute � She wasappointed director of the tradeassociation.

‘…the research director will manage and directa team of business analysts reporting on thelatest developments in retail distributionthroughout the UK’ [Times]COMMENT: Directors are elected byshareholders at the AGM, though they areusually chosen by the chairman or chiefexecutive. A board will consist of a chair-man (who may be non-executive), a chiefexecutive or managing director and a se-ries of specialist directors in charge of var-ious activities of the company (such as afinance director, production director orsales director). The company secretarywill attend board meetings, but need notbe a director. Apart from the executive di-rectors, who are in fact employees of thecompany, there may be severalnon-executive directors, appointed eitherfor their expertise and contacts, or as rep-resentatives of important shareholderssuch as banks. The board of an Americancompany may be made up of a largenumber of non-executive directors andonly one or two executive officers. A Brit-ish board has more executive directors.

directorate /da�rekt(ə)rət/ noun agroup of directorsDirector of the Budget /da�rektəəv ðə �b�d$t/ noun the member of agovernment in charge of the preparationof the budget

direct 102 Director of the Budget

director’s fees /da�rektəz fi�z/ plu-ral noun money paid to a director for at-tendance at board meetingsdirectorship /da�rektəʃp/ noun thepost of director � She was offered a di-rectorship with Smith Ltd.

‘…what benefits does the executive derive fromhis directorship? In the first place compensationhas increased sharply in recent years’[Duns Business Month]

directors’ report /da�rektəz r-�pɔ�t/ noun the annual report from theboard of directors to the shareholdersdirectory /da�rekt(ə)ri/ noun 1. areference book containing informationon companies and their products 2. a listof people or businesses with informa-tion about their addresses and telephonenumbersdirect paper /da�rekt �pepə/ nouna financial paper sold direct to investorsdirect placement /da�rekt�plesmənt/ noun US the act of placingnew shares directly with purchasers,without going through a brokerdirect selling /da�rekt �selŋ/ nounthe work of selling a product direct tothe customer without going through ashopdirect sends /da�rekt �sendz/ pluralnoun US cheques sent directly to adrawee bank to be cleared, without go-ing through the clearing house processdirect share ownership /da�rekt�ʃeə �əυnəʃp/ noun the ownership ofshares by private individuals, buying orselling through brokers, and not viaholdings in unit trustsdirect tax /da�rekt �t�ks/ noun a tax(such as income tax) paid directly to thegovernmentdirect taxation /da�rekt t�k-�seʃ(ə)n/ noun a tax, such as incometax which is paid direct to the govern-ment � The government raises moremoney by direct taxation than byindirect.dirham /�dər�m/ noun a unit of cur-rency used in Morocco and the UnitedArab Emiratesdirty float /�d%�ti fləυt/ noun a pro-cess of floating a currency, where thegovernment intervenes to regulate theexchange rate

disallow /�dsə�laυ/ verb not to accepta claim for insurance � He claimed£2,000 for fire damage, but the claimwas disallowed.disburse /ds�b%�s/ verb to paymoneydisbursement /ds�b%�smənt/ nounthe payment of moneydischarge noun /�dstʃɑ�d$/ 1. a pay-ment of debt � in full discharge of adebt as full payment of a debt 2. � indischarge of her duties as directorwhile carrying out her duties as director� verb /ds�tʃɑ�d$/ 1. � to discharge abankrupt to release someone frombankruptcy because they have has paidtheir debts 2. to dismiss an employee �to discharge an employee for negligencedischarged bankrupt /ds�tʃɑ�d$d�b�ŋkr�pt/ noun a person who hasbeen released from being bankrupt be-cause his or her debts have been paiddischarge in bankruptcy/�dstʃɑ�d$ n �b�ŋkr�ptsi/, dis-charge of bankruptcy noun the legalprocess of being released from bank-ruptcy after paying your debtsdisciplinary procedure /ds-�plnəri prə�si�d$ə/ noun a way ofwarning a worker officially that he orshe is breaking rules or is working badlydisclaimer /ds�klemə/ noun a legalrefusal to accept responsibilitydisclose /ds�kləυz/ verb to tellsomething that was previously unknownto other people or secret � The bank hasno right to disclose details of my ac-count to the tax office.disclosure /ds�kləυ$ə/ noun the actof telling something that was previouslyunknown to other people or secret � Thedisclosure of the takeover bid raised theprice of the shares.disclosure of shareholding /ds-�kləυ$ər əv �ʃeəhəυldŋ/ noun the actof making public the fact that someoneowns shares in a companydiscount noun /�dskaυnt/ 1. the per-centage by which the seller reduces thefull price for the buyer � to give a dis-count on bulk purchases � to sell goodsat a discount or at a discount price tosell goods below the normal price �10% discount for cash or 10% cashdiscount you pay 10% less if you pay in

director’s fees 103 discount

cash 2. the amount by which somethingis sold for less than its value � currencyat a discount a currency whose futurevalue is less than its spot value � shareswhich stand at a discount shares whichare lower in price than their asset valueor their par value � verb /ds�kaυnt/ 1.to reduce prices to increase sales 2. � todiscount bills of exchange to buy orsell bills of exchange for less than thevalue written on them in order to cashthem later 3. to react to somethingwhich may happen in the future (such asa possible takeover bid or currency de-valuation) � shares are discounting arise in the dollar shares have risen inadvance of a rise in the dollar price

‘…pressure on the Federal Reserve Board toease monetary policy and possibly cut itsdiscount rate mounted yesterday’[Financial Times]

‘…banks refrained from quoting forwardUS/Hongkong dollar exchange rates aspremiums of 100 points replaced the previousday’s discounts of up to 50 points’[South China Morning Post]

discountable /�dskaυntəb(ə)l/ ad-jective which can be discounted � Thesebills are not discountable.discount broker /�dskaυnt�brəυkə/ noun a broker who charges alower commission than other brokersdiscounted cash flow/�dskaυntd �k�ʃ fləυ/ noun thecalculation of the forecast return oncapital investment by discounting futurecash flows from the investment, usuallyat a rate equivalent to the company’sminimum required rate of return. Abbre-viation DCF

COMMENT: Discounting is necessary be-cause it is generally accepted that moneyheld today is worth more than money tobe received in the future. The effect of dis-counting is to reduce future income or ex-penses to their ‘present value’. Oncediscounted, future cash flows can be com-pared directly with the initial cost of a cap-ital investment which is already stated inpresent value terms. If the present valueof income is greater than the presentvalue of costs, the investment can be saidto be worthwhile.

discounted value /�dskaυntd�v�lju�/ noun the difference betweenthe face value of a share and its lowermarket price

discounter /�dskaυntə/ noun a per-son or company that discounts bills orinvoices, or sells goods at a discount

‘…invoice discounting is an instant financeraiser. Cash is advanced by a factor ordiscounter against the value of invoices sent outby the client company. Debt collection is still inthe hands of the client company, which alsocontinues to run its own bought ledger’ [Times]‘…a 100,000 square-foot warehouse generatesten times the volume of a discount retailer; it canturn its inventory over 18 times a year, morethan triple a big discounter’s turnover’[Duns Business Month]

discount house /�dskaυnt haυs/noun 1. a financial company which spe-cialises in discounting bills 2. a shopwhich specialises in selling cheap goodsbought at a high discountdiscount market /�dskaυnt�mɑ�kt/ noun a market for borrowingand lending money, through Treasurybills, certificates of deposit, etc.discount points /�dskaυnt pɔnts/plural noun US extra payments made toa lender to produce a reduction in the in-terest rate on a mortgagediscount price /�dskaυnt pras/noun the full price less a discountdiscount rate /�dskaυnt ret/ nounthe percentage taken when a bank buysbillsdiscount store /�dskaυnt stɔ�/noun a shop which specialises in cheapgoods bought at a high discountdiscount window /�dskaυnt�wndəυ/ noun US a way in which theFederal Reserve grants loans to a bankby giving advances on the security ofTreasury bills which the bank is holdingdiscrepancy /d�skrepənsi/ noun asituation where figures are not correctdiscrete compounding /d�skri�t�kɒmpaυndŋ/ noun a system where in-terest is calculated at certain times, suchas the end of a month or year, and thenadded to the principaldiscretion /d�skreʃ(ə)n/ noun theability to decide what should be done �I leave it to your discretion I leave itfor you to decide what to do � at thediscretion of someone according towhat someone decides � Membership isat the discretion of the committee.discretionary /d�skreʃ(ə)n(ə)ri/ ad-jective which can be done if someonewants � the minister’s discretionary

discountable 104 discretionary

powers powers which the ministercould use if he or she thought it neces-sary � on a discretionary basis refer-ring to a way of managing a client’sfunds, where the fund manager uses hisdiscretion to do as he wants, without theclient giving him any specificinstructionsdiscretionary account /d-�skreʃ(ə)n(ə)ri ə�kaυnt/ noun a client’saccount with a stockbroker, where thebroker invests and sells at his own dis-cretion without the client needing togive him specific instructionsdiscretionary client /d-�skreʃ(ə)n(ə)ri �klaənt/ noun a clientwhose funds are managed on a discre-tionary basisdiscretionary funds /d-�skreʃ(ə)n(ə)ri f�ndz/ plural nounfunds managed on a discretionary basisdiseconomies of scale /ds-�kɒnəmiz əv �skel/ plural noun a situ-ation where increased production leadsto a higher production cost per unit oraverage production cost

COMMENT: After having increased pro-duction using the existing workforce andmachinery, giving economies of scale, thecompany finds that in order to increaseproduction further it has to employ moreworkers and buy more machinery, leadingto an increase in unit cost.

disenfranchise /�dsn�fr�ntʃaz/verb to take away someone’s right tovote � The company has tried to disen-franchise the ordinary shareholders.disequilibrium /�dsi�kw�lbriəm/noun an imbalance in the economywhen supply does not equal demand or acountry’s balance of payments is indeficitdishonour /ds�ɒnə/ verb (NOTE: TheUS spelling is dishonor.) � to dishon-our a bill not to pay a billdishonoured cheque /ds�ɒnəd�tʃek/ noun a cheque which the bankwill not pay because there is not enoughmoney in the account to pay itdisinflation /�dsn�fleʃ(ə)n/ nounthe process of reducing inflation in theeconomy by increasing tax and reducingthe level of money supply. Comparedeflation

disinflationary /�dsn-�fleʃ(ə)n(ə)ri/ adjective which reducesthe level of inflation in the economydisintermediation /ds�ntəmi�di-�eʃ(ə)n/ noun 1. the removal of any in-termediaries from a process so that, e.g.,lenders lend money direct to borrowers2. a situation where investors removetheir money from deposit accounts andinvest directly in the stock marketdisinvest /�dsn�vest/ verb 1. to re-duce investment by not replacing capitalassets when they wear out 2. to reduceinvestment by selling sharesdisinvestment /�dsn�vestmənt/noun 1. a reduction in capital assets bynot replacing them when they wear out2. a process of reducing investments byselling sharesdisk /dsk/ noun a round flat object,used to store information in computersdisk drive /�dsk drav/ noun a partof a computer which makes a disk spinround in order to read it or store infor-mation on itdiskette /d�sket/ noun a small floppydisk � He sent a diskette of the accountsto his accountant.dismissal procedures /ds�ms(ə)lprə�si�d$əz/ plural noun the correctway to dismiss someone, following therules in the contract of employmentdispatch note /d�sp�tʃ nəυt/ nouna note saying that goods have been sentdisposable personal income /d-�spəυzəb(ə)l �p%�s(ə)nəl �nk�m/ nounthe income left after tax and national in-surance have been deducted (also called‘take-home’ pay)disposal /d�spəυz(ə)l/ noun a sale �a disposal of securities � The companyhas started a systematic disposal of itsproperty portfolio. � lease or businessfor disposal a lease or business for saledispose /d�spəυz/ verb � to disposeof to get rid of or to sell, especiallycheaply � to dispose of excess stock �to dispose of excess equipment � He isplanning to dispose of his business inthe new year.disqualification /ds�kwɒlf-�keʃ(ə)n/ noun the act of makingsomeone disqualified to do something

‘Even ‘administrative offences’ can result indisqualification. A person may be disqualified

discretionary account 105 disqualification

for up to five years following persistentbreach of company legislation in terms offailing to file returns, accounts and otherdocuments with the Registrar’[Accountancy]

disqualify /ds�kwɒlfa/ verb tomake a person unqualified to do some-thing, such as to be a director of acompanydissolution /�dsə�lu�ʃ(ə)n/ noun theending (of a partnership)dissolve /d�zɒlv/ verb to bring to anend � to dissolve a partnershipdistrain /d�stren/ verb to seizegoods to pay for debtsdistress /d�stres/ noun the act of tak-ing someone’s goods to pay for debtsdistressed companies /d�strest�k�mp(ə)niz/ plural noun companieswhich may go into liquidation, andwhose shares are seen as a speculativebuydistress merchandise /d�stres�m%�tʃəndas/ noun US goods soldcheaply to pay a company’s debtsdistress sale /d�stres sel/ noun asale of goods at low prices to pay a com-pany’s debtsdistress securities fund /d�stress�kjυərtiz f�nd/ noun a type of fundwhich invests in companies where theremay be a major problemsdistributable profits /ds-�trbjυtəb(ə)l �prɒfts/ plural nounprofits which can be distributed toshareholders as dividends if the direc-tors decide to do sodistribute /d�strbju�t/ verb 1. toshare out dividends � Profits were dis-tributed among the shareholders. 2. tosend out goods from a manufacturer’swarehouse to retail shops � Smith Ltddistributes for several smaller compa-nies. � All orders are distributed fromour warehouse near Oxford.distributed profits /d�strbjυtd�prɒfts/ plural noun profits passed toshareholders in the form of dividendsdistribution /�dstr�bju�ʃ(ə)n/ nounthe act of sending goods from the manu-facturer to the wholesaler and then to re-tailers � Stock is held in a distributioncentre which deals with all order pro-cessing. � Distribution costs have risensharply over the last 18 months. � She

has several years’ experience as distri-bution manager.

‘British distribution companies are poised tocapture a major share of the European market’[Management News]

distribution channel /�dstr-�bju�ʃ(ə)n �tʃ�n(ə)l/ noun the route bywhich a product or service reaches acustomer after it leaves the producer orsupplier (NOTE: A distribution channelusually consists of a chain of interme-diaries, for example wholesalers andretailers, that is designed to movegoods from the point of production tothe point of consumption in the mostefficient way.)

‘…there is evidence that distribution channelsare supply driven’ [Quarterly Review ofMarketing]

distribution network /�dstr-�bju�ʃ(ə)n �netw%�k/ noun a series ofpoints or small warehouses from whichgoods are sent all over a countrydistribution of income/�dstrbju�ʃ(ə)n əv �nk�m/ nounpayment of dividends to shareholdersdistribution slip /�dstr�bju�ʃ(ə)nslp/ noun a paper attached to a docu-ment or to a magazine, showing all thepeople in an office who should read itdistributive trades /d�strbjυtv�tredz/ plural noun all businesses in-volved in the distribution of goodsdistributor /d�strbjυtə/ noun acompany which sells goods for anothercompany which makes them � a net-work of distributors a number of dis-tributors spread all over a countrydistributorship /d�strbjυtəʃp/noun the position of being a distributorfor a companydiversification /da�v%�sf-�keʃ(ə)n/ noun the process of addinganother quite different type of businessto a firm’s existing tradediversify /da�v%�sfa/ verb 1. to addnew types of business to existing ones �The company is planning to diversifyinto new products. 2. to invest in differ-ent types of shares or savings so as tospread the risk of lossdivest /da�vest/ verb � to divest one-self of something to get rid of some-thing � The company had divested itselfof its US interests.

disqualify 106 divest

divestiture /da�vesttʃə/ noun a saleof an assetdividend /�dvdend/ noun a percent-age of profits paid to shareholders � toraise or increase the dividend to payout a higher dividend than in the previ-ous year � to maintain the dividend tokeep the same dividend as in the previ-ous year � to omit or pass the dividendto pay no dividend � the dividend iscovered four times the profits are fourtimes the dividend � the shares arequoted ex dividend the share price doesnot include the right to the dividend

COMMENT: The dividend is calculated asthe proportion of profits a company canpay to its shareholders after tax has beenpaid, always keeping some of the profitback to reinvest in the company’s prod-ucts or activities. Large companies usu-ally pay dividends twice a year, once afterthe half-year results have been declared(called the ‘interim dividend’) and gainwhen the final results are published.

dividend check /�dvdend tʃek/noun US same as dividend warrantdividend cover /�dvdend �k�və/noun the ratio of profits to dividendspaid to shareholdersdividend forecast /�dvdend�fɔ�kɑ�st/ noun a forecast of the amountof an expected dividenddividend payout /�dvdend�peaυt/ noun money paid as dividendsto shareholdersdividend per share /�dvdend pə�ʃeə/ noun an amount of money paid asdividend for each share helddividend warrant /�dvdend�wɒrənt/ noun a cheque which makespayment of a dividend (NOTE: The USterm is dividend check.)

dividend yield /�dvdend ji�ld/noun a dividend expressed as a percent-age of the current market price of asharedivisional headquarters /d-�v$(ə)nəl �hed�kwɔ�tez/ plural nounthe main office of a division of acompanyDJIA abbreviation Dow Jones Indus-trial AverageDM, D-mark abbreviationDeutschmark

dock dues /�dɒk dju�z/ plural noun apayment which a ship makes to the har-bour authorities for the right to use theharbourdoctor /�dɒktə/ noun a specialist whoexamines people when they are sick tosee how they can be made well � Thestaff are all sent to see the companydoctor once a year.document /�dɒkjυmənt/ noun a pa-per, especially an official paper, withwritten information on it � He left a fileof documents in the taxi. � She asked tosee the documents relating to the case.documentary /�dɒkjυ�ment(ə)ri/adjective in the form of documents �documentary evidencedocumentary credit/�dɒkjυment(ə)ri �kredt/ noun acredit document used in export trade,when a bank issues a letter of creditagainst shipping documentsdocumentary proof/�dɒkjυment(ə)ri �pru�f/ noun a proofin the form of a documentdocumentation /�dɒkjυmen-�teʃ(ə)n/ noun all the documents refer-ring to something � Please send me thecomplete documentation concerning thesale.document image processing/�dɒkjυmənt �md$ �prəυsesŋ/ nouna system for scanning documents, suchas cheques, and storing the informationin a retrieval systemdocuments against acceptance/�dɒkjυmənts ə�enst ək�septəns/noun 1. an arrangement whereby buyersreceive documents for the goods ontheir acceptance of a bill of exchange 2.a note to a bank to instruct it that docu-ments attached to a draft should begiven to the drawee when the draft isaccepteddo-it-yourself conveyancing/�du� t jə�self kən�veənsŋ/ noun thedrawing up of a legal conveyance by theperson selling a property, without thehelp of a lawyerdole queue /�dəυl kju�/ noun a lineof people waiting to collect their unem-ployment money (NOTE: The US term isdole line.)dollar /�dɒlə/ noun a unit of currencyused in the US and other countries, such

divestiture 107 dollar

as Australia, Bahamas, Barbados, Ber-muda, Brunei, Canada, Fiji, Hong Kong,Jamaica, New Zealand, Singapore andZimbabwe � The US dollar rose 2%. �They sent a cheque for fifty Canadiandollars. � It costs six Australian dollars.� a five dollar bill a banknote for fivedollarsdollar area /�dɒlər �eəriə/ noun anarea of the world where the US dollar isthe main trading currencydollar balances /�dɒlə �b�lənsz/noun a country’s trade balances ex-pressed in US dollarsdollar cost averaging /�dɒlər kɒst��v(ə)rd$ŋ/ noun � pound-costaveragingdollar crisis /�dɒlə �krass/ noun afall in the exchange rate for the USdollardollar gap /�dɒlə ��p/ noun a situa-tion where the supply of US dollars isnot enough to satisfy the demand forthem from overseas buyersdollar millionaire /�dɒlə �mljə�neə/noun a person who has more than onemillion dollarsdollar stocks /�dɒlə stɒkz/ pluralnoun shares in US companiesdomestic /də�mestk/ adjective re-ferring to the home market or the marketof the country where the business is sit-uated � Domestic sales have increasedover the last six months.domestic consumption /də-�mestk kən�s�mpʃən/ noun use in thehome country � Domestic consumptionof oil has fallen sharply.domestic demand deflator /də-�mestk d�mɑ�nd di��fletə/ noun afigure used to remove inflation from thecalculations for domestic demanddomestic interest rates /də-�mestk �ntrəst rets/ plural noun in-terest rates payable in a local currencyon deposits placed in that countrydomestic market /də�mestk�mɑ�kt/ noun the market in the countrywhere a company is based � They pro-duce goods for the domestic market.domestic production /də�mestkprə�d�kʃən/ noun the production ofgoods for use in the home countrydomestic sales /də�mestk selz/noun sales in the home country

domicile /�dɒmsal/ noun the coun-try where someone lives or where acompany’s office is registered � verb �she is domiciled in Denmark she livesin Denmark officially � bills domiciledin France bills of exchange which haveto be paid in Francedong /dɒŋ/ noun a unit of currencyused in Vietnamdonor /�dəυnə/ noun a person whogives, especially someone who givesmoneydoor-to-door salesman /�dɔ� tədɔ� �selzmən/ noun a man who goesfrom one house to the next, asking peo-ple to buy somethingdormant /�dɔ�mənt/ adjective no lon-ger active or no longer operatingdormant account /�dɔ�mənt ə-�kaυnt/ noun 1. a bank account whichis no longer used 2. a past customer whois no longer buying � Let’s re-establishcontact with some of our dormant ac-counts. � All the old reports on dormantaccounts have been filed away.double /�d�b(ə)l/ adjective twice aslarge or two times the size � Their turn-over is double ours. � to be on doubletime to earn twice the usual wages forworking on Sundays or other holidays �in double figures with two figures,from 10 to 99 � Inflation is in doublefigures. � We have had double-figureinflation for some years. � verb to be-come twice as big, or make somethingtwice as big � We have doubled ourprofits this year or our profits have dou-bled this year. � The company’sborrowings have doubled.double-digit /�d�b(ə)l �dd$t/ ad-jective more than 10 and less than 100double-entry bookkeeping/�d�b(ə)l �entri �bυkki�pŋ/ noun asystem of bookkeeping where both debitand credit entries are recorded in theaccounts at the same time (e.g., when asale is credited to the sales account thepurchaser’s debt is debited to the debt-ors account)double option /�d�b(ə)l �ɒpʃ(ə)n/noun an option to buy or sell at a certainprice in the future (a combination of calland put options)double taxation /�d�b(ə)l t�k-�seʃ(ə)n/ noun the act of taxing thesame income twice

dollar area 108 double taxation

doubtful /�daυtf(ə)l/ adjective whichis not certaindoubtful loan /�daυtf(ə)l ləυn/ nouna loan which may never be repaidDow 30 /�daυ �θ%�ti/ noun same asDow Jones Industrial AverageDow Jones Average /�daυ �d$əυnz��v(ə)rd$/ noun same as Dow JonesIndustrial AverageDow Jones Index /daυ �d$əυnz�ndeks/ noun any of several indicespublished by the Dow Jones Co., basedon prices on the New York StockExchange.

COMMENT: The main index is the DowJones Industrial Average (see below).Other Dow Jones indexes are the DowJones 20 Transportation Average; DowJones 15 Utility Average; Dow Jones 65Composite Average (formed of the Indus-trial average the Transportation Averageand the Utility Average taken together andaveraged); also the Dow Jones Global-USIndex is a capitalisation weighted indexbased on June 30, 1982 = 100. A new Eu-ropean-based index is the Dow JonesEuro Stoxx 50 Index, comprising fiftyblue-chip companies from various Euro-pean countries.

Dow Jones Industrial Average/daυ �d$əυnz n�d�strəl ��v(ə)rd$/noun an index of share prices on theNew York Stock Exchange, based on agroup of thirty major corporations �The Dow Jones Average rose ten points.� General optimism showed in the riseon the Dow Jones Average. Abbrevia-tion DJIAdown /daυn/ adverb, preposition in alower position or to a lower position �The inflation rate is gradually comingdown. � Shares are slightly down on theday. � The price of petrol has gonedown. � to pay money down to pay adeposit � They paid £50 down and therest in monthly instalments.downgrade /�daυn�red/ verb to re-duce the forecast for a sharedown market /�daυn �mɑ�kt/ nouna stock market which is falling or is atits lowest leveldownmarket /daυn�mɑ�kt/ adverb,adjective cheaper or appealing to a lesswealthy section of the population � Thecompany has adopted a downmarket im-age. � the company has decided to go

downmarket the company has decidedto make products which appeal to awider section of the publicdown payment /�daυn �pemənt/noun a part of a total payment made inadvance � We made a down payment of$100.downside factor /�daυnsad�f�ktə/, downside potential/�daυnsad pə�tenʃ(ə)l/ noun the possi-bility of making a loss in an investmentdownside risk /�daυnsad rsk/noun a risk that an investment will fallin value (NOTE: The opposite is upsidepotential.)downstream /�daυnstri�m/ adjectivereferring to the operations of a companyat the end of a process (such as sellingpetrol through garages considered as anoperation of a petroleum company).Compare upstreamdownswing /�daυnswŋ/ noun adownward movement of share prices(NOTE: The opposite is upswing.)

downtick /�daυntk/ noun US a priceof stock sold which is lower than theprice of the previous saledown time /�daυn tam/ noun 1. thetime when a machine is not working ornot available because it is broken or be-ing mended 2. time when a worker can-not work because machines have brokendown or because components are notavailabledowntown /�daυntaυn/ adjective,adverb, noun (in) the central businessdistrict of a town � His office is indowntown New York. � She works in adowntown store. � They established abusiness downtown.down trend /�daυn trend/ noun afalling trend in prices � The price perchip has been in a long-term downtrend.downturn /�daυnt%�n/ noun themovement towards lower prices, salesor profits � a downturn in the marketprice � The last quarter saw a downturnin the economy.dozen /�d�z(ə)n/ noun a twelve � tosell in sets of one dozen � cheaper bythe dozen the product is cheaper if youbuy twelve at a timeDr abbreviation drachma

doubtful 109 Dr

drachma /�dr�kmə/ noun a formerunit of currency in Greece (NOTE:Usually written Dr before a figure:Dr22bn.)

draft /drɑ�ft/ noun 1. an order formoney to be paid by a bank � We askedfor payment by banker’s draft. � tomake a draft on a bank to ask a bankto pay money for you 2. a first roughplan or document which has not beenfinished � A draft of the contract or Thedraft contract is waiting for the MD’scomments. � He drew up the draftagreement on the back of an envelope. �verb to make a first rough plan of a doc-ument � to draft a letter � to draft acontract � The contract is still beingdrafted or is still in the drafting stage.drafter /�drɑ�ftə/ noun a person whomakes a draft � the drafter of theagreementdrafting /�drɑ�ftŋ/ noun an act ofpreparing the draft of a document � Thedrafting of the contract took six weeks.drain /dren/ noun a gradual loss ofmoney flowing away � The costs of theLondon office are a continual drain onour resources. � verb to remove some-thing gradually � The expansion planhas drained all our profits. � The com-pany’s capital resources have drainedaway.draw /drɔ�/ verb 1. to take moneyaway � to draw money out of an ac-count � to draw a salary to have a sal-ary paid by the company � Thechairman does not draw a salary. 2. towrite a cheque � He paid the invoicewith a cheque drawn on an Egyptianbank. (NOTE: drawing – drew – hasdrawn)

drawback /�drɔ�b�k/ noun 1. some-thing which is not convenient or whichis likely to cause problems � One of themain drawbacks of the scheme is that itwill take six years to complete. 2. a re-bate on customs duty for importedgoods when these are then used in pro-ducing exportsdraw down /drɔ� �daυn/ verb to drawmoney which is available under a creditagreementdrawdown /�drɔ�daυn/ noun the actof drawing money which is availableunder a credit agreement

drawee /drɔ��i�/ noun the person orbank asked to make a payment by adrawerdrawer /�drɔ�ə/ noun the person whowrites a cheque or a bill asking a draweeto pay money to a payee � the bank re-turned the cheque to drawer the bankwould not pay the cheque because theperson who wrote it did not haveenough money in the account to pay itdrawing account /�drɔ�ŋ ə�kaυnt/noun a current account, or any accountfrom which the customer may takemoney when he or she wantsdrawing rights /�drɔ�ŋ rats/ nouna right of a member country of the IMFto borrow money from the fund in a for-eign currency. � special drawingrightsdraw up /�drɔ� ��p/ verb to write a le-gal document � to draw up a contract oran agreement � to draw up a company’sarticles of associationdressing up /�dresŋ ��p/ noun USsame as window dressingdrift /drft/ noun gradual movementwithout any control � verb to movegradually in a particular direction �Shares drifted lower in a dull market. �Strikers are drifting back to work.drive /drav/ noun an energetic way ofdoing things � verb � to drive a com-pany out of business to force a com-pany into liquidation � The companywas almost driven out of business a fewyears ago.driver /�dravə/ noun something orsomeone that provides an impetus forsomething to happendrop /drɒp/ noun a fall � a drop insales � Sales show a drop of 10%. �The drop in prices resulted in no signifi-cant increase in sales. � verb to fall �Sales have dropped by 10% or havedropped 10%. � The pound droppedthree points against the dollar.

‘…while unemployment dropped by 1.6 per centin the rural areas, it rose by 1.9 per cent in urbanareas during the period under review’[Business Times (Lagos)]‘…corporate profits for the first quarter showeda 4 per cent drop from last year’s final threemonths’ [Financial Times]‘…since last summer American interest rateshave dropped by between three and fourpercentage points’ [Sunday Times]

drachma 110 drop

droplock bond /�drɒplɒk bɒnd/noun a floating rate bond which willconvert to a fixed rate of interest if inter-est rates fall to a certain point. �debt-convertible bonddrop ship /�drɒp �ʃp/ verb to delivera large order direct to a customerdrop shipment /�drɒp �ʃpmənt/noun the delivery of a large order fromthe manufacturer direct to a customer’sshop or warehouse without goingthrough an agent or wholesalerdry goods /dra ��υdz/ plural nouncloth, clothes and household goodsDTI abbreviation Department of Tradeand Industrydual /�dju�əl/ adjective referring totwo things at the same timedual control /�dju�əl kən�trəυl/noun a system where two people have tosign a cheque, or validate a transaction,or have keys to a safe, etc.dual currency bond /�dju�əl�k�rənsi bɒnd/ noun a bond which ispaid for in one currency but which is re-payable in another on redemptiondual listing /�dju�əl �lstŋ/ noun thelisting of a share on two stockexchangesdual pricing /�dju�əl �prasŋ/ nounthe fact of giving different prices to thesame product depending on the marketin which it is soldduck /d�k/ � lame duckdud /d�d/ noun, adjective referring toa coin or banknote which is false or notgood, or something which does not dowhat it is supposed to do (informal.) �The £50 note was a dud.dud cheque /�d�d �tʃek/ noun acheque which cannot be cashed becausethe person writing it has not enoughmoney in the account to pay itdue /dju�/ adjective 1. owed � a sumdue from a debtor � to fall or becomedue to be ready for payment � bill dueon May 1st a bill which has to be paidon May 1st � balance due to us theamount owed to us which should bepaid 2. correct and appropriate in the sit-uation � in due form written in the cor-rect legal form � a receipt in due form �a contract drawn up in due form � afterdue consideration of the problem afterthinking seriously about the problem

‘…many expect the US economic indicators forApril, due out this Thursday, to show fastereconomic growth’ [Australian FinancialReview]

due diligence /dju� �dld$əns/noun 1. an examination of the accountsof a company before it is taken over tosee if there are any problems whichhave not been disclosed 2. the duty of anofficial such as a bank manager not toact in an irresponsible waydues /dju�z/ plural noun orders takenbut not supplied until new stock arrives� to release dues to send off orderswhich had been piling up while a prod-uct was out of stock � We have re-corded thousands of dues for that itemand our supplier cannot supply it.dull /d�l/ adjective not exciting, notfull of lifedull market /d�l �mɑ�kt/ noun amarket where little business is donedullness /�d�lnəs/ noun the fact ofbeing dull � the dullness of the marketdump /d�mp/ verb � to dump goodson a market to get rid of large quanti-ties of excess goods cheaply in an over-seas market

‘…a serious threat lies in the 400,000 tonnes ofsubsidized beef in European cold stores. Ifdumped, this meat will have disastrous effects inPacific Basin markets’ [Australian FinancialReview]

dumping /�d�mpŋ/ noun the act ofgetting rid of excess goods cheaply in anoverseas market � The government haspassed anti-dumping legislation. �Dumping of goods on the Europeanmarket is banned. � panic dumping ofsterling a rush to sell sterling at anyprice because of possible devaluationDun & Bradstreet /�d�n ən�br�dstri�t/ noun an organisationwhich produces reports on the financialrating of companies, and also acts as adebt collection agency. AbbreviationD&Bduplicate noun /�dju�plkət/ a copy� He sent me the duplicate of the con-tract. � in duplicate with a copy � toprint an invoice in duplicate � receiptin duplicate two copies of a receipt �verb /�dju�plket/ � to duplicate withanother (of a bookkeeping entry) to re-peat another entry or to be the same asanother entry

droplock bond 111 duplicate

duplication /�dju�pl�keʃ(ə)n/ nounthe act of doing something that is al-ready being done in the same way bysomebody else, copying � duplicationof work the fact of doing the same worktwice unnecessarilyDutch /d�tʃ/ adjective referring to theNetherlandsDutch auction /�d�tʃ �ɔ�kʃən/ nounan auction where the auctioneer offersan item for sale at a high price and thengradually reduces the price until some-one makes a biddutiable goods /�dju�tiəb(ə)l��υdz/ plural noun goods on which acustoms duty has to be paidduty /�dju�ti/ noun 1. a tax which hasto be paid � Traders are asking the gov-ernment to take the duty off alcohol or toput a duty on cigarettes. � goods whichare liable to duty goods on which cus-

toms or excise tax has to be paid 2. workwhich has to be done

‘Canadian and European negotiators agreed to adeal under which Canada could lower its importduties on $150 million worth of Europeangoods’ [Globe and Mail (Toronto)]‘…the Department of Customs and Excisecollected a total of N79m under the newadvance duty payment scheme’ [BusinessTimes (Lagos)]

duty-free /�dju�ti �fri�/ adjective, ad-verb sold with no duty to be paid � Hebought a duty-free watch at the airport.� He bought the watch duty-free.duty-free shop /�dju�ti �fri� ʃɒp/noun a shop at an airport or on a shipwhere goods can be bought without pay-ing dutyduty of care /�dju�ti əv �keə/ noun aduty which every person has not to actin a negligent wayduty-paid goods /�dju�ti �ped�υdz/ plural noun goods where the dutyhas been paid

duplication 112 duty-paid goods

E

e. & o.e. abbreviation errors and omis-sions exceptedearly /�%�l/ adjective, adverb beforethe usual time � The mail arrived early.� to take early retirement to retirefrom work before the usual age � adjec-tive at the beginning of a period of time� He took an early flight to Paris.early closing day /�%�li �kləυzŋde/ noun a weekday, usually Wednes-day or Thursday, when some shopsclose in the afternoonearly withdrawal /�%�li wð�drɔ�əl/noun the act of withdrawing moneyfrom a deposit account before the duedate � Early withdrawal usually incursa penalty.early withdrawal penalty /�%�liwð�drɔ�əl �penəlti/ noun a penaltywhich a depositor pays for withdrawingmoney early from an accountearmark /�əmɑ�k/ verb 1. to reservefor a special purpose � to earmark fundsfor a project � The grant is earmarkedfor computer systems development. 2. tolink a tax to a particular service, such asearmarking road taxes for the upkeep ofroadsearn /%�n/ verb 1. to be paid money forworking � to earn £100 a week � Ouragent in Paris certainly does not earnhis commission. � Her new job is moreof a transfer than a promotion, since shedoesn’t earn any more. � How much doyou earn in your new job? 2. to produceinterest or dividends � a building soci-ety account which earns interest at 10%� What level of dividend do these sharesearn?earned income /%�nd �nk�m/ nounincome from wages, salaries, pensions,fees, rental income, etc. (as opposed to‘unearned’ income from investments)

earner /�%�nə/ noun a person whoearns money � a nice little earner abusiness that produces a good incomeearnest /�%�nst/ noun money paid asan initial payment by a buyer to a seller,to show commitment to the contract ofsaleearning capacity /�%�nŋ kə�p�sti/noun the amount of money someoneshould be able to earnearning potential /�%�nŋ pə�tenʃəl/noun 1. the amount of money whichsomeone should be able to earn 2. theamount of dividend which a share is ca-pable of earningearning power /�%�nŋ �paυə/ nounthe amount of money someone shouldbe able to earn � She is such a fine de-signer that her earning power is verylarge.earnings /�%�nŋz/ plural noun 1. sal-ary, wages, dividends or interest re-ceived � High earnings in topmanagement reflect the heavy responsi-bilities involved. � The calculation isbased on average earnings over threeyears. � compensation for loss ofearnings payment to someone who hasstopped earning money or who is notable to earn money 2. money which isearned in interest or dividend 3. theprofit made by a company

‘…the US now accounts for more than half ofour world-wide sales. It has made a hugecontribution to our earnings turnaround’[Duns Business Month]‘…last fiscal year the chain reported a 116%jump in earnings, to $6.4 million or $1.10 ashare’ [Barrons]

earnings before interest, taxes,depreciation and amortisation/�%�nŋz b�fɔ� �ntrəst �t�ksz d-�pri�ʃieʃ(ə)n ənd ə�mɔ�ta�zeʃ(ə)n/plural noun revenue received by a com-

pany in its usual business before variousdeductions are made. AbbreviationEBITDA

earnings cap /�%�nŋz k�p/ noun theupper limit on the amount of salary thatcan be taken into account when calculat-ing pensionsearnings credit /�%�nŋz �kredt/noun an allowance which reduces bankcharges on checking accountsearnings drift /�%�nŋz drft/ noun asituation where an increase in pay isgreater than that of officially negotiatedrates � The earnings drift is caused by asudden increased demand for a certainclass of employee. Also called salarydrift, wage driftearnings growth /�%�nŋz �rəυθ/noun an increase in profit per shareearnings number /�%�nŋz �n�mbə/noun profits expressed as a percentageearnings performance /�%�nŋzpə�fɔ�məns/ noun a way in whichshares earn dividendsearnings per share /�%�nŋz pə�ʃeə/ plural noun the money earned individends per share, shown as a percent-age of the market price of one share.Abbreviation EPSearnings projection /�%�nŋz prə-�d$ekʃən/ noun a forecast of earningsper shareearnings-related contributions/�%�nŋz r�letd �kɒntr�bju�ʃ(ə)nz/plural noun contributions to socialsecurity which rise as the worker’s earn-ings riseearnings-related pension /�%�nŋzr�letd �penʃən/ noun a pensionwhich is linked to the size of a person’ssalaryearnings season /�%�nŋz �si�z(ə)n/noun the time of year when major com-panies declare their results for the previ-ous period � the quarterly ritual knownas earnings seasonearnings yield /�%�nŋz ji�ld/ nounthe money earned in dividends per shareas a percentage of the current marketprice of the shareEASDAQ noun an independent Euro-pean stock market, based in Brusselsand London, trading in companies withEuropean-wide interests

ease /i�z/ verb to fall a little � Theshare index eased slightly today. �noun a slight fall in pricesEast Caribbean dollar /i�st�k�rbiən �dɒlə/ noun a unit of cur-rency used in Antigua, Dominica, Gre-nada, Montserrat, St Lucia and StVincenteasy /�i�zi/ adjective 1. not difficult 2.referring to a market where few peopleare buying, so prices are lower than theywere before � The Stock Exchange waseasy yesterday. � share prices are eas-ier prices have fallen slightlyeasy money /�i�zi �m�ni/ noun 1.money which can be earned with no dif-ficulty 2. a loan available on easy repay-ment termseasy money policy /�i�zi �m�ni�pɒlsi/ noun a government policy ofexpanding the economy by makingmoney more easily available (throughlower interest rates and easy access tocredit)easy terms /�i�zi �t%�mz/ plural nounfinancial terms which are not difficult toaccept � The shop is let on very easyterms.EBA abbreviation Euro BankingAssociationEBITDA abbreviation earnings beforeinterest, taxes, depreciation andamortizationEBRD abbreviation European Bank forReconstruction and Developmente-business /�i� �bzns/ noun a gen-eral term that refers to any type of busi-ness activity on the Internet, includingmarketing, branding and research �E-business is a rising part of theeconomy.

‘…the enormous potential of e-business is that itcan automate the link between suppliers andcustomers’ [Investors Chronicle]

EC abbreviation European Community(NOTE: now called the EuropeanUnion)e-cash /�i� k�ʃ/ noun same as digitalcashECB abbreviation European CentralBankECGD abbreviation Export CreditGuarantee Departmente-cheque /�i� tʃek/, echeque nounsame as electronic cheque

earnings cap 114 e-cheque

e-commerce /�i� �kɒm%�s/ noun ageneral term that is normally used to re-fer to the process of buying and sellinggoods over the Internet

‘…the problem is that if e-commerce takes just a3 per cent slice of the market that would beenough to reduce margins to ribbons’[Investors Chronicle]‘…the new economy requires new companystructures. He believes that other blue-chiporganizations are going to find that new set-upswould be needed to attract and retain the besttalent for e-commerce’ [Times]

econometrics /�kɒnə�metrks/ plu-ral noun the study of the statistics ofeconomics, using computers to analysethese statistics and make forecasts usingmathematical modelseconomic /�i�kə�nɒmk/ adjective 1.which provides enough money to makea profit � The flat is let at an economicrent. � It is hardly economic for thecompany to run its own warehouse. 2.referring to the financial state of a coun-try � economic planning � economictrends � Economic planners are expect-ing a comsumer-led boom. � The gov-ernment’s economic policy is in ruinsafter the devaluation. � The economicsituation is getting worse. � The coun-try’s economic system needs moreregulation.

‘…each of the major issues on the agenda at thisweek’s meeting is important to thegovernment’s success in overall economicmanagement’ [Australian Financial Review]

economical /�i�kə�nɒmk(ə)l/ adjec-tive which saves money or materials orwhich is cheap � This car is very eco-nomical. � economical car a car whichdoes not use much petrol � an economi-cal use of resources the fact of using re-sources as carefully as possibleeconomic crisis /�i�kənɒmk�krass/, economic depression/�i�kə�nɒmk d�preʃ(ə)n/ noun a situa-tion where a country is in financial col-lapse � The government has introducedimport controls to solve the current eco-nomic crisis.economic cycle /�i�kənɒmk�sak(ə)l/ noun a period during whichtrade expands, then slows down andthen expands againeconomic development/�i�kənɒmk d�veləpmənt/ noun theexpansion of the commercial and finan-cial situation � The government has of-

fered tax incentives to speed up the eco-nomic development of the region. �Economic development has been rela-tively slow in the north, compared withthe rest of the country.economic environment/�i�kənɒmk n�varənmənt/ noun thegeneral situation in the economyeconomic forecaster /�i�kənɒmk�fɔ�kɑ�stə/ noun a person who sayshow he thinks a country’s economy willperform in the futureeconomic growth /�i�kənɒmk��rəυθ/ noun the rate at which a coun-try’s national income growseconomic indicator /�i�kənɒmk�ndketəz/ noun various statistics,e.g. for the unemployment rate or over-seas trade, which show how the econ-omy is going to perform in the short orlong termeconomic model /�i�kənɒmk�mɒd(ə)l/ noun a computerised plan ofa country’s economic system, used forforecasting economic trendseconomic planning /�i�kənɒmk�pl�nŋ/ noun the process of planningthe future financial state of the countryfor the governmenteconomics /�i�kə�nɒmks/ noun thestudy of the production, distribution,selling and use of goods and services �plural noun the study of financial struc-tures to show how a product or serviceis costed and what returns it produces �I do not understand the economics of thecoal industry. (NOTE: takes a singularverb)

‘…believers in free-market economics oftenfind it hard to sort out their views on the issue’[Economist]

economic sanctions /�i�kənɒmk�s�ŋkʃ(ə)ns/ plural noun restrictionson trade with a country in order to influ-ence its political situation or in order tomake its government change its policy� to impose economic sanctions on acountryeconomic slowdown /�i�kənɒmk�sləυdaυn/ noun a general reduction ina country’s economic activityeconomic stagnation /�i�kənɒmkst���neʃ(ə)n/ noun a lack of expan-sion in the economyeconomic value added/�i�kənɒmk �v�lju� ��dd/ noun the

e-commerce 115 economic value added

difference between a company’s profitand the cost of its capital. A companydoes not have simply to make a profitfrom its business – it has to makeenough profit to cover the cost of itscapital, including equity invested byshareholders. Abbreviation EVA

economies of scale /�kɒnəmiz əv�skel/ plural noun a situation in whicha product is made more profitable bymanufacturing it in larger quantities sothat each unit costs less to make. Com-pare diseconomies of scale

economist /�kɒnəmst/ noun a per-son who specialises in the study of eco-nomics � Government economists areforecasting a growth rate of 3% nextyear. � An agricultural economist stud-ies the economics of the agricultureindustry.economy /�kɒnəm/ noun 1. an ac-tion which is intended to stop money ormaterials from being wasted, or thequality of being careful not to wastemoney or materials � to introduceeconomies or economy measures intothe system to start using methods tosave money or materials 2. the financialstate of a country, or the way in which acountry makes and uses its money �The country’s economy is in ruins.

‘…the European economies are being held backby rigid labor markets and wage structures, hugeexpenditures on social welfare programs andrestrictions on the free movement of goods’[Duns Business Month]

economy car /�kɒnəmi kɑ�/ noun acar which does not use much petroleconomy class /�kɒnəmi klɑ�s/noun a lower-quality, less expensiveway of travelling � I travel economyclass because it is cheaper. � I alwaystravels first class because tourist classis too uncomfortable.economy drive /�kɒnəmi drav/noun a vigorous effort to save money ormaterialseconomy measure /�kɒnəmi�me$ə/ noun an action to save money ormaterialseconomy size /�kɒnəmi saz/ nouna large size or large packet which ischeaper than normalECP abbreviation European Commer-cial Paper

ecu, ECU abbreviation European Cur-rency UnitEDI abbreviation electronic datainterchangeeditorial board /ed�tɔ�riəl bɔ�d/noun a group of editors on a newspaperor other publicationEDP abbreviation electronic dataprocessingEducation IRA /�edjυ�keʃ(ə)n�arə/ noun US an account in whichpeople can contribute up to $500 annu-ally for the education of a child or agrandchild under the age of 18. Thesecontributions are not tax-deductible butcan grow tax-free. There is no tax onwithdrawals as long as the child usesthem (by the time he or she is 30) to payfor higher education. Full form Educa-tion Individual Retirement AccountEEA abbreviation European EconomicAreaEEC abbreviation European EconomicCommunity (NOTE: now called the Eu-ropean Union (EU))effect /�fekt/ noun 1. a result � Theeffect of the pay increase was to raiseproductivity levels. 2. operation � termsof a contract which take effect orcome into effect from January 1stterms which start to operate on January1st � prices are increased 10% witheffect from January 1st new priceswill apply from January 1st � to remainin effect to continue to be applied 3.meaning � a clause to the effect that aclause which means that � we havemade provision to this effect we haveput into the contract terms which willmake this work � verb to carry out � toeffect a payment to make a payment �to effect customs clearance to clearsomething through customs � to effect asettlement between two parties tobring two parties together and makethem agree to a settlementeffective /�fektv/ adjective 1. ac-tual, as opposed to theoretical 2. � aclause effective as from January 1st aclause which starts to be applied on Jan-uary 1steffective control /�fektv kən-�trəυl/ noun a situation where someoneowns a large number of shares in a com-pany, but less than 50%, and so in effectcontrols the company because no other

economies of scale 116 effective control

single shareholder can outvote him orhereffective date /�fektv det/ nounthe date on which a rule or contractstarts to be applied, or on which a trans-action takes placeeffective demand /�fektv d-�mɑ�nd/ noun the actual demand for aproduct which can be paid foreffective exchange rate /�fektvks�tʃend$ ret/ noun a rate of ex-change for a currency calculated againsta basket of currencieseffectiveness /�fektvnəs/ noun thequality of working successfully or pro-ducing results � I doubt the effective-ness of television advertising. � Hiseffectiveness as a manager was due tohis quick grasp of detail. �cost-effectivenesseffective price /�fektv �pras/noun a share price which has been ad-justed to allow for a rights issueeffective rate /�fektv �ret/ noun areal interest rate on a loan or deposit(i.e. the APR)effective yield /�fektv �ji�ld/ nounan actual yield shown as a percentage ofthe price paid after adjustments havebeen madeeffectual /�fektʃuəl/ adjective whichproduces a correct resultefficiency /�fʃ(ə)nsi/ noun the abil-ity to work well or to produce the rightresult or the right work quickly � abusiness efficiency exhibition � The bussystem is run with a high degree of effi-ciency. � We called in an efficiency ex-pert to report on ways of increasingprofitability.

‘…increased control means improved efficiencyin purchasing, shipping, sales and delivery’[Duns Business Month]

efficient /�fʃ(ə)nt/ adjective able towork well or to produce the right resultquickly � the efficient working of a sys-tem � An efficient assistant is invalu-able. � An efficient new machine wouldsave time.efficiently /�fʃ(ə)ntli/ adverb in anefficient way � She organised the salesconference very efficiently.efficient-market theory /�fʃ(ə)nt�mɑ�kt �θəri/ noun a theory that theprices operating in a certain market re-

flect all known information about themarket and therefore make it impossiblefor abnormal profits to be made � theefficient working of a system � he needsan efficient secretary to look after himefflux /�efl�ks/ noun flowing out � theefflux of capital to North AmericaEFT abbreviation electronic fundstransferEFTA abbreviation European FreeTrade AssociationEFTPOS abbreviation electronicfunds transfer at a point of saleEGM abbreviation extraordinary gen-eral meetingEIB abbreviation European InvestmentBankEIRIS abbreviation ethical investmentresearch serviceEIS abbreviation Enterprise InvestmentSchemeelastic /�l�stk/ adjective which canexpand or contract easily because ofsmall changes in priceelasticity /�l��ststi/ noun the abil-ity to change easily in response to achange in circumstances � elasticity ofsupply and demand changes in supplyand demand of an item depending on itsmarket priceelect /�lekt/ verb to choose someoneby a vote � to elect the officers of an as-sociation � She was elected president ofthe staff club.-elect /lekt/ suffix referring to a per-son who has been elected but has not yetstarted the term of officeelection /�lekʃən/ noun the act ofelecting someone � the election of offi-cers of an association � the election ofdirectors by the shareholderselectric utility stocks /�lektrkju��tlti stɒks/ plural noun shares inelectricity companieselectronic /�elek�trɒnk/ adjectivereferring to computers and electronicselectronic banking /�elektrɒnk�b�ŋkŋ/ noun the use of computers tocarry out banking transactions, such aswithdrawals through cash dispensers ortransfer of funds at point of saleelectronic business /�elektrɒnk�bzns/ noun same as e-business

effective date 117 electronic business

electronic cash /�elektrɒnk �k�ʃ/noun same as digital cashelectronic cheque /�elektrɒnk�tʃek/ noun an electronic cheque, whicha person writes and sends via a com-puter and the Internetelectronic commerce /�elektrɒnk�kɒm%�s/ noun same as e-commerceelectronic data interchange/�elektrɒnk �detə �ntətʃend$/ nouna standard format used when businessdocuments such as invoices and pur-chase orders are exchanged over elec-tronic networks such as the Internet.Abbreviation EDIelectronic funds transfer/�elektrɒnk �f�ndz �tr�nsf%�/ noun asystem for transferring money from oneaccount to another electronically (aswhen using a smart card). AbbreviationEFTelectronic mail /�elektrɒnk �mel/noun same as email 1

electronic purse /�elektrɒnk �p%�s/noun same as digital walletelectronics /�elek�trɒnks/ pluralnoun the scientific study of systemsworked by a flow of electrons which areused in manufactured products, such ascomputers, calculators or telephones �the electronics industry � an electronicsspecialist or expert � an electronics en-gineer (NOTE: takes a singular verb)element /�elmənt/ noun a basic partor the smallest unit into which some-thing can be divided � the elements of asettlement � Work study resulted in astandard time for each job element.eligibility /�eld$�blti/ noun the factof being eligible � The chairman ques-tioned her eligibility to stand forre-election.eligibility date /�eld$�blti det/noun the date at which someone be-comes eligible for benefitseligible /�eld$b(ə)l/ adjective whichcan be chosen � She is eligible forre-election.eligible liabilities /�eld$b(ə)l �laə-�bltiz/ plural noun liabilities which gointo the calculation of a bank’s reserveseliminate /�lmnet/ verb to remove� to eliminate defects in the system �Using a computer should eliminate allpossibility of error. � We have decided

to eliminate this series of old productsfrom our range. � Most of the candi-dates were eliminated after the firstbatch of tests.elite /�li�t/ noun a group of the bestpeopleelite stock /�li�t �stɒk/ noun atop-quality shareemail /�i�mel/, e-mail noun 1. a sys-tem of sending messages from one com-puter terminal to another, using amodem and telephone lines � You cancontact me by phone or email if youwant. 2. a message sent electronically �I had six emails from him today. � verbto send a message from one computer toanother, using a modem and telephonelines � She emailed her order to thewarehouse. � I emailed him about themeeting.embargo /m�bɑ��əυ/ noun a govern-ment order which stops a type of trade,such as exports to or other commercialactivity with another country � to lay orput an embargo on trade with a coun-try to say that trade with a country mustnot take place � The government hasput an embargo on the export of com-puter equipment. � to lift an embargoto allow trade to start again � The gov-ernment has lifted the embargo on theexport of computers. � to be under anembargo to be forbidden � verb to stoptrade, or not to allow something to betraded � The government has embar-goed trade with the Eastern countries.

‘…the Commerce Department is planning toloosen export controls for products that havebeen embargoed but are readily availableelsewhere in the West’ [Duns Business Month]

embezzle /m�bez(ə)l/ verb to use il-legally money which is not yours, orwhich you are looking after for someone� He was sent to prison for six monthsfor embezzling his clients’ money.embezzlement /m�bez(ə)lmənt/noun the act of embezzling � He wassent to prison for six months forembezzlement.embezzler /m�bez(ə)lə/ noun a per-son who embezzlesemergency /�m%�d$ənsi/ noun adangerous situation where decisionshave to be taken quicklyemergency credit /�m%�d$ənsi�kredt/ noun credit given by the Fed-

electronic cash 118 emergency credit

eral Reserve to an organisation whichhas no other means of borrowingemerging /�m%�d$ŋ/ adjectivewhich is beginning to appear and growemerging country /�m%�d$ŋ�k�ntri/ noun a country which is devel-oping rapidlyemerging growth fund /�m%�d$ŋ��rəυθ f�nd/ noun growth fund that in-vests in emerging marketsemerging market /�m%�d$ŋ�mɑ�kt/ noun a new market, as inSouth-East Asia or Eastern Europe,which is developing fast and is seen aspotentially profitable to fund managersemoluments /�mɒljυmənts/ pluralnoun pay, salary or fees, or the earningsof directors who are not employees(NOTE: US English uses the singularemolument.)e-money /�i� �m�ni/ noun same asdigital money

COMMENT: This normally refers to eithercredit card payments or virtual tokens or avirtual credit card or a micropayment.

employ /m�plɔ/ verb to give some-one regular paid work � to employtwenty staff to have twenty peopleworking for you � to employ twentynew staff to give work to twenty newpeople

‘70 per cent of Australia’s labour force wasemployed in service activity’ [AustralianFinancial Review]

employed /m�plɔd/ adjective 1. inregular paid work � he is not gainfullyemployed he has no regular paid work2. referring to money used profitably �plural noun people who are working �the employers and the employed � theself-employed people who work forthemselvesemployee /m�plɔi�/ noun a personemployed by another � Employees ofthe firm are eligible to join aprofit-sharing scheme. � Relations be-tween management and employees aregood. � The company has decided totake on new employees.

‘…companies introducing robotics think itimportant to involve individual employees inplanning their introduction’ [Economist]

employee buyout /m�plɔi��baaυt/ noun a purchase of a companyby its employees

employee share ownership plan/m�plɔi� �ʃeə �əυnəʃp pl�n/, em-ployee share ownership programme/m�plɔi� �ʃeər �əυnəʃp �prəυ�r�m/,employee share scheme /m�plɔi��ʃeə ski�m/ noun a plan which allowsemployees to obtain shares in the com-pany for which they work (though taxmay be payable if the shares are sold toemployees at a price which is lower thanthe current market price). AbbreviationESOP

employer /m�plɔə/ noun a person orcompany that has regular workers andpays thememployer’s contribution /m-�plɔəz �kɒntr�bju�ʃ(ə)n/ noun moneypaid by an employer towards an em-ployee’s pensionemployers’ liability insurance/m�plɔəz �laə�blti n�ʃυərəns/noun insurance to cover accidentswhich may happen at work, and forwhich the company may be responsibleemployment /m�plɔmənt/ nounregular paid work � to be without em-ployment to have no work � to findsomeone alternative employment tofind another job for someone

‘…the blue-collar unions are the people whostand to lose most in terms of employmentgrowth’ [Sydney Morning Herald]

employment agency /m�plɔmənt�ed$ənsi/ noun an office which findsjobs for staffemployment office /m�plɔmənt�ɒfs/ noun an office which finds jobsfor peopleemployment tribunal /m-�plɔmənt tra�bju�nəl/ noun a govern-ment body responsible for dealing withdisputes between employees andemployersempower /m�paυə/ verb to givesomeone the power to do something �She was empowered by the company tosign the contract. � Her new positionempowers her to hire and fire at will.EMS abbreviation European MonetarySystemEMU abbreviation Economic MonetaryUnionencash /n�k�ʃ/ verb to cash acheque, to exchange a cheque for cash

emerging 119 encash

encashable /n�k�ʃəb(ə)l/ adjectivewhich can be cashedencashment /n�k�ʃmənt/ noun anact of exchanging for cashencryption /n�krpʃən/ noun a con-version of plain text to a secure codedform by means of a cipher systemencumbrance /n�k�mbrəns/ nouna liability, such as a mortgage or charge,which is attached usually to a propertyor landend /end/ noun the final point or lastpart � at the end of the contract period� at the end of six months after sixmonths have passed � verb to finish �The distribution agreement ends in July.� The chairman ended the discussion bygetting up and walking out of the room.endorse /n�dɔ�s/ verb to say that aproduct is good � to endorse a bill or acheque to sign a bill or cheque on theback to show that you accept it

COMMENT: By endorsing a cheque (i.e.signing it on the back), a person whosename is on the front of the cheque ispassing ownership of it to another party,such as the bank, which can then acceptit and pay him cash for it. If a cheque isdeposited in an account, it does not needto be endorsed. Cheques can also be en-dorsed to another person: a cheque madepayable to Mr A. Smith can be endorsedby Mr Smith on the back, with the words:‘Pay to Brown Ltd’, and then his signature.This has the effect of making the chequepayable to Brown Ltd, and to no one else.Most cheques are now printed as crossedcheques with the words ‘A/C Payee’printed in the space between the two ver-tical lines. These cheques can only bepaid to the person whose name is writtenon the cheque and cannot be endorsed.

endorsee /�endɔ��si�/ noun a personwhose name is written on a bill orcheque as having the right to cash itendorsement /n�dɔ�smənt/ noun 1.the act of endorsing 2. a signature on adocument which endorses it 3. a note onan insurance policy which adds condi-tions to the policyendorser /n�dɔ�sə/ noun a personwho endorses a bill or cheque which isthen paid to him or herendowment /n�daυmənt/ noun theact of giving money to provide a regularincome

endowment assurance /n-�daυmənt ə�ʃυərəns/, endowment in-surance /n�daυmənt n�ʃυərəns/noun an insurance policy where a sumof money is paid to the insured personon a certain date or to his heirs if he diesbefore that dateendowment mortgage /n-�daυmənt �mɔ��d$/ noun a mortgagebacked by an endowment policy

COMMENT: The borrower pays intereston the mortgage in the usual way, butdoes not repay the capital. Instead, he orshe takes out an endowment assurance(a life insurance) policy, which is intendedto cover the total capital sum borrowed.When the assurance matures, the capitalis in theory paid off, though this dependson the performance of the investmentsmade by the company providing the en-dowment assurance and the actual yieldof the policy may be less or more than thesum required. A mortgage where the bor-rower repays both interest and capital iscalled a ’repayment mortgage’.

endowment policy /n�daυmənt�pɒlsi/ noun same as endowmentassuranceend product /end �prɒd�kt/ noun amanufactured product resulting from aproduction processend user /end �ju�zə/ noun a personwho actually uses a productenergy /�enəd$i/ noun power pro-duced from electricity, petrol or a simi-lar source � We try to save energy byswitching off the lights when the roomsare empty. � If you reduce the roomtemperature to eighteen degrees, youwill save energy.energy shares /�enəd$i ʃeəz/ pluralnoun shares in companies which pro-vide energyenforce /n�fɔ�s/ verb to make suresomething is done or that a rule isobeyed � to enforce the terms of acontractenforcement /n�fɔ�smənt/ noun theact of making sure that something isobeyed � enforcement of the terms of acontractengage /n��ed$/ verb 1. to arrangeto employ workers or advisors � If weincrease production we will need to en-gage more machinists. � He was en-gaged as a temporary replacement for

encashable 120 engage

the marketing manager who was ill. � Thecompany has engaged twenty new salesrepresentatives. � to engage someoneto do something to make someone dosomething legally � The contract en-gages us to a minimum annual pur-chase. 2. � to be engaged in to be busywith � He is engaged in work on com-puters. � The company is engaged intrade with Africa.engagement /n��ed$mənt/ nounan agreement to do something � tobreak an engagement to do somethingnot to do what you have legally agreed� Our agents broke their engagementnot to sell our rivals’ products.entail /n�tel/ noun a legal conditionwhich passes ownership of a propertyonly to certain persons � verb to in-volve � Itemising the sales figures willentail about ten days’ work.enter /�entə/ verb to write � to enter aname on a list � The clerk entered theinterest in my bank book. � She entereda competition for a holiday in Greece. �They entered the sum in the ledger. � toenter a bid for something to offer (usu-ally in writing) to buy something � toenter a caveat to warn legally that youhave an interest in a case, and that nosteps can be taken without yourpermissionentering /�entərŋ/ noun the act ofwriting items in a recordenter into /�entər �ntu�/ verb to be-gin � to enter into relations with some-one � to enter into negotiations with aforeign government � to enter into apartnership with a friend � The com-pany does not want to enter into anylong-term agreement.enterprise /�entəpraz/ noun 1. asystem of carrying on a business 2. abusinessEnterprise Investment Scheme/�entəpraz n�vestmənt ski�m/ nouna scheme which provides income andCGT relief for people prepared to riskinvesting in a single unquoted orAIM-listed trading company. Abbrevia-tion EIS

enterprise zone /�entəpraz zəυn/noun an area of the country where busi-nesses are encouraged to develop by of-fering special conditions such as easy

planning permission for buildings or areduction in the business rateentertain /�entə�ten/ verb to offersuch things as meals, hotel accommoda-tion and theatre tickets for the comfortand enjoyment of business visitorsentertainment /�entə�tenmənt/noun the practice of offering meals orother recreation to business visitorsentertainment allowance /�entə-�tenmənt ə�laυəns/ noun moneywhich managers are allowed by theircompany to spend on meals withvisitorsentertainment expenses /�entə-�tenmənt k�spensz/ plural nounmoney spent on giving meals to busi-ness visitorsentitle /n�tat(ə)l/ verb to give theright to someone to have something �After one year’s service the employee isentitled to four weeks’ holiday. � he isentitled to a discount he has the right tobe given a discountentitlement /n�tat(ə)lmənt/ noun aperson’s right to somethingentitlement issue /n�tat(ə)lmənt�ʃu�/ noun a rights issueentrepot port /�ɒntrəpəυ pɔ�t/ nouna town with a large international com-mercial port dealing in re-exportsentrepot trade /�ɒntrəpəυ tred/noun the exporting of imported goodsentrepreneur /�ɒntrəprə�n%�/ noun aperson who directs a company and takescommercial risksentrepreneurial /�ɒntrəprə�n%�riəl/adjective taking commercial risks � anentrepreneurial decisionentry /�entri/ noun 1. an item of writ-ten information put in an accounts led-ger (NOTE: The plural is entries.) � tomake an entry in a ledger to write indetails of a transaction � to contra anentry to enter a similar amount on theopposite side of the account 2. an act ofgoing in or the place where you can goin � to pass a customs entry point � en-try of goods under bondentry charge /�entri tʃɑ�d$/ nounmoney which you have to pay beforeyou go inentry visa /�entri �vi�zə/ noun a visaallowing someone to enter a country

engagement 121 entry visa

environmental shares /n-�varənmənt(ə)l �ʃeəz/ plural nounshares in companies which are seen tobe active in the environmental field(stores which sell ‘green’ produce,waste disposal companies, etc.)epos /�i�pɒs/, EPOS, EPoS abbrevia-tion electronic point of saleEPS abbreviation earnings per sharee-purse /�i� p%�s/ noun same as digi-tal walletequal /�i�kwəl/ adjective exactly thesame � Male and female employeeshave equal pay. � verb to be the sameas � Production this month has equalledour best month ever. (NOTE: UK Englishis equalling – equalled, but the USspelling is equaling – equaled.)equalise /�i�kwəlaz/, equalize verbto make equal � to equalise dividendsequally /�i�kwəli/ adverb so that eachhas or pays the same, or to the same de-gree � Costs will be shared equally be-tween the two parties. � They were bothequally responsible for the disastrouslaunch.equal opportunities programme/�i�kwəl ɒpə�tju�ntiz �prəυ�r�m/noun a programme to avoid discrimina-tion in employment (NOTE: The USterm is affirmative action.)equate /�kwet/ verb to reduce to astandard valueequation /�kwe$(ə)n/ noun a set ofmathematical rules applied to solve aproblem � The basic accounting equa-tion is that assets equal liabilities plusequity.equilibrium /�i�kw�lbriəm/ nounthe state of balance in the economywhere supply equals demand or a coun-try’s balance of payments is neither indeficit nor in excessequities /�ekwtiz/ plural noun ordi-nary shares

‘…in the past three years commercial propertyhas seriously underperformed equities anddropped out of favour as a result’[Investors Chronicle]

equity /�ekwti/ noun 1. the ordinaryshares in a company 2. the value of acompany which is the property of itsshareholders (the company’s assets lessits liabilities, not including the ordinaryshare capital) 3. the value of an asset,such as a house, less any mortgage on it

COMMENT: ‘Equity’ (also called ‘capital’or ‘shareholders’ equity’ or ‘shareholders’capital’ or ‘shareholders’ funds’) is thecurrent net value of the company includ-ing the nominal value of the shares in is-sue. After several years a company wouldexpect to increase its net worth above thevalue of the starting capital. ‘Equity capi-tal’ on the other hand is only the nominalvalue of the shares in issue.

equity accounting /�ekwti ə-�kaυntŋ/ noun a method of accountingwhich puts part of the profits of a sub-sidiary into the parent company’s booksequity capital /�ekwti �k�pt(ə)l/noun the nominal value of the sharesowned by the ordinary shareholders of acompany (NOTE: Preference shares arenot equity capital. If the company werewound up, none of the equity capitalwould be distributed to preferenceshareholders.)equity earnings /�ekwti �%�nŋz/plural noun profits after tax, which areavailable for distribution to shareholdersin the form of dividends, or which canbe retained in the company for futuredevelopmentequity finance /�ekwti �fan�ns/noun finance for a company in the formof ordinary shares paid for byshareholdersequity fund /�ekwti f�nd/ noun afund which is invested in equities, not ingovernment securities or other fundsequity gearing /�ekwti ��ərŋ/noun the ratio between a company’sborrowings at interest and its ordinaryshare capitalequity growth fund /�ekwti ��rəυθf�nd/ noun a fund invested in equities,aiming to provide capital growthequity investment fund /�ekwtin�vestmənt f�nd/ noun same as eq-uity fundequity kicker /�ekwti �kkə/ nounUS an incentive given to people to lenda company money, in the form of a war-rant to share in future earnings (NOTE:The UK term is equity sweetener.)equity of redemption /�ekwti əvr�dempʃən/ noun a right of a mort-gagor to redeem the estate by paying offthe principal and interestequity REIT /�ekwti �rat/ noun atrust which invests in rented property.

environmental shares 122 equity REIT

Full form equity real estate invest-ment trustequity release /�ekwti r�li�s/ nounthe act of remortgaging a property onwhich there is currently no mortgage, inorder to use it as security for newborrowingequity risk premium /�ekwti �rsk�pri�miəm/ noun an extra return on eq-uities over the return on bonds, becauseof the risk involved in investing inequitiesequity sweetener /�ekwti�swi�t(ə)nə/ noun an incentive to en-courage people to lend a companymoney, in the form of a warrant givingthe right to buy shares at a later date andat a certain priceequivalence /�kwvələns/ noun thecondition of having the same value or ofbeing the sameequivalent /�kwvələnt/ adjective �to be equivalent to to have the samevalue as or to be the same as � The totaldividend paid is equivalent to one quar-ter of the pretax profits. � Our manag-ing director’s salary is equivalent tothat of far less experienced employees inother organisations. � noun a personwho is the equal of someone elseERDF abbreviation European RegionalDevelopment FundERM abbreviation exchange ratemechanismerode /�rəυd/ verb to wear away grad-ually � to erode wage differentials toreduce gradually differences in salarybetween different gradeserror /�erə/ noun a mistake � He madean error in calculating the total. � Thesecretary must have made a typingerror.error rate /�erə ret/ noun the numberof mistakes per thousand entries or perpageerrors and omissions excepted/�erəz ənd əυ�mʃ(ə)nz k�septd/phrase words written on an invoice toshow that the company has no responsi-bility for mistakes in the invoice. Abbre-viation e. & o.e.escalate /�eskəlet/ verb to increasesteadilyescalation /�eskə�leʃ(ə)n/ noun asteady increase � an escalation of wage

demands � The union has threatened anescalation in strike action. � escalationof prices a steady increase in pricesescalation clause /�eskə�leʃ(ə)nklɔ�z/ noun same as escalator clauseescalator /�eskəletə/ noun a movingstaircaseescalator bond /�eskəletə bɒnd/noun a fixed-rate bond where the raterises each yearescalator clause /�eskəletə klɔ�z/noun a clause in a contract allowing forregular price increases because of in-creased costs, or regular wage increasesbecause of the increased cost of livingescape /�skep/ noun an act of get-ting away from a difficult situationescape clause /�skep klɔ�z/ nouna clause in a contract which allows oneof the parties to avoid carrying out theterms of the contract under certainconditionsESCB abbreviation European Systemof Central Banksescrow /�eskrəυ/ noun an agreementbetween two parties that somethingshould be held by a third party until cer-tain conditions are fulfilled � in escrowheld in safe keeping by a third party �document held in escrow a documentgiven to a third party to keep and to passon to someone when money has beenpaidescrow account /�eskrəυ ə�kaυnt/noun US an account where money isheld in escrow until a contract is signedor until goods are deliveredescudo /es�kjυdəυ/ noun a formerunit of currency in PortugalESOP abbreviation employee shareownership planestablish /�st�blʃ/ verb to set up orto open � The company has establisheda branch in Australia. � The businesswas established in Scotland in 1823. �It is still a young company, having beenestablished for only four years. � to es-tablish oneself in business to becomesuccessful in a new businessestablishment /�st�blʃmənt/noun 1. a commercial business � Heruns an important printing establish-ment. 2. the number of people workingin a company � to be on the establish-ment to be a full-time employee � of-

equity release 123 establishment

fice with an establishment of fifteenan office with a budgeted staff of fifteenestablishment charges /-�st�blʃmənt �tʃɑ�d$z/ plural nounthe cost of people and property in acompany’s accountsestate /�stet/ noun property left by adead personestate agency /�stet �ed$ənsi/noun an office which arranges for thesale of propertiesestate agent /�stet �ed$ənt/ nouna person in charge of an estate agencyestate duty /�stet �dju�ti/ noun atax paid on the property left by a deadperson (NOTE: now called inheritancetax)

estate tax /�stet t�ks/ noun US afederal tax on property left by a deadpersonestimate noun /�estmət/ 1. a calcula-tion of the probable cost, size or time ofsomething � Can you give me an esti-mate of how much time was spent on thejob? � at a conservative estimate prob-ably underestimating the final figure �Their turnover has risen by at least 20%in the last year, at a conservative esti-mate. � these figures are only an esti-mate these are not the final accuratefigures 2. a calculation by a contractoror seller of a service of how much some-thing is likely to cost, given to a client inadvance of an order � You should askfor an estimate before committing your-selves. � Before we can give the grantwe must have an estimate of the totalcosts involved. � Unfortunately the finalbill was quite different from the esti-mate. � to put in an estimate to givesomeone a written calculation of theprobable costs of carrying out a job �Three firms put in estimates for the job.� verb /�estmet/ 1. to calculate theprobable cost, size or time of something� to estimate that it will cost £1m or toestimate costs at £1m � We estimatecurrent sales at only 60% of last year. 2.� to estimate for a job to state in writ-ing the future costs of carrying out apiece of work so that a client can makean order � Three firms estimated for therefitting of the offices.estimated /�estmetd/ adjectivecalculated approximately � estimated

sales � Costs were slightly more thanthe estimated figure.estimation /�est�meʃ(ə)n/ noun anapproximate calculationestimator /�estmetə/ noun a personwhose job is to calculate estimates forcarrying out workestoppel /�stɒp(ə)l/ noun a rule ofevidence whereby someone is preventedfrom denying or asserting a fact in legalproceedingsethical /�eθk(ə)l/ adjective morallyrightethical criteria /�eθk(ə)l kra-�təriə/ plural noun standards used tojudge if something is morally right ornotethical fund /�eθk(ə)l f�nd/ noun afund which invests in companies whichfollow certain moral standards, e.g.companies which do not manufactureweapons, or which do not trade withcertain countries or which only use en-vironmentally acceptable sources of rawmaterialsethical index /�eθk(ə)l �ndeks/noun an index of shares in companieswhich follow certain moral standardsethical investment /�eθk(ə)l n-�vestmənt/ noun an investment in com-panies which follow certain moralstandardsEthical Investment ResearchService /�eθk(ə)l n�vestmənt r-�s%�tʃ �s%�vs/ noun an organisationwhich does research into companies andrecommends those which follow certainstandards. Abbreviation EIRISethical screening /�eθk(ə)l�skri�nŋ/ noun checking companiesagainst certain moral standards, and re-moving those which do not conformEU abbreviation European Union � EUministers met today in Brussels. � TheUSA is increasing its trade with the EU.Eurex /�jυəreks/ noun a European de-rivatives market developed by combin-ing the German Terminbörse and theSwiss SoffexEURIBOR abbreviation European In-terbank Offered Rateeuro /�jυərəυ/ noun a unit of currencyadopted as legal tender in several Euro-pean countries from January 1st, 1999 �Many articles are priced in euros. �

establishment charges 124 euro

What’s the exchange rate for the euro?(NOTE: (NOTE: Written € before num-bers: €250: say: ‘two hundred and fiftyeuros’). The plural is euro or euros.)

‘…cross-border mergers in the European Unionhave shot up since the introduction of the euro’[Investors Chronicle]

COMMENT: The countries which arejoined together in the European MonetaryUnion and adopted the euro as their com-mon currency in 1999 are: Austria, Bel-gium, Finland, France, Germany, Ireland,Italy, Luxembourg, the Netherlands, Por-tugal, and Spain. The conversion of thesecurrencies to the euro was fixed on 1stJanuary 1999 at the following rates: Aus-trian schilling: 13.7603; Belgian & Luxem-bourg franc: 40.3399; Finnish Markka:5.94573; French franc: 6.55957; Germanmark: 1.95583; Irish punt: 0.787564; Ital-ian lira: 1936.27; Dutch guilder: 2.20371;Portuguese escudo: 200.482; Spanishpeseta: 166.386. The CFA franc and CFPfranc were pegged to the euro at thesame time.

Euro- /jυərəυ/ prefix referring to Eu-rope or the European Unioneuro account /�jυərəυ ə�kaυnt/noun a bank account in eurosEurobond /�jυərəυbɒnd/ noun along-term bearer bond issued by an in-ternational corporation or governmentoutside its country of origin and sold topurchasers who pay in a eurocurrency(sold on the Eurobond market)Eurocard /�jυərəυkɑ�d/ a chequecard used when writing EurochequesEurocheque /�jυərəυtʃek/ noun acheque which can be cashed in any Eu-ropean bank (the Eurocheque system isbased in Brussels)Eurocommercial paper/�jυərəυtkə�m%�ʃ(ə)l �pepə/ noun aform of short-term borrowing ineurocurrencies. Abbreviation ECPeurocredit /�jυərəυ�kredt/ noun alarge bank loan in a eurocurrency (usu-ally provided by a group of banks to alarge commercial undertaking)Eurocurrency /�jυərəυk�rənsi/noun any currency used for trade withinEurope but outside its country of origin,the eurodollar being the most important� a Eurocurrency loan � theEurocurrency market

eurodeposit /�jυərəυd�pɒzt/ nouna deposit of eurodollars in a bank out-side the USEurodollar /�jυərəυdɒlə/ noun a USdollar deposited in a bank outside theUS, used mainly for trade within Europe� a Eurodollar loan � the Eurodollarmarketseuroequity /�jυərəυ�ekwti/ noun ashare in an international companytraded on European stock markets out-side its country of originEuroland /�jυərəυl�nd/ noun the Eu-ropean countries which use the euro as acommon currency, seen as a groupEuromarket /�jυərəυmɑ�kt/ noun 1.the European Union seen as a potentialmarket for sales 2. the eurocurrencymarket, the international market forlending or borrowing in eurocurrencieseuronote /�jυərəυ�nəυt/ noun ashort-term eurocurrency bearer noteeuro-option /�jυərəυ �ɒpʃ(ə)n/ nounan option to buy European bonds at alater dateEurope /�jυərəp/ noun 1. the conti-nent of Europe, the part of the world tothe west of Asia, from Russia to Ireland� Most of the countries of Western Eu-rope are members of the EU. � Polandis in eastern Europe, and Greece, Spainand Portugal are in southern Europe. 2.the European Union (including the UK)� Canadian exports to Europe haverisen by 25%.European /�jυərə�pi�ən/ adjective re-ferring to Europe � They do businesswith several European countries.European Bank for Recon-struction and Development/�jυərəpi�ən b�ŋk fə ri�kən-�str�ktʃ(ə)n ən d�veləpmənt/ nounbank, based in London, which channelsaid from the EU to Eastern Europeancountries. Abbreviation EBRDEuropean Central Bank/�jυərəpi�ən �sentrəl �b�ŋk/ nouncentral bank for most of the countries inthe European Union, those which haveaccepted European Monetary Union andhave the euro as their common currency.Abbreviation ECB

‘…the ECB begins with some $300 billion offoreign exchange reserves, far more than anyother central bank’ [Investors Chronicle]

Euro- 125 European Central Bank

‘…any change in the European bank’s statutesmust be agreed and ratified by all EU membernations’ [The Times]

European Commercial Paper/�jυərəpi�ən kə�m%�ʃ(ə)l �pepə/ nouna commercial paper issued in aeurocurrency. Abbreviation ECPEuropean Commission/�jυərəpi�ən kə�mʃ(ə)n/ noun themain executive body of the EU, madeup of members nominated by eachmember state. Also called Commis-sion of the European CommunityEuropean Common Market/�jυərəpi�ən �kɒmən �mɑ�kt/ nounformerly the name for the EuropeanCommunity, an organisation whichlinks several European countries for thepurposes of tradeEuropean Community/�jυərəpi�ən kə�mju�nti/ noun for-merly, the name of the European Union.Abbreviation ECEuropean Currency Unit/�jυərəpi�ən �k�rənsi �ju�nt/ noun amonetary unit used within the EU. Ab-breviation ECUEuropean Economic Area/�jυərəpi�ən �i�kənɒmk �eərə/ an areacomprising the countries of the EU andthe members of EFTA, formed by anagreement on trade between the two or-ganisations. Abbreviation EEAEuropean Economic Commu-nity /�jυərəpi�ən �i�kənɒmk kə-�mju�nti/ noun a grouping of Euro-pean countries which later became theEuropean Union. Abbreviation EEC.Also called European CommunityEuropean Free Trade Associa-tion /�jυərəpi�ən fri� �tred ə-�səυsieʃ(ə)n/ noun a group of coun-tries (Iceland, Liechtenstein, Norwayand Switzerland) formed to encouragefreedom of trade between its members,and linked with the EU in the EuropeanEconomic Area. Abbreviation EFTAEuropean Interbank OfferedRate /�jυərəpi�ən �ntəb�ŋk �ɒfəd�ret/ noun rate at which Europeanbanks offer to lend funds to other banksEuropean Investment Bank/�jυərəpi�ən n�vestmənt b�ŋk/ nouninternational European bank set up toprovide loans to European countries.Abbreviation EIB

European Monetary System/�jυərəpi�ən �m�nt(ə)ri �sstəm/ nounsystem of controlled exchange rates be-tween some of the member countries ofthe European Union. Abbreviation EMS

COMMENT: The EMS now only applies tocountries such as Greece which aremembers of the EU but not part of theEMU.

European Monetary Union/�jυərəpi�ən �m�nt(ə)ri �ju�njən/noun the process by which some of themember states of the EU joined togetherto adopt the euro as their common cur-rency on 1st January 1999. AbbreviationEMUEuropean options /�jυərə�pi�ən�ɒpʃənz/ plural noun an American termfor options which can only be exercisedon their expiration dateEuropean Parliament /�jυərəpi�ən�pɑ�ləmənt/ noun the parliament withmembers (MEPs) from each country ofthe EUEuropean Regional Develop-ment Fund /�jυərəpi�ən �ri�d$(ə)nəld�veləpmənt f�nd/ noun fund set upto provide grants to underdevelopedparts of Europe. Abbreviation ERDFEuropean Social Charter/�jυərəpi�ən �səυʃ(ə)l �tʃɑ�tə/ noun acharter for employees, drawn up by theEU in 1989, by which employees havethe right to a fair wage, and to equaltreatment for men and women, a safework environment, training, freedom ofassociation and collective bargaining,provision for disabled workers, freedomof movement from country to country,guaranteed standards of living both forthe working population and for retiredpeople. Also called Social CharterEuropean Union /�jυərəpi�ən�ju�njən/ noun (formerly, the EuropeanEconomic Community (EEC), the Com-mon Market) a group of European coun-tries linked together by the Treaty ofRome in such a way that trade is morefree, people can move from one countryto another more freely and people canwork more freely in other countries ofthe group

COMMENT: The European Communitywas set up in 1957 and changed its nameto the European Union when it adoptedthe Single Market. It has now grown to in-clude fifteen member states. These are:

European Commercial Paper 126 European Union

Austria, Belgium, Denmark, Finland,France, Germany, Greece, Ireland, Italy,Luxembourg, the Netherlands, Portugal,Spain, Sweden and the United Kingdom;other countries are negotiating to join.The member states of the EU are linkedtogether by the Treaty of Rome in such away that trade is more free, money can bemoved from one country to another freely,people can move from one country to an-other more freely and people can workmore freely in other countries of thegroup.

euroyen /�jυərəυ�jen/ noun a Japa-nese yen deposited in a European bankand used for trade within EuropeEurozone /�jυərəυzəυn/ noun theEuropean countries which use the euroas a common currency, seen as a group

‘…the European Central Bank left the door openyesterday for a cut in Eurozone interest rates’[Financial Times]‘…a sustained recovery in the euro will requireeither a sharp slowdown in US growth or a risein inflation and interest rates in the eurozonebeyond that already discounted’ [InvestorsChronicle]

EVA abbreviation economic valueaddedevade /�ved/ verb to try to avoidsomething � to evade tax to try illegallyto avoid paying taxevaluate /�v�ljuet/ verb to calcu-late a value for something � to evaluatecosts � We will evaluate jobs on the ba-sis of their contribution to the organisa-tion as a whole. � We need to evaluatethe experience and qualifications of allthe candidates.evaluation /�v�lju�eʃ(ə)n/ noun thecalculation of valueevasion /�ve$(ə)n/ noun the act ofavoiding somethingevent-driven /�vent �drv(ə)n/ ad-jective activated by, and designed toprofit from, a certain event, such as amerger, bankruptcy or takeoverex prefix /eks/ out of or from � withoutex- /eks/ prefix former � an ex-directorof the companyexact /��z�kt/ adjective strictly cor-rect, not varying in any way from, e.g.not any more or less than, what is stated� The exact time is 10.27. � The sales-girl asked me if I had the exact sum,since the shop had no change.

exact interest /��z�kt �ntrəst/noun an annual interest calculated onthe basis of 365 days (as opposed to or-dinary interest, calculated on 360 days)exactly /��z�ktli/ adverb not varyingin any way from, e.g. not any more orless than, what is stated � The total costwas exactly £6,500.ex-all /eks �ɔ�l/ adjective referring to ashare price where the share is sold with-out the dividend, rights issue, or anyother current issue. Abbreviation xaexamination /��z�m�neʃ(ə)n/noun 1. an act of looking at somethingvery carefully to see if it is acceptable 2.a written or oral test to see if someonehas passed a course � He passed his ac-countancy examinations. � She camefirst in the final examination for thecourse. � Examinations are given tocandidates to test their mathematicalability.examine /��z�mn/ verb to look atsomeone or something very carefully �Customs officials asked to examine theinside of the car. � The police are exam-ining the papers from the managing di-rector’s safe.examiner /��z�mnə/ noun 1. a per-son who examines something to see if itis correct 2. a court-appointed adminis-trator for a companyex-capitalisation /eks �k�pt(ə)la-�zeʃ(ə)n/, ex cap /eks �k�p/ adjectivereferring to a share price where theshare is sold without a recent scrip issue.Abbreviation xcexceed /k�si�d/ verb to be more than� a discount not exceeding 15% � Lastyear costs exceeded 20% of income forthe first time. � he has exceeded hiscredit limit he has borrowed moremoney than he is allowedexcept /k�sept/ preposition, conjunc-tion not including � VAT is levied on allgoods and services except books, news-papers and children’s clothes. � Salesare rising in all markets except the FarEast.excepted /k�septd/ adverb notincludingexceptional /k�sepʃən(ə)l/ adjectivedifferent or not usualexceptional items /k�sepʃən(ə)l�atəmz/ plural noun 1. items which

euroyen 127 exceptional items

arise from normal trading but which areunusual because of their size or nature;such items are shown separately in anote to the company’s accounts but noton the face of the P & L account unlessthey are profits or losses on the sale ortermination of an operation, or costs of afundamental reorganisation or restruc-turing which have a material effect onthe nature and focus of the reporting en-tity’s operations, or profits or losses onthe disposal of fixed assets 2. items in abalance sheet which do not appear thereeach year and which are included in theaccounts before the pre-tax profit is cal-culated (as opposed to extraordinaryitems, which are calculated after thepre-tax profit)excess noun, adjective (an amount)which is more than what is allowed � anexcess of expenditure over revenue �Excess costs have caused us consider-able problems.excess capacity /�ekses kə�p�sti/noun spare capacity which is not beingusedexcessive /k�sesv/ adjective toolarge � Excessive production costsmade the product uneconomic.excess liquidity /�ekses l�kwdti/noun cash held by a bank above thenormal requirement for that bankexcess profit /�ekses �prɒft/ nounprofit which is higher than what isthought to be normalexcess profits tax /�ekses �prɒftst�ks/ noun a tax on profits which arehigher than what is thought to be normalexchange /ks�tʃend$/ noun 1. theact of giving one thing for another 2. amarket for shares, commodities, futures,etc. � verb 1. � to exchange something(for something else) to give one thingin place of something else � He ex-changed his motorcycle for a car. �Goods can be exchanged only on pro-duction of the sales slip. 2. to changemoney of one country for money of an-other � to exchange euros for pounds

‘…under the barter agreements, Nigeria willexport crude oil in exchange for trucks, food,planes and chemicals’ [Wall Street Journal]

exchangeable /ks�tʃend$əb(ə)l/adjective which can be exchangedexchange control /ks�tʃend$kən�trəυl/ noun the control by a gov-

ernment of the way in which its cur-rency may be exchanged for foreigncurrenciesexchange controls /ks�tʃend$kən�trəυlz/ plural noun government re-strictions on changing the local currencyinto foreign currency � The governmenthad to impose exchange controls to stopthe rush to buy dollars. � They say thegovernment is going to lift exchangecontrols.exchange cross rates /ks�tʃend$�krɒs rets/ plural noun rates of ex-change for two currencies, shownagainst each other, but in terms of athird currency, often the US dollar. Alsocalled cross ratesexchange dealer /ks�tʃend$�di�lə/ noun a person who buys and sellsforeign currencyexchange dealings /ks�tʃend$�di�lŋz/ plural noun the buying andselling of foreign currencyExchange Equalisation Account/ks�tʃend$ �i�kwəla�zeʃ(ə)n ə-�kaυnt/ noun an account with the Bankof England used by the governmentwhen buying or selling foreign currencyto influence the sterling exchange rateexchange of contracts /ks-�tʃend$ əv �kɒntr�kts/ noun thepoint in the sale of property when thebuyer and the seller both sign the con-tract of sale, which then becomesbindingexchange premium /ks�tʃend$�pri�miəm/ noun an extra cost above thenormal rate for buying a foreigncurrencyexchanger /ks�tʃend$ə/ noun aperson who buys and sells foreigncurrencyexchange rate /ks�tʃend$ ret/noun 1. a rate at which one currency isexchanged for another. Also called rateof exchange 2. a figure that expresseshow much a unit of one country’s cur-rency is worth in terms of the currencyof another country

‘…can free trade be reconciled with a strongdollar resulting from floating exchange rates’[Duns Business Month]‘…a draft report on changes in the internationalmonetary system casts doubt on any return tofixed exchange-rate parities’ [Wall StreetJournal]

excess 128 exchange rate

exchange rate mechanism /ks-�tʃend$ ret �mekənz(ə)m/ noun amethod of stabilising exchange rateswithin the European Monetary System,where currencies could only move up ordown within a narrow band (usually2.25% either way, but for certain cur-rencies widened to 6%) without involv-ing a realignment of all the currencies inthe system. Abbreviation ERM

Exchequer /ks�tʃekə/ noun � theExchequer GB 1. the fund of all moneyreceived by the government of the UKfrom taxes and other revenues 2. theBritish government’s account with theBank of England 3. the British govern-ment department dealing with publicrevenueExchequer stocks /ks�tʃekəstɒks/ plural noun same as Treasurystocks

excise duty /�eksaz �dju�ti/ noun atax on goods such as alcohol and petrolwhich are produced in the countryexciseman /�eksazm�n/ noun aperson who works in the ExciseDepartmentexclude /k�sklu�d/ verb to keep out,or not to include � The interest chargeshave been excluded from the document.� Damage by fire is excluded from thepolicy.exclusion /k�sklu�$(ə)n/ noun 1. theact of not including something 2. anitem reported on the tax return but onwhich no tax is payableexclusion clause /k�sklu�$(ə)nklɔ�z/ noun a clause in an insurancepolicy or warranty which says whichitems or events are not coveredexclusive /k�sklu�sv/ adjective 1.limited to one person or group � to haveexclusive right to market a product tobe the only person who has the right tomarket a product 2. � exclusive of notincluding � The invoice is exclusive ofVAT.exclusive agreement /k�sklu�svə��ri�mənt/ noun an agreement where aperson is made sole agent for a productin a marketexclusive of tax /k�sklu�sv əv�t�ks/ adjective not including tax � Allpayments are exclusive of tax.

exclusivity /�eksklu��svt/ noun theexclusive right to market a productex coupon /eks �ku�pɒn/ adverbwithout the interest coupons or after in-terest has been paidex dividend /eks �dvdend/, ex div/eks �dv/ adjective referring to a shareprice not including the right to receivethe next dividend � The shares went exdividend yesterday. Abbreviation xdexecute /�ekskju�t/ verb to carry outan order � Failure to execute ordersmay lead to dismissal. � There weremany practical difficulties in executingthe managing director’s instructions.execution /�eks�kju�ʃ(ə)n/ noun 1.the carrying out of a commercial orderor contract 2. the carrying out of a legalorder or contractexecution-only broker/�ekskju�ʃ(ə)n �əυnli �brəυkə/ nounsame as dealing-only brokerexecution-only service/�ekskju�ʃ(ə)n �əυnli �s%�vs/ noun aservice which buys and sells shares forclients, but does not provide any adviceand does not manage portfoliosexecutive /��zekjυtv/ adjectivewhich puts decisions into action � nouna person in a business who takes deci-sions, a manager or director � sales ex-ecutives � a senior or junior executive

‘…one in ten students commented on the longhours which executives worked’ [EmploymentGazette]‘…our executives are motivated by a desire tocarry out a project to the best of their ability’[British Business]

executive committee /��zekjυtvkə�mti/ noun a committee which runs asociety or a clubexecutive director /��zekjυtvda�rektə/ noun a director who worksfull-time in the company (as opposed toa ‘non-executive director’)executive powers /��zekjυtv�paυəz/ plural noun the right to act asdirector or to put decisions into action �He was made managing director withfull executive powers over the Europeanoperation.executive share option scheme/��zekjυtv �ʃeər ɒpʃən �ski�m/ nouna special scheme for senior managers,by which they can buy shares in the

exchange rate mechanism 129 executive share option scheme

company they work for at a fixed priceat a later dateexecutor /��zekjυtə/ noun a personor firm that sees that the terms of a willare carried out � He was named execu-tor of his brother’s will.exempt /��zempt/ adjective notforced to do something, especially notforced to obey a particular law or rule,or not forced to pay something � Any-one over 65 is exempt from charges �He was exempt from military service inhis country. � exempt from tax not re-quired to pay tax � As anon-profit-making organisation we areexempt from tax. � verb �Non-profit-making organisations areexempted from tax. � The governmentexempted trusts from tax. � to exemptsomething from tax to free somethingfrom having tax paid on it � Food is ex-empted from sales tax.

‘Companies with sales under $500,000 a yearwill be exempt from the minimum-wagerequirements’ [Nation’s Business]

exemption /��zempʃ(ə)n/ noun theact of exempting something from a con-tract or from a tax � exemption fromtax or tax exemption the fact of beingfree from having to pay tax � As anon-profit-making organisation you canclaim tax exemption.exempt securities /��zempt s-�kjυərtiz/ plural noun securities, suchas municipal bonds, which do not needto be registered with the SECexercise /�eksəsaz/ noun 1. a use ofsomething � exercise of an option us-ing an option, putting an option into ac-tion 2. a financial year � during thecurrent exercise � verb to use � Thechairwoman exercised her veto to blockthe motion. � to exercise an option toput an option into action � He exercisedhis option to acquire sole marketingrights for the product.exercise date /�eksəsaz det/ nouna date when an option can be put intoeffectexercise price /�eksəsaz pras/noun a price at which an option will beput into effectex gratia /eks ��reʃə/ adjective doneas a favour

ex gratia payment /eks ��reʃə�pemənt/ noun a payment made as agift, with no other obligationsexit /�e�zt/ noun going out or leavingexit charge /�e�zt tʃɑ�d$/, exit fee/�e�zt fi�/ noun a charge made whenselling units in a unit trust (only sometrusts apply this charge) or when sellingout of a PEPex officio /eks ə�fʃiəυ/ adjective,adverb because of an office held � Thetreasurer is ex officio a member or an exofficio member of the financecommittee.expand /k�sp�nd/ verb to get bigger,or make something bigger � an expand-ing economy � The company is expand-ing fast. � We have had to expand oursales force.expansion /k�sp�nʃən/ noun an in-crease in size � The expansion of thedomestic market. � The company haddifficulty in financing its current expan-sion programme.

‘…inflation-adjusted GNP moved up at a 1.3%annual rate, its worst performance since theeconomic expansion began’ [Fortune]‘…the businesses we back range from start-upventures to established businesses in need offurther capital for expansion’ [Times]

expect /k�spekt/ verb to hope thatsomething is going to happen � We areexpecting him to arrive at 10.45. � Theyare expecting a cheque from their agentnext week. � The house was sold formore than the expected price.

‘…he observed that he expected exports to growfaster than imports in the coming year’[Sydney Morning Herald]‘American business as a whole has seen profitswell above the levels normally expected at thisstage of the cycle’ [Sunday Times]

expenditure /k�spendtʃə/ noun theamount of money spent � the com-pany’s current expenditureprogramme the company’s spendingaccording to the current plan � heavyexpenditure on equipment spendinglarge sums of money on equipmentexpense /k�spens/ noun moneyspent � It is not worth the expense. �The expense is too much for my bankbalance. � The likely profits do not jus-tify the expense of setting up the project.� at great expense having spent a lot ofmoney � he furnished the office re-

executor 130 expense

gardless of expense without thinkinghow much it costexpense account /k�spens ə-�kaυnt/ noun an allowance of moneywhich a business pays for an employeeto spend on travelling and entertainingclients in connection with that business� I’ll put this lunch on my expenseaccount.expenses /k�spensz/ plural nounmoney paid to cover the costs incurredby someone when doing something �The salary offered is £10,000 plus ex-penses. � He has a high salary and allhis travel expenses are paid by the com-pany. � all expenses paid with all costspaid by the company � The companysent him to San Francisco all expensespaid. � to cut down on expenses to re-duce spending � legal expenses moneyspent on fees paid to lawyersexpiration /�ekspə�reʃ(ə)n/ noun theact of coming to an end � the expirationof an insurance policy � to repay beforethe expiration of the stated period � onexpiration of the lease when the leasecomes to an endexpiration date /�ekspə�reʃ(ə)ndet/ noun same as expiry dateexpire /k�spaə/ verb to come to anend � The lease expires in 2010. � Theoption expired last Tuesday. � his pass-port has expired his passport is no lon-ger validexpiry /k�spaəri/ noun the act ofcoming to an end � the expiry of an in-surance policyexpiry date /k�spaəri det/ noun 1.a date when something will end 2. thelast date on which a credit card can beusedexport noun /�ekspɔ�t/ /�ekspɔ�t/ thepractice or business of sending goods toforeign countries to be sold � 50% ofthe company’s profits come from the ex-port trade or the export market. � ex-ports � verb /k�spɔ�t/ /k�spɔ�t/ tosend goods to foreign countries for sale� 50% of our production is exported. �The company imports raw materials andexports the finished products.exportation /�ekspɔ��teʃ(ə)n/ nounthe act of sending goods to foreigncountries for saleExport Credit Guarantee Depart-ment /�ekspɔ�t �kredt ��rən�ti� d-

�pɑ�tmənt/ noun a British governmentdepartment which insures sellers of ex-ports sold on credit against the possibil-ity of non-payment by the purchasers.Abbreviation ECGD

export department /�ekspɔ�t d-�pɑ�tmənt/ noun the section of a com-pany which deals in sales to foreigncountriesexport duty /�ekspɔ�t �dju�ti/ noun atax paid on goods sent out of a countryfor saleexporter /k�spɔ�tə/ noun a person,company or country that sells goods inforeign countries � a major furnitureexporter � Canada is an important ex-porter of oil or an important oilexporter.export house /�ekspɔ�t haυs/ nouna company which specialises in the ex-port of goods manufactured by othercompaniesexport licence /�ekspɔ�t �las(ə)ns/noun a government permit allowingsomething to be exported � The govern-ment has refused an export licence forcomputer parts.export manager /�ekspɔ�t�m�nd$ə/ noun the person in charge ofan export department in a company �The export manager planned to set up asales force in Southern Europe. � Salesmanagers from all export markets re-port to our export manager.export restitution /�ekspɔ�t �rest-�tju�ʃ(ə)n/ noun (in the EU) subsidiesto European food exportersexports /�ekspɔ�ts/ plural noun goodssent to a foreign country to be sold �Exports to Africa have increased by25%. (NOTE: Usually used in the plural,but the singular form is used before anoun.)expose /k�spəυz/ verb � to be ex-posed to something to be in a positionwhere something might harm you � Thebanks are exposed to bad debts in Asia.exposure /k�spəυ$ə/ noun theamount of risk which a lender or inves-tor runs � He is trying to limit his expo-sure in the property market.

COMMENT: Exposure can be the amountof money lent to a customer (a bank’s ex-posure to a foreign country) or the amountof money which an investor may lose if his

expense account 131 exposure

investments collapse (his or her exposurein the stock market).

express /k�spres/ adjective 1. rapidor very fast � an express letter 2. clearlyshown in words � The contract has anexpress condition forbidding sale in Af-rica. � verb 1. to put into words or dia-grams � This chart shows home salesexpressed as a percentage of total turn-over. 2. to send something very fast �We expressed the order to the cus-tomer’s warehouse.expressly /k�spresli/ adverb clearlyin words � The contract expressly for-bids sales to the United States.express money transfer /k�spres�m�ni �tr�nsf%�/ noun a foreign cur-rency payment to an individual or or-ganisation delivered electronically to abankex-rights /eks �rats/ adjective refer-ring to a share price where the share issold without a recent rights issue. Ab-breviation xrextend /k�stend/ verb 1. to offersomething � to extend credit to a cus-tomer 2. to make something longer �Her contract of employment was ex-tended for two years. � We have ex-tended the deadline for making theappointment by two weeks.extended credit /k�stendd�kredt/ noun 1. credit allowing theborrower a very long time to pay � Wesell to Australia on extended credit. 2.US an extra long credit used by com-mercial banks borrowing from the Fed-eral Reserveextension /k�stenʃən/ noun 1. a lon-ger time allowed for something thanwas originally agreed � to get an exten-sion of credit to get more time to payback � extension of a contract the con-tinuing of a contract for a further period2. (in an office) an individual telephonelinked to the main switchboard � Thesales manager is on extension 53. � Canyou get me extension 21?extensive /k�stensv/ adjective verylarge or covering a wide area � an ex-tensive network of sales outletsexternal /k�st%�n(ə)l/ adjective 1.outside a country (NOTE: The oppositeis internal.) 2. outside a company

external account /k�st%�n(ə)l ə-�kaυnt/ noun an account in a Britishbank belonging to someone who is liv-ing in another countryexternal audit /k�st%�n(ə)l �ɔ�dt/noun 1. an audit carried out by an inde-pendent auditor (who is not employedby the company) 2. an evaluation of theeffectiveness of a company’s public re-lations carried out by an outside agencyexternal auditor /k�st%�n(ə)l�ɔ�dtə/ noun an independent personwho audits the company’s accountsexternal debt /k�st%�n(ə)l �det/noun money which a company has bor-rowed from outside sources (such as abank) as opposed to money raised fromshareholdersexternal funds /k�st%�n(ə)l �f�ndz/plural noun same as external debtexternal growth /k�st%�n(ə)l��rəυθ/ noun growth by buying othercompanies, rather than by expanding ex-isting sales or products (NOTE: The op-posite is internal growth or organicgrowth.)external trade /k�st%�n(ə)l �tred/noun trade with foreign countries(NOTE: The opposite is internal trade.)extract /�ekstr�kt/ noun a printeddocument which is part of a larger docu-ment � He sent me an extract of theaccounts.extraordinaries /k-�strɔ�d(ə)n(ə)riz/ plural noun same asextraordinary itemsextraordinary /k�strɔ�d(ə)n(ə)ri/adjective different from normalExtraordinary General Meeting/k�strɔ�d(ə)n(ə)ri �d$en(ə)rəl �mi�tŋ/noun a special meeting of shareholdersto discuss an important matter (such as achange in the company’s articles of as-sociation) which cannot wait until thenext AGM � to call an ExtraordinaryGeneral Meeting Abbreviation EGMextraordinary items /k-�strɔ�d(ə)n(ə)ri �atəmz/ plural nounformerly, large items of income or ex-penditure which did not arise from nor-mal trading and which did not occurevery year (they were shown separatelyin the P&L account, after taxation)

express 132 extraordinary items

F

face value /�fes �v�lju�/ noun thevalue written on a coin, banknote orshare certificate

‘…travellers cheques cost 1% of their face value– some banks charge more for small amounts’[Sunday Times]

facility /fə�slti/ noun 1. somethingthat allows something to be done some-thing easily � We offer facilities forpayment. 2. the total amount of creditwhich a lender will allow a borrowerfacility fee /fə�slti fi�/ noun acharge made to a borrower by a bank forarranging credit facilitiesfactor /�f�ktə/ noun 1. somethingwhich is important, or which is takeninto account when making a decision �The drop in sales is an important factorin the company’s lower profits. � Moti-vation was an important factor in draw-ing up the new pay scheme. 2. � by afactor of ten ten times 3. a person orcompany which is responsible for col-lecting debts for companies, by buyingdebts at a discount on their face value 4.a person who sells for a business or an-other person and earns a commission �verb to buy debts from a company at adiscount

‘…factors ‘buy’ invoices from a company,which then gets an immediate cash advancerepresenting most of their value. The balance ispaid when the debt is met. The client company ischarged a fee as well as interest on the cashadvanced’ [Times]

COMMENT: A factor collects a company’sdebts when due, and pays the creditor inadvance part of the sum to be collected,so ‘buying’ the debt.

factor in /�f�ktər �n/ verb to add afactor when making calculationsfactoring /�f�ktərŋ/ noun the busi-ness of buying debts from a firm at adiscount and then getting the debtors topay

factoring charges /�f�ktərŋ�tʃɑ�d$z/ plural noun the cost of sell-ing debts to a factor for a commissionfactors of production /�f�ktəz əvprə�d�kʃən/ plural noun the threethings needed to produce a product(land, labour and capital)factory floor /�f�kt(ə)ri �flɔ�/ nounthe main works of a factoryfactory gate price /�f�kt(ə)r ��etpras/ noun the actual cost of manufac-turing goods before any mark-up isadded to give profit (NOTE: The factorygate price includes direct costs suchas labour, raw materials and energy,and indirect costs such as interest onloans, plant maintenance or rent.)factory inspectorate /�f�kt(ə)rin�spekt(ə)rət/ noun all inspectors offactoriesfactory price /�f�kt(ə)ri pras/ nouna price not including transport from themaker’s factoryfactory worker /�f�kt(ə)ri �w%�kə/noun a person who works in a factoryfail /fel/ verb 1. not to do somethingwhich you were trying to do � The com-pany failed to notify the tax office of itschange of address. � They failed toagree on an agenda for the meeting. �Negotiations continued until midnightbut the two sides failed to come to anagreement. 2. to be unsuccessful � Theprototype failed its first test. � the com-pany failed the company went bankrupt� He lost all his money when the bankfailed.failure /�feljə/ noun not doing some-thing which you promised to do � fail-ure to pay a bill not paying a billfair /feə/ noun same as trade fair �The computer fair runs from April 1st to6th. � adjective reasonable, with equaltreatment

fair copy /feə �kɒpi/ noun a documentwhich is written or typed with nochanges or mistakesfair deal /feə �di�l/ noun an arrange-ment where both parties are treatedequally � The workers feel they did notget a fair deal from the management.fair dealing /feə �di�lŋ/ noun the le-gal buying and selling of sharesfairly /�feəli/ adverb reasonably orequally � The union representatives putthe employees’ side of the case fairlyand without argument.fair price /feə �pras/ noun a goodprice for both buyer and sellerfair trade /feə �tred/ noun an interna-tional business system where countriesagree not to charge import duties onsome items imported from their tradingpartnersfair trading /feə �tredŋ/ noun 1. away of doing business which is reason-able and does not harm the consumer 2.a legal trade in shares or the legal buy-ing and selling of sharesfair value /feə �v�lju�/ noun a pricepaid by a buyer who knows the value ofwhat he is buying to a seller who alsoknows the value of what he is selling(i.e. neither is cheating the other)fair wear and tear /�feə weər ən�teə/ noun acceptable damage causedby normal use � The insurance policycovers most damage but not fair wearand tear to the machine.faith /feθ/ noun � to buy somethingin good faith to buy something thinkingthat is of good quality, that it has notbeen stolen or that it is not an imitationfall /fɔ�l/ noun a sudden reduction orloss of value � a fall in the exchangerate � a fall in the price of gold � a fallon the Stock Exchange � Profits showeda 10% fall. � verb 1. to be reduced sud-denly to a lower price or value � Sharesfell on the market today. � Gold sharesfell 10% or fell 45 cents on the Stock Ex-change. � The price of gold fell for thesecond day running. � The pound fellagainst the euro. 2. to happen or to takeplace � The public holiday falls on aTuesday. � payments which fall duepayments which are now due to be made

‘…market analysts described the falls in thesecond half of last week as a technical

correction to the market’ [Australian FinancialReview]‘…for the first time since mortgage rates beganfalling in March a financial institution has raisedcharges on homeowner loans’ [Globe and Mail(Toronto)]‘…interest rates were still falling as late as June,and underlying inflation remains below thegovernment’s target of 2.5 per cent’[Financial Times]

fall away /�fɔ�l ə�we/ verb to becomeless � Hotel bookings have fallen awaysince the tourist season ended.fall back /�fɔ�l �b�k/ verb to becomelower or cheaper after rising in price �Shares fell back in light trading.fall back on /�fɔ�l �b�k ɒn/ verb tohave to use something kept for emer-gencies � to fall back on cash reserves� The management fell back on theusual old excuses.fall behind /�fɔ�l b�hand/ verb to belate in doing something � They fell be-hind with their mortgage repayments.fallen angel /�fɔ�lən �end$əl/ noun ashare that was once in favour, but whoseattraction has slipped and whose shareprice is on the way downfalling /�fɔ�lŋ/ adjective which is be-coming smaller or dropping in price

‘…falling profitability means falling shareprices’ [Investors Chronicle]

falling pound /�fɔ�lŋ �paυnd/ nounthe pound when it is losing its valueagainst other currenciesfall off /�fɔ�l �ɒf/ verb to becomelower, cheaper or less � Sales havefallen off since the tourist season ended.fall out /�fɔ�l �aυt/ verb � the bottomhas fallen out of the market sales havefallen below what previously seemed tobe their lowest pointfallout /�fɔ�laυt/ noun a bad result orcollapsefalse /fɔ�ls/ adjective not true or notcorrect � to make a false claim for aproduct � to make a false entry in thebalance sheetfalse market /fɔ�ls �mɑ�kt/ noun amarket in shares caused by persons orcompanies conspiring to buy or sell andso influence the share price to theiradvantagefalse pretences /fɔ�ls pr�tensz/plural noun doing or saying somethingto cheat someone � He was sent to

fair copy 134 false pretences

prison for obtaining money by falsepretences.false weight /fɔ�ls �wet/ nounweight as measured on a shop scaleswhich is wrong and so cheats customersfalsification /�fɔ�lsf�keʃ(ə)n/ nounthe act of making false entries inaccountsfalsify /�fɔ�lsfa/ verb to changesomething to make it wrong � Theywere accused of falsifying the accounts.family /�f�m(ə)li/ noun a group ofpeople, formed of parents and childrenfamily company /�f�m(ə)li�k�mp(ə)ni/ noun a company wheremost of the shares are owned by mem-bers of a familyfamily firm /�f�m(ə)li �f%�m/,family-run firm /�f�m(ə)li r�n �f%�m/noun a firm where the shareholders anddirectors are members of the samefamilyFannie Mae /�f�ni �me/ noun sameas Federal National MortgageAssociationFAQ noun an item on a menu whichgives answers to questions which peopleoften ask about the website, service orproduct. Full form frequently askedquestionFAS abbreviation Federal AccountingStandardsFASIT abbreviation Financial AssetSecuritisation Investment Trustfat cat /f�t �k�t/ noun a businessmanwho earns an enormous salary and bo-nus (informal.)favourable /�fev(ə)rəb(ə)l/ adjectivewhich gives an advantage (NOTE: TheUS spelling is favorable.) � on favour-able terms on specially good terms �The shop is let on very favourable terms.favourable balance of trade/�fev(ə)rəb(ə)l �b�ləns əv �tred/,favourable trade balance/�fev(ə)rəb(ə)l �tred �b�ləns/ noun asituation where a country’s exports arelarger than its importsfax /f�ks/ noun a system for sendingthe exact copy of a document via tele-phone lines � Can you confirm thebooking by fax? � verb to send a mes-sage by fax � The details of the offerwere faxed to the brokers this morning.

� I’ve faxed the documents to our NewYork office.

COMMENT: Banks will not accept faxmessages as binding instructions (as forexample, a faxed order for money to betransferred from one account to another).

FAZ index noun a daily index of lead-ing industrial shares on the FrankfurtStock Exchange (published in theFrankfurter Allgemeine Zeitung)FD abbreviation financial directorFDI abbreviation foreign directinvestmentFDIC abbreviation Federal Deposit In-surance Corporationfeasibility report /�fi�zə�blti r-�pɔ�t/ noun a document which says if itis worth undertaking somethingFed /fed/ noun US same as FederalReserve Board (informal.)

‘…indications of weakness in the US economywere contained in figures from the Fed onindustrial production for April’ [FinancialTimes]‘…the half-point discount rate move gives theFed room to reduce the federal funds rate furtherif economic weakness persists. The Fed sets thediscount rate directly, but controls the federalfunds rate by buying and selling Treasurysecurities’ [Wall Street Journal]

federal /�fed(ə)rəl/ adjective 1. refer-ring to a system of government where agroup of states are linked together in afederation 2. referring to the centralgovernment of the United States � Mostfederal offices are in Washington.

‘…federal examiners will determine which ofthe privately-insured savings and loans qualifyfor federal insurance’ [Wall Street Journal]‘…since 1978 America has freed many of itsindustries from federal rules that set prices andcontrolled the entry of new companies’[Economist]

Federal Accounting Standards/�fed(ə)rəl ə�kaυntŋ �st�ndədz/ nounthe US regulations governing account-ing procedures. Abbreviation FASfederal credit agencies /�fed(ə)rəl�kredt/, federal agencies /�fed(ə)rəl�ed$ənsiz/ plural noun agencies (suchas the Federal Home Loan Banks)which provide credit to individual bor-rowers and are backed by the federalgovernmentFederal Deposit Insurance Cor-poration /�fed(ə)rəl d�pɒzt n-�ʃυərəns �kɔ�p�reʃ(ə)n/ noun federal

false weight 135 Federal Deposit Insurance

agency which manages insurance fundsthat insure deposits in commercial banksand in savings and loans associations. Ab-breviation FDIC

Federal Funds /�fed(ə)rəl �f�ndz/plural noun deposits by commercialbanks with the Federal Reserve Banks,which can be used for short-term loansto other banksFederal Home Loan Banks/�fed(ə)rəl həυm ləυn �b�ŋks/ pluralnoun US a group of twelve banks whichlend to savings and loans associations,and to other institutions which lendmoney to homeowners againstmortgagesFederal Home Loan MortgageCorporation /�fed(ə)rəl həυm ləυn�mɔ��d$ kɔ�pə�reʃ(ə)n/ noun US afederal organisation which backs mort-gages issued by the Savings and LoansAssociations. Abbreviation FHLMC,Freddie MacFederal National Mortgage As-sociation /�fed(ə)rəl �n�ʃ(ə)nəl�mɔ��d$ ə�səυsieʃ(ə)n/ noun aprivately owned US organisation whichregulates mortgages and helps offermortgages backed by federal funds.Abbreviation FNMA. Also called Fan-nie MaeFederal Reserve /�fed(ə)rəl r-�z%�v/, Federal Reserve System/�fed(ə)rəl r�z%�v �sstəm/ noun thesystem of federal government control ofthe US banks, where the Federal Re-serve Board regulates money supply,prints money, fixes the discount rate andissues government bonds

COMMENT: The Federal Reserve systemis the central bank of the USA. The sys-tem is run by the Federal Reserve Board,under a chairman and seven committeemembers (or ‘governors’) who are all ap-pointed by the President. The twelve Fed-eral Reserve Banks act as lenders of lastresort to local commercial banks. Al-though the board is appointed by thepresident, the whole system is relativelyindependent of the US government.

Federal Reserve Bank /�fed(ə)rəlr�z%�v b�ŋk/ noun any one of thetwelve regional banks in the USA whichare owned by the state and directed bythe Federal Reserve Board. Abbrevia-tion FRB

Federal Reserve Board /�fed(ə)rəlr�z%�v bɔ�d/ noun a government or-ganisation which runs the central banksin the US. Abbreviation FRB

‘…pressure on the Federal Reserve Board toease monetary policy mounted yesterday withthe release of a set of pessimistic economicstatistics’ [Financial Times]

Federal Reserve Wire System/�fed(ə)rəl r�z%�v �waə �sstəm/ nouna computerised communications systemwhich links the Federal Reserve Board,its banks and the US TreasuryFederal Trade Commission/�fed(ə)rəl �tred kə�mʃ(ə)n/ noun afederal agency established to keep busi-ness competition free and fairfederation /�fedə�reʃ(ə)n/ noun agroup of societies, companies or organi-sations which have a central organisa-tion which represents them and looksafter their common interests � a federa-tion of trades unions � the employers’federationFed Funds /�fed f�ndz/ plural nounUS same as Federal Funds (informal.)fed funds rate /fed �f�ndz ret/noun the rate charged by banks for lend-ing money deposited with the FederalReserve to other banks � most federaloffices are in WashingtonFedwire, FedWire /�fedwaə/ nounUS same as Federal Reserve WireSystem (informal.)fee /fi�/ noun 1. money paid for workcarried out by a professional person(such as an accountant, a doctor or alawyer) � We charge a small fee for ourservices. � The consultant’s fee wasmuch higher than we expected. � direc-tor’s fees money paid to a director as alump sum, not a salary 2. money paidfor something � an entrance fee or ad-mission fee � a registration feefew /fju�/ adjective, noun 1. not many� We sold so few of this item that wehave discontinued the line. � Few of thestaff stay with us more than six months.2. � a few some � A few of our sales-men drive Rolls-Royces. � We get only afew orders in the period from Christmasto the New Year.FHFB abbreviation Federal HousingFinance BoardFHLBB abbreviation Federal HomeLoan Bank Board

Federal Funds 136 FHLBB

FHLBS abbreviation Federal HomeLoan Bank SystemFHLMC abbreviation Federal HomeLoan Mortgage Corporationfiat money /�fi��t �m�ni/ noun coinsor notes which are not worth much aspaper or metal, but are said by the gov-ernment to have a value and are recog-nised as legal tenderFIBOR abbreviation Frankfurt Inter-bank Offered Ratefictitious assets /fk�tʃəs ��sets/plural noun assets which do not reallyexist, but are entered as assets to balancethe accountsfiddle /�fd(ə)l/ (informal.) noun an actof cheating � It’s all a fiddle. � he’s onthe fiddle he is trying to cheat � verb tocheat � He tried to fiddle his tax re-turns. � The salesman was caught fid-dling his expense account.fide � bona fidefiduciary /f�dju�ʃjəri/ noun, adjec-tive (a person) in a position of trust �Directors have fiduciary duty to act inthe best interests of the company.fiduciary deposits /f�dju�ʃəri d-�pɒztz/ plural noun bank depositswhich are managed for the depositor bythe bankFIFO /�fafəυ/ abbreviation first in firstoutfifty-fifty /�ffti �ffti/ adjective, ad-verb half � he has a fifty-fifty chanceof making a profit he has an equalchance of making a profit or a lossfigure /�f�ə/ noun 1. a number, or acost written in numbers � The figure inthe accounts for heating is very high. �he put a very low figure on the valueof the lease he calculated the value ofthe lease as very low 2. � to work outthe figures to calculate something � hisincome runs into six figures or he hasa six-figure income his income is morethan £100,000 � in round figures nottotally accurate, but correct to the near-est 10 or 100 � They have a workforceof 2,500 in round figures.figures /�f�əz/ plural noun 1. writtennumbers 2. the results for a company �the figures for last year or last year’sfiguresfile /fal/ noun 1. a cardboard holderfor documents, which can fit in the

drawer of a filing cabinet � Put theseletters in the customer file. � Look in thefile marked ‘Scottish sales’. 2. docu-ments kept for reference � to placesomething on file to keep a record ofsomething � to keep someone’s nameon file to keep someone’s name on a listfor reference 3. a section of data on acomputer (such as payroll, address listor customer accounts) � How can weprotect our computer files? � verb1. � You will find the salary scales filedby department. � The correspondence isfiled under ‘complaints’. � to filedocuments to put documents in orderso that they can be found easily � Thecorrespondence is filed under ‘com-plaints’. 2. to make an official request �to file a petition in bankruptcy orto file for bankruptcy to ask officiallyto be made bankrupt or to ask officiallyfor someone else to be made bank-rupt 3. to register something officially �to file an application for a patent �to file a return to the tax office � to filea return to the tax office US to fill inand send a tax return � to file jointly tomake a joint tax declaration � to fileseparately to file two separate tax re-turns, one for the husband and one forthe wife � to file a petition in bank-ruptcy, to file for bankruptcy 1. toask officially to be made bankrupt 2. toask officially for someone else to bemade bankruptfile copy /�fal �kɒpi/ noun a copy of adocument which is kept for reference inan officefiler /�falə/ noun US a person whofiles an income tax returnfiling system /�falŋ �sstəm/ nouna way of putting documents in order foreasy referencefill /fl/ verb to carry out a client’s in-structions to buy or sellfill or kill /�fl ɔ� �kl/ verb US to carryout a client’s order immediately or elsethe order is cancelled. AbbreviationFOKFIMBRA abbreviation Financial Inter-mediaries, Managers and BrokersAssociationfinal /�fan(ə)l/ adjective last, comingat the end of a period � to pay the finalinstalment � to make the final payment� to put the final details on a document

FHLBS 137 final

� final date for payment last date bywhich payment should be madefinal closing date /�fan(ə)l�kləυzŋ det/ noun the last date foracceptance of a takeover bid, when thebidder has to announce how manyshareholders have accepted his offer �to pay the final instalment � to make thefinal payment � to put the final detailson a documentfinal demand /�fan(ə)l d�mɑ�nd/noun the last reminder from a supplier,after which they will sue for paymentfinal discharge /�fan(ə)l ds-�tʃɑ�d$/ noun the last payment of whatis left of a debtfinal dividend /�fan(ə)l �dvdend/noun a dividend paid at the end of ayear’s trading, which has to be approvedby the shareholders at an AGMfinalise /�fanəlaz/, finalize verb toagree final details � We hope to finalisethe agreement tomorrow. � After sixweeks of negotiations the loan wasfinalised yesterday.final product /�fan(ə)l �prɒd�kt/noun a manufactured product, made atthe end of a production processfinal salary scheme /�fan(ə)l�s�ləri ski�m/ noun a form of pensionscheme where the benefit is based onthe final salary of the member and his orher years of servicefinance /�fan�ns/ noun 1. moneyused by a company, provided by theshareholders or by loans � Where willthey get the necessary finance for theproject? 2. money (used by a club, localauthority, etc.) � She is the secretary ofthe local authority finance committee. �verb to provide money to pay for some-thing � They plan to finance the opera-tion with short-term loans.

‘…an official said that the company began toexperience a sharp increase in demand forlonger-term mortgages at a time when the flowof money used to finance these loansdiminished’ [Globe and Mail]

Finance Act /�fan�ns �kt/ nounGB an annual Act of Parliament whichgives the government the power to ob-tain money from taxes as proposed inthe BudgetFinance and Leasing Associa-tion /�fan�ns ən �li�sŋ ə-�səυsieʃ(ə)n/ noun an organisation

representing firms engaged in businessfinance and the leasing of equipmentand cars. Abbreviation FLA

Finance Bill /�fan�ns bl/ noun 1. abill which lists the proposals in a chan-cellor’s budget and which is debated be-fore being voted into law as the FinanceAct 2. US a short-term bill of exchangewhich provides credit for a corporationso that it can continue tradingfinance charge /�fan�ns tʃɑ�d$/noun 1. the cost of borrowing money 2.an additional charge made to a customerwho asks for extended creditfinance company /�fan�ns�k�mp(ə)ni/, finance corporation/�fan�ns �kɔ�pə�reʃ(ə)n/, financehouse /�fan�ns haυs/ noun a com-pany, usually part of a commercialbank, which provides money forhire-purchasefinance house deposits /�fan�nshaυs d�pɒzts/ plural noun amounts ofmoney deposited by banks with financehouses and used by them to providehire-purchase loans to clientsfinance market /�fan�ns �mɑ�kt/noun a place where large sums ofmoney can be lent or borrowedFinance Ministry /�fan�ns�mnstri/ noun a government depart-ment dealing with a country’s finance

COMMENT: In most countries, the govern-ment department dealing with finance iscalled the Finance Ministry, with a Fi-nance Minister in charge. Both in the UKand the US, the department is called theTreasury, and the minister in charge is theChancellor of the Exchequer in the UK,and the Treasury Secretary in the US

finances /�fan�nsz/ plural nounmoney or cash which is available � thebad state of the company’s financesfinancial /fa�n�nʃəl/ adjective con-cerning money � financial circum-stances the state of someone’s finances� The more you tell us about your fullfinancial circumstances, the more wemay be able to help. � financial diffi-culties a bad state of someone’s fi-nances � If you find yourself in financialdifficulties go to your bank manager foradvice.financial adviser /fa�n�nʃəl əd-�vazə/ noun a person or company

final closing date 138 financial adviser

which gives advice on financial prob-lems for a feeFinancial Asset SecuritisationInvestment Trust /�fan�nʃəl ��sets�kjυərtazeʃ(ə)n n�vestmənttr�st/ noun US an investment trust thatcombines various loans, money out-standing on credit card purchases, etc.,into one single fund for an individual.Abbreviation FASITfinancial assistance /fa�n�nʃəl ə-�sstəns/ noun help in the form ofmoneyfinancial centre /fa�n�nʃəl �sentə/noun a town or part of a town where themain banks and financial institutions arelocatedfinancial correspondent /fa-�n�nʃəl kɒrs�pɒndənt/ noun ajournalist who writes articles on moneymatters for a newspaperfinancial futures /fa�n�nʃəl�fju�tʃəz/, financial futures contract/fa�n�nʃəl �fju�tʃəz �kɒntr�kt/ nouna contract for the purchase of gilt-edgedsecurities for delivery at a date in thefuturefinancial futures market /fa-�n�nʃəl �fju�tʃəz �mɑ�kt/ noun themarket in gilt-edged securities for de-livery at a date in the futurefinancial institution /fa�n�nʃəl�nst�tju�ʃ(ə)n/ noun a bank, invest-ment trust or insurance company whosework involves lending or investing largesums of moneyfinancial instrument /fa�n�nʃəl�nstrυmənt/ noun 1. a documentshowing that money has been lent orborrowed, invested or passed from oneaccount to another (such as a bill of ex-change, share certificate, certificate ofdeposit or an IOU) 2. any form of in-vestment in the stock market or in otherfinancial markets, such as shares, gov-ernment stocks, certificates of deposit orbills of exchangefinancial intermediary /fa�n�nʃəl�ntə�mi�diəri/ noun an institutionwhich takes deposits or loans from indi-viduals and lends money to clientsfinancially /f�n�nʃəli/ adverb re-garding money � a company which isfinancially sound a company which isprofitable and has strong assets

financial position /fa�n�nʃəl pə-�zʃ(ə)n/ noun the state of a person’s orcompany’s bank balance in terms of as-sets and debts � She must think of her fi-nancial position.financial report /fa�n�nʃəl r�pɔ�t/noun a document which gives the fi-nancial position of a company or of aclub, etc.financial resources /fa�n�nʃəl r-�zɔ�sz/ plural noun the supply ofmoney for something � a company withstrong financial resourcesfinancial review /fa�n�nʃəl r-�vju�/ noun an examination of an or-ganisation’s financesfinancial risk /fa�n�nʃəl �rsk/noun the possibility of losing money �The company is taking a considerablefinancial risk in manufacturing 25 mil-lion units without doing any market re-search. � There is always somefinancial risk in selling on credit.financials /fa�n�nʃəlz/ plural nounsame as financial futuresFinancial Secretary to the Trea-sury /fa�n�nʃəl �sekrət(ə)ri tə ðə�tre$əri/ noun a minister of state incharge of the Treasury, under the Chan-cellor of the Exchequer. � Chief Secre-tary to the TreasuryFinancial Services Act /fa-�n�nʃəl �s%�vsz �kt/ noun an Act ofthe British Parliament which regulatesthe offering of financial services to thegeneral public and to private investorsFinancial Services Authority/fa�n�nʃəl �s%�vsz ɔ��θɒrti/ noun agovernment agency set up to regulate allfinancial services, such as banks, stock-brokers, unit trusts, pension companies,professional bodies, stock exchanges,etc., including the ombudsmen for theseservices. Abbreviation FSA

‘…the FSA has set up an independentombudsman scheme covering all areas offinancial services’ [Times]

financial statement /fa�n�nʃəl�stetmənt/ noun a document whichshows the financial situation of a com-pany � The accounts department hasprepared a financial statement for theshareholders. � the Financial State-ment a document which sets out the de-tails of the budget presented by the

financial assistance 139 financial statement

Chancellor of the Exchequer and is pub-lished on Budget Dayfinancial supermarket /fa�n�nʃəl�su�pəmɑ�kt/ noun a company whichoffers a range of financial services (e.g.a bank offering loans, mortgages, pen-sions and insurance as well as the nor-mal personal banking services)Financial Times /fa�n�nʃəl�tamz/ noun an important British fi-nancial daily newspaper (printed onpink paper). Abbreviation FTFinancial Times Index /fa�n�nʃəl�tamz n�deks/, Financial Times Or-dinary Index /fa�n�nʃəl tamz�ɔ�dnəri �ndeks/ noun an index basedon the market prices of thirty blue-chipcompanies (this index is the oldest ofthe FT indices, and is now consideredtoo narrow to have much relevance)financial year /fa�n�nʃəl �jə/ nounthe twelve month period for a firm’s ac-counts (not necessarily the same as acalendar year)financier /fa�n�nsiə/ noun a personwho lends large amounts of money tocompanies or who buys shares in com-panies as an investmentfinancing /�fan�nsŋ/ noun the actof providing money for a project � Thefinancing of the project was done by twointernational banks.finder’s fee /�fandəz fi�/ noun 1. afee paid to a person who finds a clientfor another (e.g., someone who intro-duces a client to a stockbroking firm) 2.a fee paid to a person who arranges aloan for someone, finds a property forsomeone to buy, etc.fine /fan/ noun money paid because ofsomething wrong which has been done� He was asked to pay a $25,000 fine. �We had to pay a £50 parking fine. �verb to punish someone by making himor her pay money � to fine someone£2,500 for obtaining money by falsepretences � adverb very thin or verysmall � we are cutting our marginsvery fine we are reducing our marginsto the smallest possible amount � adjec-tive � fine rate of discount the lowestrate of discount on offerfine-tune /fan �tju�n/ verb to makesmall adjustments to a plan or the econ-omy so that it works better

fine-tuning /fan �tju�nŋ/ noun theact of making of small adjustments inareas such as interest rates, tax bands orthe money supply, to improve a nation’seconomyfinish /�fnʃ/ noun an end of a day’strading on the Stock Exchange � Oilshares rallied at the finish. � verb tocome to an end � The contract is due tofinish next month. � The market finishedthe day on a stronger note.finished goods /�fnʃt ��υdz/ plu-ral noun manufactured goods which areready to be soldFinnmark /�fnmɑ�k/ noun a name forthe currency used before the euro inFinlandfire insurance /�faər n�ʃυərəns/noun insurance against damage by firefireproof safe /�faə�pru�f sef/noun a safe which cannot be harmed byfirefire safety /faə �sefti/ noun activi-ties designed to make a place of worksafe for the workers in case of firefire safety officer /faə �sefti�ɒfsə/ noun a person responsible forfire safety in a buildingfire sale /�faə sel/ noun 1. a sale offire-damaged goods 2. a sale of any-thing at a very low pricefirewalls /�faəwɔ�lz/ plural noun USsame as Chinese wallsfirm /f%�m/ noun a company, businessor partnership � a manufacturing firm �an important publishing firm � She is apartner in a law firm. � adjective 1.which cannot be changed � to make afirm offer for something � to place afirm order for two aircraft 2. not drop-ping in price and possibly going to rise� Sterling was firmer on the foreign ex-change markets. � Shares remainedfirm. � verb to remain at a price andseem likely to rise � The shares firmedat £1.50.

‘…some profit-taking was noted, but underlyingsentiment remained firm’ [Financial Times]COMMENT: Strictly speaking, a ‘firm’ is apartnership or other trading organisationwhich is not a limited company. In prac-tice, it is better to use the term for unincor-porated businesses such as ‘a firm ofaccountants’ or ‘a firm of stockbrokers’,rather than for ‘a major aircraft construc-tion firm’ which is likely to be a plc.

financial supermarket 140 firm

firmness /�f%�mnəs/ noun the fact ofbeing steady at a certain price, or likelyto rise � the firmness of the pound onforeign exchanges

‘Toronto failed to mirror New York’s firmnessas a drop in gold shares on a falling bullion priceleft the market closing on a mixed note’[Financial Times]

firm order /f%�m �ɔ�də/ noun 1. aconfirmed order, which the purchasercannot withdraw 2. an order to a brokerto sell or buy on a certain datefirm price /f%�m �pras/ noun a pricewhich will not change � They are quot-ing a firm price of $1.23 a unit.firm sale /f%�m �sel/ noun a salewhich does not allow the purchaser toreturn the goodsfirm up /f%�m ��p/ verb to agree on thefinal details of something � We expectto firm up the deal at the next trade fair.first /f%�st/ noun a person or thing thatis there at the beginning or earlier thanothers � Our company was one of thefirst to sell into the European market.first-class /�f%�st �klɑ�s/ adjectivetop-quality or most expensive � He is afirst-class accountant. � noun, adverb(the type of travel or type of hotel whichis) most expensive and comfortable � totravel first-class � First-class travelprovides the best service. � A first-classticket to New York costs more than I canafford. � The MD prefers to stay infirst-class hotels.first-class mail /�f%�st klɑ�s �mel/noun a more expensive mail service, de-signed to be faster � A first-class lettershould get to Scotland in a day.first in first out /�f%�st n �f%�st �aυt/phrase 1. a redundancy policy, wherethe people who have been working lon-gest are the first to be made redun-dant 2. an accounting policy where it isassumed that stocks in hand were pur-chased last, and that stocks sold duringthe period were purchased first. Abbre-viation FIFO. Compare last in first outfirst option /f%�st �opʃən/ noun al-lowing someone to be the first to havethe possibility of deciding somethingfirst quarter /f%�st �kwɔ�tə/ noun theperiod of three months from January tothe end of March � The first quarter’srent is payable in advance.

fiscal /�fskəl/ adjective referring totax or to government revenuesfiscal agent /�fskəl �ed$ənt/ noun abank which acts as an agent for a euro-bond issuefiscal drag /�fskəl �dr��/ noun 1.the effect of inflation on a government’stax revenues. As inflation increases sodo prices and wages, and tax revenuesrise proportionately; even if inflation islow, increased earnings will give thegovernment increased revenues anyway.2. the negative effect of higher personaltaxation on an individual’s workperformancefiscal measures /�fskəl �me$əz/plural noun tax changes made by a gov-ernment to improve the working of theeconomyfiscal policy /�fskəl �pɒlsi/ nounthe policy of a government regardingtaxation and revenues

‘…the standard measure of fiscal policy – thepublic sector borrowing requirement – is keptmisleadingly low’ [Economist]

fiscal year /�fskəl �jə/ noun atwelve-month period on which taxes arecalculated (in the UK, April 6th to April5th)

‘…last fiscal year the chain reported a 116%jump in earnings’ [Barron’s]

Five-Year Plan /�fav jə �pl�n/noun proposals for running a country’seconomy over a five-year periodfixation /fk�seʃ(ə)n/ noun the act ofstating a price on an options marketfixed /fkst/ adjective unable to bechanged or removed

‘…you must offer shippers and importers fixedrates over a reasonable period of time’[Lloyd’s List]

fixed assets /fkst ��sets/ pluralnoun property or machinery which acompany owns and uses, but which thecompany does not buy or sell as part ofits regular trade, including the com-pany’s investments in shares of othercompaniesfixed capital /fkst �k�pt(ə)l/ nouncapital in the form of buildings andmachineryfixed costs /fkst �kɒsts/ plural nounbusiness costs which do not change withthe quantity of the product made

firmness 141 fixed costs

fixed deposit /fkst d�pɒzt/ noun adeposit which pays a stated interest overa set periodfixed exchange rate /fkst ks-�tʃend$ ret/ noun a rate of exchangeof one currency against another whichcannot fluctuate, and can only bechanged by devaluation or revaluationfixed expenses /fkst k�spensz/plural noun expenses which do not varywith different levels of production, e.g.rent, secretaries’ salaries and insurancefixed income /fkst �nk�m/ nounincome which does not change fromyear to year (as from an annuity)fixed-income derivatives /�fkst�nk�m d�rvətvz/ plural noun deriv-atives which pay a fixed interest atstated dates in the futurefixed-interest /fkst �ntrest/ adjec-tive which has an interest rate whichdoes not varyfixed-interest investments /fkst�ntrəst n�vestmənts/ plural noun in-vestments producing an interest whichdoes not changefixed-interest securities /fkst�ntrəst s�kjυərtiz/ plural noun secu-rities (such as government bonds) whichproduce an interest which does notchangefixed-price /fkst �pras/ adjectivewhich has a price which cannot bechangedfixed-price agreement /fkst�pras ə��ri�mənt/ noun an agreementwhere a company provides a service or aproduct at a price which stays the samefor the whole period of the agreementfixed-price offer for sale /fkst�pras �ɒfə fə �sel/ noun an offer topurchase shares in a new company for aprice which has been fixed at flotation(as opposed to tendering)fixed rate /fkst �ret/ noun a rate,e.g. an exchange rate, which does notchangefixed rate loan /�fkst ret �ləυn/noun a loan on which the rate of intereststays the same for the duration of theloanfixed scale of charges /�fkstskel əv �tʃɑ�d$z/ noun a rate ofcharging which does not change

fixed-term /fkst �t%�m/ adjectivelasting for a fixed number of yearsfixed-term product /�fkst t%�m�prɒd�kt/ noun a financial product,such as a bond, which runs for a fixednumber of yearsfixed yield /fkst �ji�ld/ noun a per-centage return which does not changefixer /�fksə/ noun a person who has areputation for arranging business deals(often illegally)fixing /�fksŋ/ noun 1. arranging �the fixing of charges � the fixing of amortgage rate 2. a regular meeting toset a pricefl abbreviation guilderFLA abbreviation Finance and LeasingAssociationflag /fl��/ noun a term used by chart-ists to refer to a period when prices con-solidate a previous advance or fallflat /fl�t/ adjective 1. referring to mar-ket prices which do not fall or rise, be-cause of low demand � The market wasflat today. 2. not changing in responseto different conditions � noun a set ofrooms for one family in a building withother sets of similar rooms � He has aflat in the centre of town. � She is buy-ing a flat close to her office.

‘…the government revised its earlier reports forJuly and August. Originally reported as flat inJuly and declining by 0.2% in August, industrialproduction is now seen to have risen by 0.2%and 0.1% respectively in those months’[Sunday Times]

flat bed imprinter /�fl�t bed m-�prntə/ noun US same as imprinterflat out /fl�t �aυt/ adverb workinghard or at full speed � The factoryworked flat out to complete the order ontime.flat rate /fl�t �ret/ noun a chargewhich always stays the same � aflat-rate increase of 10% � We pay aflat rate for electricity each quarter. �He is paid a flat rate of £2 per thousand.flat yield /fl�t �ji�ld/ noun an interestrate as a percentage of the price paid forfixed- interest stockfledgling companies /�fled$lŋ�k�mp(ə)niz/ plural noun companieswhich are just starting in business, espe-cially companies listed on the LondonStock Exchange with a capitalisation

fixed deposit 142 fledgling companies

which is too small for them to be in-cluded in the FTSE All-Share Indexfleet rental /fli�t �rent(ə)l/ noun anarrangement to rent all a company’s carsfrom the same company at a specialpriceflexibility /�fleks�blti/ noun theability to be easily changed � There isno flexibility in the company’s pricingpolicy.

‘…they calculate interest on their ‘flexible’mortgage on an annual basis rather than daily.Charging annual interest makes a nonsense ofthe whole idea of flexibility which is supposedto help you pay off your mortgage morequickly’ [Financial Times]

flexible /�fleksb(ə)l/ adjective whichcan be altered or changed � We try to beflexible where the advertising budget isconcerned. � The company has adopteda flexible pricing policy.flexible mortgage /�fleksb(ə)l�mɔ��d$/ noun a mortgage that givesthe borrower the freedom to change theamount and frequency of his or hermortgage paymentsflexible working hours/�fleksb(ə)l �w%�kŋ aυəz/, flexiblework /�fleksb(ə)l w%�k/ plural noun asystem where employees can start orstop work at different hours of themorning or evening provided that theywork a certain number of hours per dayor weekFlexible Work Regulations/�fleksb(ə)l �w%�k re�jυ�leʃ(ə)nz/plural noun (in the UK) the legal rightfor a parent with a child under the age of6, or with a disabled child under the ageof 18, to ask that their working hoursshould be arranged to help them withtheir responsibilitiesflight /flat/ noun 1. a journey by anaircraft, leaving at a regular time �Flight AC 267 is leaving from Gate 46.� He missed his flight. � I always takethe afternoon flight to Rome. � If youhurry you will catch the six o’clockflight to Paris. 2. a rapid movement ofmoney out of a country because of alack of confidence in the country’s eco-nomic future � The flight of capitalfrom Europe into the USA. � The flightfrom the peso into the dollar. � verb toarrange a scheduling pattern forsomething

flight to quality /�flat tə �kwɒlti/noun a tendency of investors to buy safeblue-chip securities when the economicoutlook is uncertainflip side /�flp sad/ noun the negativefactors (in a proposal)float /fləυt/ noun 1. cash taken from acentral supply and used for running ex-penses � The sales reps have a float of£100 each. 2. the process of starting anew company by selling shares in it onthe Stock Exchange � The float of thenew company was a complete failure. 3.the process of allowing a currency tosettle at its own exchange rate, withoutany government intervention � verb 1.� to float a company to start a newcompany by selling shares in it on theStock Exchange � to float a loan toraise a loan on the financial market byasking banks and companies to sub-scribe to it 2. to let a currency find itsown exchange rate on the internationalmarkets and not be fixed � The govern-ment has let sterling float. � The gov-ernment has decided to float the pound.floater /�fləυtə/ noun US a loan with avariable interest ratefloating /�fləυtŋ/ noun � floating ofa company the act of starting a newcompany by selling shares in it on theStock Exchange � adjective which isnot fixed � floating exchange rates �the floating pound

‘…in a world of floating exchange rates thedollar is strong because of capital inflows ratherthan weak because of the nation’s trade deficit’[Duns Business Month]

floating charge /�fləυtŋ tʃɑ�d$/noun a charge linked to any of the com-pany’s assets of a certain type, but not toany specific itemfloating rate /�fləυtŋ ret/ noun 1.same as variable rate 2. an exchangerate for a currency which can vary ac-cording to market demand, and is notfixed by the governmentfloating-rate notes /�fləυtŋ ret�nəυts/ plural noun eurocurrency loansarranged by a bank which are not at afixed rate of interest. AbbreviationFRNsfloor /flɔ�/ noun 1. the part of the roomwhich you walk on � on the shop floorin the works, in the factory, among theordinary workers � The feeling on theshop floor is that the manager does not

fleet rental 143 floor

know his job. 2. all the rooms on onelevel in a building � Her office is on the26th floor. (NOTE: In the UK, the floor atstreet level is the ground floor, but inthe US it is the first floor. Each floor inthe USA is one number higher than thesame floor in Britain.) 3. a bottom levelof something (such as the lowest ex-change rate which a government will ac-cept for its currency or the lower limitimposed on an interest rate) � The gov-ernment will impose a floor on wages toprotect the poor. � to establish a floorat an auction to fix the bottom price be-low which the seller will not sellfloor broker /�flɔ� �brəυkə/ noun astockbroker who is a member of a bro-kerage housefloor limit /�flɔ� �lmt/ noun a highestsale through a credit card that a retailercan accept without having to getauthorisation from the bank that issuedthe cardfloor price /�flɔ� pras/ noun a lowestprice, a price which cannot go any lowerfloor space /�flɔ� spes/ noun an areaof floor in an office or warehouse � Wehave 3,500 square metres of floor spaceto let.floor trader /�flɔ� �tredə/ noun an in-dependent trader on a Stock Exchange,who buys and sells on his or her ownaccountflop /flɒp/ noun a failure, or somethingwhich has not been successful � Thenew model was a flop. � verb to fail ornot be a success � The launch of thenew shampoo flopped badly. (NOTE:flopping – flopped)floppy disk /�flɒpi �dsk/ noun asmall disk for storing informationthrough a computerflorin /�flɒrn/ noun another name forthe Dutch guilder. Abbreviation flflotation /fləυ�teʃ(ə)n/ noun � theflotation of a new company the act ofstarting a new company by sellingshares in itflow /fləυ/ noun 1. a movement � theflow of capital into a country � the flowof investments into Japan 2. � the com-pany is suffering from cash flowproblems cash income is not coming infast enough to pay for the expendituregoing out � verb to move smoothly �

Production is now flowing normally af-ter the strike.flow chart /�fləυ tʃɑ�t/, flow dia-gram /�fləυ �daə�r�m/ noun a chartwhich shows the arrangement of workprocesses in a seriesfluctuate /�fl�ktʃuet/ verb to moveup and down � Prices fluctuated be-tween £1.10 and £1.25. � The poundfluctuated all day on the foreign ex-change markets.fluctuating /�fl�ktjuetŋ/ adjectivemoving up and down � fluctuating dol-lar pricesfluctuation /�fl�ktʃu�eʃ(ə)n/ nounan up and down movement � the fluctu-ations of the yen � the fluctuations ofthe exchange rateFNMA abbreviation Federal NationalMortgage AssociationFOB, f.o.b. abbreviation free on boardFOK abbreviation fill or killfolio /�fəυliəυ/ noun a page with anumber, especially two facing pages inan account book which have the samenumber � verb to put a number on apagefoot /fυt/ verb � to foot the bill to paythe costs � to foot up an account US toadd up a column of numbersfootings /�fυtŋz/ noun US the bot-tom line in a bank’s balance sheet (infor-mal.)Footsie /�fυtsi�/ noun an index basedon the prices of 100 leading companies(this is the main London index) (infor-mal.) Full form Financial Times-StockExchange 100 indexFOR abbreviation free on railForbes 500 /�fɔ�bz fav �h�ndrəd/noun a list of the largest US corpora-tions, published each year in Forbesmagazineforbid /fə�bd/ verb to tell someonenot to do something, or to say that some-thing must not be done � Smoking isforbidden in our offices. � The contractforbids resale of the goods to the USA.� Staff are forbidden to speak directlyto the press. (NOTE: forbidding – for-bade – forbidden)force /fɔ�s/ noun 1. strength � to be inforce to be operating or working � Therules have been in force since 1986. � to

floor broker 144 force

come into force to start to operate orwork � The new regulations will comeinto force on January 1st. 2. a group ofpeople � verb to make someone dosomething � Competition has forced thecompany to lower its prices. � After thetakeover several of the managers wereforced to take early retirement.force down /�fɔ�s �daυn/ verb tomake something such as prices becomelower � to force prices down to makeprices come down � Competition hasforced prices down.forced sale /fɔ�st �sel/ noun a salewhich takes place because a court ordersit or because it is the only way to avoid afinancial crisisforce majeure /�fɔ�s m��$%�/ nounsomething which happens which is outof the control of the parties who havesigned a contract, e.g. a strike, war orstormforce up /�fɔ�s ��p/ verb to makesomething become higher � to forceprices up to make prices go up � Thewar forced up the price of oil.forecast /�fɔ�kɑ�st/ noun a descrip-tion or calculation of what will probablyhappen in the future � The chairman didnot believe the sales director’s forecastof higher turnover. � verb to calculateor to say what will probably happen inthe future � She is forecasting sales of£2m. � Economists have forecast a fallin the exchange rate. (NOTE: forecast-ing – forecast)forecast dividend /�fɔ�kɑ�st �dv+dend/ noun a dividend which a com-pany expects to pay at the end of thecurrent year. Also called prospectivedividendforecaster /�fɔ�kɑ�stə/ noun a personwho says what he or she thinks will hap-pen in the futureforecasting /�fɔ�kɑ�stŋ/ noun theprocess of calculating what will proba-bly happen in the future � Manpowerplanning will depend on forecasting thefuture levels of production.foreclose /fɔ��kləυz/ verb to acquirea property because the owner cannot re-pay money which he or she has bor-rowed (using the property as security)foreclosure /fɔ��kləυ$ə/ noun an actof foreclosing

foreign /�fɒrn/ adjective not belong-ing to your own country � Foreign carshave flooded our market. � We are in-creasing our trade with foreign coun-tries. � foreign banks or foreignbranches banks from other countrieswhich have branches in a country

‘…a sharp setback in foreign trade accountedfor most of the winter slowdown’ [Fortune]

foreign currency /�fɒrn �k�rənsi/noun money of another countryforeign currency account /�fɒrn�k�rənsi ə�kaυnt/ noun a bank accountin the currency of another country, e.g. adollar account in a British bankforeign currency reserves /�fɒrn�k�rənsi r�z%�vz/ plural noun a coun-try’s reserves held in currencies of othercountries. Also called foreign ex-change reserves, internationalreserves

‘…the treasury says it needs the cash to rebuildits foreign reserves which have fallen from $19billion when the government took office to $7billion in August’ [Economist]

foreign direct investment /�fɒrn�darekt n�vestmənt/ noun an invest-ment in a developing country by foreigncompanies or governments. Abbrevia-tion FDIforeign exchange /�fɒrən ks-�tʃend$/ noun 1. the business of ex-changing the money of one country forthat of another 2. foreign currencies

‘…the dollar recovered a little lost ground onthe foreign exchanges yesterday’[Financial Times]

foreign exchange broker /�fɒrnks�tʃend$ �brəυkə/, foreign ex-change dealer noun a person whodeals on the foreign exchange marketforeign exchange dealing /�fɒrnks�tʃend$ �di�lŋ/ noun the businessof buying and selling foreign currenciesforeign exchange desk /�fɒrnks�tʃend$ desk/ noun a section of abank which deals with foreign exchangetransactionsforeign exchange market /�fɒrnks�tʃend$ �mɑ�kt/ noun 1. a marketwhere people buy and sell foreign cur-rencies � She trades on the foreign ex-change market. 2. dealings in foreigncurrencies � Foreign exchange marketswere very active after the dollardevalued.

force down 145 foreign exchange market

foreign exchange reserves/�fɒrn ks�tʃend$ r�z%�vz/ pluralnoun foreign money held by a govern-ment to support its own currency andpay its debtsforeign exchange transaction/�fɒrn ks�tʃend$ tr�n�z�kʃən/noun a purchase or sale of foreigncurrencyforeign exchange transfer /�fɒrnks�tʃend$ �tr�nsf%�/ noun the send-ing of money from one country toanotherforeign investments /�fɒrn n-�vestmənts/ plural noun money in-vested in other countriesforeign money order /�fɒrn�m�ni/ noun a money order in a foreigncurrency which is payable to someoneliving in a foreign countryForeign Office /�fɒrn �ɒfs/ noun aministry dealing with a country’s rela-tions with foreign countriesforeign rights /�fɒrn �ratz/ pluralnoun a legal entitlement to sell some-thing in a foreign country, such as theright to translate a book into a foreignlanguageforeign trade /�fɒrn tred/ noun atrade with other countriesforex /�fɔ�reks/, Forex noun same asforeign exchange

‘…the amount of reserves sold by the authoritieswere not sufficient to move the $200 billionForex market permanently’ [Duns BusinessMonth]

forfaiting /�fɔ�ftŋ/ noun providingfinance for exporters, where an agent(the forfaiter) accepts a bill of exchangefrom an overseas customer; he buys thebill at a discount, and collects the pay-ments from the customer in due courseforfeit /�fɔ�ft/ noun the fact of havingsomething taken away as a punishment� the goods were declared forfeit thecourt said that the goods had to be takenaway from the person who was holdingthem � verb to have something takenaway as a punishment � to forfeit a pat-ent to lose a patent because paymentshave not been made � to forfeit a de-posit to lose a deposit which was left foran item because you have decided not tobuy that itemforfeit clause /�fɔ�ft klɔ�z/ noun aclause in a contract which says that

goods or a deposit will be taken away ifthe contract is not obeyedforfeiture /�fɔ�ftʃə/ noun the act offorfeiting a propertyfor hire contract /fə �haə�kɒntr�kt/ noun US a freelancecontractforint /�fɒrnt/ noun a unit of currencyused in Hungaryform /fɔ�m/ noun 1. � form of wordswords correctly laid out for a legal doc-ument � receipt in due form a correctlywritten receipt 2. an official printed pa-per with blank spaces which have to befilled in with information � a pad of or-der forms � You have to fill in form A20.� Each passenger was given a customsdeclaration form. � The reps carry padsof order forms. � verb to start, create ororganise something � The brothers haveformed a new company.Form 1099 /fɔ�m �ten nanti �nan/noun US a statement from a bank orstockbroker, giving details of interestpayments or dividends received, whicha taxpayer sends on to the IRSforma /�fɔ�mə/ noun � pro formaformal /�fɔ�m(ə)l/ adjective clearlyand legally written � to make a formalapplication � to send a formal order �Is this a formal job offer? � The factoryis prepared for the formal inspection bythe government inspector.formal documents /�fɔ�m(ə)l�dɒkjυmənts/ plural noun documentsgiving full details of a takeover bidformality /fɔ��m�lti/ noun some-thing which has to be done to obey thelawformation /fɔ��meʃ(ə)n/, forming/�fɔ�mŋ/ noun the act of organising �the formation of a new companyform letter /fɔ�m �letə/ noun a letterwhich can be sent without any change toseveral correspondents (such as a letterchasing payment)formula investing /�fɔ�mjələ n-�vestŋ/ noun a method of investing ac-cording to a set plan (such as purchasinga certain value of shares each month, oronly investing in shares of companieswith a capitalisation of less than £25m)fortune /�fɔ�tʃən/ noun a largeamount of money � He made a fortune

foreign exchange reserves 146 fortune

from investing in oil shares. � She lefther fortune to her three children.Fortune 500 /�fɔ�tʃən fav�h�ndrəd/ noun the 500 largest compa-nies in the USA, as listed annually inFortune magazineforward /�fɔ�wəd/ adjective in ad-vance or to be paid at a later date � ad-verb � to date a cheque forward to puta later date than the present one on achequeforwardation /�fɔ�wəd�eʃ(ə)n/ nouna cash price which is lower than the for-ward price (NOTE: The opposite isbackwardation.)forward buying /�fɔ�wəd �baŋ/noun the act of buying shares, currencyor commodities at today’s price for de-livery at a later dateforward contract /�fɔ�wəd�kɒntr�kt/ noun a one-off agreementto buy foreign currency or shares orcommodities for delivery at a later dateat a specific priceforward cover /�fɔ�wəd �k�və/ nounan arrangement to cover the risks on aforward contractforward dealing /�fɔ�wəd �di�lŋ/noun the activity of buying or sellingcommodities forwardforward delivery /�fɔ�wəd d-�lv(ə)ri/ noun a delivery at some datein the future which has been agreed be-tween the buyer and sellerforwarder /�fɔ�wədə/ noun a personor company that arranges shipping andcustoms documents for several ship-ments from different companies, puttingthem together to form one largeshipmentforwarding /�fɔ�wədŋ/ noun the actof arranging shipping and customsdocumentsforwarding address /�fɔ�wədŋ ə-�dres/ noun the address to which a per-son’s mail can be sent onforwarding agent /�fɔ�wədŋ�ed$ənt/ noun a person or companywhich arranges shipping and customsdocumentsforwarding instructions/�fɔ�wədŋ n�str�kʃənz/ plural nouninstructions showing how the goods areto be shipped and delivered

forward integration /�fɔ�wəd ntə-��reʃ(ə)n/ noun a process of expansionin which a company becomes its owndistributor or takes over a company inthe same line of business as itself � For-ward integration will give the companygreater control over its selling. � For-ward integration has brought the com-pany closer to its consumers and hasmade it aware of their buying habits.Compare backward integrationforward margin /�fɔ�wəd �mɑ�d$n/noun the difference between the current(or spot) price and the forward priceforward market /�fɔ�wəd �mɑ�kt/noun a market for purchasing foreigncurrency, oil or commodities for deliv-ery at a later dateforward sales /�fɔ�wəd selz/ pluralnoun the sales of shares, commoditiesor foreign exchange for delivery at alater dateforward trading /�fɔ�wəd �tredŋ/noun the activity of buying or sellingcommodities forwardfoul bill of lading /�faυl bl əv�ledŋ/ noun a bill of lading which saysthat the goods were in bad conditionwhen received by the shipperfounder /�faυndə/ noun a person whostarts a companyfounder’s shares /�faυndəz ʃeəz/noun special shares issued to the personwho starts a company401(k) plan /�fɔ� əυ w�n �ke pl�n/noun US a personal pension plan ar-ranged by an employer for a member ofstaff, invested in bonds, mutual funds orstock (the employee contributes a pro-portion of salary, on which tax is de-ferred; the employer can also makecontributions)fourth market /fɔ�θ �mɑ�kt/ nounUS trading in securities which is carriedbetween financial institutions, withoutgoing through the stock marketfourth quarter /fɔ�θ �kwɔ�tə/ noun aperiod of three months from 1st Octoberto the end of the yearfraction /�fr�kʃən/ noun a very smallamount � Only a fraction of the newshare issue was subscribed.fractional /�fr�kʃənəl/ adjective verysmall

Fortune 500 147 fractional

fractional certificate /�fr�kʃənəlsə�tfkət/ noun a certificate for part ofa sharefractional reserve /�fr�kʃənəl r-�z%�v/ noun a reserve held by a bankwhich is a small proportion of its totaldepositsfragile /�fr�d$al/ adjective which canbe easily broken � There is an extrapremium for insuring fragile goods inshipment.fragility /frə�d$lti/ noun the fact ofbeing weak or likely to collapse � fi-nancial fragility the fact of being in aweak position financiallyfranc /fr�ŋk/ noun 1. a former unit ofcurrency in France and Belgium �French francs or Belgian francs 2. aunit of currency in Switzerland and sev-eral other currencies � It coststwenty-five Swiss francs.franchise /�fr�ntʃaz/ noun a licenceto trade using a brand name and payinga royalty for it � He’s bought a printingfranchise or a pizza franchise. � verb tosell licences for people to trade using abrand name and paying a royalty � Hissandwich bar was so successful that hedecided to franchise it.

‘…many new types of franchised businesseswill join the ranks of the giant chains offast-food restaurants, hotels and motels andrental car agencies’ [Franchising Opportunities]

franchisee /�fr�ntʃa�zi�/ noun aperson who runs a franchisefranchiser /�fr�ntʃazə/ noun a per-son who licenses a franchisefranchising /�fr�ntʃazŋ/ noun theact of selling a licence to trade as a fran-chise � He runs his sandwich chain as afranchising operation.franchising operation/�fr�ntʃazŋ ɒpə�reʃ(ə)n/ noun anoperation involving selling licences totrade as a franchisefranchisor /�fr�ntʃazə/ noun an-other spelling of franchiserfranco /�fr�ŋkəυ/ adverb freefranc zone /�fr�ŋk zəυn/ noun a cur-rency area consisting of the formerFrench colonies in Africa or in thePacific (it uses the CFA franc or theCFP franc as unit of currency)Frankfurt /�fr�ŋkf%�t/ the main fi-nancial centre in Germany

Frankfurter Allgemeine Zeitungnoun a daily newspaper published inFrankfurtFrankfurt Interbank OfferedRate /�fr�ŋkf%�t ntə�b�ŋk �ɒfədret/ noun a rate used for calculatingloans on the Frankfurt money markets.Abbreviation FIBORfraud /frɔ�d/ noun an act of makingmoney by making people believe some-thing which is not true � He got posses-sion of the property by fraud. � She wasaccused of frauds relating to foreigncurrency. � to obtain money by fraudto obtain money by saying or doingsomething to cheat someonefraud squad /�frɔ�d skwɒd/ noun thespecial police department which investi-gates fraudsfraudulent /�frɔ�djυlənt/ adjectivenot honest, or aiming to cheat people �a fraudulent transactionfraudulently /�frɔ�djυləntli/ adverbnot honestly � goods importedfraudulentlyfraudulent misrepresentation/�frɔ�djυlənt ms�reprzen�teʃ(ə)n/noun the act of making a false statementwith the intention of tricking a customerFRB abbreviation 1. Federal ReserveBank 2. Federal Reserve BoardFreddie Mac /�fred �m�k/ noun USsame as Federal Home Loan Mort-gage Corporation (informal.)free /fri�/ adjective, adverb 1. not cost-ing any money � I have been given afree ticket to the exhibition. � The priceincludes free delivery. � All goods in thestore are delivered free. � A cataloguewill be sent free on request. � free ofcharge with no payment to be made 2.with no restrictions � free of tax withno tax having to be paid � Interest ispaid free of tax. � free of duty with noduty to be paid � to import wine free ofduty � verb to make something avail-able or easy � The government’s deci-sion has freed millions of pounds forinvestment.

‘American business as a whole is increasinglyfree from heavy dependence on manufacturing’[Sunday Times]

free capital /fri� �k�pt(ə)l/ noun anamount of a company’s capital in shareswhich are available for trading on aStock Exchange

fractional certificate 148 free capital

free collective bargaining /�fri�kə�lektv �bɑ��nŋ/ noun negotiationsbetween management and trade unionsabout wage increases and workingconditionsfree competition /�fri� kɒmpə-�tʃ(ə)n/ noun the fact of being free tocompete without governmentinterferencefree currency /�fri� �k�rənsi/ noun acurrency which is allowed by the gov-ernment to be bought and sold withoutrestrictionfree enterprise /�fri� �entəpraz/noun a system of business free fromgovernment interferencefreefall /�fri�fɔ�l/ noun a sudden col-lapse of prices � On the news of the de-valuation the stock market went intofreefall.free gift /fri� ��ft/ noun a presentgiven by a shop to a customer who buysa specific amount of goods � There is afree gift worth £25 to any customer buy-ing a washing machine.freeholder /�fri�həυldə/ noun a per-son who owns a freehold propertyfreehold property /�fri�həυld�prɒpəti/ noun property which theowner holds for ever and on which norent is paidfree issue /fri� �ʃu�/ noun same asscrip issuefree market /fri� �mɑ�kt/ noun amarket in which there is no governmentcontrol of supply and demand, and therights of individuals and organisationsto physical and intellectual property areupheldfree market economy /fri� �mɑ�kt�kɒnəmi/ noun a system where thegovernment does not interfere in busi-ness activity in any wayfree on board /�fri� ɒn �bɔ�d/ adjec-tive including in the price all the seller’scosts until the goods are on the ship fortransportation. Abbreviation f.o.b.free online sessions /fri� �ɒnlan�seʃ(ə)nz/ plural noun the number oftimes a customer can access his onlinebank account without paying a chargefree period /fri� �pəriəd/ noun theperiod of grace allowed to credit cardholders before payment for credit cardpurchases is demanded

freephone /�fri�fəυn/, freefone nouna system where you can telephone to re-ply to an advertisement, to place an or-der or to ask for information and theseller pays for the callfree port /�fri� pɔ�t/ noun a portwhere there are no customs duties to bepaidfreepost /�fri�pəυst/ noun a systemwhere someone can write to an adver-tiser to place an order or to ask for infor-mation to be sent, without paying for astamp. The company paying for thepostage on receipt of the envelope.free reserves /fri� r�z%�vz/ pluralnoun the part of a bank’s reserves whichare above the statutory level and so canbe used for various purposes as the bankwishesfree sample /fri� �sɑ�mpəl/ noun asample given free to advertise a productfree-standing /fri� �st�ndŋ/ adjec-tive standing separately, not attached toa wallfree-standing additional vol-untary contribution /fri� �st�ndŋə�dʃ(ə)nəl �vɒlənt(ə)ri �kɒntr-�bju�ʃ(ə)n/ noun a payment made by anindividual into an independent pensionfund to supplement an occupationalpension scheme (the anticipated benefitsfrom the two schemes together must beless than the maximum permitted underthe rules laid down by the Inland Reve-nue). Abbreviation FSAVCfree-standing additional volun-tary contributions plan /fri��st�ndŋ ə�dʃ(ə)nəl �vɒlənt(ə)ri�kɒntr�bju�ʃ(ə)ns/ noun a separatepension plan taken out by an individualin addition to a company pensionschemefree trade /fri� �tred/ noun a systemwhere goods can go from one country toanother without any restrictions

‘…can free trade be reconciled with a strongdollar resulting from floating exchange rates?’[Duns Business Month]

free trade area /fri� �tred �eəriə/noun a group of countries practisingfree tradefree trader /fri� �tredə/ noun a per-son who is in favour of free trade

‘…free traders hold that the strong dollar is theprimary cause of the nation’s trade problems’[Duns Business Month]

free collective bargaining 149 free trader

free trade zone /fri� �tred zəυn/noun an area where there are no cus-toms dutiesfree trial /fri� �traəl/ noun an oppor-tunity to test a machine or product withno payment involvedfreeze /fri�z/ noun � a freeze onwages and prices period when wagesand prices are not allowed to be in-creased � verb to keep something suchas money or costs at their present leveland not allow them to rise � to freezewages and prices � to freeze credits �to freeze company dividends � We havefrozen expenditure at last year’s level.(NOTE: freezing – froze – frozen)freeze out /�fri�z �aυt/ verb � tofreeze out the competition to trade suc-cessfully and cheaply and so preventcompetitors from operatingfreight /fret/ noun the cost of trans-porting goods by air, sea or land � At anauction, the buyer pays the freight.freightage /�fretd$/ noun the costof transporting goodsfreight charges /�fret �tʃɑ�d$z/plural noun money charged for trans-porting goods � Freight charges havegone up sharply this year.freight costs /�fret kɒsts/ pluralnoun money paid to transport goodsfreight forward /fret �fɔ�wəd/ nouna deal where the customer pays fortransporting the goodsfreight forwarder /�fret �fɔ�wədə/noun a person or company that arrangesshipping and customs documents forseveral shipments from different compa-nies, putting them together to form onelarge shipment

‘…the airline will allow freight forwardercustomers to track and trace consignments onthe airline’s website’ [Lloyd’s List]

freight rates /�fret rets/ pluralnoun charges for transporting goodsfrequent flier /�fri�kwənt �flaə/noun a person who flies regularly, usu-ally on businessfriendly society /�frendli sə�saəti/noun a group of people who pay regularsubscriptions which are used to helpmembers of the group when they are illor in financial difficultiesfringe benefit /frnd$ �benft/ nounan extra item given by a company to

workers in addition to a salary, e.g.company cars or private health insur-ance � The fringe benefits make up forthe poor pay. � Use of the company rec-reation facilities is one of the fringebenefits of the job.FRN abbreviation floating rate notefront /fr�nt/ noun a business orperson used to hide an illegal trade �His restaurant is a front for a drugsorganisation.front-end /fr�nt �end/ adjective re-ferring to the start of an investment orinsurancefront-end fee /fr�nt �end fi�/ nounan initial loading of the managementcharges into the first premium paid foran insurancefront-end loaded /�fr�nt end�laυdd/ adjective referring to an insur-ance or investment scheme where mostof the management charges are incurredin the first year of the investment or in-surance, and are not spread out over thewhole period. Compare back-endloadedfront man /�fr�nt m�n/ noun a per-son who seems honest but is hiding anillegal tradefront office /fr�nt �ɒfs/ noun thefront-line staff and support staff in a fi-nancial institutionfront-running /fr�nt �r�nŋ/ nounUS the act of buying shares or optionsbecause you have heard of a large orderto purchase which is coming � Theywere accused of persistentfront-running.frozen /�frəυz(ə)n/ adjective not al-lowed to be changed or used � Wageshave been frozen at last year’s rates. �his assets have been frozen by thecourt the court does not allow him tosell his assets. � freezefrozen account /�frəυz(ə)n ə�kaυnt/noun a bank account where the moneycannot be moved or used because of acourt orderfrozen assets /�frəυz(ə)n ��sets/plural noun a company’s assets whichby law cannot be sold because someonehas a claim against themfrozen credits /�frəυz(ə)n �kredtz/plural noun credits in an account whichcannot be moved

free trade zone 150 frozen credits

FSA abbreviation Financial ServicesAuthorityFSAVC abbreviation free-standing ad-ditional voluntary contributionFT abbreviation Financial TimesFT Actuaries Share Indices /�efti� ��ktjυəriz �ʃeə �ndsiz/ pluralnoun several indices based on prices onthe London Stock Exchange, which arecalculated by and published in the Fi-nancial Times in conjunction with theInstitute of Actuaries and the Faculty ofActuaries. � Financial TimesFTSE 100 /�fυtsi w�n �h�ndrəd/noun an index based on the prices ofone hundred leading companies (this isthe main London index)

‘…the benchmark FTSE 100 index ended thesession up 94.3 points’ [Times]

FTSE 100 index-tracking unittrust /�fυtsi w�n �h�ndrəd �ndeks�tr�kŋ �ju�nt tr�st/ noun a unit trustthat follows the FTSE 100FTSE 350 Index /�fυtsi θri� �ffti�ndeks/ noun an index based on themarket price of 350 companies listed onthe London Stock Exchange (it includesthe companies on the FTSE 100 Indexand FTSE 250 Index)FTSE All-Share Index /�fυtsi �ɔ�lʃeə �ndeks/ noun an index based onthe market price of about 840 compa-nies listed on the London Stock Ex-change (it includes the companies on theFTSE 100 Index, the 250 Index, pluscompanies in other indices) (NOTE: Alsosimply called the All-Share Index.)FTSE All-Share tracker /�fυtsi �ɔ�lʃeə �tr�kə/ noun a fund which tracksthe FTSE All-Share indexFTSE All-Small Index /�fυtsi ɔ�l�smɔ�l �ndeks/ noun an index coveringthe FTSE SmallCap companies, plusabout 750 fledgling companies whichare too small to be included in theAll-Share IndexFTSE Eurotop 300 Index /�fυtsi�jυərəυtɒp θri� �h�ndrəd �ndeks/noun an index of 300 leading Europeanshares, quoted in eurosFTSE Mid 250 Share Index /�fυtsimd tu� �ffti �ʃeə �ndeks/ noun an in-dex based on the market prices of 250companies capitalised at between£300m and £2.5bn (this is about 16% ofthe total stock market capitalisation)

FTSE Small Cap Index /�fυtsismɔ�l �k�p �ndeks/ noun an indexwhich covers about 500 smaller compa-nies which are too small to be includedin the two main indicesfulfil /fυl�fl/ verb to complete some-thing in a satisfactory way � The clauseregarding payments has not been ful-filled. (NOTE: The US spelling is fulfill.)� to fulfil an order to supply the itemswhich have been ordered � We are sounderstaffed that we cannot fulfil anymore orders before Christmas.fulfilment /fυl�flmənt/ noun the actof carrying something out in a satisfac-tory way (NOTE: The US spelling is ful-fillment.)full /fυl/ adjective 1. complete, includ-ing everything � we are working at fullcapacity we are doing as much work aspossible � in full discharge of a debtpaying a debt completely 2. � in fullcompletely � a full refund or a refundpaid in full � Give your full name andaddress or your name and address infull. � He accepted all our conditions infull.

‘…a tax-free lump sum can be taken partly inlieu of a full pension’ [Investors Chronicle]

full costs /fυl �kɒsts/ plural noun allthe costs of manufacturing a product, in-cluding both fixed and variable costsfull cover /fυl �k�və/ noun insurancecover against all risksfull employment /fυl m�plɔmənt/noun a situation where all the peoplewho can work have jobsfull listing /fυl �lstŋ/ noun the list-ing of a company on the London StockExchange (as opposed to trading on theUSM market)full price /�fυl pras/ noun a pricewith no discount � She bought afull-price ticket.full rate /fυl �ret/ noun the fullcharge, with no reductionsfull refund /fυl �ri�f�nd/ noun a re-fund of all the money paid � He got afull refund when he complained aboutthe service.full repairing lease /fυl r�peərŋli�s/ noun a lease where the tenant has topay for all repairs to the propertyfull-scale /�fυl skel/ adjective com-plete or very thorough � The MD or-

FSA 151 full-scale

dered a full-scale review of credit terms.� The HR department will start afull-scale review of the present paystructure.

‘…the administration launched a full-scaleinvestigation into maintenance procedures’[Fortune]

full-service /fυl �s%�vs/ adjectivethat provides a full servicefull-service banking /fυl �s%�vs�b�ŋkŋ/ noun banking that offers awhole range of services (includingmortgages, loans, pensions, etc.)full-service broker /fυl �s%�vs�brəυkə/ noun a broker who managesportfolios for clients, and gives adviceon shares and financial questions in gen-eral (as opposed to an execution-onlybroker or discount broker)full-time /�fυl tam/ adjective, adverbworking all the normal working time,i.e. about eight hours a day, five days aweek � She’s in full-time work or Sheworks full-time or She’s in full-time em-ployment. � He is one of our full-timestaff.full-time employment /�fυl tamm�plɔmənt/ noun work for all of aworking day � to be in full-timeemploymentfully /�fυli/ adverb completely � theoffer was fully subscribed all theshares on offer were applied for, so theunderwriters to the issue were notforced to buy any � the shares are fullyvalued the market price of the shares ishigh enough, possibly too high

‘…issued and fully paid capital is $100 million’[Hongkong Standard]

fully diluted earnings per share/�fυli da�lu�td �%�nŋz pə �ʃeə/, fullydiluted EPS /�fυli �dalu�td �i� pi� �es/plural noun earnings per share calcu-lated over the whole number of sharesassuming that convertible shares havebeen converted to ordinary sharesfully diluted shares /�fυli da-�lu�td �ʃeəz/ plural noun total numberof shares which includes convertibleshares, stock options, etc.fully-paid shares /�fυli ped �ʃeəz/plural noun shares for which the fullface value has been paidfully paid-up capital /�fυli ped �p�k�pt(ə)l/ noun all money paid for theissued capital shares

function key /�f�ŋkʃən ki�/ noun akey switch that has been assigned a par-ticular task or sequence of instructionsfund /f�nd/ noun 1. money set asidefor a special purpose 2. money investedin an investment trust as part of a unittrust, or given to a financial adviser toinvest on behalf of a client. � funds �verb to provide money for a purpose �The company does not have enough re-sources to fund its expansionprogramme. � to fund a company toprovide money for a company to operate

‘…the S&L funded all borrowers’ developmentcosts, including accrued interest’ [Barrons]

fundamental /�f�ndə�ment(ə)l/ ad-jective basic or most importantfundamental issues/�f�ndəment(ə)l �ʃu�z/ plural nounmatters relating to a company’s profitsor assetsfundamental research/�f�ndəment(ə)l r�s%�tʃ/, fundamen-tal analysis /�f�ndəment(ə)l ə-�n�ləss/ noun an examination of thebasic factors which affect a marketfundamentals /�f�ndə�ment(ə)lz/plural noun the basic realities of a stockmarket or of a company (such as its as-sets, profitability and dividends)funded /�f�ndd/ adjective backed bylong-term loans � long-term fundedcapitalfunded debt /�f�ndd �det/ noun thepart of the British National Debt whichpays interest, but with no date for repay-ment of the principalfunding /�f�ndŋ/ noun 1. money forspending � The bank is providing thefunding for the new product launch. 2.the act of changing a short-term debtinto a long-term loan � The capital ex-penditure programme requireslong-term funding.fund management /�f�nd�m�nd$mənt/ noun the business ofdealing with the investment of sums ofmoney on behalf of clientsfund manager /�f�nd �m�nd$ə/noun 1. a person who invests money onbehalf of clients 2. a person who man-ages the investments made by a fund insuch a way as to fulfill the fund’s statedobjectivesfunds /f�ndz/ plural noun 1. moneywhich is available for spending � The

full-service 152 funds

company has no funds to pay for the re-search programme. � insufficientfunds � the company called for extrafunds the company asked for moremoney � to convert funds to anotherpurpose to use money for a wrong pur-pose � to convert funds to your ownuse to use someone else’s money foryourself 2. government stocks andsecurities

‘…small innovative companies have beenhampered for lack of funds’ [Sunday Times]‘…the company was set up with funds totallingNorKr 145m’ [Lloyd’s List]

fungibility /�f�nd$ə�blti/ noun be-ing exchangeable for something similarfungible /�f�nd$əb(ə)l/ adjective re-ferring to a security which can be ex-changed for another of the same typefunny money /�f�ni �m�ni/ nounstrange types of shares or bonds offeredby companies or their brokers, whichare not the usual forms of loan stockfuture /�fju�tʃə/ adjective referring totime to come or to something which has

not yet happened � noun the time whichhas not yet happened � Try to be morecareful in future. � In future all reportsmust be sent to Australia by air.future delivery /�fju�tʃə d�lv(ə)ri/noun delivery at a later datefutures /�fju�tʃəz/ plural noun shares,currency or commodities that are boughtor sold for now for delivery at a laterdate � Gold rose 5% on the commodityfutures market yesterday.

‘…cocoa futures plummeted in November totheir lowest levels in seven years’[Business in Africa]

futures contract /�fju�tʃəz�kɒntr�kt/ noun a contract for the pur-chase of commodities for delivery at adate in the future

COMMENT: A futures contract is a con-tract to purchase; if investors are bullish,they will buy a contract, but if they feel themarket will go down, they will sell one.

futures exchange /�fju�tʃəz ks-�tʃend$/ noun a commodity marketwhich only deals in futures

fungibility 153 futures exchange

G

G10 abbreviation Group of TenG5 abbreviation Group of FiveG7 abbreviation Group of SevenG8 abbreviation Group of EightGAAP abbreviation Generally Ac-cepted Accounting PrinciplesGAB abbreviation General Arrange-ments to Borrowgain /�en/ noun 1. an increase, or theact of becoming larger � gain in profit-ability the act of becoming more profit-able 2. an increase in profit, price orvalue � Oil shares showed gains on theStock Exchange. � Property shares puton gains of 10%-15%. � verb 1. to getor to obtain � He gained some useful ex-perience working in a bank. � to gaincontrol of a business to buy more than50% of the shares so that you can directthe business 2. to rise in value � Thedollar gained six points on the foreignexchange markets.galloping inflation /���ləpŋ n-�fleʃ(ə)n/ noun very rapid inflationwhich is almost impossible to reducegamma shares /���mə ʃeəz/,gamma securities /���mə s-�kjυərətiz/, gamma stocks /���məstɒks/ plural noun shares of companieswhich are not frequently traded on theLondon Stock Exchange, but which arelistedgap /��p/ noun an empty space � gapin the market an opportunity to make aproduct or provide a service which isneeded but which no one has sold before� to look for or to find a gap in the mar-ket � This laptop has filled a real gap inthe market.

‘…these savings are still not great enough toovercome the price gap between Americanproducts and those of other nations’[Duns Business Month]

gap financing /���p �fan�nsŋ/noun arranging extra loans (such as a

bridging loan) to cover a purchase notcovered by an existing loangarage /���rd$, ���rɑ�$/ noun apart of the trading floor on the NewYork Stock Exchange � verb to put as-sets into another company so as to re-duce tax liabilitygarnish /��ɑ�nʃ/ verb US to withholdsalary or property because a person hasdebts or taxes which are unpaidgarnishee /��ɑ�n�ʃi�/ noun a personwho owes money to a creditor and is or-dered by a court to pay that money to acreditor of the creditor, and not to thecreditor himselfgarnishee order /��ɑ�n�ʃi� �ɔ�də/noun a court order, making a garnisheepay money not to the debtor, but to athird partygarnishment /��ɑ�nʃmənt/ nounsame as garnishee orderGATT abbreviation General Agree-ment on Tariffs and Tradegazump /�ə�z�mp/ verb to stop some-one buying a property for which he orshe has already agreed a price with theseller by offering a higher pricegazumping /�ə�z�mpŋ/ noun thepractice of offering a higher price for ahouse than another buyer has alreadyagreed with the sellerGDP abbreviation gross domesticproductgear /�ə/ verb to link something tosomething else � salary geared to thecost of living salary which rises as thecost of living increasesgearing /��ərŋ/ noun the act of bor-rowing money at fixed interest which isthen used to produce more money thanthe interest paid

COMMENT: High gearing (when a com-pany is said to be ‘highly geared’) indi-cates that the level of borrowings is high

when compared to its ordinary share capi-tal. A lowly-geared company hasborrowings which are relatively low. Highgearing has the effect of increasing acompany’s profitability when the com-pany’s trading is expanding. If the tradingpattern slows down, then the high interestcharges associated with gearing will in-crease the rate of slowdown.

GEB abbreviation Guaranteed EquityBondgeisha bond /��eʃə bɒnd/ noun abond placed by a non-Japanese bor-rower in Japan, in a currency other thanthe yengeneral /�d$en(ə)rəl/ adjective 1. or-dinary or not special 2. dealing with ev-erything or with everybodyGeneral Agreement on Tariffsand Trade /�d$en(ə)rəl ə��ri�məntɒn �θ�rfs ən �tred/ noun an interna-tional agreement to try to reduce restric-tions in trade between countries(replaced in 1998 by the World TradeOrganization). Abbreviation GATT. �World Trade Organization

General Arrangements toBorrow /�d$en(ə)rəl ə�rend$məntstə �bɒrəυ/ plural noun an agreement be-tween members of the G10 group ofcountries, by which members makefunds available to the IMF to coverloans which it makes. AbbreviationGAB

general audit /�d$en(ə)rəl �ɔ�dt/noun a process of examining all thebooks and accounts of a companygeneral average /�d$en(ə)rəl��v(ə)rd$/ noun a process by whichthe cost of lost goods is shared by allparties to an insurance (in cases wheresome goods have been lost in an attemptto save the rest of the cargo)general expenses /�d$en(ə)rəl k-�spensz/ plural noun all kinds of minorexpenses, the money spent on theday-to-day costs of running a businessgeneral fund /�d$en(ə)rəl f�nd/noun a unit trust with investments in avariety of stocksgeneral insurance /�d$en(ə)rəl n-�ʃυərəns/ noun insurance covering allkinds of risk, e.g. theft, loss or damage,but excluding life insurance

general ledger /�d$en(ə)rəl �led$ə/noun a book which records a company’sincome and expenditure in generalgeneral lien /�d$en(ə)rəl �li�ən/ noun1. a right to hold goods or property untila debt has been paid 2. a lien against thepersonal possessions of a borrower (butnot against his or her house or land). �banker’s lienGenerally Accepted AccountingPrinciples /�d$en(ə)rəli ək�septd ə-�kaυntŋ �prnsp(ə)lz/ plural noun USrules applied to accounting practice inthe US. Abbreviation GAAPgeneral manager /�d$en(ə)rəl�m�nd$ə/ noun a manager in charge ofthe administration of a companygeneral meeting /�d$en(ə)rəl�mi�tŋ/ noun meeting of all the share-holders of a company or of all the mem-bers of a societygeneral obligation bond/�d$en(ə)rəl �ɒbl��eʃ(ə)n bɒnd/ nounUS a municipal or state bond issued tofinance public undertakings such asroads, but which is repaid out of generalfunds. Abbreviation GO bondgeneral office /�d$en(ə)rəl �ɒfs/noun the main administrative office of acompanygeneral partner /�d$en(ə)rəl�pɑ�tnə/ noun a partner in a partnershipwhose responsibility for its debts is notlimitedgeneral partnership /�d$en(ə)rəl�pɑ�tnəʃp/ noun a partnership wherethe liability of each partner is notlimitedgeneral PEP /�d$en(ə)rəl pep/ nouna PEP which has shares of severalcompanies in it, as opposed to a singlecompany PEPgeneral undertaking /�d$en(ə)rəl��ndə�tekŋ/ noun an undertakingsigned by the directors of a company ap-plying for a Stock Exchange listing,promising to work within the regula-tions of the Stock Exchangegeneration-skipping transfer tax/�d$enəreʃ(ə)n �skpŋ �tr�nsf%�t�ks/ noun US a tax on propertyleft to grandchildren or great-grand-children with the intention of avoidingpaying estate duties. AbbreviationGSTT

GEB 155 generation-skipping transfer tax

gensaki /d$en�sɑ�ki/ noun a Japanesebond market, dealing in bonds issuedwith agreements to repurchase at lessthan twelve months’ noticegentleman’s agreement/�d$ent(ə)lmənz ə��ri�mənt/ noun averbal agreement between two partieswho trust each otherGesellschaft noun the German wordfor companyGesellschaft mit beschränkterHaftung noun a German private lim-ited company. Abbreviation GmbHget back /��et �b�k/ verb to receivesomething which you had before � I gotmy money back after I had complainedto the manager. � He got his initial in-vestment back in two months.get out /��et �aυt/ verb 1. to producesomething � The accounts departmentgot out the draft accounts in time for themeeting. 2. to sell an investment (infor-mal.) � He didn’t like what he read inthe company’s annual report, so he gotout before the company collapsed.get out of /��et �aυt əv/ verb to stoptrading in (a product or an area) � Thecompany is getting out of computers. �We got out of the South Americanmarket.get round /��et �raυnd/ verb to avoid� We tried to get round the embargo byshipping from Canada.GIB abbreviation Guaranteed IncomeBondgift /�ft/ noun a thing which is givento someonegift coupon /��ft �ku�pɒn/, gift to-ken /��ft �təυkən/, gift voucher/��ft �vaυtʃə/ noun a card that can beused to buy specified goods up to thevalue printed on it, often issued by chainstores. The person receiving the voucheris able to redeem it in any store in thechain. � We gave her a gift token for herbirthday.gift inter vivos /��ft ntə �vi�vəυs/noun a gift given to another living per-son. Abbreviation GIVgift tax /��ft t�ks/ noun a tax on gifts(only gifts between husband and wifeare exempt)gilt-edged /��lt ed$d/ adjective re-ferring to an investment which is verysafe

gilt-edged securities /��lt ed$ds�kjυərtiz/ plural noun investments inBritish government stockgilt-edged stock /��lt ed$d �stɒk/noun same as government bondsgilts /�lts/ plural noun same asgovernment bondsGinnie Mae /�d$ni �me/ noun sameas GNMA (informal.)giro system /�d$arəυ �sstəm/ nouna banking system in which money canbe transferred from one account to an-other without writing a chequeGIV abbreviation gift inter vivosglamour stock /��l�mə stɒk/ nouna stock which is very popular withinvestors because it has risen in valueand provided higher than average earn-ings over a period of timeglobal /��ləυb(ə)l/ adjective referringto the whole world � We offer a 24-hourglobal delivery service. � global econ-omy the economy of the whole worldglobalisation /��ləυbəla�zeʃ(ə)n/,globalization noun the process of mak-ing something international or world-wide, especially the process ofexpanding business interests, operationsand strategies to countries all over theworld (NOTE: Globalisation is due totechnological developments that makeglobal communications possible, politi-cal developments such as the fall ofcommunism and developments intransportation that make travellingfaster and more frequent. It can benefitcompanies by opening up new mar-kets, giving access to new raw materi-als and investment opportunities andenabling them to take advantage oflower operating costs in other coun-tries.)GmbH abbreviation Gesellschaft mitbeschränkter HaftungGNMA noun a US federal organisationwhich provides backing for mortgages.Full form Government National Mort-gage Associationgnomes of Zurich /�nəυmz əv�zjυərk/ plural noun important Swissinternational bankers (informal.)GNP abbreviation gross nationalproductgo-ahead /��əυ ə�hed/ noun � to givesomething the go-ahead to approve

gensaki 156 go-ahead

something or to say that something canbe done � My project got a governmentgo-ahead. � The board refused to givethe go-ahead to the expansion plan. �adjective energetic or keen to do well �He is a very go-ahead type. � She worksfor a go-ahead clothing company.go back on /��əυ �b�k ɒn/ verb notto carry out something after you havepromised to do it � Two months laterthey went back on the agreement.GO bond /��əυ bɒnd/ noun same asgeneral obligation bondgo fifty-fifty /�əυ �ffti �ffti/ verb toshare the costs equallygo-go fund /��əυ �əυ �f�nd/ noun afund which aims to give very high re-turns because it is invested in specula-tive stocksgoing /��əυŋ/ adjective currentgoing concern /��əυŋ kən�s%�n/noun a company that is actively trading(and making a profit) � sold as a goingconcern sold as an actively tradingcompany � to sell a business as a goingconcern to sell a business as an activelytrading companygoing concern value /��əυŋ kən-�s%�n �v�lju�/ noun the value of a cor-poration as it continues trading (in ef-fect, the goodwill) as opposed to itsbreakup valuegoing price /��əυŋ �pras/ noun theusual or current price, the price which isbeing charged now � What is the goingprice for 1975 Volkswagen Beetles?going rate /��əυŋ �ret/ noun theusual or current rate of payment � Wepay the going rate for typists. � The go-ing rate for offices is £10 per squaremetre.go into /��əυ �ntu�/ verb to examinesomething carefully � The bank wantsto go into the details of theinter-company loans.go into business /��əυ ntə�bzns/ verb to start in business � Hewent into business as a car dealer. �She went into business in partnershipwith her son.gold /�əυld/ noun a very valuable yel-low metal � to buy gold � to deal ingold � You can buy gold coins at cer-tain Swiss banks. � He has a licence todeal in gold.

COMMENT: Gold is the traditional hedgeagainst investment uncertainties. Peoplebuy gold in the form of coins or bars, be-cause they think it will maintain its valuewhen other investments such as govern-ment bonds, foreign currency, property,etc., may not be so safe. Gold is relativelyportable, and small quantities can betaken from country to country if an emer-gency occurs. This view, which is preva-lent when the political situation isuncertain, has not been borne out in re-cent years, and gold has not maintainedits value for some time.

gold bug /��əυld b��/ noun a personwho believes that gold is the best invest-ment (informal.)

gold bullion /�əυld �bυliən/ nounbars of goldgold card /��əυld kɑ�d/ noun a creditcard issued to important customers (i.e.those with a certain level of income),which gives certain privileges, such as ahigher spending limit than ordinarycredit cardsgold-collar worker /��əυld �kɒlə�w%�kə/ noun an employee who earns avery high salary and bonusesgolden /��əυld(ə)n/ adjective made ofgold or like goldgolden handcuffs /��əυld(ə)n�h�ndk�fs/ plural noun a contractualarrangement to make sure that a valuedmember of staff stays in their job, bywhich they are offered special financialadvantages if they stay and heavy penal-ties if they leavegolden handshake /��əυld(ə)n�h�ndʃek/ noun a large, usuallytax-free, sum of money given to a direc-tor who retires from a company beforethe end of his service contract � The re-tiring director received a golden hand-shake of £250,000.golden hello /��əυld(ə)n hə�ləυ/noun a cash inducement paid to some-one to encourage them to change jobsand move to another companygolden parachute /��əυld(ə)n�p�rəʃu�t/, golden umbrella/��əυld(ə)n �m�brelə/ noun a specialcontract for a director of a company,which gives him advantageous financialterms if he has to resign when the com-pany is taken over

go back on 157 golden parachute

golden share /��əυld(ə)n ʃeə/ nouna share in a privatised company which isretained by the government and carriesspecial privileges (such as the right toveto foreign takeover bids)gold fixing /��əυld �fksŋ/ noun asystem where the world price for gold isset twice a day in US dollars on the Lon-don Gold Exchange and in Paris andZurichgoldmine /��əυldman/ noun a minewhich produces gold � that shop is alittle goldmine that shop is a very prof-itable businessgold point /��əυld pɔnt/ noun anamount by which a currency which islinked to gold can vary in pricegold reserves /��əυld r�z%�vz/ plu-ral noun the country’s store of gold keptto pay international debtsgold/silver ratio /��əυld �slvə�reʃiəυ/ noun a figure calculated as thenumber of ounces of silver it takes tobuy one ounce of goldgold standard /�əυld �st�ndəd/noun an arrangement that links thevalue of a currency to the value of aquantity of goldgo liquid /�əυ �lkwd/ verb to con-vert as many assets as possible into cashgo long /�əυ �lɒŋ/ verb to buy securi-ties as a long-term investmentgood /�υd/ adjective not bad � to buysomething in good faith to buy some-thing thinking it is of good quality, thatit has not been stolen or that it is not animitation � noun an item which is madeand is for salegood buy /�υd �ba/ noun a thingbought which is worth the money paidfor it � That watch was a good buy.good industrial relations /�υd n-�d�striəl r�leʃ(ə)nz/ plural noun a sit-uation where management and employ-ees understand each others’ problemsand work together for the good of thecompanygoods /�υdz/ plural noun items whichcan be moved and are for sale � goodsin bond imported goods held by cus-toms until duty is paid

‘…profit margins are lower in the industriesmost exposed to foreign competition –machinery, transportation equipment andelectrical goods’ [Sunday Times]

‘…the minister wants people buying goodsranging from washing machines to houses todemand facts on energy costs’ [Times]

goods and chattels /��υdz ən�tʃ�t(ə)lz/ plural noun moveable per-sonal possessionsGoods and Services Tax /��υdzən �s%�vsz t�ks/ noun a Canadian taxon the sale of goods or the provision ofservices (similar to VAT). AbbreviationGST

good till cancelled /��υd tl�k�nsəld/ noun an order given to a bro-ker to buy or sell as instructed until theorder is cancelled. Abbreviation GTC

goodwill /�υd�wl/ noun 1. good feel-ing towards someone � To show good-will, the management increased theterms of the offer. 2. the good reputationof a business, which can be calculated aspart of a company’s asset value, thoughseparate from its tangible asset value �He paid £10,000 for the goodwill of theshop and £4,000 for the stock.

COMMENT: Goodwill can include suchthings as the trading reputation, the pat-ents, the trade names used and the valueof a ‘good site’ and is very difficult to es-tablish accurately. It is an intangible as-set, and so is not shown as an asset in acompany’s accounts, unless it figures aspart of the purchase price paid when ac-quiring another company.

go out of business /��əυ aυt əv�bzns/ verb to stop trading � The firmwent out of business last week.go private /�əυ �pravət/ verb to be-come a private company again, by con-centrating all its shares in the hands ofone or a few shareholders and removingits stock exchange listinggo public /�əυ �p�blk/ verb to be-come a public company by placingsome of its shares for sale on the stockmarket so that anyone can buy themgo short /�əυ �ʃɔ�t/ verb to sell sharesnow which you have contracted to pur-chase at a later date, on the assumptionthat the market will fall furthergourde /�υəd/ noun a unit of currencyused in Haitigovern /���v(ə)n/ verb to rule a coun-try � The country is governed by agroup of military leaders.

golden share 158 govern

governance /���v(ə)nəns/ noun thephilosophy of ruling, whether a countryor a company

‘…the chairman has committed the cardinal sinin corporate governance – he acted against thewishes and interests of the shareholders’[Investors Chronicle]‘…in two significant decisions, the Securitiesand Exchange Board of India today allowedtrading of shares through the Internet and set adeadline for companies to conform to norms forgood corporate governance’ [The Hindu]

government noun /���v(ə)nmənt/an organisation which administers acountry � adjective coming from thegovernment, referring to the govern-ment � a government ban on the importof arms � Government intervention orIntervention by the government helpedto solve the dispute. � Government em-ployees can belong to one of two unions.� Government officials prevented himleaving the country. � Government pol-icy is outlined in the booklet.governmental /���v(ə)n�ment(ə)l/adjective referring to a governmentgovernment-backed /���vnməntb�kt/ adjective backed by thegovernmentgovernment bonds /���v(ə)nməntbɒndz/ plural noun bonds or other secu-rities issued by the government on a reg-ular basis as a method of borrowingmoney for government expendituregovernment contractor/���v(ə)nmənt kən�tr�ktə/ noun acompany which supplies the govern-ment with goods by contractgovernment-controlled/���v(ə)nmənt kən�trəυld/ adjectiveunder the direct control of the govern-ment � Advertisements cannot beplaced in the government-controllednewspapers.government economic indica-tors /���v(ə)nmənt i�kə�nɒmk�ndketəz/ plural noun statisticswhich show how the country’s economyis going to perform in the short or longtermgovernment loan /���v(ə)nməntləυn/ noun money lent by thegovernmentGovernment National MortgageAssociation /���v(ə)nmənt�n�ʃ(ə)nəl �mɔ��d$ ə�səυsieʃ(ə)n/noun full form of GNMA

government organisation/���v(ə)nmənt �ɔ��əna�zeʃ(ə)n/noun an official body run by thegovernmentgovernment-regulated/���v(ə)nmənt �re�jυletd/ adjectiveregulated by the governmentgovernment securities/���v(ə)nmənt s�kjυərtiz/ pluralnoun same as government bondsgovernment-sponsored/���v(ə)nmənt �spɒnsəd/ adjective en-couraged by the government and backedby government money � He is workingin a government-sponsored scheme tohelp small businesses.government stock /���v(ə)nməntstɒk/ noun same as governmentbondsgovernment support/���v(ə)nmənt sə�pɔ�t/ noun a finan-cial help given by the government � Theaircraft industry relies on governmentsupport.governor /���v(ə)nə/ noun 1. a per-son in charge of an important institution2. US one of the members of the FederalReserve BoardGovernor of the Bank of Eng-land /���v(ə)nə əv ðə �b�ŋk əv�ŋ�lənd/ noun a person (nominated bythe British government) who is incharge of the Bank of England (NOTE:The US term is Chairman of the Fed-eral Reserve Board.)GPM abbreviation graduated paymentmortgagegrace /�res/ noun a favour shown bygranting a delay � to give a creditor aperiod of grace or two weeks’ gracegrace period /��res �pəriəd/ nounthe time given to a debtor to repay aloan, to pay the amount purchased usinga credit card, or to pay an insurancepremiumgradual /��r�d$uəl/ adjective slowand steady � The company saw a grad-ual return to profits. � Her CV de-scribes her gradual rise to the positionof company chairman.gradually /��r�d$uəli/ adverb slowlyand steadily � The company has gradu-ally become more profitable. � Shegradually learnt the details of the im-port-export business.

governance 159 gradually

graduate noun /��r�d$uət/ a personwho has obtained a degree � verb /-��r�d$u�et/ to get a degree � Shegraduated from Edinburgh universitylast year.graduated /��r�d$uetd/ adjectivechanging in small regular stagesgraduated income tax/��r�d$uetd �nk�m t�ks/ noun atax which rises in steps (each level of in-come is taxed at a higher percentage)graduated payment mortgage/��r�d$uetd �pemənt �mɔ��d$/noun a mortgage where the monthlypayments gradually rise over the life-time of the mortgage. AbbreviationGPMgraduated pension scheme/��r�d$uetd �penʃən ski�m/ noun apension scheme where the benefit iscalculated as a percentage of the salaryof each person in the schemegraduated taxation /��r�d$uetdt�k�seʃ(ə)n/ noun a tax system wherethe percentage of tax paid rises as the in-come risesgraduate entry /��r�d$uət �entri/noun the entry of graduates into em-ployment with a company � the gradu-ate entry into the civil servicegraduate trainee /��r�d$uət tre-�ni�/ noun a person in a graduate train-ing schemegraduate training scheme/��r�d$uət �trenŋ ski�m/ noun atraining scheme for graduatesgrand /�r�nd/ adjective important �grand plan or grand strategy a majorplan � They explained their grand planfor redeveloping the factory site. �noun one thousand pounds or dollars(informal.) � They offered him fiftygrand for the information. � She’s earn-ing fifty grand plus car and expenses.grand total /�r�nd �təυt(ə)l/ nounthe final total made by adding severalsubtotalsGranny Bond /��r�ni bɒnd/ noun aBritish government bond giving higherinterest or tax privileges but restricted inavailability to pensionersgrant /�rɑ�nt/ noun money given bythe government to help pay for some-thing � The laboratory has a govern-ment grant to cover the cost of the

development programme. � The govern-ment has allocated grants towards thecosts of the scheme. � verb to agree togive someone something � to grantsomeone a loan or a subsidy � to grantsomeone three weeks’ leave of absence� The local authority granted the com-pany an interest-free loan to start up thenew factory.

‘…the budget grants a tax exemption for$500,000 in capital gains’ [Toronto Star]

grant-aided scheme /��rɑ�nt�edd ski�m/ noun a scheme which isfunded by a government grantgrantee /�rɑ�n�ti�/ noun a person whoreceives a grantgrantor /�rɑ�n�tɔ�/ noun a personwho grants a property to anothergraph /�rɑ�f/ noun a diagram whichshows the relationship between two setsof quantities or values, each of which isrepresented on an axis � A graph wasused to show salary increases in rela-tion to increases in output. � Accordingto the graph, as average salaries haverisen so has absenteeism. � We need toset out the results of the questionnaire ina graph.graph paper /��rɑ�f �pepə/ noun aspecial type of paper with many littlesquares, used for drawing graphsgratia � ex gratiagratis /��r�ts/ adverb free or notcosting anything � We got into the exhi-bition gratis.gratuity /�rə�tju�ti/ noun a tip,money given to someone who hashelped you � The staff are instructednot to accept gratuities.graveyard /��revjɑ�d/ noun a mar-ket where prices are low and no one isbuying because investors prefer to re-main liquid (informal.)

Great Depression /�ret d-�preʃ(ə)n/ noun the world economiccrisis of 1929–33greenback /��ri�nb�k/ noun US adollar bill (informal.)

‘…gold’s drop this year is of the samemagnitude as the greenback’s 8.5% rise’[Business Week]

Green Book /�ri�n �bυk/ noun US aneconomic forecast prepared by the staffof the Federal Reserve Board

graduate 160 Green Book

green card /��ri�n kɑ�d/ noun 1. aspecial British insurance certificate toprove that a car is insured for travelabroad 2. an identity card and work per-mit for a person going to live in theUSAGreen chips /��ri�n tʃps/ pluralnoun small companies with potential forgrowthgreen currency /�ri�n �k�rənsi�/noun formerly, a currency used in theEU for calculating agricultural pay-ments. Each country had an exchangerate fixed by the Commission, so therewere ‘green pounds’, ‘green francs’,‘green marks’, etc.green day /��ri�n de/ noun US aprofitable day (NOTE: The opposite is ared day.)greenmail /��ri�nmel/ noun the prac-tice of making a profit by buying a largenumber of shares in a company, threat-ening to take the company over, andthen selling the shares back to the com-pany at a higher price

‘…he proposes that there should be a limit ongreenmail, perhaps permitting payment of a20% premium on a maximum of 8% of thestock’ [Duns Business Month]

Green Paper /�ri�n �pepə/ noun areport from the British government onproposals for a new law to be discussedin Parliament. Compare White PaperGresham’s Law /��reʃəmz lɔ�/noun the law that ‘bad money will driveout good’: where two forms of moneywith the same denomination exist in thesame market, the form with the highermetal value will be driven out of circu-lation because people hoard it and usethe lower-rated form to spend (as whenpaper money and coins of the same de-nomination exist in the same market)grey market /��re �mɑ�kt/ noun anunofficial market run by dealers, wherenew issues of shares are bought and soldbefore they officially become availablefor trading on the Stock Exchange (evenbefore the share allocations are known)gross /�rəυs/ noun twelve dozen(144) � He ordered four gross of pens.(NOTE: no plural) � adjective total, withno deductions � adverb with no deduc-tions � My salary is paid gross. �Building society accounts can pay inter-est gross to non-taxpayers. � verb tomake as a gross profit or earn as gross

income � The group grossed £25m in1999. � to gross up to calculate the per-centage rate of a net investment as itwould be before tax is deducted

‘…gross wool receipts for the selling season toend June appear likely to top $2 billion’[Australian Financial Review]

gross borrowings /�rəυs�bɒrəυŋz/ plural noun the total of allmonies borrowed by a company (suchas overdrafts, long-term loans, etc.) butwithout deducting cash in bank accountsand on depositgross dividend per share /�rəυs�dvdend pə �ʃeə/ noun the dividendper share paid before tax is deductedgross domestic product /�rəυsdə�mestk �prɒd�kt/ noun the annualvalue of goods sold and services paidfor inside a country. Abbreviation GDPgross earnings /�rəυs �%�nŋz/ plu-ral noun total earnings before tax andother deductionsgross income /�rəυs �nk�m/ nounsalary before tax is deductedgross income yield /�rəυs �nk�mji�ld/ noun the yield of an investmentbefore tax is deductedgross margin /�rəυs �mɑ�d$n/noun the percentage difference betweenthe received price and the unit manufac-turing cost or purchase price of goodsfor resalegross national product /�rəυs�n�ʃ(ə)nəl �prɒd�kt/ noun the annualvalue of goods and services in a countryincluding income from other countries.Abbreviation GNPgross negligence /�rəυs�ne�ld$əns/ noun the act of showingvery serious neglect of duty towardsother peoplegross premium /�rəυs �pri�miəm/noun the total premium paid by a poli-cyholder before any tax relief or dis-count is taken into accountgross profit /�rəυs �prɒft/ nounprofit calculated as sales income less thecost of the goods sold, i.e. without de-ducting any other expensesgross receipts /�rəυs r�si�ts/ pluralnoun the total amount of money re-ceived before expenses are deductedgross salary /�rəυs �s�ləri/ nounsalary before tax is deducted

green card 161 gross salary

gross sales /�rəυs �selz/ pluralnoun money received from sales beforedeductions for goods returned, specialdiscounts, etc. � Gross sales are im-pressive since many buyers seem to beordering more than they will eventuallyneed.gross tonnage /�rəυs �t�nd$/noun the total amount of space in a shipgross turnover /�rəυs �t%�nəυvə/noun the total turnover including VATand discountsgross weight /�rəυs �wet/ noun theweight of both the container and itscontentsgross yield /�rəυs �ji�ld/ noun aprofit from investments before tax isdeductedground landlord /��raυnd�l�ndlɔ�d/ noun a person or companythat owns the freehold of a propertywhich is then let and sublet � Ourground landlord is an insurancecompany.ground rent /��raυnd rent/ noun arent paid by the main tenant to theground landlordgroup /�ru�p/ noun 1. several thingsor people together � A group of manag-ers has sent a memo to the chairmancomplaining about noise in the office. �The respondents were interviewed ingroups of three or four, and then singly.2. several companies linked together inthe same organisation � the groupchairman or the chairman of the group� group turnover or turnover for thegroup � the Granada Group � verb �to group together to put several itemstogether � Sales from six different agen-cies are grouped together under theheading ‘European sales’.group balance sheet /�ru�p�b�ləns ʃi�t/ noun a consolidated bal-ance sheet, the balance sheets of subsid-iary companies grouped together intothe balance sheet of the parent companygroup health insurance /�ru�p�helθ n�ʃυərəns/ noun a health insur-ance for a group of people under a sin-gle policy, issued to their employer or toan associationgroup income protection insur-ance /�ru�p �nk�m prə�tekʃ(ə)n n-�ʃυərəns/ noun insurance for a group ofpeople which gives them a replacement

income when they are sick orincapacitatedGroup of Eight /��ru�p əv �et/ nounthe G7 expanded to include Russia. Ab-breviation G8Group of Five /��ru�p əv �fav/ nouna central group of major industrial na-tions (France, Germany, Japan, the UKand the US), now expanded to form theG7. Abbreviation G5Group of Seven /��ru�p əv�sev(ə)n/ noun a central group of majorindustrial nations (Canada, France, Ger-many, Italy, Japan, the UK and the US)who meet regularly to discuss problemsof international trade and finance. Ab-breviation G7Group of Ten /��ru�p əv �ten/ nounthe major world economic powersworking within the framework of theIMF: Belgium, Canada, France, Ger-many, Italy, Japan, Netherlands, Swe-den, the United Kingdom and the UnitedStates. There are in fact now elevenmembers, since Switzerland has joinedthe original ten. It is also called the‘Paris Club’, since its first meeting wasin Paris. Abbreviation G10group results /�ru�p r�z�lts/ pluralnoun the results of a group of compa-nies taken togethergrow /�rəυ/ verb to become larger �The company has grown from a smallrepair shop to a multinational electron-ics business. � Turnover is growing at arate of 15% per annum. � The computerindustry grew very rapidly in the 1980s.(NOTE: growing – grew – has grown)

‘…the thrift had grown from $4.7 million inassets to $1.5 billion’ [Barrons]

growth /�rəυθ/ noun 1. the fact ofbecoming larger or increasing � thecompany is aiming for growth thecompany is aiming to expand rapidly 2.the second stage in a product life cycle,following the launch, when demand forthe product increases rapidly

‘…a general price freeze succeeded inslowing the growth in consumer prices’[Financial Times]

growth-and-income fund /��rəυθən �nk�m f�nd/ noun a fund whichaims to provide both capital growth andincome

gross sales 162 growth-and-income fund

growth company /��rəυθ�k�mp(ə)ni/ noun company whoseshare price is expected to rise in valuegrowth fund /��rəυθ f�nd/ noun afund which aims at providing capitalgrowth rather than incomegrowth index /��rəυθ �ndeks/ nounan index showing how something hasgrowngrowth industry /��rəυθ �ndəstri/noun an industry that is expanding orhas the potential to expand faster thanother industriesgrowth market /��rəυθ �mɑ�kt/noun a market where sales are increas-ing rapidly � We plan to build a factoryin the Far East, which is a growth mar-ket for our products.growth number /��rəυθ �n�mbə/noun growth expressed as a percentagegrowth prospects /��rəυθ�prɒspekts/ plural noun potential forgrowth in a sharegrowth rate /��rəυθ ret/ noun thespeed at which something growsGST abbreviation Goods and ServicesTax

‘…because the GST is applied only to fees forbrokerage and appraisal services, the new taxdoes not appreciably increase the price of aresale home’ [Toronto Globe & Mail]

GSTT abbreviation genera-tion-skipping transfer taxGTC abbreviation good till cancelledguarani /��wɑ�rə�ni�/ noun a unit ofcurrency used in Paraguayguarantee /���rən�ti�/ noun 1. a le-gal document in which the produceragrees to compensate the buyer if theproduct is faulty or becomes faulty be-fore a specific date after purchase � acertificate of guarantee or a guaranteecertificate � The guarantee lasts for twoyears. � It is sold with a twelve-monthguarantee. � the car is still underguarantee the car is still covered by themaker’s guarantee 2. a promise thatsomeone will pay another person’sdebts � to go guarantee for someone toact as security for someone’s debts 3.something given as a security � to leaveshare certificates as a guarantee � verb1. to give a promise that something willhappen � to guarantee a debt to prom-

ise that you will pay a debt made bysomeone else � to guarantee an associ-ate company to promise that an associ-ate company will pay its debts � toguarantee a bill of exchange to prom-ise that the bill will be paid 2. � theproduct is guaranteed for twelvemonths the manufacturer says that theproduct will work well for twelvemonths, and will mend it free of chargeif it breaks downGuaranteed Equity Bond/���rənti�d �ekwti bɒnd/ noun a bondwhich provides a return linked to one ormore stock market indices (such as theFTSE 100 index) and guarantees a mini-mum return of the original capital in-vested. Abbreviation GEBGuaranteed Income Bond/���rənti�d �nk�m bɒnd/ noun a bondwhich guarantees a certain rate of inter-est over a certain period of time. Abbre-viation GIBguaranteed wage /���rənti�d�wed$/ noun a wage which a companypromises will not fall below a specificfigureguarantor /���rən�tɔ�/ noun a personwho promises to pay someone’s debts �She stood guarantor for her brother.guaranty /���r(ə)nti�/ noun US sameas guaranteeguardian /��ɑ�diən/ noun a personappointed by law to act on behalf ofsomeone (such as a child) who cannotact on his or her own behalfguess /�es/ noun a calculation madewithout any real information � Theforecast of sales is only a guess. � aninformed guess a guess which is basedon some information � it is anyone’sguess no one really knows what is theright answer � verb � to guess (at)something to try to calculate somethingwithout any information � They couldonly guess at the total loss. � The salesdirector tried to guess the turnover ofthe Far East division.guesstimate /��estmət/ noun arough calculation (informal.)guilder /��ldə/ noun a unit of cur-rency used before the euro in the Neth-erlands. Also called florin (NOTE:Usually written fl before or after fig-ures: fl25, 25fl.)

growth company 163 guilder

H

haggle /�h��(ə)l/ verb to discussprices and terms and try to reduce them� to haggle about or over the details ofa contract � After two days’ hagglingthe contract was signed.haircut /�heək�t/ noun US 1. the dif-ference between the market value of asecurity and the amount lent to theowner using the security as collateral 2.an estimate of possible loss ininvestmentshalf /hɑ�f/ noun one of two equal partsinto which something is divided � Thefirst half of the agreement is acceptable.� we share the profits half and half weshare the profits equally � adjective di-vided into two parts � half a percent-age point 0.5% � his commission onthe deal is twelve and a half per centhis commission on the deal is 12.5% �to sell goods off at half price at 50% ofthe price for which they were soldbefore

‘…economists believe the economy is pickingup this quarter and will do better in the secondhalf of the year’ [Sunday Times]

half-commission man /hɑ�f kə-�mʃ(ə)n m�n/ noun a dealer who in-troduces new clients to a stockbroker,and takes half the broker’s commissionas his feehalf-dollar /hɑ�f �dɒlə/ noun US fiftycentshalf-life /�hɑ�f laf/ noun the numberof years needed to repay half the capitalborrowed on mortgagehalf-price sale /�hɑ�f pras �sel/noun a sale of items at half the usualpricehalf-year /hɑ�f �jiə/ noun six monthsof an accounting periodhalf-yearly /�hɑ�f �jəli/ adjectivehappening every six months, or refer-ring to a period of six months �half-yearly accounts � half-yearly pay-

ment � half-yearly statement � ahalf-yearly meeting � adverb every sixmonths � We pay the accounthalf-yearly.Hambrecht & Quist TechnologyIndex /�h�mbrekt ən �kwst tek-�nɒləd$i �ndeks/ noun an Americanindex based on the prices of 275 tech-nology stockshammer /�h�mə/ noun � to gounder the hammer to be sold byauction � all the stock went under thehammer all the stock was sold byauction � verb to hit hard � to hammerthe competition to attack and defeat thecompetition � to hammer prices to re-duce prices sharplyhammering /�h�mərŋ/ noun 1. abeating or severe losses � the companytook a hammering in Europe the com-pany had large losses in Europe or lostparts of its European markets � we gavethem a hammering we beat them com-mercially 2. (on the London Stock Ex-change) an announcement of theremoval of a member firm because ithas failed 3. the massive selling of stockon a stock markethand /h�nd/ noun 1. the part of thebody at the end of each arm � to shakehands to hold someone’s hand whenmeeting to show you are pleased to meetthem, or to show that an agreement hasbeen reached � The two negotiatingteams shook hands and sat down at theconference table. � to shake hands ona deal to shake hands to show that adeal has been agreed 2. � by hand usingthe hands, not a machine � These shoesare made by hand. � to send a letter byhand to ask someone to carry and de-liver a letter personally, not sending itthrough the posthandcuffs /�h�ndk�fs/ plural noun �golden handcuffs

hand in /�h�nd �n/ verb to deliver aletter by hand � he handed in his noticeor resignation he resignedhandle /�h�nd(ə)l/ noun the wholenumber of a share price quotedhandling charge /�h�ndlŋ tʃɑ�d$/noun money to be paid for packing, in-voicing and dealing with goods whichare being shippedhandout /�h�ndaυt/ noun moneypaid to help someone in difficultiesHang Seng Index /h�ŋ �seŋ�ndeks/ noun an index of main shareprices on the Hong Kong stock markethard /hɑ�d/ adjective 1. strong, notweak � to take a hard line in trade un-ion negotiations to refuse to compro-mise with the other side 2. difficult � Itis hard to get good people to work onlow salaries. 3. solid 4. � after weeksof hard bargaining after weeks of diffi-cult discussions

‘…few of the paper millionaires sold out andtransformed themselves into hard cashmillionaires’ [Investors Chronicle]

hard bargain /hɑ�d �bɑ��n/ noun abargain with difficult terms � to drive ahard bargain to be a difficult negotia-tor � to strike a hard bargain to agreea deal where the terms are favourable toyouhard cash /hɑ�d �k�ʃ/ noun moneyin notes and coins, as opposed tocheques or credit cardshard copy /hɑ�d �kɒpi/ noun a print-out of a text which is on a computerhard currency /hɑ�d �k�rənsi/ nounthe currency of a country which has astrong economy, and which can bechanged into other currencies easily �to pay for imports in hard currency � tosell raw materials to earn hard currencyAlso called scarce currency (NOTE:The opposite is soft currency.)hard disk /hɑ�d �dsk/ noun a com-puter disk which has a sealed case andcan store large quantities of information

‘…hard disks help computers function morespeedily and allow them to store moreinformation’ [Australian Financial Review]

hard drive /�hɑ�d drav/ noun sameas hard diskharden /�hɑ�d(ə)n/ verb to becomemore fixed or more inflexible � The un-ion’s attitude to the management hashardened since the lockout. � prices are

hardening prices are settling at a higherpricehardening /�hɑ�d(ə)nŋ/ adjective 1.(of a market) slowly moving upwards 2.(of prices) becoming settled at a higherlevelhard landing /hɑ�d �l�ndŋ/ noun achange in economic strategy to counter-act inflation which has serious resultsfor the population (high unemployment,rising interest rates, etc.)hard market /hɑ�d �mɑ�kt/ noun amarket which is strong and not likely tofallhardness /�hɑ�dnəs/ noun � hard-ness of the market the state of the mar-ket when it is strong and not likely tofallhard sell /hɑ�d �sel/ noun � to give aproduct the hard sell to make great ef-forts to persuade people to buy a prod-uct � he tried to give me the hard sellhe put a lot of effort into trying to makeme buyharmonisation /�hɑ�məna-�zeʃ(ə)n/, harmonization /hɑ�məna-�zeʃn/ noun a standardisation, makingthings the same in several countriesharmonise /�hɑ�mənaz/, harmo-nize verb to make things such as taxrates or VAT rates the same in severalcountriesharmonised /�hɑ�mənazd/, harmo-nized adjective which has been madestandard in several countriesharmonised European index/�hɑ�mənazd �jυərəpi�ən �ndeks/noun a method of calculating inflationwhich is standard throughout the EUhatchet man /�h�tʃt m�n/ noun arecently appointed manager, whose jobis to make staff redundant and reduceexpenditure (informal.)haven /�hev(ə)n/ noun a safe placehead /hed/ noun the most importantperson � adjective most important ormain � Ask the head waiter for a table.� verb to be first � The two largest oilcompanies head the list of stock marketresults.head and shoulders /�hed ən�ʃəυldəz/ noun a term used by chartistsshowing a share price which rises to apeak, then falls slightly, then rises to amuch higher peak, then falls sharply and

hand in 165 head and shoulders

rises to a lower peak before fallingagain, looking similar to a person’s headand shoulders when shown on a graphhead buyer /hed �baə/ noun themost important buyer in a storehead for /�hed fɔ�/ verb to go towards� the company is heading for disasterthe company is going to collapseheadhunt /�hedh�nt/ verb to look formanagers and offer them jobs in othercompanies � she was headhunted shewas approached by a headhunter and of-fered a new jobheadhunter /�hedh�ntə/ noun a per-son or company whose job is to findsuitable top managers to fill jobs incompaniesheading /�hedŋ/ noun the words atthe top of a piece of text � Items arelisted under several headings. � Look atthe figure under the heading ‘Costs2001–02’.headlease /�hedli�s/ noun a leasefrom the freehold owner to a tenantheadline inflation rate /�hedlann�fleʃ(ə)n/ noun a British inflationfigure which includes items such asmortgage interest and local taxes, whichare not included in the inflation figuresfor other countries. Compare underly-ing inflation ratehead of department /�hed əv d-�pɑ�tmənt/ noun a person in charge of adepartmenthead office /hed �ɒfs/ noun an of-fice building where the board of direc-tors works and meetsheadquarters /hed�kwɔ�təz/ pluralnoun the main office, where the boardof directors meets and works � Thecompany’s headquarters are in NewYork. � to reduce headquarters staffto have fewer people working in themain office. Abbreviation HQheads of agreement /�hedz əv ə-��ri�mənt/ plural noun 1. a draft agree-ment with not all the details complete 2.the most important parts of a commer-cial agreementhead teller /hed �telə/ noun US amain teller in a bankhealth /helθ/ noun 1. being fit andwell, not ill 2. � to give a company aclean bill of health to report that a com-pany is trading profitably

‘…the main US banks have been forced to pullback from international lending as nervousnesscontinues about their financial health’[Financial Times]‘…financial health, along with a dose ofindependence, has largely sheltered Japan’spharmaceutical companies from a global waveof consolidation. Those assets, however, areexpected to soon lure foreign suitors toopowerful to resist’ [Nikkei Weekly]

health insurance /�helθ n�ʃυərəns/noun insurance which pays the cost oftreatment for illness, especially whentravelling abroadhealth warning /�helθ �wɔ�nŋ/noun a warning message printed on ad-vertisements for investments, statingthat the value of investments can fall aswell as rise (this is a legal requirementin the UK)healthy /�helθi/ adjective � a healthybalance sheet balance sheet whichshows a good profitheavily /�hevli/ adverb � he isheavily in debt he has many debts �they are heavily into property theyhave large investments in property � thecompany has had to borrow heavilyto repay its debts the company has hadto borrow large sums of money

‘…the steel company had spent heavily on newequipment’ [Fortune]

heavy /�hevi/ adjective 1. large or inlarge quantities � a programme ofheavy investment overseas � He suf-fered heavy losses on the Stock Ex-change. � The government imposed aheavy tax on luxury goods. � heavycosts or heavy expenditure large sumsof money that have to be spent 2. refer-ring to a share which has such a highprice that small investors are reluctant tobuy it (in which case the company maydecide to split the shares so as to makethem more attractive: in the UK, a shareprice of £10.00 is considered ‘heavy’,though many shares have higher pricesthan this) 3. having too many invest-ments in the same type of share � Hisportfolio is heavy in banks.

‘…heavy selling sent many blue chips tumblingin Tokyo yesterday’ [Financial Times]

heavy industry /�hevi �ndəstri/noun an industry which deals in heavyraw materials such as coal or makeslarge products such as ships or enginesheavy machinery /�hevi mə�ʃi�nəri/noun large machines

head buyer 166 heavy machinery

heavy market /�hevi �mɑ�kt/ noun astock market where prices are fallingheavy share price /�hevi �ʃeəpras/ noun a price on the LondonStock Exchange which is over £10.00per share, and so discourages the smallinvestorhectic /�hektk/ adjective wild, veryactive � a hectic day on the Stock Ex-change � After last week’s hectic trad-ing, this week has been very calm.hedge /hed$/ noun a protectionagainst a possible loss (which involvestaking an action which is the opposite ofan action taken earlier) � a hedgeagainst inflation investment whichshould increase in value more than theincrease in the rate of inflation � Hebought gold as a hedge against ex-change losses. � verb to protect oneself(against the risk of a loss) � to hedgeyour bets to make investments in sev-eral areas so as to be protected againstloss in one of them � to hedge againstinflation to buy investments which willrise in value faster than the increase inthe rate of inflation

‘…during the 1970s commercial property wasregarded by investors as an alternative toequities, with many of the same inflation-hedgequalities’ [Investors Chronicle]‘…the move saved it from having to pay itscreditors an estimated $270 million owed inconnection with hedge contracts which beganworking against the company when the price ofgold rose unexpectedly during September’[Business in Africa]

hedge fund /�hed$ f�nd/ noun apartnership open to a small number ofrich investors, which invests in equities,currency futures and derivatives andmay produce high returns but carries avery high risk

‘…much of what was described as near hysteriawas the hedge funds trying to liquidate bonds torepay bank debts after losing multi-milliondollar bets on speculations that the yen wouldfall against the dollar’ [Times]‘…hedge funds generally have in common anability to sell short (that is, sell stocks you donot own), and to increase growth prospects –and risk – by borrowing to enhance the fund’sassets’ [Money Observer]‘…the stock is a hedge fund – limited by theSecurities and Exchange Commission to onlywealthy individuals and qualified institutions’[Smart Money]

COMMENT: Originally, hedge funds werefunds planned to protect equity invest-

ments against possible falls on the stockmarket. Nowadays the term is applied tofunds which take speculative positions infinancial futures or equities, and are usu-ally highly-geared: in other words, they donothing to ‘hedge’ their holdings.

hedging /�hed$ŋ/ noun the act ofbuying investments at a fixed price fordelivery later, so as to protect oneselfagainst possible lossHelsinki Stock Exchange /hel-�sŋki �stɒk ks�tʃend$/ noun themain stock exchange in Finland. Abbre-viation HEXhemline theory /�hemlan �θəri/noun the theory that movements of thestock market reflect the current fashion-able length of women’s skirts (theshorter the skirt, the more bullish themarket)hereafter /hər�ɑ�ftə/ adverb fromthis time onhereby /hə�ba/ adverb in this way,by this letter � We hereby revoke theagreement of January 1st 1982.hereditament /her�dtəmənt/ nouna property, including land and buildingsherewith /hə�wð/ adverb togetherwith this letter � Please find the chequeenclosed herewith.HEX abbreviation Helsinki StockExchangeHex Index /�heks �ndeks/ noun anindex of share prices on the Helsinkistock exchangehidden /�hd(ə)n/ adjective whichcannot be seenhidden asset /�hd(ə)n ��set/ nounan asset which is valued much less inthe company’s accounts than its truemarket valuehidden reserves /�hd(ə)n r�z%�vz/plural noun 1. reserves which are noteasy to identify in the company’s bal-ance sheet (reserves which are illegallykept hidden are called ‘secret reserves’)2. illegal reserves which are not de-clared in the company’s balance sheethigh /ha/ adjective 1. large, not low �High overhead costs increase the unitprice. � High prices put customers off.� They are budgeting for a high level ofexpenditure. � High interest rates arecrippling small businesses. � high salesa large amount of revenue produced by

heavy market 167 high

sales � high taxation taxation whichimposes large taxes on incomes or prof-its � highest tax bracket the groupwhich pays the most tax � high volume(of sales) a large number of items sold2. � the highest bidder the person whooffers the most money at an auction �The tender will be awarded to the high-est bidder. � The property was sold tothe highest bidder. � adverb � pricesare running high prices are above theirusual level � noun a point where pricesor sales are very large � Prices havedropped by 10% since the high of Janu-ary 2nd. � highs and lows on the StockExchange a list of shares which havereached a new high or low price in theprevious day’s trading � sales volumehas reached an all-time high the salesvolume has reached the highest point ithas ever been at

‘American interest rates remain exceptionallyhigh in relation to likely inflation rates’[Sunday Times]‘…faster economic growth would tend to pushUS interest rates, and therefore the dollar,higher’ [Australian Financial Review]‘…in a leveraged buyout the acquirer raisesmoney by selling high-yielding debentures toprivate investors’ [Fortune]

high finance /ha �fan�ns/ noun thelending, investing and borrowing ofvery large sums of money organised byfinanciershigh flier /ha �flaə/ noun 1. a personwho is very successful or who is likelyto rise to a very important position 2. ashare whose market price is risingrapidlyhigh gearing /ha ��ərŋ/ noun a sit-uation where a company has a high levelof borrowing compared to its share pricehigh-grade bond /�ha �red �bɒnd/noun a bond which has the highest rat-ing (i.e. AAA)high-income /ha �nk�m/ adjectivewhich gives a large income �high-income shares � a high-incomeportfoliohigh-income bond /ha �nk�m�bɒnd/ noun bond which aims to pro-duce a high income. Abbreviation HiBhighly /�hali/ adverb very � she ishighly thought of by the managing di-rector the managing director thinks sheis very competent

highly-geared company /�hali�əd �k�mp(ə)ni/ noun company whichhas a high proportion of its funds fromfixed-interest borrowingshighly-paid /�hali �ped/ adjectiveearning a large salaryhighly-placed /�hali �plest/ adjec-tive occupying an important post � Thedelegation met a highly-placed officialin the Trade Ministry.highly-priced /�hali �prast/ nounwith a large pricehigh pressure /ha �preʃə/ noun astrong insistence that somebody shoulddo something � working under highpressure working very hard, with amanager telling you what to do and todo it quickly, or with customers askingfor supplies urgentlyhigh-risk /ha �rsk/ adjective whichinvolves more risk than normalhigh-risk investment /�ha rsk n-�vestmənt/ noun an investment whichcarries a higher risk than otherinvestmentshigh security area /ha s�kjυərti�eəriə/ noun a special part of a bankwith strong doors where cash can bekept safelyhigh street /�ha stri�t/ noun themain shopping street in a British town �the high street shops � a high streetbookshopHigh Street banks /�ha stri�t�b�ŋks/ plural noun the main Britishbanks which accept deposits from indi-vidual customershigh-tech /ha �tek/ adjective �high-tech companies companies in ad-vanced technological fields, such ascomputers, telecommunications or sci-entific research � high-tech share orstock a share in a technology sectorsuch as software or biotechnologyhigh yield /ha �ji�ld/ noun a dividendyield which is higher than is normal forthe type of companyhigh-yield /ha �ji�ld/ adjective whichgives a very high return on investmenthigh-yield bond /�ha ji�ld �bɒnd/noun same as junk bondhike /hak/ US noun an increase �verb to increase � The union hiked itsdemand to $5 an hour.

high finance 168 hike

hire /�haə/ noun 1. an arrangementwhereby customers pay money to beable to use a car, boat or piece of equip-ment owned by someone else for a time2. � to work for hire to work freelance� verb 1. to employ someone new towork for you � to hire staff to employsomeone new to work for you 2. � tohire out cars or equipment or workersto lend cars, equipment or workers tocustomers who pay for their use

COMMENT: An agreement to hire a pieceof equipment, etc., involves two parties:the hirer and the owner. The equipmentremains the property of the owner whilethe hirer is using it. Under a hire-purchaseagreement, the equipment remains theproperty of the owner until the hirer hascomplied with the terms of the agreement(i.e. until he or she has paid all moniesdue).

hire and fire /�haər ən �faə/ verb toemploy new staff and dismiss existingstaff very frequentlyhire car /�haə kɑ�/ noun a car whichhas been rented � He was driving a hirecar when the accident happened.hire purchase /�haə �p%�tʃs/ nouna system of buying something by payinga sum regularly each month � to buy arefrigerator on hire purchase (NOTE:The US term is installment credit, in-stallment plan or installment sale.) �to sign a hire-purchase agreement tosign a contract to pay for something byinstalmentshire purchase agreement /�haə�p%�tʃs ə��ri�mənt/ noun a contract topay for something by instalmentshire-purchase company /�haə�p%�tʃs �k�mp(ə)ni/ noun a companywhich provides money for hire purchasehiring /�haərŋ/ noun the act of em-ploying new staff � Hiring of new per-sonnel has been stopped.historic /h�stɒrk/, historical /h-�stɒrk(ə)l/ adjective which goes backover a period of time

‘…the Federal Reserve Board has eased interestrates in the past year, but they are still athistorically high levels’ [Sunday Times]‘…the historic p/e for the FTSE all-share indexis 28.3 and the dividend yield is barely 2 percent. Both indicators suggest that the stockmarkets are very highly priced’ [Times]COMMENT: By tradition, a company’s ac-counts are usually prepared on the his-

toric(al) cost principle, i.e. that assets arecosted at their purchase price. With infla-tion, such assets are undervalued, andcurrent-cost accounting or replace-ment-cost accounting may be preferred.

historical cost accounting /h-�stɒrk(ə)l kɒst/ noun the preparationof accounts on the basis of historicalcost, with assets valued at their originalcost of purchase. Compare replace-ment cost accountinghistorical cost depreciation /h-�stɒrk(ə)l �kɒst d�pri�ʃieʃ(ə)n/ noundepreciation based on the original costof the assethistorical figures /h�stɒrk(ə)l�f�əz/ plural noun figures which werecurrent in the pasthistorical trading range /h-�stɒrk(ə)l �tredŋ rend$/ noun thedifference between the highest andlowest price for a share or bond over aperiod of timehistoric cost /h�stɒrk �kɒst/, his-torical cost /h�stɒrk(ə)l �kɒst/ nounthe actual cost of purchasing somethingwhich was bought some time agohit /ht/ verb 1. to reach something �He hit his head against the table. � Thestrong dollar which hit a seven-yearhigh against the yen last week. 2. to hurtor to damage someone or something �The company was badly hit by the fall-ing exchange rate. � Our sales of sum-mer clothes have been hit by the badweather. � The new legislation has hitthe small companies hardest. (NOTE:hitting – hit)hive off /�hav �ɒf/ verb to split offpart of a large company to form asmaller subsidiary, giving shares in thisto its existing shareholders � The newmanaging director hived off the retailsections of the company.H.M. Customs and Excise /�atʃem �k�stəmz ən �eksaz/ noun 1. aUK government department which dealswith taxes on imports and on productssuch as alcohol produced in the coun-try. It also deals with VAT. � an Exciseofficer 2. an office of this department ata port or airporthoard /hɔ�d/ verb 1. to buy and storegoods in case of need 2. to keep cash in-stead of investing it

hire 169 hoard

hoarder /�hɔ�də/ noun a person whobuys and stores goods in case of needhoarding /�hɔ�dŋ/ noun � hoardingof supplies the buying of large quanti-ties of goods to keep in case of need

‘…as a result of hoarding, rice has becomescarce with prices shooting up’ [BusinessTimes (Lagos)]

hold /həυld/ noun the action of keep-ing something � these shares are ahold these shares should be kept and notsold � verb 1. to own or to keep some-thing � He holds 10% of the company’sshares. 2. to make something happen �The receiver will hold an auction of thecompany’s assets. 3. not to sell � Youshould hold these shares – they looklikely to rise.

‘…as of last night, the bank’s shareholders nolonger hold any rights to the bank’s shares’[South China Morning Post]

hold back /�həυld �b�k/ verb to wait,not to do something at the present time� investors are holding back until af-ter the Budget investors are waiting un-til they hear the details of the Budgetbefore they decide whether to buy orsell � he held back from signing thelease until he had checked the detailshe delayed signing the lease until he hadchecked the details � payment will beheld back until the contract has beensigned payment will not be made untilthe contract has been signedholdback /�həυlb�k/ noun a part of aloan to a property developer which isnot paid until the development is almostfinishedhold down /�həυld �daυn/ verb 1. tokeep at a low level � We are cuttingmargins to hold our prices down. 2. � tohold down a job to manage to do a dif-ficult job

‘…real wages have been held down; they haverisen at an annual rate of only 1% in the last twoyears’ [Sunday Times]

holder /�həυldə/ noun 1. a person whoowns or keeps something � holders ofgovernment bonds or bondholders �holder of stock or of shares in a com-pany � holder of an insurance policy orpolicy holder 2. a thing which keepssomething, which protects somethingholder in due course /�həυldə ndju� �kɔ�s/ noun a person who holds anegotiable instrument, such as a bill of

exchange, in good faith, without know-ing of any other claim against itholder of record /�həυldə əv�rekɔ�d/ noun the person who is regis-tered as the owner of shares in acompanyholding /�həυldŋ/ noun a group ofshares owned � He has sold all hisholdings in the Far East. � The com-pany has holdings in German manufac-turing companies.holding company /�həυldŋ�k�mp(ə)ni/ noun 1. a company whichowns more than 50% of the shares in an-other company. � subsidiary company2. a company which exists only ormainly to own shares in subsidiary com-panies. � subsidiary (NOTE: The USterm is proprietary company.)hold on /�həυld �ɒn/ verb to wait, notto change � the company’s sharehold-ers should hold on and wait for abetter offer they should keep theirshares and not sell them until they areoffered a higher pricehold out for /�həυld �aυt fɔ�/ verb towait and ask for something � youshould hold out for a 10% pay riseyou should not agree to a pay rise of lessthan 10%hold to /�həυld tu�/ verb not to allowsomething or someone to change � wewill try to hold him to the contract wewill try to stop him going against thecontract � the government hopes tohold wage increases to 5% the govern-ment hopes that wage increases will notbe more than 5%hold up /�həυld ��p/ verb 1. to stay ata high level � Share prices have held upwell. � Sales held up during the touristseason. 2. to delay something � Theshipment has been held up at customs. �Payment will be held up until the con-tract has been signed. � The strike willhold up dispatch for some weeks. � Theworkers are holding up production as aform of protest against poor conditions.hologram /�hɒlə�r�m/ noun athree-dimensional picture which is usedon credit cards as a means of preventingforgeryhome /həυm/ noun the place where aperson liveshome address /həυm ə�dres/ nounthe address of a house or flat where a

hoarder 170 home address

person lives � Please send the docu-ments to my home address.home banking /həυm �b�ŋkŋ/noun a system of banking using a per-sonal computer in your own home tocarry out various financial transactions(such as paying invoices or checkingyour bank account)home equity credit /�həυm �ekwti�kredt/ noun a loan made to a home-owner against the security of the equityin his or her property (i.e. the value ofthe property now less the amount out-standing on any mortgage)home improvement loan /�həυmm�pru�vmənt ləυn/ noun a loan madeto a homeowner to pay for improve-ments to his or her homehome income plan /həυm �nk�mpl�n/ noun a method of releasing eq-uity from an unmortgaged property sothat a homeowner has income or cashwithout actually leaving the propertyhome loan /�həυm ləυn/ noun a loanby a bank or building society to helpsomeone buy a househome market /həυm �mɑ�kt/ nounthe market in the country where the sell-ing company is based � Sales in thehome market rose by 22%.home office /həυm �ɒfs/ noun anoffice organised inside your own homeHome Office /�həυm �ɒfs/ noun aministry dealing with the internal affairsof the countryhome trade /�həυm tred/ noun tradein the country where a company is basedhonorarium /�ɒnə�reəriəm/ nounmoney paid to a professional personsuch as an accountant or a lawyer whena specific fee has not been requested(NOTE: The plural is honoraria.)honorary /�ɒnərəri/ adjective notpaid a salary for the work done for anorganisation � He is honorary presidentof the translators’ association.honorary secretary /�ɒnərəri�sekrət(ə)ri/ noun a person who keepsthe minutes and official documents of acommittee or club, but is not paid asalaryhonorary treasurer /�ɒnərəri�tre$ərə/ noun a treasurer who does notreceive any fee

honour /�ɒnə/ verb to pay somethingbecause it is owed and is correct � tohonour a bill � The bank refused tohonour his cheque. (NOTE: The USspelling is honor.) � to honour a sig-nature to pay something because thesignature is correcthorizontal integration /hɒr-�zɒnt(ə)l ntə��reʃ(ə)n/ noun theprocess of joining similar companiesor taking over a company in thesame line of business as yourselfhorizontal spread /�hɒrzɒnt(ə)l�spred/ noun the buying and selling oftwo options at the same price but withdifferent maturity dateshorse trading /�hɔ�s �tredŋ/ nounhard bargaining which ends withsomeone giving something in returnfor a concession from the other sidehostile /�hɒstal/ adjective unfriendly,showing dislikehostile bidder /�hɒstal �bdə/,hostile suitor /�hɒstal �su�tə/ nouna person or company making ahostile bidhostile takeover bid /�hɒstal�tekəυvə bd/ noun a takeover wherethe board of the company do not recom-mend it to the shareholders and try tofight ithot card /hɒt �kɑ�d/ noun a stolencredit cardhot money /hɒt �m�ni/ noun moneywhich is moved from country to countryto get the best returnshot stock /hɒt �stɒk/ noun a stock(usually in a new issue) which rises rap-idly on the Stock Exchange because ofgreat demandhour /aυə/ noun 1. a period of timelasting sixty minutes � to work athirty-five hour week to work sevenhours a day each weekday � we workan eight-hour day we work for eighthours a day, e.g. from 8.30 to 5.30 withone hour for lunch 2. sixty minutes ofwork � He earns £14 an hour. � We pay£16 an hour. � to pay by the hour topay people a fixed amount of money foreach hour worked 3. � outside hours orout of hours when the office is not open� He worked on the accounts out ofhours.

home banking 171 hour

hourly wage /�aυəli �wed$/ nounthe amount of money paid for an hour’sworkhouse /haυs/ noun 1. the building inwhich someone lives 2. a company �the largest London finance house � abroking house � a publishing househousecleaning noun a general re-organising of a business � She hasmainly been performing housecleaningmeasures.household goods /�haυshəυld��υdz/ plural noun items which are usedin the homehouse insurance /�haυs n-�ʃυərəns/ noun insuring a house and itscontents against damagehouse journal /�haυs �d$%�n(ə)l/,house magazine /�haυs m��ə�zi�n/noun a magazine produced for the em-ployees or shareholders in a company togive them news about the companyhouse property /�haυs �prɒpəti/noun private houses or flats, not shops,offices or factorieshouse starts /�haυs �stɑ�ts/, hous-ing starts /�haυzŋ �stɑ�ts/ plural nounthe number of new private houses orflats of which the construction has be-gun during a yearhouse telephone /haυs �telfəυn/noun a telephone for calling from oneroom to another in an office or hotelhousing authority bond /�haυzŋɔ��θɒrəti bɒnd/ noun a bond issued bya US municipal housing authority toraise money to build dwellings

HP abbreviation hire purchasehryvnia /�hrvniə/ noun a unit of cur-rency used in the Ukrainehuman resources department/�hju�mən r�zɔ�sz d�pɑ�tmənt/noun the section of the company whichdeals with its staffhuman resources officer/�hju�mən r�zɔ�sz �ɒfsə/ noun aperson who deals with the staff in acompany, especially interviewing can-didates for new postshurdle rate /�h%�d(ə)l ret/ noun 1.the rate of growth in a portfolio requiredto repay the final fixed redemption priceof zero dividend preference shares 2. aminimum rate of return needed by abank to fund a loan, the rate belowwhich a loan is not profitable for thebankhyper- /hapə/ prefix very largehyperinflation /�hapərn�fleʃ(ə)n/noun inflation which is at such a highpercentage rate that it is almost impossi-ble to reducehypothecation /ha�pɒθə�keʃ(ə)n/noun 1. an arrangement in which prop-erty such as securities is used as collat-eral for a loan, but without transferringlegal ownership to the lender (as op-posed to a mortgage, where the lenderholds the title to the property) 2. an ac-tion of earmarking money derived fromcertain sources for certain related expen-diture, as when investing taxes from pri-vate cars or petrol sales solely on publictransport

hourly wage 172 hypothecation

I

IBO abbreviation institutional buyoutIBRD abbreviation International Bankfor Reconstruction and Development(the World Bank)ICAEW abbreviation Institute of Char-tered Accountants in England andWalesICAI abbreviation Institute of Char-tered Accountants in IrelandICAS abbreviation Institute of Char-tered Accountants in ScotlandICCH abbreviation International Com-modities Clearing Houseidle /�ad(ə)l/ adjective not working �2,000 employees were made idle by therecession.idle capital /�ad(ə)l �k�pt(ə)l/ nouncapital which is not being usedproductivelyIFA abbreviation independent financialadviserIFC abbreviation International FinanceCorporationIHT abbreviation inheritance taxillegal /�li��(ə)l/ adjective not legal oragainst the lawillegality /�li����lti/ noun the fact ofbeing illegalillegally /�li��əli/ adverb against thelaw � He was accused of illegally im-porting arms into the country.illicit /�lst/ adjective not legal or notpermitted � the illicit sale of alcohol �trade in illicit alcoholilliquid /�lkwd/ adjective referringto an asset which is not easy to changeinto cashILO abbreviation International LabourOrganizationIMF abbreviation International Mone-tary Fund

IMM abbreviation International Mone-tary MarketIMMA abbreviation insured moneymarket accountimmovable /�mu�vəb(ə)l/ adjectivewhich cannot be movedimmovable property /�mu�vəb(ə)l�prɒpəti/ noun houses and other build-ings on landimmunisation /�mjυna�zeʃ(ə)n/,immunization noun US arrangementsto protect the income from a portfolio ofinvestments against any risk in a volatilestock marketimpact /�mp�kt/ noun a shock orstrong effect � the impact of new tech-nology on the cotton trade � The newdesign has made little impact on thebuying public.

‘…the strong dollar’s deflationary impact onEuropean economies as governments push upinterest rates to support their sinking currencies’[Duns Business Month]

impaired /m�peəd/ adjective not cer-tain, not perfectimpaired credit /m�peəd �kredt/noun US a situation where a person be-comes less creditworthy than beforeimpaired loans /m�peəd �ləυnz/plural noun US doubtful loansimplement /�mpl�ment/ verb to putinto action � to implement an agree-ment � to implement a decisionimplementation /�mplmen-�teʃ(ə)n/ noun the process of puttingsomething into action � the implemen-tation of new rulesimport /m�pɔ�t/ verb /m�pɔ�t/ tobring goods from abroad into a countryfor sale � The company imports televi-sion sets from Japan. � This car was im-ported from France.

‘European manufacturers rely heavily onimported raw materials which are mostly pricedin dollars’ [Duns Business Month]

importation /�mpɔ��teʃ(ə)n/ nounthe act of importing � The importationof arms is forbidden. � The importationof livestock is subject to very strictcontrols.import ban /�mpɔ�t b�n/ noun anorder forbidding imports � The govern-ment has imposed an import ban onarms.import duty /�mpɔ�t �dju�ti/ noun atax on goods imported into a countryimporter /m�pɔ�tə/ noun a person orcompany that imports goods � a cigarimporter � The company is a big im-porter of foreign cars.import-export /�mpɔ�t �ekspɔ�t/adjective, noun (referring to) businesswhich deals with both bringing foreigngoods into a country and sending locallymade goods abroad � Rotterdam is animportant centre for the import-exporttrade. � He works in import-export.importing /m�pɔ�tŋ/ adjectivewhich imports � oil-importing countries� an importing company � noun the actof bringing foreign goods into a countryfor sale � The importing of arms intothe country is illegal.import levy /�mpɔ�t �levi/ noun a taxon imports, especially in the EU a tax onimports of farm produce from outsidethe EUimport licence /�mpɔ�t �las(ə)ns/,import permit /�mpɔ�t �p%�mt/ nounan official document which allowsgoods to be importedimport quota /�mpɔ�t �kwəυtə/noun a fixed quantity of a particulartype of goods which the government al-lows to be imported � The governmenthas imposed a quota on the importationof cars. � The quota on imported carshas been lifted.import restrictions /�mpɔ�t r-�strkʃ(ə)nz/ plural noun actions takenby a government to reduce the level ofimports (by imposing quotas, duties,etc.)imports /�mpɔ�ts/ plural noun goodsbrought into a country from abroad forsale � Imports from Poland have risento $1m a year. (NOTE: Usually used inthe plural, but the singular is used be-fore a noun.)

import surcharge /�mpɔ�t�s%�tʃɑ�d$/ noun the extra duty chargedon imported goods, to try to stop themfrom being imported and to encouragelocal manufactureimpose /m�pəυz/ verb to give ordersfor something, e.g. a tax or a ban, whichother people have to pay or obey � toimpose a tax on bicycles � The unionshave asked the government to imposetrade barriers on for � They tried to im-pose a ban on smoking. � The govern-ment imposed a special duty on oil.imposition /�mpə�zʃ(ə)n/ noun theact of imposing somethingimpound /m�paυnd/ verb to takesomething away and keep it until a tax ispaid � customs impounded the wholecargoimpounding /m�paυndŋ/ noun anact of taking something and keeping ituntil a tax is paidimprest system /�mprest �sstəm/noun a system of controlling petty cash,where cash is paid out against a writtenreceipt and the receipt is used to getmore cash to bring the float to the origi-nal levelimprinter /m�prntə/ noun ahand-operated machine for printing thedetails of a customer’s credit card on asales voucherimprove /m�pru�v/ verb to makesomething better, or to become better �We are trying to improve our imagewith a series of TV commercials. � Theyhope to improve the company’s marketshare. � We hope the cash flow positionwill improve or we will have difficulty inpaying our bills. � export trade hasimproved sharply during the firstquarter export trade has increased sud-denly and greatly in the first period ofthe year

‘…we also invest in companies whose growthand profitability could be improved by amanagement buyout’ [Times]

improved offer /m�pru�vd �ɒfə/noun an offer which is larger or hasbetter terms than the previous offerimprovement /m�pru�vmənt/ noun1. the process of getting better � Thereis no improvement in the cash flow situ-ation. � Sales are showing a sharp im-provement over last year. � Employeeshave noticed an improvement in the

importation 174 improvement

working environment. 2. somethingwhich is better � an improvement onan offer an act of making a better offer

‘…the management says the rate of loss-makinghas come down and it expects furtherimprovement in the next few years’[Financial Times]

improve on /m�pru�v ɒn/ verb to dobetter than � she refused to improve onher previous offer she refused to makea better offerimpulse /�mp�ls/ noun a sudden de-cision � to do something on impulse todo something because you have justthought of it, not because it was plannedimpulse buyer /�mp�ls �baə/ nouna person who buys something on im-pulse, not because he or she intended tobuy itimpulse buying /�mp�ls �baŋ/noun the practice of buying items whichyou have just seen, not because you hadplanned to buy themimpulse purchase /�mp�ls�p%�tʃs/ noun something bought assoon as it is seenimputation system /�mpju�-�teʃ(ə)n �sstəm/ noun a system oftaxation of dividends, where the com-pany pays advance corporation tax onthe dividends it pays to its sharehold-ers, and the shareholders pay no tax onthe dividends received, assuming thatthey pay tax at the standard rate (theACT is shown as a tax credit which isimputed to the shareholder)impute /m�pju�t/ verb to pass the re-sponsibility for something to someoneelseimputed value /m�pju�td �v�lju�/noun a value which is given to figures,for which an accurate value cannot becalculatedIMRO abbreviation Investment Man-agement Regulatory Organisationinactive /n��ktv/ adjective not ac-tive or not busyinactive account /n��ktv ə-�kaυnt/ noun a bank account which isnot used (i.e. no deposits or withdrawalsare made) over a period of timeinactive market /n��ktv �mɑ�kt/noun stock market with few buyers orsellersInc abbreviation US incorporated

incentive /n�sentv/ noun somethingwhich encourages a customer to buy, oremployees to work better

‘…some further profit-taking was seenyesterday as investors continued to lack freshincentives to renew buying activity’[Financial Times]‘…a well-designed plan can help companiesretain talented employees and offer enticingperformance incentives – all at an affordablecost’ [Fortune]‘…the right incentives can work when usedstrategically’ [Management Today]‘…an additional incentive is that the Japaneseare prepared to give rewards where they are due’[Management Today]

incentive bonus /n�sentv�bəυnəs/, incentive payment /n-�sentv �pemənt/ noun an extra pay-ment offered to workers to make themwork betterincentive scheme /n�sentv ski�m/noun a plan to encourage better work bypaying higher commission or bonuses �Incentive schemes are boostingproduction.inchoate /n�kəυət/ adjective refer-ring to an instrument which is incom-plete (i.e. where some of the detailsneed to be filled in)incidental /�ns�dent(ə)l/ adjectivewhich is not important, but connectedwith something elseincidental expenses /�nsdent(ə)lk�spensz/ plural noun small amountsof money spent at various times in addi-tion to larger amountsincidentals /�ns�dent(ə)lz/ pluralnoun same as incidental expensesinclude /n�klu�d/ verb to count some-thing along with other things � Thecharge includes VAT. � The total is£140 not including insurance andfreight. � The account covers servicesup to and including the month of June.inclusive /n�klu�sv/ adjective whichcounts something in with other things �inclusive of tax � not inclusive of VAT �inclusive of including � inclusive of tax� not inclusive of VATinclusive charge /n�klu�sv�tʃɑ�d$/, inclusive sum /n�klu�sv�s�m/ noun a charge which includes allitems or costsincome /�nk�m/ noun 1. moneywhich a person receives as salary or div-idends � lower income bracket, upper

improve on 175 income

income bracket the groups of peoplewho earn low or high salaries consid-ered for tax purposes 2. money which anorganisation receives as gifts or from in-vestments � The hospital has a large in-come from gifts.

‘…there is no risk-free way of taking regularincome from your money much higher than therate of inflation’ [Guardian]

income drawdown /�nk�m�drɔ�daυn/ noun an arrangement bywhich you take smaller amounts on aregular basis out of money accumulat-ing in the pension fund, instead of tak-ing it all at the same time in a lump sumto pay for an annuityincome fund /�nk�m f�nd/ noun afund which aims at providing a high in-come rather than capital growthincome gearing /�nk�m ��ərŋ/noun the ratio of the interest a companypays on its borrowing shown as a per-centage of its pretax profits (before theinterest is paid)income shares /�nk�m ʃeəz/ pluralnoun shares in an investment trustwhich receive income from the invest-ments, but do not benefit from the rise incapital value of the investmentsincomes policy /�nk�mz �pɒlsi/noun the government’s ideas on how in-comes should be controlledincome statement /�nk�m�stetmənt/ noun US a statement ofcompany expenditure and sales whichshows whether the company has made aprofit or loss (NOTE: The UK term isprofit and loss account.)income support /�nk�m sə�pɔ�t/noun a government benefit paid tolow-income earners who are workingless than 16 hours per week, providedthey can show that they are activelylooking for jobs. Abbreviation ISincome tax /�nk�m t�ks/ noun 1.the tax on a person’s income (bothearned and unearned) 2. the tax on theprofits of a corporationincome tax form /�nk�m t�ks�fɔ�m/ noun a form to be completedwhich declares all income to the taxofficeincome tax return /�nk�m t�ks r-�t%�n/ noun a form used for reportinghow much income you have earned andworking out how much tax you have to

pay on it. Also called declaration ofincomeincome units /�nk�m �ju�nts/ plu-ral noun units in a unit trust, from whichthe investor receives dividends in theform of incomeincome yield /�nk�m ji�ld/ noun anactual percentage yield of governmentstocks, the fixed interest being shown asa percentage of the market priceincoming /�nk�mŋ/ adjective refer-ring to someone who has recently beenelected or appointed � the incomingchairmaninconvertible /�nkən�v%�təb(ə)l/adjective referring to currency whichcannot be easily converted into othercurrenciesincorporate /n�kɔ�pəret/ verb 1. tobring something in to form part of amain group � Income from the 1998 ac-quisition is incorporated into the ac-counts. 2. to form a registered company� a company incorporated in the USA �an incorporated company � J. DoeIncorporated

COMMENT: A company is incorporated bydrawing up a memorandum of associa-tion, which is lodged with CompaniesHouse. In the UK, a company is either aprivate limited company (they print Ltd af-ter their name) or a public limited com-pany (they print Plc after their name). Acompany must be a Plc to obtain a StockExchange listing. In the US, there is nodistinction between private and publiccompanies, and all are called ‘corpora-tions’; they put Inc. after their name.

incorporation /n�kɔ�pə�reʃ(ə)n/noun an act of incorporating a company

COMMENT: A corporation (a body whichis legally separate from its members) isformed in one of three ways: 1) registra-tion under the Companies Act (the normalmethod for commercial companies); 2)granting of a royal charter; 3) by a specialAct of Parliament. A company is incorpo-rated by drawing up a memorandum andarticles of association, which are lodgedwith Companies House.

increase noun /�nkri�s/ 1. an act ofbecoming larger � There have been sev-eral increases in tax or tax increases inthe last few years. � There is an auto-matic 5% increase in price or price in-crease on January 1st. � Profits showed

income drawdown 176 increase

a 10% increase or an increase of 10%on last year. � increase in the cost ofliving a rise in the annual cost of living2. a higher salary � increase in pay orpay increase � The government hopesto hold salary increases to 3%. � shehad two increases last year her salarywent up twice � verb /n�kri�s/ 1. togrow bigger or higher � Profits have in-creased faster than the increase in therate of inflation. � Exports to Africahave increased by more than 25%. �The price of oil has increased twice inthe past week. � to increase in price tocost more � to increase in size or valueto become larger or more valuable 2. tomake something bigger or higher � thecompany increased her salary to£20,000 the company gave her a rise insalary to £20,000

‘…turnover has the potential to be increased toover 1 million dollars with energeticmanagement and very little capital’[Australian Financial Review]‘…competition is steadily increasing and couldaffect profit margins as the company tries toretain its market share’ [Citizen (Ottawa)]

increment /�ŋkrmənt/ noun a regu-lar automatic increase in salary � an an-nual increment � salary which rises inannual increments of £1000 each yearthe salary is increased by £1000incremental /�ŋkr�ment(ə)l/ adjec-tive which rises automatically in stagesincremental cost /�ŋkrment(ə)l�kɒst/ noun the cost of making extraunits above the number already planned(this may then include further fixedcosts)incremental increase/�ŋkrment(ə)l �nkri�s/ noun an in-crease in salary according to an agreedannual incrementincremental scale /�ŋkrment(ə)l�skel/ noun a salary scale with regularannual salary increasesincur /n�k%�/ verb to make yourself li-able to something � to incur the risk ofa penalty to make it possible that yourisk paying a penalty � the companyhas incurred heavy costs to imple-ment the expansion programme thecompany has had to pay large sums ofmoney

‘…the company blames fiercely competitivemarket conditions in Europe for a £14moperating loss last year, incurred despite arecord turnover’ [Financial Times]

indebted /n�detd/ adjective owingmoney to someone � to be indebted to aproperty companyindemnification /ndemnf�keʃən/noun payment for damageindemnify /n�demnfa/ verb to payfor damage � to indemnify someone fora lossindemnity /n�demnti/ noun 1. aguarantee of payment after a loss � Shehad to pay an indemnity of £100. 2.compensation paid after a lossindent noun /�ndent/ 1. an orderplaced by an importer for goods fromoverseas � They put in an indent for anew stock of soap. 2. a line of typingwhich starts several spaces from theleft-hand margin � verb /n�dent/ � toindent for something to put in an orderfor something � The department has in-dented for a new computer.indenture /n�dentʃə/ noun US a for-mal agreement showing the terms of abond issueindependent /�nd�pendənt/ adjec-tive not under the control or authority ofanyone elseindependent authenticator/�ndpendənt ɔ��θentketə/ noun acompany that has the authority (fromthe government or the internet control-ling body) to issue certificates of au-thentication when they are sure that acompany is who it claims to beindependent company/�ndpendənt �k�mp(ə)ni/ noun acompany which is not controlled by an-other companyindependent financial adviser/�ndpendənt fa�n�nʃ(ə)l əd�vazə/noun a person who gives impartialadvice on financial matters, who is notconnected with any financial institution.Abbreviation IFAindependents /�nd�pendənts/ plu-ral noun shops or companies which areowned by private individuals or families

‘…many independents took advantage of thebank holiday period when the big multipleswere closed’ [The Grocer]

independent trader /�ndpendənt�tredə/, independent shop/�ndpendənt �ʃɒp/ noun a shop whichis owned by an individual proprietor,not by a chain

increment 177 independent trader

index /�ndeks/ noun 1. a list of itemsclassified into groups or put in alphabet-ical order 2. a regular statistical reportwhich shows rises and falls in prices,values or levels 3. a figure based on thecurrent market price of certain shares ona stock exchange � verb to link a pay-ment to an index � salaries indexed tothe cost of living

‘…the index of industrial production sank 0.2per cent for the latest month after rising 0.3 percent in March’ [Financial Times]‘…an analysis of the consumer price index forthe first half of the year shows that the rate ofinflation went down by 12.9 per cent’[Business Times (Lagos)]

index arbitrage /�ndeks �ɑ�btrɑ�$/noun buying or selling a basket ofstocks against an index option or futureindexation /�ndek�seʃ(ə)n/ nounthe linking of something to an indexindexation of wage increases/�ndekseʃ(ə)n əv �wed$ �nkri�sz/noun the linking of wage increases tothe percentage rise in the cost of livingindex card /�ndeks kɑ�d/ noun acard used to make a card indexindexed portfolio /�ndekst pɔ�t-�fəυliəυ/ noun a portfolio of shares inall the companies which form the basisof a stock exchange indexindex fund /�ndeks f�nd/ noun aninvestment fund consisting of shares inall the companies which are used to cal-culate a Stock Exchange index (NOTE:The plural is indexes or indices.)index letter /�ndeks �letə/ noun aletter of an item in an indexindex-linked /�ndeks �lŋkt/ adjec-tive which rises automatically by thepercentage increase in the cost of living� index-linked government bonds � In-flation did not affect her as she has anindex-linked pension.

‘…two-year index-linked savings certificatesnow pay 3 per cent a year tax free, in addition toindex-linking’ [Financial Times]

index number /�ndeks �n�mbə/noun 1. a number of something in an in-dex 2. a number showing the percentagerise of something over a periodindex tracker /�ndeks �tr�kə/ nounan investor or fund manager who tracksan indexindex-tracking /�ndeks �tr�kŋ/adjective which tracks an index

indicate /�ndket/ verb to showsomething � The latest figures indicatea fall in the inflation rate. � Our salesfor last year indicate a move from thehome market to exports.indicator /�ndketə/ noun some-thing which indicates

‘…it reduces this month’s growth in the key M3indicator from about 19% to 12%’[Sunday Times]‘…we may expect the US leading economicindicators for April to show faster economicgrowth’ [Australian Financial Review]‘…other indicators, such as high real interestrates, suggest that monetary conditions areextremely tight’ [Economist]

indirect /�nda�rekt/ adjective notdirectindirect costs /�ndarekt �kɒsts/,indirect expenses /�ndarekt k-�spensz/ plural noun costs which arenot directly related to the making of aproduct (such as cleaning, rent oradministration)indirect labour costs /�ndarekt�lebə kɒsts/ plural noun the cost ofpaying employees not directly involvedin making a product such as cleaners orcanteen staff. Such costs cannot be allo-cated to a cost centre.indirect loss /�ndarekt �lɒs/ nounsame as consequential lossindirect tax /�ndarekt �t�ks/ nouna tax (such as VAT) paid to someonewho then pays it to the governmentindirect taxation /�ndarekt t�k-�seʃ(ə)n/ noun taxes (such as sales tax)which are not paid direct to the govern-ment � The government raises moremoney by indirect taxation than bydirect.individual /�nd�vd$uəl/ noun onesingle person � a savings plan tailoredto the requirements of the private indi-vidual � adjective single or belongingto one person � a pension plan designedto meet each person’s individual re-quirements � We sell individual por-tions of ice cream.Individual Retirement Account/�ndvd$uəl r�taəmənt ə�kaυnt/noun US a private pension scheme,into which persons on lower incomescan make contributions (for people notcovered by a company pension scheme).Abbreviation IRA

index 178 Individual Retirement Account

Individual Savings Account/�ndvd$uəl �sevŋz ə�kaυnt/ nouna British scheme by which individualscan invest for their retirement by puttinga limited amount of money each year ina tax-free account. Abbreviation ISA

inducement /n�dju�smənt/ nounsomething which helps to persuadesomeone to do something � They of-fered her a company car as an induce-ment to stay.industrial /n�d�striəl/ adjective re-ferring to manufacturing work � to takeindustrial action to go on strike orgo-slow � land zoned for light indus-trial use land where planning permis-sion has been given to build smallfactories for light industry

‘…indications of renewed weakness in the USeconomy were contained in figures on industrialproduction for April’ [Financial Times]

industrial accident /n�d�striəl��ksd(ə)nt/ noun an accident whichtakes place at workindustrial arbitration tribunal /n-�d�striəl ɑ�b�treʃ(ə)n tra�bju�n(ə)l/noun a court which decides in industrialdisputesindustrial bank /n�d�striəl b�ŋk/noun a finance house which lends tobusiness customersindustrial capacity /n�d�striəl kə-�p�sti/ noun the amount of workwhich can be done in a factory or sev-eral factoriesindustrial centre /n�d�striəl�sentə/ noun a large town with manyindustriesindustrial court /n�d�striəl �kɔ�t/noun a court which can decide in indus-trial disputes if both parties agree to askit to judge between themindustrial debenture /n�d�striəld�bentʃə/ noun a debenture raised byan industrial companyindustrial development /n-�d�striəl d�veləpmənt/ noun the plan-ning and building of new industries inspecial areasindustrial espionage /n�d�striəl�espiənɑ�$/ noun the practice of tryingto find out the secrets of a competitor’swork or products, usually by illegalmeans

industrial expansion /n�d�striəlk�sp�nʃən/ noun the growth of indus-tries in a country or a regionindustrial injury /n�d�striəl�nd$əri/ noun an injury to an employeethat occurs in the workplaceindustrialisation /n�d�striəla-�zeʃ(ə)n/, industrialization noun theprocess of change by which an economybecomes based on industrial productionrather than on agricultureindustrialise /n�d�striə�laz/, in-dustrialize verb to set up industries in acountry which had none before

‘…central bank and finance ministry officials ofthe industrialized countries will continue workon the report’ [Wall Street Journal]

industrial loan /n�d�striəl �ləυn/noun a loan raised by an industrialcompanyindustrial processes /n�d�striəl�prəυsesz/ plural noun the variousstages involved in manufacturing prod-ucts in factoriesindustrial property /n�d�striəl�prɒpəti/ noun factories or other build-ings used for industrial purposesindustrial relations /n�d�striəl r-�leʃ(ə)nz/ plural noun relations be-tween management and employees �The company has a history of bad la-bour relations.

‘Britain’s industrial relations climate ischanging’ [Personnel Today]

industrials /n�d�striəlz/ plural nounshares in manufacturing companiesindustrial training /n�d�striəl�trenŋ/ noun the training of new em-ployees to work in an industryindustrial tribunal /n�d�striəl tra-�bju�n(ə)l/ noun a court which can de-cide in disputes about employment

‘ACAS has a legal obligation to try and solveindustrial grievances before they reachindustrial tribunals’ [Personnel Today]

industry /�ndəstri/ noun 1. all facto-ries, companies or processes involved inthe manufacturing of products � All sec-tors of industry have shown rises in out-put. 2. a group of companies making thesame type of product or offering thesame type of service � the aircraft in-dustry � the food-processing industry �the petroleum industry � the advertisingindustry

Individual Savings Account 179 industry

‘…with the present overcapacity in the airlineindustry, discounting of tickets is widespread’[Business Traveller]

ineligible /n�eld$b(ə)l/ adjectivenot eligibleineligible bill /n�eld$əb(ə)l bl/noun a bill of exchange which cannot bediscounted by a central bankinflate /n�flet/ verb � to inflateprices to increase prices without anyreasoninflated /n�fletd/ adjective � in-flated prices prices which are increasedwithout any reason � Tourists don’twant to pay inflated London prices.inflation /n�fleʃ(ə)n/ noun a greaterincrease in the supply of money orcredit than in the production of goodsand services, resulting in higher pricesand a fall in the purchasing power ofmoney � to take measures to reduce in-flation � High interest rates tend to in-crease inflation. � we have 3%inflation or inflation is running at 3%prices are 3% higher than at the sametime last year � spiralling inflation in-flation where price rises make workersask for higher wages which then in-crease prices againinflation accounting /n�fleʃ(ə)nə�kaυntŋ/ noun an accounting system,where inflation is taken into accountwhen calculating the value of assets andthe preparation of accountsinflationary /n�fleʃ(ə)n(ə)ri/ adjec-tive which tends to increase inflation �inflationary trends in the economy � theeconomy is in an inflationary spiralthe economy is in a situation whereprice rises encourage higher wage de-mands which in turn make prices rise

‘…inflationary expectations fell somewhat thismonth, but remained a long way above theactual inflation rate, according to figuresreleased yesterday. The annual rate of inflationmeasured by the consumer price index has beenbelow 2 per cent for over 18 months’[Australian Financial Review]

inflation-proof /n�fleʃ(ə)n pru�f/adjective referring to a pension, etc.which is index-linked, so that its value ispreserved in times of inflationinflation-proof pension /n-�fleʃ(ə)n pru�f �penʃən/ noun a pen-sion which will rise to keep pace withinflation

inflation rate /n�fleʃ(ə)n ret/ nouna figure, in the form of a percentage,which shows the amount by which infla-tion has increased over a period of time,usually a year. Also called rate ofinflation

‘…the decision by the government to tightenmonetary policy will push the annual inflationrate above the year’s previous high’[Financial Times]‘…when you invest to get a return, you want a‘real’ return – above the inflation rate’[Investors Chronicle]‘…the retail prices index rose 0.4 per cent in themonth, taking the annual headline inflation rateto 1.7 per cent. The underlying inflation rate,which excludes mortgage interest payments,increased to an annual rate of 3.1 per cent’[Times]COMMENT: The inflation rate in the UK iscalculated on a series of figures, includingprices of consumer items: petrol, gas andelectricity, interest rates, etc. This givesthe ’underlying’ inflation rate which can becompared to that of other countries. Thecalculation can also include mortgage in-terest and local taxes which give the’headline’ inflation figure. This is higherthan in other countries because of theseextra items. Inflation affects businesses,in that as their costs rise, so their profitsmay fall and it is necessary to take thisinto account when pricing products.

inflation target /n�fleʃ(ə)n �tɑ��t/noun an inflation rate which the govern-ment aims to reach at some date in thefutureinflow /�nfləυ/ noun the act of comingin or being brought in � inflow of capi-tal into the country capital which iscoming into a country in order to beinvested

‘…the dollar is strong because of capital inflowsrather than weak because of the trade deficit’[Duns Business Month]

influx /�nfl�ks/ noun an inflow, espe-cially one where people or things comein in large quantities � an influx of for-eign currency into the country � an in-flux of cheap labour into the cities

‘…the retail sector will also benefit from theexpected influx of tourists’ [AustralianFinancial Review]

information office /�nfə�meʃ(ə)n�ɒfs/ noun an office which gives infor-mation to tourists or visitorsinformation officer /nfə�meʃ(ə)n�ɒfsə/ noun 1. a person whose job is togive information about a company, an

ineligible 180 information officer

organisation or a government depart-ment to the public 2. a person whose jobis to give information to other depart-ments in the same organisationinfringe /n�frnd$/ verb to break alaw or a right � to infringe a patent tomake a product which works in thesame way as a patented product and notpay a royalty to the patent holderinfringement of patent /n-�frnd$mənt əv �petənt/ noun an actof illegally using, making or selling aninvention which is patented, without thepermission of the patent holderingot /�ŋ�ət/ noun a bar of gold orsilverinherit /n�hert/ verb to get some-thing from a person who has died �When her father died she inherited theshop. � He inherited £10,000 from hisgrandfather.inheritance /n�hert(ə)ns/ nounproperty which is received from a deadpersoninheritance tax /n�hert(ə)ns t�ks/noun a tax on wealth or property inher-ited after the death of someone. Abbre-viation IHT (NOTE: The US term isdeath duty.)initial /�nʃ(ə)l/ adjective first or start-ing � The initial response to the TV ad-vertising has been very good. � verb towrite your initials on a document toshow you have read it and approved �to initial an amendment to a contract �Please initial the agreement at the placemarked with an X.

‘…the founding group has subscribed NKr14.5m of the initial NKr 30m share capital’[Financial Times]‘…career prospects are excellent for someonewith potential, and initial salary is negotiablearound $45,000 per annum’ [AustralianFinancial Review]

initial capital /�nʃ(ə)l �k�pt(ə)l/noun capital which is used to start abusiness � He started the business withan initial expenditure or initial invest-ment of £500.initial public offering /�nʃ(ə)l�p�blk �ɒf(ə)rŋ/ noun US the processof offering new shares in a corporationfor sale to the public as a way of launch-ing the corporation on the Stock Ex-change. Abbreviation IPO (NOTE: TheUK term is offer for sale.)

initials /�nʃ(ə)lz/ plural noun a firstletters of the words in a name � What dothe initials IMF stand for? � The chair-man wrote his initials by each alterationin the contract he was signing.initial sales /�nʃ(ə)l �selz/ pluralnoun the first sales of a new productinitial yield /�nʃ(ə)l �ji�ld/ noun anexpected yield on a new unit trustinitiate /�nʃiet/ verb to start � to ini-tiate discussionsinitiative /�nʃətv/ noun the decisionto start something � to take the initia-tive to decide to do somethinginject /n�d$ekt/ verb � to inject capi-tal into a business to put money into abusinessinjection /n�d$ekʃən/ noun � a capi-tal injection of £100,000 or an injec-tion of £100,000 capital putting£100,000 into an existing businessinjunction /n�d$�ŋkʃən/ noun acourt order telling someone not to dosomething � He got an injunction pre-venting the company from selling hiscar. � The company applied for an in-junction to stop their rival from market-ing a similar product.inland /�nlənd/ adjective inside acountryinland freight charges /�nlənd�fret �tʃɑ�d$z/ plural noun chargesfor carrying goods from one part of thecountry to anotherInland Revenue /�nlənd �revənju�/noun a British government departmentdealing with taxes (income tax, corpora-tion tax, capital gains tax, inheritancetax, etc.) but not duties, such as VAT,which are collected by the Customs andExcise � He received a letter from theInland Revenue. (NOTE: The US term isInternal Revenue Service or IRS.)in play /n �ple/ adjective being obvi-ously up for sale or a possible takeovertargetinput /�npυt/ verb � to input infor-mation to put data into a computerinput lead /�npυt li�d/ noun a leadfor connecting the electric current to amachineinputs /�npυts/ plural noun goods orservices bought by a company andwhich may be liable to VAT

infringe 181 inputs

input tax /�npυt t�ks/ noun VATwhich is paid by a company on goods orservices boughtinquiry office /n�kwaəri �ɒfs/noun an office which members of thepublic can go to to have their questionsansweredinquorate /n�kwɔ�ret/ adjectivewithout a quorum

COMMENT: If there is a quorum at ameeting, the meeting is said to be‘quorate’; if there aren’t enough peoplepresent to make a quorum, the meeting is‘inquorate’.

inside /n�sad/ adjective, adverb in,especially in a company’s office orbuilding � We do all our design workinside. � preposition in � There wasnothing inside the container. � We havea contact inside our rival’s productiondepartment who gives us very usefulinformation.inside director /�nsad da�rektə/noun a director who works full-time in acorporation (as opposed to an outsidedirector)inside information /�nsad �nfə-�meʃ(ə)n/ noun information which ispassed from people working in a com-pany to people outside (and which canbe valuable to investors in the company)insider /n�sadə/ noun a person whoworks in an organisation and thereforeknows its secrets

COMMENT: In the USA, an insider is anofficer or director of a company, or anowner of 10% or more of a class of thatcompany’s shares. An insider must reportany trade to the SEC by the 10th of themonth following the transaction.

insider buying /n�sadə �baŋ/, in-sider dealing /n�sadə �di�lŋ/, in-sider trading /n�sadə �tredŋ/ nounthe illegal buying or selling of shares bystaff of a company or other persons whohave secret information about the com-pany’s plansinsider information /�nsadə �nfə-�meʃ(ə)n/ noun same as insideinformationinsider trader /�nsadə �tredə/noun a person who carries out insiderdealing, i.e. illegal buying or selling ofshares by staff of a company or otherpersons who have secret informationabout the company’s plans

inside worker /�nsad �w%�kə/ nounan employee who works in an office orfactory (not someone who works in theopen air or visits customers)insolvency /n�sɒlvənsi/ noun thefact of not being able to pay debts � hewas in a state of insolvency he couldnot pay his debts

‘…hundreds of thrifts found themselves on thebrink of insolvency after a deregulationprogramme prompted them to enter dangerousfinancial waters’ [Times]

insolvent /n�sɒlvənt/ adjective notable to pay debts � The company wasdeclared insolvent. (NOTE: see note atinsolvency) � he was declared insol-vent he was officially stated to beinsolvent

COMMENT: A company is insolvent whenits liabilities are higher than its assets; ifthis happens it must cease trading.

inspect /n�spekt/ verb to examine indetail � to inspect a machine or an in-stallation � The gas board is sending anengineer to inspect the central heatingsystem. � Officials from the DTI havecome to inspect the accounts. � to in-spect products for defects to look atproducts in detail to see if they have anydefectsinspection /n�spekʃən/ noun theclose examination of something � tomake an inspection or to carry out aninspection of a machine or an installa-tion � the inspection of a product fordefects � to carry out a tour of inspec-tion to visit various places, offices orfactories to inspect them � to issue aninspection order to order an officialinspectioninspection stamp /n�spekʃənst�mp/ noun a stamp placed on some-thing to show it has been inspectedinspector /n�spektə/ noun an offi-cial who inspects � The inspectors willsoon be round to make sure the buildingis safe.inspectorate /n�spekt(ə)rət/ nounall inspectorsinspector of taxes /n�spektər əv�t�ksz/ noun an official of the InlandRevenue who examines tax returns anddecides how much tax people shouldpayinspector of weights and mea-sures /n�spektər əv �wets ən

input tax 182 inspector of taxes

�me$əz/ noun a government officialwho inspects weighing machines andgoods sold in shops to see if the quanti-ties and weights are correctinstability /�nstə�blti/ noun thestate of being unstable or moving up anddown � a period of instability in themoney markets a period when curren-cies fluctuate rapidlyinstall /n�stɔ�l/ verb 1. to set up apiece of machinery or equipment, e.g. anew computer system, so that it can beused 2. to configure a new computerprogram to the existing systemrequirementsinstallation /�nstə�leʃ(ə)n/ nounthe act of setting up a piece ofequipmentinstallment /n�stɔ�lmənt/ noun USspelling of instalmentinstallment plan /n�stɔ�lməntpl�n/, installment sales /n-�stɔ�lmənt selz/, installment buying/n�stɔ�lmənt �baŋ/ noun US a sys-tem of buying something by paying asum regularly each month � to buy acar on the installment plan (NOTE: TheUK term is hire purchase.)instalment /n�stɔ�lmənt/ noun apart of a payment which is paid regu-larly until the total amount is paid � Thefirst instalment is payable on signatureof the agreement. � the final instal-ment is now due the last of a series ofpayments should be paid now � to pay£25 down and monthly instalments of£20 to pay a first payment of £25 andthe rest in payments of £20 each month� to miss an instalment not to pay aninstalment at the right timeinstalment credit /n�stɔ�lmənt�kredt/ noun an arrangement by whicha purchaser pays for goods bought in in-stalments over a period of timeinstant /�nstənt/ adjective immedi-ately available � Instant credit is avail-able to current account holders.instant access account /�nstənt��kses ə�kaυnt/ noun a deposit ac-count which pays interest and fromwhich you can withdraw money imme-diately without penaltyInstitute of Chartered Accoun-tants in England and Wales/�nsttju�t əv �tʃɑ�təd ə�kaυntənts n�ŋ�lənd ən �welz/ noun a professional

body whose members are accountants inEngland and Wales. AbbreviationICAEW

Institute of Chartered Accoun-tants in Ireland /�nsttju�t əv�tʃɑ�təd ə�kaυntənts n �aələnd/noun a professional body whose mem-bers are accountants in Ireland. Abbre-viation ICAIInstitute of Chartered Accoun-tants in Scotland /�nsttju�t əv�tʃɑ�təd ə�kaυntənts n �skɒtlənd/noun a professional body whose mem-bers are accountants in Scotland. Abbre-viation ICASinstitution /�nst�tju�ʃ(ə)n/ noun anorganisation or society set up for a par-ticular purpose. � financial institutioninstitutional /�nst�tju�ʃ(ə)n(ə)l/adjective referring to an institution, es-pecially a financial institution

‘…during the 1970s commercial property wasregarded by big institutional investors as analternative to equities’ [Investors Chronicle]

institutional buying/�nsttju�ʃ(ə)n(ə)l �baŋ/ noun buy-ing or selling shares by financialinstitutionsinstitutional buyout/�nsttju�ʃ(ə)n(ə)l �baaυt/ noun atakeover of a company by a financialinstitution, which backs a group of man-agers who will run it. Abbreviation IBOinstitutional investor/�nsttju�ʃ(ə)n(ə)l n�vestə/ noun 1. afinancial institution which investsmoney in securities 2. an organisation(such as a pension fund or insurancecompany) with large sums of money toinvestinstruction /n�str�kʃən/ noun an or-der which tells what should be done orhow something is to be used � He gaveinstructions to his stockbroker to sell theshares immediately. � to await instruc-tions to wait for someone to tell youwhat to do � to issue instructions to tellpeople what to doinstrument /�nstrυmənt/ noun 1. atool or piece of equipment � The techni-cian brought instruments to measure theoutput of electricity. 2. a legal documentinsufficient funds /�nsəfʃ(ə)nt�f�ndz/ noun US same asnon-sufficient funds

instability 183 insufficient funds

insurable /n�ʃυərəb(ə)l/ adjectivewhich can be insuredinsurable interest /n�ʃυərəb(ə)l�ntrəst/ noun the value of the thing in-sured which is attributed to the personwho is taking out the insuranceinsurance /n�ʃυərəns/ noun anagreement that in return for regular pay-ments (called ‘premiums’), a companywill pay compensation for loss, damage,injury or death � to take out insurance� Repairs will be paid for by the insur-ance. � to take out an insuranceagainst fire to pay a premium, so that, ifa fire happens, compensation will bepaid � to take out an insurance on thehouse to pay a premium, so that, if thehouse is damaged, compensation will bepaid � the damage is covered by theinsurance the insurance company willpay for the damage � to pay the insur-ance on a car to pay premiums to insurea carinsurance agent /n�ʃυərəns�ed$ənt/, insurance broker /n-�ʃυərəns �brəυkə/ noun a person whoarranges insurance for clientsinsurance claim /n�ʃυərəns klem/noun a request to an insurance companyto pay compensation for damage or lossinsurance company /n�ʃυərəns�k�mp(ə)ni/ noun a company whosebusiness is insuranceinsurance contract /n�ʃυərəns�kɒntr�kt/ noun an agreement by aninsurance company to insureinsurance cover /n�ʃυərəns �k�və/noun protection guaranteed by an insur-ance policy � Do you have coveragainst theft?insurance policy /n�ʃυərəns�pɒlsi/ noun a document which showsthe conditions of an insurance contractinsurance premium /n�ʃυərəns�pri�miəm/ noun an annual paymentmade by a person or a company to an in-surance companyinsurance rates /n�ʃυərəns rets/plural noun the amount of premiumwhich has to be paid per £1000 ofinsuranceinsurance salesman /n�ʃυərəns�selzmən/ noun a person who encour-ages clients to take out insurancepolicies

insure /n�ʃυə/ verb to have a contractwith a company whereby, if regularsmall payments are made, the companywill pay compensation for loss, damage,injury or death � to insure a houseagainst fire � to insure someone’s life �to insure baggage against loss � to in-sure against loss of earnings � He wasinsured for £100,000. � the insured theperson or organisation that will benefitfrom an insurance � the sum insuredthe largest amount of money that an in-surer will pay under an insuranceinsured account /n�ʃυəd ə�kaυnt/noun an account with a bank which isinsured by the customer’s insuranceinsured money market account/n�ʃυəd �m�ni �mɑ�kt ə�kaυnt/ nouna high-yield account, in which the inves-tor has to deposit a certain minimumsum, which is insured by the provideragainst capital loss. Abbreviation IMMAinsurer /n�ʃυərə/ noun a companywhich insures (NOTE: For life insurance,UK English prefers to use assurer.)intangible /n�t�nd$b(ə)l/ adjectivewhich cannot be touchedintangible assets /n�t�nd$b(ə)l��sets/, intangibles /n�t�nd$b(ə)lz/plural noun assets which have a value,but which cannot be seen, e.g. goodwill,or a patent or a trademarkintegrate /�nt�ret/ verb to linkthings together to form one whole groupintegration /�nt��reʃ(ə)n/ noun theact of bringing several businesses to-gether under a central control

COMMENT: In a case of horizontal inte-gration, a large supermarket might takeover another smaller supermarket chain;on the other hand, if a supermarket takesover a food packaging company the inte-gration would be vertical.

intent /n�tent/ noun something thatsomeone plans to dointer- /ntə/ prefix between �inter-company dealings dealings be-tween two companies in the same group� inter-company comparisons com-paring the results of one company withthose of another in the same productareainter-bank /�ntə b�ŋk/ adjective be-tween banks � inter-bank depositsmoney which banks deposit with other

insurable 184 inter-bank

banks � inter-bank rates rates of inter-est charged on inter-bank loansinter-bank loan /�ntə b�ŋk �ləυn/noun a loan from one bank to anotherinter-bank market /�ntə b�ŋk�mɑ�kt/ noun a market where bankslend to or borrow from each otherinter-city /�ntə �sti/ adjective be-tween cities � Inter-city train servicesare often quicker than going by air.inter-dealer broker /�ntə �di�lə�brəυkə/ noun a broker who acts as anintermediary between dealers in govern-ment securitiesinterest /�ntrəst/ noun 1. paymentmade by a borrower for the use ofmoney, calculated as a percentage of thecapital borrowed 2. money paid as in-come on investments or loans � to re-ceive interest at 5% � the loan pays 5%interest � deposit which yields or givesor produces or bears 5% interest � ac-count which earns interest at 10% orwhich earns 10% interest � The bankpays 10% interest on deposits. � ac-crual of interest the automatic additionof interest to capital 3. a part of the own-ership of something, e.g. if you investmoney in a company you acquire a fi-nancial share or interest in it � to ac-quire a substantial interest in thecompany to buy a large number ofshares in a company � to declare an in-terest to state in public that you ownshares in a company being discussed orthat you are related to someone who canbenefit from your contacts � verb to at-tract someone’s attention � She tried tointerest several companies in her newinvention. � The company is trying tointerest a wide range of customers in itsproducts. � interested in paying atten-tion to � The managing director is in-terested only in increasing profitability.interest-bearing account /�ntrəst�beərŋ ə�kaυnt/ noun a bank accountwhich gives interestinterest-bearing deposits/�ntrəst �beərŋ d�pɒzts/ plural noundeposits which produce interestinterest charges /�ntrəst�tʃɑ�d$z/ plural noun money paid asinterest on a loaninterest cover /�ntrəst �k�və/ nounthe ability to pay interest payments on aloan

interested party /�ntrestd �pɑ�ti/noun a person or company with a finan-cial interest in a companyinterest-free credit /�ntrəst fri��kredt/ noun a credit or loan where nointerest is paid by the borrower � Thecompany gives its staff interest-freeloans.interesting /�ntrəstŋ/ adjectivewhich attracts attention � They made usa very interesting offer for the factory.interest rate /�ntrəst ret/ noun afigure which shows the percentage ofthe capital sum borrowed or depositedwhich is to be paid as interest. Alsocalled rate of interest

‘…since last summer American interest rateshave dropped by between three and fourpercentage points’ [Sunday Times]

‘…a lot of money is said to be tied up in sterlingbecause of the interest-rate differential betweenUS and British rates’ [Australian FinancialReview]

interest rate margin /�ntrəst ret�mɑ�d$n/ noun the difference betweenthe interest a bank pays on deposits andthe interest it charges on loansinterest rate swap /�ntrəst ret�swɒp/ noun an agreement between twocompanies to exchange borrowings (acompany with fixed-interest borrowingsmight swap them for variable interestborrowings of another company). Alsocalled plain vanilla swap

interest-sensitive purchases/�ntrəst �sensətv �p%�tʃsz/ pluralnoun purchases (such as houses or itemsbought on hire-purchase) which are in-fluenced by interest ratesinterest yield /�ntrəst ji�ld/ noun ayield on a fixed-interest investmentinterface /�ntəfes/ noun a pointwhere two groups of people come intocontactinterim /�ntərm/ adjective made,measured or happening in the middle ofa eriod, such as the financial year, andbefore the final result for the period isavailable � noun a statement of interimprofits or dividends � in the interimmeanwhile, for the time being

‘…the company plans to keep its annualdividend unchanged at 7.5 per share,which includes a 3.75 interim payout’[Financial Times]

inter-bank loan 185 interim

interim dividend /�ntərm �dv-�dend/ noun a dividend paid at the endof a half-yearinterim payment /�ntərm�pemənt/ noun a payment of part of adividendinterim report /�ntərm r�pɔ�t/,interim statement /�ntərm�stetmənt/ noun a report given at theend of a half-yearintermediary /�ntə�mi�diəri/ noun aperson who is the link between peopleor organisations who do not agree orwho are negotiating � He refused to actas an intermediary between the twodirectors.intermediate term /�ntəmi�diət�t%�m/ noun a period of one or twoyearsintermediation /�ntəmi�di�eʃ(ə)n/noun the arrangement of finance or in-surance by an intermediaryinternal /n�t%�n(ə)l/ adjective 1. in-side a company � we decided to makean internal appointment we decided toappoint an existing member of staff tothe post, and not bring someone in fromoutside the company 2. inside a countryor a regioninternal audit /n�t%�n(ə)l �ɔ�dt/noun an audit carried out by a depart-ment inside the companyinternal audit department /n-�t%�n(ə)l �ɔ�dt d�pɑ�tmənt/ noun adepartment of a company which exam-ines the internal accounting controls ofthat companyinternal auditor /n�t%�n(ə)l �ɔ�dtə/noun a member of staff who audits acompany’s accountsinternal control /n�t%�n(ə)l kən-�trəυl/ noun a system set up by themanagement of a company to monitorand control the company’s activitiesinternal growth /n�t%�n(ə)l ��rəυθ/noun the development of a company bygrowing its existing business with itsown finances, as opposed to acquiringother businesses. Also called organicgrowth (NOTE: The opposite is exter-nal growth.)Internal Market /n�t%�n(ə)l �mɑ�kt/noun the EU considered as one singlemarket, with no tariff barriers betweenits member states

internal rate of return /n�t%�n(ə)lret əv r�t%�n/ noun an average annualyield of an investment, where the inter-est earned over a period of time is thesame as the original cost of the invest-ment. Abbreviation IRRInternal Revenue Service /n-�t%�n(ə)l �revənju� �s%�vs/ noun US agovernment department which dealswith tax. Abbreviation IRSinternal trade /n�t%�n(ə)l �tred/noun trade between various parts of acountry (NOTE: The opposite is exter-nal trade.)international /�ntə�n�ʃ(ə)nəl/ ad-jective working between countriesInternational Bank forReconstruction and Develop-ment /ntə�n�ʃ(ə)nəl b�ŋk fə�ri�kənstr�kʃ(ə)n ən d�veləpmənt/noun the official name of the WorldBank. Abbreviation IBRDInternational CommoditiesClearing House /�ntən�ʃ(ə)nəl kə-�mɒdtiz �kleərŋ haυs/ noun a clear-ing house which deals in settlements offutures contracts in commodities and fi-nancial futures. Abbreviation ICCHInternational Finance Corpora-tion /�ntən�ʃ(ə)nəl �fan�ns�kɔ�pəreʃ(ə)n/ noun a subsidiary ofthe World Bank which makes loans toprivate companies. Abbreviation IFCInternational Labour Organiza-tion /�ntən�ʃ(ə)nəl �lebər ɔ��əna-�zeʃ(ə)n/ noun a section of the UnitedNations which tries to improve workingconditions and workers’ pay in membercountries. Abbreviation ILOinternational law /�ntən�ʃ(ə)nəl�lɔ�/ noun laws referring to the waycountries deal with each otherinternational lawyer /�ntə-�n�ʃ(ə)nəl �lɔ�jə/ noun a person whospecialises in international lawInternational Monetary Fund/�ntən�ʃ(ə)nəl �m�nt(ə)ri �f�nd/noun a type of bank which is part of theUnited Nations and helps member statesin financial difficulties, gives financialadvice to members and encouragesworld trade. Abbreviation IMFInternational Monetary Market/�ntən�ʃ(ə)nəl �m�nt(ə)ri �mɑ�kt/noun a part of the Chicago Mercantile

interim dividend 186 International Monetary Market

Exchange dealing in financial futures.Abbreviation IMMinternational monetary system/�ntən�ʃ(ə)nəl �m�nt(ə)ri �sstəm/noun methods of controlling and ex-changing currencies between countriesinternational money markets/�ntən�ʃ(ə)nəl �m�ni �mɑ�kts/ pluralnoun markets, such as the Euromarket,the international market for lending orborrowing in eurocurrenciesinternational money order/�ntən�ʃ(ə)nəl �m�ni �ɔ�d�ə/ noun amoney order in a foreign currencywhich is payable to someone living in aforeign countryInternational Petroleum Ex-change /�ntən�ʃ(ə)nəl pə�trəυliəmks�tʃend$/ noun a London commod-ity exchange dealing in crude oil andnatural gas futures. Abbreviation IPEinternational trade /�ntən�ʃ(ə)nəl�tred/ noun trade between differentcountriesInternet /�ntənet/ noun the global,public network of computers and tele-phone links that houses websites, allowsemail to be sent and is accessed with theaid of a modem � Much of our businessis done on the Internet. � Internet salesform an important part of our turnover.� He searched the Internet for informa-tion on cheap tickets to the USA. (NOTE:The Internet uses the Internet Protocol(IP) as a communication standard.)

‘…they predict a tenfold increase in sales viainternet or TV between 1999 and 2004’[Investors Chronicle]‘…in two significant decisions, the Securitiesand Exchange Board of India today allowedtrading of shares through the Internet and set adeadline for companies to conform to norms forgood corporate governance’ [The Hindu]

Internet bank /�ntənet b�ŋk/ nouna bank that allows it customers to haviecredit in an account on the Internet, anduse it to pay for purchases made on theInternetInterstate Commerce Commis-sion /�ntəstet �kɒm%�s kə�mʃ(ə)n/noun US a federal agency whichregulates business activity involvingtwo or more of the states in the US.Abbreviation ICCintervene /�ntə�vi�n/ verb to try tomake a change in a situation in whichyou have not been involved before � to

intervene in a dispute to try to settle adisputeintervention /�ntə�venʃən/ noun theact of becoming involved in a situationin order to change it � the centralbank’s intervention in the banking crisis� the government’s intervention in thelabour disputeintervention mechanism /�ntə-�venʃən �mekənz(ə)m/ noun a methodused by central banks in maintaining ex-change rate parities (such as buying orselling foreign currency)intervention price /�ntə�venʃ(ə)npras/ noun a price at which the EU willbuy farm produce which farmers cannotsell, in order to keep prices highinter vivos /�ntə �vi�vəυs/ phrase aLatin phrase, ‘between living people’inter vivos trust /�ntə �vi�vəυstr�st/ noun a trust set up by one personfor another living personintestate /n�testət/ adjective � todie intestate to die without havingmade a will

COMMENT: When someone dies intes-tate, the property automatically goes tothe parents or siblings of an unmarriedperson or, if married, to the surviving part-ner, unless there are children.

intraday /�ntrəde/ adjective withinthe day � The stock hit a new record of86 intraday on Friday.intraday liquidity /�ntrəde l-�kwdti/ noun availability of cash inthe banking systemintrinsic value /n�trnsk �v�lju�/noun a value which exists as part ofsomething, such as the value of an op-tion (for a call option, it is the differencebetween the current price and the higherstriking price)introduce /�ntrə�dju�s/ verb to makesomeone get to know somebody orsomething � to introduce a client tobring in a new client and make themknown to someone � to introduce anew product on the market to producea new product and launch it on themarketintroduction /�ntrə�d�kʃən/ noun 1.a letter making someone get to know an-other person � I’ll give you an introduc-tion to the MD – he is an old friend ofmine. 2. the act of bringing an estab-

international monetary system 187 introduction

lished company to the Stock Exchange(i.e. getting permission for the shares tobe traded on the Stock Exchange, usedwhen a company is formed by a de-merger from an existing larger com-pany, and no new shares are beingoffered for sale)introductory offer /�ntrəd�kt(ə)ri�ɒfə/ noun a special price offered on anew product to attract customersinvalid /n�v�ld/ adjective not validor not legal � This permit is invalid. �The claim has been declared invalid.invalidate /n�v�ldet/ verb to makesomething invalid � Because the com-pany has been taken over, the contracthas been invalidated.invalidation /n�v�l�deʃən/ nounthe act of making invalidinvalidity /�nvə�ldti/ noun the factof being invalid � the invalidity of thecontractinventory /�nvənt(ə)ri/ noun 1. es-pecially US all the stock or goods in awarehouse or shop � to carry a high in-ventory � to aim to reduce inventory(NOTE: The UK term is stock.) 2. a listof the contents of a building such as ahouse for sale or an office for rent � todraw up an inventory of fixtures and fit-tings � to agree the inventory to agreethat the inventory is correct � verb tomake a list of stock or contents

‘…a warehouse needs to tie up less capital ininventory and with its huge volume spreads outcosts over bigger sales’ [Duns Business Month]

inventory control /�nvənt(ə)rikən�trəυl/ noun especially US a systemof checking that there is not too muchstock in a warehouse, but just enough tomeet requirementsinventory financing /�nvənt(ə)ri�fan�nsŋ/ noun especially US the useof money from working capital to pur-chase stock for resaleinventory turnover /�nvənt(ə)ri�t%�nəυvə/ noun especially US the totalvalue of stock sold during a year, di-vided by the value of the goods remain-ing in stockinvest /n�vest/ verb 1. to put moneyinto shares, bonds, a building society,etc., hoping that it will produce interestand increase in value � He invested allhis money in unit trusts. � She was ad-vised to invest in real estate or in gov-

ernment bonds. � to invest abroad toput money into shares or bonds in over-seas countries 2. to spend money onsomething which you believe will beuseful � to invest money in new machin-ery � to invest capital in a new factory

‘…we have substantial venture capital to investin good projects’ [Times]

investigate /n�vest�et/ verb to ex-amine something which may be wrong� The Serious Fraud Office has beenasked to investigate his share dealings.investigation /n�vest��eʃ(ə)n/noun an examination to find out what iswrong � They conducted an investiga-tion into petty theft in the office.investment /n�vestmənt/ noun 1.the placing of money so that it will pro-duce interest and increase in value �They called for more government invest-ment in new industries. � She was ad-vised to make investments in oilcompanies. 2. a share, bond or piece ofproperty bought in the hope that it willproduce more money than was used tobuy it � he is trying to protect his in-vestments he is trying to make sure thatthe money he has invested is not lost

‘…investment trusts, like unit trusts, consist ofportfolios of shares and therefore provide aspread of investments’ [Investors Chronicle]‘…investment companies took the view thatprices had reached rock bottom and could onlygo up’ [Lloyd’s List]

investment adviser /n�vestməntəd�vazə/ noun a person who advisespeople on what investments to makeinvestment bank /n�vestməntb�ŋk/ noun US a bank which dealswith the underwriting of new issues, andadvises corporations on their financialaffairs (NOTE: The UK term is issuinghouse.)investment environment /n-�vestmənt n�varənmənt/ noun thegeneral economic situation in which aninvestment is madeinvestment fund /n�vestməntf�nd/ noun a fund that invests instart-up companies or other newprojectsinvestment grant /n�vestmənt�rɑ�nt/ noun a government grant to acompany to help it to invest in newmachineryinvestment income /n�vestmənt�nk�m/ noun income (such as interest

introductory offer 188 investment income

and dividends) from investments. Com-pare earned income

investment magazine /n-�vestmənt �m��əzi�n/ noun a maga-zine dealing with shares, unit trusts andother possible investmentsInvestment Management Regu-latory Organisation /n�vestmənt�m�nd$mənt �re�jυlət(ə)ri �ɔ��əna-zeʃ(ə)n/ noun a self-regulatory or-ganisation which regulates managers ofinvestment funds, such as pensionfunds, now part of the FSA. Abbrevia-tion IMRO

investment trust /n�vestmənttr�st/ noun a company whose sharescan be bought on the Stock Exchangeand whose business is to make moneyby buying and selling stocks and sharesinvestor /n�vestə/ noun a personwho invests moneyinvestor protection /n�vestə prə-�tekʃ(ə)n/ noun legislation to protectsmall investors from unscrupulous in-vestment brokers and advisersInvestors in Industry /n�vestəz n�ndəstri/ plural noun a finance grouppartly owned by the big British HighStreet banks, providing finance espe-cially to smaller companies. Abbrevia-tion 3i

invisible assets /n�vzb(ə)l��sets/ plural noun assets which have avalue but which cannot be seen, e.g.goodwill or patentsinvisible earnings /n�vzb(ə)l�%�nŋz/ plural noun foreign currencyearned by a country by providing ser-vices, receiving interests or dividends,but not by selling goodsinvisible exports /n�vzəb(ə)l�ekspɔ�ts/ plural noun services (such asbanking, insurance or tourism) which donot involve selling a product and whichare provided to foreign customers andpaid for in foreign currency (NOTE: Theopposite are visible exports.)

invisible imports /n�vzb(ə)l�mpɔ�ts/ noun services (such as bank-ing, insurance or tourism) which do notinvolve selling a product and which areprovided by foreign companies and paidfor in local currency (NOTE: The oppo-site are visible imports.)

invisibles /n�vzb(ə)lz/ plural nouninvisible imports and exportsinvisible trade /n�vzəb(ə)l tred/noun trade involving invisible importsand exports (NOTE: The opposite is vis-ible trade.)

invitation /�nv�teʃ(ə)n/ noun an actof asking someone to do something � toissue an invitation to someone to jointhe board � They advertised the invita-tion to tender for a contract.invite /n�vat/ verb to ask someoneto do something, or to ask for some-thing � to invite someone to an in-terview � to invite someone to jointhe board � to invite shareholders tosubscribe a new issue � to invite tendersfor a contractinvoice /�nvɔs/ noun a note ask-ing for payment for goods or ser-vices supplied � your invoice datedNovember 10th � to make out an in-voice for £250 � to settle or to pay aninvoice � They sent in their invoice sixweeks late. � the total is payablewithin thirty days of invoice the totalsum has to be paid within thirty days ofthe date on the invoice � verb to send aninvoice to someone � to invoice a cus-tomer � we invoiced you on November10th we sent you the invoice on No-vember 10thinvoice clerk /�nvɔs klɑ�k/ noun anoffice worker who deals with invoicesinvoice discounting /�nvɔs�dskaυntŋ/ noun a method of obtain-ing early payment of invoices by sellingthem at a discount to a company whichwill receive payment of the invoiceswhen they are paid. (The debtor is notinformed of this arrangement, as op-posed to factoring, where the debtor isinformed.)invoice price /�nvɔs pras/ nounthe price as given on an invoice, includ-ing any discount and VATinvoicing /�nvɔsŋ/ noun the workof sending invoices � All our invoicingis done by computer. � invoicing intriplicate the preparation of three cop-ies of invoicesinvoicing department /�nvɔsŋd�pɑ�tmənt/ noun the department in acompany which deals with preparingand sending invoices

investment magazine 189 invoicing department

involuntary /n�vɒlənt(ə)ri/ adjec-tive not done willingly or deliberatelyinvoluntary bankruptcy /n-�vɒlənt(ə)ri �b�ŋkr�ptsi/ noun USan application by creditors to have aperson or corporation made bankrupt(NOTE: The UK term is compulsorywinding up.)inward /�nwəd/ adjective towards thehome countryinward bill /�nwəd bl/ noun a bill oflading for goods arriving in a countryinward investment /�nwəd n-�vestmənt/ noun investment from out-side a country, as when a foreign com-pany decides to set up a new factorythereinward mission /�nwəd �mʃ(ə)n/noun a visit to your home country by agroup of foreign businesspeopleIOU noun ‘I owe you’; a signed docu-ment promising that you will pay backmoney borrowed � to pay a pile ofIOUs � I have a pile of IOUs whichneed paying.IPE abbreviation International Petro-leum ExchangeIPO abbreviation initial public offeringIRA /�arə/ abbreviation US IndividualRetirement AccountIRR abbreviation internal rate of returnirrecoverable /�r�k�v(ə)rəb(ə)l/adjective which cannot be recoveredirrecoverable debt /r-�k�v(ə)rəb(ə)l �det/ noun a debt whichwill never be paidirredeemable /r�di�məb(ə)l/ adjec-tive which cannot be redeemedirredeemable bond /r�di�məb(ə)lbɒnd/ noun a government bond whichhas no date of maturity and which there-fore provides interest but can never beredeemed at full valueirregular /�re�jυlə/ adjective not cor-rect or not done in the correct way �The shipment arrived with irregulardocumentation. � This procedure ishighly irregular.irregularities /�re�jυ�l�rtiz/ pluralnoun things which are not done in thecorrect way and which are possibly ille-gal � to investigate irregularities in theshare dealings

‘…the group, which asked for its shares to besuspended last week after the discovery ofaccounting irregularities, is expected to updateinvestors about its financial predicament by theend of this week’ [Times]

irrevocable /�revəkəb(ə)l/ adjectivewhich cannot be changedirrevocable acceptance /-�revəkəb(ə)l ək�septəns/ noun accep-tance which cannot be withdrawnirrevocable letter of credit /-�revəkəb(ə)l �letər əv �kredt/ nouna letter of credit which cannot becancelled or changed, except if agreedbetween the two parties involvedIRS abbreviation US Internal RevenueServiceIS abbreviation income supportISA abbreviation individual savingsaccountissuance /�ʃuəns/ noun an action ofissuing new shares or new bondsissue /�ʃu�/ noun an act of giving outnew shares � verb to put out or to giveout � to issue a letter of credit � to issueshares in a new company � to issue awrit against someone � The governmentissued a report on London’s traffic.

‘…the rights issue should overcome the cashflow problems’ [Investors Chronicle]‘…the company said that its recent issue of 10.5per cent convertible preference shares at A$8.50a share has been oversubscribed’[Financial Times]

issued capital /�ʃu�d �k�pt(ə)l/noun an amount of capital which isgiven out as shares to shareholdersissued price /�ʃu�d pras/, issueprice /�ʃu� pras/ noun the price ofshares in a new company when they areoffered for sale for the first timeissuer /�ʃuə/ noun a financial institu-tion that issues credit and debit cardsand maintains the systems for billingand paymentissuing /�ʃuŋ/ adjective which or-ganises an issue of sharesIT abbreviation information technologyitem /�atəm/ noun 1. something forsale � we are holding orders forout-of-stock items we are holding or-ders for goods which are not in stock �Please find enclosed an order for thefollowing items from your catalogue. 2.a piece of information � items on a bal-ance sheet � item of expenditure goods

involuntary 190 item

or services which have been paid forand appear in the accounts 3. a point ona list � we will now take item four onthe agenda we will now discuss thefourth point on the agendaitemise /�atəmaz/, itemize verb tomake a detailed list of things � Item-ising the sales figures will take abouttwo days.

itemised account /�atəmazd ə-�kaυnt/ noun a detailed record ofmoney paid or oweditemised invoice /�atəmazd�nvɔs/ noun an invoice which listseach item separatelyitemised statement /�atəmazd�stetmənt/ noun a bank statementwhere each transaction is recorded indetail

itemise 191 itemised statement

J

J curve /�d$e �k%�v/ noun a line on agraph shaped like a letter ‘J’, with aninitial short fall, followed by a longerrise (used to describe the effect of a fall-ing exchange rate on a country’s bal-ance of trade)jeep mortgage /�d$i�p �mɔ��d$/noun US same as graduated paymentmortgage (informal.)job /d$ɒb/ noun 1. an order beingworked on � We are working on six jobsat the moment. � The shipyard has a bigjob starting in August. 2. regular paidwork � She is looking for a job in thecomputer industry. � He lost his jobwhen the factory closed. � Thousands ofjobs will be lost if the factories closedown. � to give up your job to resign orretire from your work � to look for ajob to try to find work � to retire fromyour job to leave work and take a pen-sion � to be out of a job to have nowork

‘…he insisted that the tax advantages hedirected toward small businesses will helpcreate jobs’ [Toronto Star]

job analysis /�d$ɒb ə�n�ləss/ nouna detailed examination and report on theduties involved in a jobjobber /�d$ɒbə/ noun 1. � (stock) job-ber formerly on the London Stock Ex-change, a person who bought and soldshares from other traders 2. US awholesaler

‘…warehouse clubs buy directly frommanufacturers, eliminating jobbers andwholesale middlemen’ [Duns Business Month]

jobbing /�d$ɒbŋ/ noun � (stock) job-bing formerly on the London StockExchange, the business of buying andselling shares from other tradersjob classification /�d$ɒb kl�sf-�keʃ(ə)n/ noun the process of de-scribing jobs listed in various groupsjob creation scheme /d$ɒb kri-�eʃ(ə)n ski�m/ noun a govern-

ment-backed scheme to make work forthe unemployedjob cuts /�d$ɒb k�ts/ plural noun re-ductions in the number of jobsjob description /�d$ɒb d�skrpʃən/noun a description of what a job con-sists of and what skills are needed for it� The letter enclosed an applicationform and a job description.job evaluation /�d$ɒb v�lju-�eʃ(ə)n/ noun the process of exam-ining different jobs within an or-ganisation to see what skills andqualifications are needed to carry themoutjobless /�d$ɒbləs/ plural noun peoplewith no jobs, the unemployed (NOTE:takes a plural verb)

‘…the contradiction between the jobless figuresand latest economic review’ [Sunday Times]

job lot /d$ɒb �lɒt/ noun 1. a group ofmiscellaneous items sold together �They sold the household furniture as ajob lot. 2. a small parcel of shares tradedon a Stock Exchangejob opportunities /�d$ɒb ɒpə-�tju�ntiz/ plural noun new jobs whichare available � The increase in exportorders has created hundreds of jobopportunities.job performance /�d$ɒb pə-�fɔ�məns/ noun the degree to which ajob is done well or badlyjob satisfaction /�d$ɒb s�ts-�f�kʃən/ noun an employee’s feelingthat he or she is happy at work andpleased with the work he or she doesjob security /�d$ɒb s�kjυərti/ noun1. the likelihood that an employee willkeep his or her job for a long time or un-til retirement 2. a worker’s feeling thathe has a right to keep his job, or that hewill never be made redundant

job specification /�d$ɒb�spesfkeʃ(ə)n/ noun a very detaileddescription of what is involved in a jobjob title /�d$ɒb �tat(ə)l/ noun thename given to the person who does aparticular job � Her job title is ‘ChiefBuyer’.joint /d$ɔnt/ adjective 1. carriedout or produced together with others� a joint undertaking 2. one of two ormore people who work together or whoare linked � They are joint beneficiariesof the will. � She and her brother arejoint managing directors. � The twocountries are joint signatories of thetreaty.joint account /�d$ɔnt ə�kaυnt/noun a bank or building society accountshared by two people � Many marriedcouples have joint accounts so that theycan pay for household expenses.joint-life annuity /�d$ɔnt laf ə-�njuəti/ noun an annuity which contin-ues to pay an amount to a spouse afterthe main beneficiary diesjointly /�d$ɔntli/ adverb together withone or more other people � to own aproperty jointly � to manage a companyjointly � They are jointly liable for dam-ages. � jointly and severally liable lia-ble both as a group and as individualsjoint management /d$ɔnt�m�nd$mənt/ noun management doneby two or more peoplejoint ownership /d$ɔnt �əυnəʃp/noun the owning of a property by sev-eral ownersjoint-stock bank /�d$ɔnt stɒkb�ŋk/ noun a bank which is a publiccompany quoted on the Stock Exchangejoint-stock company /�d$ɔnt stɒk�k�mp(ə)ni/ noun formerly, a publiccompany whose shares were owned byvery many people (now called a PublicLimited Company or Plc)joint venture /d$ɔnt �ventʃə/ nouna situation where two or more compa-nies join together for one specific largebusiness projectjournal /�d$%�n(ə)l/ noun a book withthe account of sales and purchases madeeach dayjudge /d$�d$/ noun a person who de-cides in a legal case � The judge senthim to prison for embezzlement.

judgement /�d$�d$mənt/, judgmentnoun a legal decision or official deci-sion of a courtjudgement debtor /�d$�d$mənt�detə/ noun a debtor who has been or-dered by a court to pay a debtjudgement lien /�d$�d$mənt �li�ən/noun a court order putting a lien on theproperty of a judgement debtorjudicial /d$u��dʃ(ə)l/ adjective refer-ring to the lawjudicial processes /d$u��dʃ(ə)l�prəυsesz/ plural noun the ways inwhich the law worksjudicial review /d$u��dʃ(ə)l r�vju�/noun 1. the examination of a case a sec-ond time by a higher court because alower court has acted wrongly 2. the ex-amination of administrative decisionsby a courtjumbo CD /�d$�mbəυ �si� �di�/ nouna certificate of deposit for a very largeamount of money which is bought as aninvestmentjump /d$�mp/ noun a sudden rise � ajump in the cost-of-living index � Therewas a jump in unemployment figures inDecember. � verb to go up suddenly �Oil prices have jumped since the warstarted. � Share values jumped on theStock Exchange.jumpy /�d$�mpi/ adjective nervous orexcited � the market is jumpy thestock market is nervous and share pricesare likely to fluctuatejunior /�d$u�niə/ adjective less impor-tant than something elsejunior capital /�d$u�niə �k�pt(ə)l/adjective capital in the form of share-holders’ equity, which is repaid only af-ter secured loans (called ‘seniorcapital’) have been paid if the firm goesinto liquidationjunior mortgage /�d$u�niə�mɔ��d$/ noun a second mortgagejunior partner /�d$u�niə �pɑ�tnə/noun a person who has a small part ofthe shares in a partnershipjunior security /�d$u�niə s-�kjυərti/ noun a security which is re-paid after other securitiesjunior staff /�d$u�niə stɑ�f/ nounpeople in less important positions in acompany

job specification 193 junior staff

junk /d$�ŋk/ noun rubbish, uselessitemsjunk bond /�d$�ŋk bɒnd/ noun ahigh-interest bond raised as a debentureon the security of a company which isthe subject of a takeover bid

‘…the big US textile company is running deepin the red, its junk bonds are trading as low as 33cents on the dollar’ [Wall Street Journal]

junk mail /�d$�ŋk mel/ noun un-solicited advertising material sentthrough the post and usually thrownaway immediately by the people whoreceive itjurisdiction /�d$υərs�dkʃən/ noun� within the jurisdiction of the courtin the legal power of a court

junk 194 jurisdiction

K

K abbreviation one thousand � ‘salary:£20K+’ salary more than £20,000 perannumkeen /ki�n/ adjective 1. eager or active� keen competition strong competition� We are facing some keen competitionfrom European manufacturers. � keendemand wide demand � There is a keendemand for home computers. 2. � keenprices prices which are kept low so as tobe competitive � Our prices are thekeenest on the market.keep /ki�p/ verb 1. to do what is neces-sary for something � to keep an ap-pointment to be there when you saidyou would be 2. to hold items for sale orfor information � to keep someone’sname on file to have someone’s nameon a list for reference 3. to hold things ata certain level � to keep spending to aminimum � We must keep our mailinglist up to date. � The price of oil haskept the pound at a high level. � Lack ofdemand for typewriters has kept pricesdown. (NOTE: keeping – kept)keep back /�ki�p �b�k/ verb to holdon to something which you could giveto someone � to keep back informationor to keep something back from some-one � to keep £10 back from someone’ssalarykeep up /�ki�p ��p/ verb to hold at acertain high level � We must keep up theturnover in spite of the recession. � Shekept up a rate of sixty words per minutefor several hours.Keogh plan /�ki�əυ �pl�n/ nounUS a private pension system allowingself-employed businesspeople andprofessionals to set up pension andretirement plans for themselveskerb market /�k%�b �mɑ�kt/, kerbtrading /�k%�b �tredŋ/ noun an unof-ficial after-hours market in shares,bonds or commodities

key /ki�/ noun the part of a computer ortypewriter which you press with yourfingers � There are sixty-four keys onthe keyboard. � adjective important � akey factor � key industries � key per-sonnel � a key member of our manage-ment team � She has a key post in theorganisation. � We don’t want to loseany key staff in the reorganisation.

‘…he gave up the finance job in September todevote more time to his global responsibilitiesas chairman and to work more closely with keyclients’ [Times]

keyboard /�ki�bɔ�d/ noun the part of acomputer or other device with keyswhich are pressed to make letters or fig-ures � verb to press the keys on a key-board to type something � She iskeyboarding our address list.keyboarder /�ki�bɔ�də/ noun a per-son who types information into acomputerkeyboarding /�ki�bɔ�dŋ/ noun theact of typing on a keyboard � Key-boarding costs have risen sharply.key holding /ki� �həυldŋ/ noun animportant block of shares owned by asingle investor, which is large enough toinfluence the decisions of the board ofdirectorskey money /�ki� �m�ni/ noun a pre-mium paid when taking over the keys ofa flat or office which you are rentingkeypad /�ki�p�d/ noun a smallkeyboardkey-person insurance /�ki�p%�s(ə)n n�ʃυərəns/ noun an insurancepolicy taken out to cover the costs of re-placing an employee who is particularlyimportant to an organisation if he or shedies or is ill for a long timekey rate /ki� �ret/ noun an interestrate which gives the basic rate on whichother rates are calculated (e.g. the for-mer bank base rate in the UK, or the

Federal Reserve’s discount rate in theUSA)kickback /�kkb�k/ noun an illegalcommission paid to someone, especiallya government official, who helps in abusiness dealkicker /�kkə/ noun a special induce-ment to buy a bond (such as making itconvertible to shares at a preferentialrate) (informal.)kill /kl/ verb � to kill an order to stopan order taking place after it has beengiven (informal.) � ‘Kill that order’ heshouted, but it was too late.killing /�klŋ/ noun a huge profit (in-formal.) � He made a killing on the stockmarket.kina /�ki�nə/ noun a unit of currencyused in Papua New Guineakind /kand/ noun a sort or type � Theprinter produces two kinds of printout.� Our drinks machine has three kinds ofcold drinks. � payment in kind pay-ment made by giving goods or food, butnot moneykip /kp/ noun a unit of currency usedin Laoskite /kat/ noun � to fly a kite to putforward a proposal to try to interest peo-ple � verb 1. US to write cheques onone account (which may not have anymoney in it) and deposit them in an-other, withdrawing money from the sec-ond account before the cheques arecleared 2. US to write cheques on oneaccount and deposit them in a secondaccount on the last day of the account-ing period, thus showing the amounttwice in the company’s books, since thesum will not yet have been debited fromthe first account 3. US to write a chequefor an amount which is higher than thetotal amount of money in the account,then deposit enough to cover the cheque4. to use stolen credit cards or chequebookskite flier /�kat flaə/ noun a personwho tries to impress people by puttingforward a proposal

kite-flying /kat �flaŋ/ noun thepractice of trying to impress people byputting forward grand planskitty /�kti/ noun money which hasbeen collected by a group of people tobe used later (such as for an officeparty) � We each put £5 into the kitty.knock down /�nɒk �daυn/ verb � toknock something down to a bidder tosell something to somebody at an auc-tion � The furniture was knocked downto him for £100.knockdown price /�nɒkdaυn pras/noun a very low price � He sold me thecar at a knockdown price.knock for knock /�nɒk fə �nɒk/noun an arrangement between motor in-surance companies where each companypays for its own clients’ claims and doesnot claim against the other companyknock off /�nɒk �ɒf/ verb to reduce aprice by a particular amount � Sheknocked £10 off the price for cash.knock-on effect /�nɒk ɒn �fekt/noun the effect which an action willhave on other situations � The strike bycustoms officers has had a knock-on ef-fect on car production by slowing downexports of cars.koruna /kə�ru�nə/ noun a unit of cur-rency used in the Czech Republic andSlovakiakrona /�krəυnə/ noun a unit of cur-rency used in Sweden and Icelandkrone /�krəυnə/ noun a unit of cur-rency used in Denmark and Norwaykroon /kru�n/ noun a unit of currencyused in Estonia (NOTE: The plural iskrooni.)krugerrand /�kru��ər�nd/ noun agold coin weighing one ounce, mintedin South Africakuna /�ku�nə/ noun a unit of currencyused in Croatiakwacha /�kwɑ�tʃə/ noun a unit of cur-rency used in Malawi and Zambiakwanza /�kw�nzə/ noun a unit of cur-rency used in Angolakyat /ki�ɑ�t/ noun a unit of currencyused in Myanmar (formerly Burma)

kickback 196 kyat

L

L symbol US a measurement of moneysupply, calculated as M3 (broad moneysupply), plus Treasury bills, bonds andcommercial paperlabor union /�lebə �jυnjən/ nounUS an organisation which representsemployees who are its members in dis-cussions about wages and conditions ofwork with management (NOTE: The UKterm is trade union.)labour /�lebə/ noun 1. heavy work �to charge for materials and labour tocharge for both the materials used in ajob and also the hours of work involved� labour is charged at £5 an hour eachhour of work costs £5 2. workers, theworkforce � We will need to employmore labour if production is to be in-creased. � The costs of labour are ris-ing in line with inflation. (NOTE: [allsenses] The US spelling is labor.)

‘…the possibility that British goods will pricethemselves back into world markets is doubtfulas long as sterling labour costs continue to risefaster than in competitor countries’[Sunday Times]

labour costs /�lebə kɒsts/ noun thecost of the workers employed to make aproduct (not including materials oroverheads)labour dispute /�lebə d�spju�t/noun a conflict or disagreement be-tween employer and employees or be-tween the groups who represent themlabour force /�lebə fɔ�s/ noun allthe workers in a company or in an area� The management has made an in-creased offer to the labour force. � Weare opening a new factory in the FarEast because of the cheap local labourforce.

‘70 per cent of Australia’s labour force isemployed in service activity’[Australian Financial Review]

labour-intensive industry /�lebərn�tensv �ndəstri/ noun an industry

which needs large numbers of workersand where labour costs are high in rela-tion to turnoverlabour laws /�lebə lɔ�z/ plural nounlaws concerning the employment ofworkerslabour market /�lebə �mɑ�kt/ nounthe number of people who are availablefor work � 25,000 school-leavers havejust come on to the labour market.

‘European economies are being held back byrigid labor markets and wage structures’[Duns Business Month]

labour relations /�lebə r�leʃ(ə)nz/plural noun relations between manage-ment and employees � The companyhas a history of bad labour relations.lack /l�k/ noun the fact of not havingenough � lack of funds not enoughmoney � The project was cancelled be-cause of lack of funds. � verb not tohave enough of something � The com-pany lacks capital. � The industry lacksskilled staff.ladder /�l�də/ noun 1. a series of dif-ferent levels through which an em-ployee may progress 2. an investmentportfolio consisting of bonds with a se-ries of maturity dates from veryshort-dated to long-datedladdering /�l�dərŋ/ noun US 1. theaction of repeatedly buying shares in anewly launched corporation so as toforce up the price, then selling the wholeinvestment at a profit 2. the action ofmaking a series of investments whichmature at different times, cashing eachone at maturity and then reinvesting theproceedslading /�ledŋ/ noun the work of putt-ing goods on a shipLaffer curve /�l�fə k%�v/ noun achart showing that cuts in tax rates in-crease output in the economy. Alterna-tively, increases in tax rates initially

produce more revenue and then less asthe economy slows down.lag /l��/ verb to be behind or to beslower than somethinglagging indicator /�l��ŋ�ndketə/ noun an indicator (such asthe gross national product) which showsa change in economic trends later thanother indicators (NOTE: The opposite isleading indicator.)laissez-faire economy /�lese �feər�kɒnəm/ noun an economy where thegovernment does not interfere because itbelieves it is right to let the economyrun itselflakh /l�k/ noun (in India) one hundredthousand (NOTE: Ten lakh equal onecrore.)lame duck /�lem �d�k/ noun a com-pany which is in financial difficulties �The government has refused to helplame duck companies.land /l�nd/ noun an area of earth �verb 1. to put goods or passengers ontoland after a voyage by sea or by air �The ship landed some goods atMombasa. � The plane stopped forthirty minutes at the local airport toland passengers and mail. 2. to comedown to earth after a flight � The planelanded ten minutes late.Land /lɑ�nt/ noun one of the adminis-trative states in Germanyland agent /�l�nd �ed$ənt/ noun aperson who runs a farm or a large areaof land for the ownerlanded costs /�l�ndd �kɒsts/ pluralnoun the costs of goods which havebeen delivered to a port, unloaded andpassed through customsLandeszentralbank noun the cen-tral bank in one of the German states(Länder)landing /�l�ndŋ/ noun the arrival of aplane on land or the arrival of a passen-ger on landlanding charges /�l�ndŋ�tʃɑ�d$z/ plural noun payments forputting goods on land and paying cus-toms dutieslanding order /�l�ndŋ �ɔ�də/ noun apermit which allows goods to be un-loaded into a bonded warehouse withoutpaying customs duty

landlord /�l�ndlɔ�d/ noun a person orcompany which owns a property whichis letland register /�l�nd �red$stə/ nouna list of pieces of land, showing whoowns each and what buildings are on itland registration /�l�nd red$-�streʃ(ə)n/ noun a system of register-ing land and its ownersland tax /�l�nd t�ks/ noun a tax onthe amount of land ownedlapse /l�ps/ noun � a lapse of time aperiod of time which has passed � verbto stop being valid, or to stop being ac-tive � The guarantee has lapsed. � Thetakeover bid was allowed to lapse whenonly 13% of the shareholders acceptedthe offer. � to let an offer lapse to allowtime to pass so that an offer is no longervalidlapsed option /l�pst �ɒpʃən/ nounan option which has not been taken up,and now has expiredlapsed policy /l�pst �pɒlsi/ nounan insurance policy which has been ter-minated because premiums have notbeen paidlarge-sized /�lɑ�d$ sazd/ adjectivebig, of a very large sizelarge-sized company /�lɑ�d$ sazd�k�mp(ə)ni/ noun a company which hasa turnover of more than £5.75m or em-ploys more than 250 stafflast /lɑ�st/ adjective, adverb coming atthe end of a series � Out of a queue oftwenty people, I was served last. � Thisis our last board meeting before wemove to our new offices. � We finishedthe last items in the order just two daysbefore the promised delivery date.last in first out /lɑ�st �n f%�st �aυt/noun 1. a redundancy policy using theprinciple that the people who have beenmost recently appointed are the first tobe made redundant 2. an accountingmethod where stock is valued at theprice of the earliest purchases (it is as-sumed that the most recently purchasedstock is sold first). Abbreviation LIFO.Compare first in first outlast quarter /lɑ�st �kwɔ�tə/ noun aperiod of three months at the end of thefinancial yearlast trading day /lɑ�st �tredŋ/ ad-jective, adverb the last day when Stock

lag 198 last trading day

Exchange trading takes place in an ac-count, or the last day when futures trad-ing takes place relating to a certaindelivery monthlat /l�t/ noun a unit of currency used inLatvialaunch /lɔ�ntʃ/ verb to put a companyon the Stock Exchange for the first time� noun the act of putting a company onthe Stock Exchange for the first timelaunder /�lɔ�ndə/ verb to pass illegalprofits, money from selling drugs,money which has not been taxed, etc.,into the normal banking system � tolaunder money through an offshorebank

‘…it has since emerged that the bank was beingused to launder drug money and some of itsexecutives have been given lengthy jailsentences’ [Times]

law /lɔ�/ noun a rule governing someaspect of human activity made and en-forced by the state � (the) law all thelaws that are in force in a country con-sidered as a body or systemlawful /�lɔ�f(ə)l/ adjective actingwithin the law � lawful practice actionwhich is permitted by the law � lawfultrade trade which is allowed by lawlaw of diminishing returns /�lɔ�rəv d�mnʃŋ r�t%�nz/ noun a generalrule that as more factors of productionsuch as land, labour and capital areadded to the existing factors, so theamount they produce is proportionatelysmallerlaw of supply and demand /�lɔ�rəv sə�pla ən d�mɑ�nd/ noun a generalrule that the amount of a product whichis available is related to the needs of po-tential customerslawsuit /�lɔ�su�t/ noun a case broughtto a court � to bring a lawsuit againstsomeone to tell someone to appear incourt to settle an argument � to defenda lawsuit to appear in court to state yourcaselawyer /�lɔ�jə/ noun a person who hasstudied law and practises law as aprofessionlay off /�le �ɒf/ verb 1. to dismiss em-ployees for a time (until more work isavailable) � The factory laid off half itsworkers because of lack of orders. 2.especially US to dismiss employeespermanently � to lay off risks to protect

oneself against risk in one investmentby making other investments

‘…the company lost $52 million last year, andhas laid off close to 2,000 employees’[Toronto Star]

lay out /�le �aυt/ verb to spend money� We had to lay out half our cash bud-get on equipping the new factory.LBO abbreviation leveraged buyoutL/C abbreviation letter of creditLCE abbreviation London CommodityExchangeLDC abbreviation 1. least developedcountry 2. less developed countryLDT abbreviation licenseddeposit-takerlead /li�d/ noun 1. information whichmay lead to a sale � It has been difficultstarting selling in this territory with noleads to follow up. � I was given someuseful leads by the sales rep who used tocover this territory. 2. a prospective pur-chaser who is the main decision-makerwhen buying a product or service � ad-jective most important, in the frontlead bank /li�d �b�ŋk/ noun the mainbank in a loan syndicateleader /�li�də/ noun 1. a product whichsells best 2. an important share, a sharewhich is often bought or sold on theStock Exchangeleading /�li�dŋ/ adjective 1. most im-portant � Leading industrialists feel theend of the recession is near. � Leadingshares rose on the Stock Exchange. �Leading shareholders in the companyforced a change in management policy.� They are the leading company in thefield. 2. which comes firstleading indicator /�li�dŋ�ndketə/ noun an indicator (such asmanufacturing order books) whichshows a change in economic trends ear-lier than other indicators (NOTE: The op-posite is lagging indicator.)lead manager /li�d �m�nd$ə/ nouna person who organises a syndicate ofunderwriters for a new issue ofsecuritieslead time /�li�d tam/ noun 1. the timebetween deciding to place an order andreceiving the product � The lead timeon this item is more than six weeks. 2.the time between the start of a task andits completion

lat 199 lead time

lead underwriter /li�d ��ndəratə/noun an underwriting firm which organ-ises the underwriting of a share issue(NOTE: The US term is managing un-derwriter.)

Learning and Skills Council/�l%�nŋ ən �sklz �kaυnsəl/ noun agovernment organisation responsible forthe education and training of peopleover the age of 16learning curve /�l%�nŋ k%�v/ noun1. a process of learning something thatstarts slowly and then becomes faster 2.a line on a graph which shows the rela-tionship between experience in doingsomething and competence at carrying itout 3. a diagram or graph that representsthe way in which people gain knowl-edge or experience over time (NOTE: Asteep learning curve represents a situ-ation where people learn a great dealin a short time; a shallow curve repre-sents a slower learning process. Thecurve eventually levels out, represent-ing the time when the knowledgegained is being consolidated.) 4. thedecrease in the effort required to pro-duce each single item when the totalnumber of items produced is doubled(NOTE: The concept of the learningcurve has its origin in productivity re-search in the aircraft industry of the1930s, when it was discovered that thetime and effort needed to assemble anaircraft decreased by 20% each timethe total number produced doubled.)

lease /li�s/ noun 1. a written contractfor letting or renting a building, a pieceof land or a piece of equipment for a pe-riod against payment of a fee � to rentoffice space on a twenty-year lease �the lease expires next year or the leaseruns out next year the lease comes toan end next year � on expiration of thelease when the lease comes to an end 2.� to hold an oil lease in the North Seato have a lease on a section of the NorthSea to explore for oil � verb 1. to let orrent offices, land or machinery for a pe-riod � to lease offices to small firms �to lease equipment 2. to use an office,land or machinery for a time and pay afee � to lease an office from an insur-ance company � All our company carsare leased.lease back /li�s �b�k/ verb to sell aproperty or machinery to a company and

then take it back on a lease � They soldthe office building to raise cash, andthen leased it back on a twenty-five yearlease.lease-back /�li�sb�k/ noun an ar-rangement where property is sold andthen taken back on a lease � They soldthe office building and then took it backunder a lease-back arrangement.leasehold /�li�shəυld/ noun, adjec-tive (the fact of) possessing property ona lease, for a fixed time � to buy a prop-erty leasehold � We are currently occu-pying a leasehold property. � Thecompany has some valuable leaseholds.leaseholder /�li�shəυldə/ noun a per-son who holds a property on a leaseleasing /�li�sŋ/ noun which leases orwhich is using equipment under a lease� an equipment-leasing company � torun a copier under a leasing arrange-ment � The company has branched outinto car leasing. � lesseeleast developed country /�li�st d-�veləpt �k�ntri/ noun a country in theThird World which is not economicallyadvanced, especially one of those whichborrowed heavily from commercialbanks in the 1970s and 1980s to financetheir industrial development, and so cre-ated an international debt crisis. Abbre-viation LDCledger /�led$ə/ noun a book in whichaccounts are writtenledger balance /�led$ə �b�ləns/noun same as current balanceleft /left/ adjective 1. on the side of thebody which usually has the weakerhand, not right � The numbers run downthe left side of the page. � Put the debitsin the left column. 2. not with others �10m new shares were left with the un-derwriters when the offer wasundersubscribed.left-hand /�left �h�nd/ adjective be-longing to the left side � The debits arein the left-hand column in the accounts.� He keeps the personnel files in theleft-hand drawer of his desk.legacy /�le�əsi/ noun a piece of prop-erty given by someone to someone elsein a willlegal /�li��(ə)l/ adjective 1. accordingto the law or allowed by the law � Thecompany’s action in sacking the ac-

lead underwriter 200 legal

countant was completely legal. 2. refer-ring to the law � to take legal action tosue someone or to take someone to court� to take legal advice to ask a lawyer toadvise about a legal problemlegal adviser /�li��(ə)l əd�vazə/noun a person who advises clients aboutthe lawLegal Aid /�li��(ə)l ed/, Legal Aidscheme /�li��(ə)l �ed ski�m/ noun aBritish government scheme where aperson with very little money can havelegal representation and advice paid forby the statelegal charge /�li��(ə)l �tʃɑ�d$/ nouna legal document held by the Land Reg-istry showing who has a claim on apropertylegal claim /�li��(ə)l klem/ noun astatement that someone owns somethinglegally � He has no legal claim to theproperty.legal costs /�li��(ə)l kɒsts/, legalcharges /�li��(ə)l �tʃɑ�d$z/, legal ex-penses /�li��(ə)l k�spensz/ pluralnoun money spent on fees to lawyers �The clerk could not afford the legal ex-penses involved in suing his boss.legal currency /�li��(ə)l �k�rənsi/noun money which is legally used in acountrylegal department /�li��(ə)l d-�pɑ�tmənt/ noun a section of a com-pany dealing with legal matterslegal expert /�li��(ə)l �eksp%�t/ nouna person who knows a lot about the lawlegal holiday /�li��(ə)l �hɒlde/noun a day when banks and other busi-nesses are closedlegalisation /�li��əla�zeʃ(ə)n/, le-galization noun the act of makingsomething legal � the campaign for thelegalisation of cannabislegalise /�li��əlaz/, legalize verb tomake something legallegal list /�li��(ə)l lst/ noun a list ofblue-chip securities in which banks andfinancial institutions are allowed to in-vest by the state in which they are basedlegal personality /�li��(ə)l �p%�sə-�n�ləti/ noun existence in a form thatenables something to be affected by thelaw

legal proceedings /�li��(ə)l prə-�si�dŋz/ plural noun legal action or alawsuitlegal profession /�li��(ə)l prə-�feʃ(ə)n/ noun all qualified lawyerslegal section /�li��(ə)l �sekʃ(ə)n/noun a department in a company deal-ing with legal matterslegal tender /�li��(ə)l �tendə/ nouncoins or notes which can be legally usedto pay a debtlegatee /�le�ə�ti�/ noun a person whoreceives property from someone whohas diedlegislation /�led$�sleʃ(ə)n/ nounlaws � labour legislation laws concern-ing the employment of workerslek /lek/ noun a unit of currency usedin Albanialempira /lem�pərə/ noun a unit ofcurrency used in Honduraslend /lend/ verb to allow someone touse something for a period � to lendsomething to someone or to lend some-one something � to lend money againstsecurity � He lent the company moneyor He lent money to the company. � Thebank lent him £50,000 to start his busi-ness. (NOTE: lending – lent)lender /�lendə/ noun a person wholends moneylender of the last resort /�lendə əvðə �lɑ�st r�zɔ�t/ noun a central bankwhich lends money to commercialbankslending /�lendŋ/ noun an act of let-ting someone use money for a timelending limit /�lendŋ �lmt/ noun arestriction on the amount of money abank can lendlending margin /�lendŋ �mɑ�d$n/noun an agreed spread (based on theLIBOR) for lendinglength of service /�leŋθ əv �s%�vs/noun the number of years someone hasworkedleone /li��əυn/ noun a unit of currencyused in Sierra Leoneless /les/ adjective smaller than, of asmaller size or of a smaller value � Wedo not grant credit for sums of less than£100. � He sold it for less than he hadpaid for it. � preposition minus, with asum removed � purchase price less

legal adviser 201 less

15% discount � interest less servicecharges � adverb not as muchless developed country /les d-�veləpt �k�ntri/ noun the former namefor a least developed country (dated.)Abbreviation LDClessee /le�si�/ noun a person who has alease or who pays money for a propertyhe leaseslessor /le�sɔ�/ noun a person whogrants a lease on a propertylet /let/ verb to allow the use of ahouse, an office or a farm to someonefor the payment of rent � offices to letoffices which are available to be leasedby companies � noun the period of thelease of a property � They took the of-fice on a short let.let-out clause /�let aυt klɔ�z/ noun aclause which allows someone to avoiddoing something in a contract � Headded a let-out clause to the effect thatthe payments would be revised if the ex-change rate fell by more than 5%.letter /�letə/ noun 1. a piece of writingsent from one person or company to an-other to ask for or to give information 2.� to acknowledge receipt by letter towrite a letter to say that something hasbeen received 3. a written or printedsign (such as A, B, C etc.) � Write yourname and address in block letters or incapital letters.

COMMENT: First names are commonlyused between business people in the UK;they are less often used in other Euro-pean countries (France and Germany), forexample, where business letters tend tobe more formal.

letter of acknowledgement /�letərəv ək�nɒld$mənt/ noun a letter whichsays that something has been receivedletter of advice /�letər əv əd�vas/noun 1. a letter to a customer giving de-tails of goods ordered and shipped butnot yet delivered � The letter of advicestated that the goods would be atSouthampton on the morning of the 6th.� The letter of advice reminded the cus-tomer of the agreed payment terms. 2. aletter from one bank to another, advisingthat a transaction has taken placeletter of application /�letər əv�pl�keʃ(ə)n/ noun a letter in whichsomeone applies for a job

letter of appointment /�letər əv ə-�pɔntmənt/ noun a letter in whichsomeone is appointed to a jobletter of comfort /�letər əv �k�mfət/noun a letter supporting someone who istrying to get a loanletter of credit /�letər əv �kredt/noun a document issued by a bank onbehalf of a customer authorising pay-ment to a supplier when the conditionsspecified in the document are met. Ab-breviation L/Cletter of indemnity /�letər əv n-�demnti/ noun a letter promising pay-ment as compensation for a lossletter of intent /�letər əv n�tent/noun a letter which states what a com-pany intends to do if something happensletter of reference /�letər əv�ref(ə)rəns/ noun a letter in which anemployer recommends someone for anew jobletter of renunciation /�letər əv r-�n�nsi�eʃ(ə)n/ noun a form sentwith new shares, which allows the per-son who has been allotted the shares torefuse to accept them and so sell them tosomeone elseletter post /�letə pəυst/ noun a ser-vice for sending letters or parcelsletter rate /�letə ret/ noun postage(calculated by weight) for sending a let-ter or a parcel � It is more expensive tosend a packet letter rate but it will getthere quicker.letter security /�letə s�kjυərti/,letter stock /�letə stɒk/ noun US ashare which has not been registered withthe SEC and therefore can be sold pri-vately, together with a letter of intent, ortraded in the normal way if the ownerfiles with the SEC using a Form 144letters of administration /�letəzəv ədmn�streʃ(ə)n/ plural noun aletter given by a court to allow someoneto deal with the estate of a person whohas diedletters patent /�letəz �petənt/ pluralnoun the official term for a patentletting agency /�letŋ �ed$ənsi/noun an agency which deals in propertyto letleu /�leju�/ noun a unit of currencyused in Romania and Moldova

less developed country 202 leu

lev /lev/ noun a unit of currency usedin Bulgarialevel /�lev(ə)l/ noun the position ofsomething compared to others � lowlevels of productivity or low productivitylevels � to raise the level of employeebenefits � to lower the level ofborrowings � high level of investmentlarge amounts of money invested � verb� to level off or to level out to stop ris-ing or falling � Profits have levelled offover the last few years. � Prices are lev-elling out.

‘…figures from the Fed on industrial productionfor April show a decline to levels last seen inJune 1984’ [Sunday Times]‘…applications for mortgages are running at ahigh level’ [Times]‘…employers having got their staff back up to areasonable level are waiting until the scope forovertime working is exhausted before hiring’[Sydney Morning Herald]

leverage /�li�vərd$/ noun 1. a ratioof capital borrowed by a company at afixed rate of interest to the company’stotal capital 2. the act of borrowingmoney at fixed interest which is thenused to produce more money than theinterest paid

COMMENT: High leverage (or high gear-ing) has the effect of increasing a com-pany’s profitability when trading isexpanding; if the company’s trading slowsdown, the effect of high fixed-interestcharges is to increase the rate ofslowdown.

leveraged /�li�vərd$/ adjective usingborrowings for financeleveraged buyout /�li�vərd$d�baaυt/, leveraged takeover/�li�vərd$d �tekəυvə/ noun an act ofbuying all the shares in a company byborrowing money against the security ofthe shares to be bought. AbbreviationLBO

‘…the offer came after management had offeredto take the company private through a leveragedbuyout for $825 million’ [Fortune]

leveraged stock /�li�vərd$d stɒk/noun stock bought with borrowedmoneylevy /�levi/ noun money which is de-manded and collected by the govern-ment � levies on luxury items taxes onluxury items � verb to demand paymentof a tax or an extra payment and to col-lect it � to levy a duty on the import ofluxury items � The government has de-

cided to levy a tax on imported cars. �to levy members for a new club houseto ask members of the club to pay forthe new building

‘…royalties have been levied at a rate of 12.5%of full production’ [Lloyd’s List]

liabilities /�laə�bltiz/ plural nounthe debts of a business, including divi-dends owed to shareholders � The bal-ance sheet shows the company’s assetsand liabilities. � he was not able tomeet his liabilities he could not pay hisdebts � to discharge your liabilities infull to pay everything which you oweliability /�laə�blti/ noun 1. a legalresponsibility for damage, loss or harm� The two partners took out insuranceto cover employers’ liability. � to ac-cept liability for something to agreethat you are responsible for something �to refuse liability for something to re-fuse to agree that you are responsible forsomething 2. responsibility for a pay-ment (such as the repayment of a loan)liable /�laəb(ə)l/ adjective � liablefor legally responsible for � The cus-tomer is liable for breakages. � Thechairman was personally liable for thecompany’s debts. � The garage is liablefor damage to customers’ cars.LIBID abbreviation London InterbankBid RateLIBOR abbreviation London InterbankOffered Ratelicence /�las(ə)ns/ noun an officialdocument which allows someone to dosomething (NOTE: The US spelling is li-cense.) � drinks licence, alcohollicence, liquor license a permit to sellalcohol in a restaurant, etc. � goodsmanufactured under licence goodsmade with the permission of the ownerof the copyright or patentlicense /�las(ə)ns/ noun US spellingof licence � verb to give someone offi-cial permission to do something for afee, e.g. when a company allows anothercompany to manufacture its productsabroad � licensed to sell beers, winesand spirits � to license a company tomanufacture spare parts � She is li-censed to run an employment agency.licensed dealer /�las(ə)nst �di�lə/noun a person who has been licensed bythe DTI to buy and sell securities for in-dividual clients

lev 203 licensed dealer

licensed deposit-taker /�las(ə)nstd�pɒzt �tekə/, licensed institution/�las(ə)nst �nst�tju�ʃ(ə)n/ noun a de-posit-taking institution, such as a build-ing society, bank or friendly society,which is licensed to receive money ondeposit from private individuals and topay interest on it. Abbreviation LDTlicensee /�las(ə)n�si�/ noun a personwho has a licence, especially a licenceto sell alcohol or to manufacturesomethinglicensing /�las(ə)nsŋ/ adjective re-ferring to licences � a licensing agree-ment � licensing lawslien /�li�ən/ noun the legal right to holdsomeone’s goods and keep them until adebt has been paidlieu /lju�/ noun � in lieu of instead of �she was given two months’ salary inlieu of notice she was given twomonths’ salary and asked to leaveimmediatelylife /laf/ noun the period of time forwhich something or someone exists �life of a contract the remaining periodof a futures contract before it expireslife assurance /�laf ə�ʃυərəns/noun insurance which pays a sum ofmoney when someone dies, or at a cer-tain date if they are still alivelife assurance company /laf ə-�ʃɔ�rəns �k�mp(ə)ni/ noun a companyproviding life assurance, but usuallyalso providing other services such as in-vestment advicelife assured /laf ə�ʃυəd/ noun theperson whose life has been covered by alife assurance policylifeboat operation /�laf�bəυt �ɒpə-�reʃ(ə)n/ noun actions taken to rescueof a company (especially of a bank)which is in difficultieslife estate /laf �stet/ noun same aslife interestlife expectancy /laf k�spektənsi/noun the number of years a person islikely to livelife insurance /�laf n�ʃυərəns/noun same as life assurancelife insured /laf n�ʃυəd/ noun sameas life assuredlife interest /laf �ntrəst/ noun a sit-uation where someone benefits from aproperty as long as he or she is alive

lifeline account /�laflan ə�kaυnt/noun US a simple bank account for peo-ple with low incomes, used for receivingsalary payments and offering fewserviceslifestyle /�laf stal/ noun the way ofliving of a particular section of society� These upmarket products appeal topeople with an extravagant lifestyle. �The magazine ran a series of articles onthe lifestyles of some successfulbusinessmen.lifestyle audit /�lafstal �ɔ�dt/ nouna study of a person’s living standards tosee if it is consistent with his reportedincomeLifetime Individual Savings Ac-count /�laftam �ndvd$uəl�sevŋz ə�kaυnt/ noun a Britishscheme by which individuals can investfor their retirement by putting a limitedamount of money each year in a tax-freeunit trust account. Abbreviation LISA. �ISALIFFE abbreviation London Interna-tional Financial Futures and OptionsExchangeLIFO /�lafəυ/ abbreviation last in firstoutlight /lat/ adjective 1. not heavy, notvery busy or active � shares fell backin light trading shares lost value on aday when there was little business doneon the Stock Exchange 2. not havingenough of a certain type of share in aportfolio � His portfolio is light inbanks.lighten /�lat(ə)n/ verb to sellshareholdings if a portfolio is too‘heavy’ in a certain type of sharelight industry /�lat �ndəstri/ nounan industry making small products suchas clothes, books or calculatorslike-for-like /�lak fə �lak/ adjective� on a like-for-like basis when compar-ing the same stores over different peri-ods � like-for-like store sales sales forthe same stores over an earlier periodlilangeni /�li�l�ŋ��eni/ noun a unit ofcurrency used in Swazilandlimit /�lmt/ noun the point at whichsomething ends or the point where youcan go no further � he has exceeded hiscredit limit he has borrowed moremoney than he is allowed � limit ‘up’,

licensed deposit-taker 204 limit

limit ‘down’ upper or lower limits toshare price movements which are regu-lated by some stock exchanges � verbto stop something from going beyond aspecific point, to restrict the number oramount of something � the banks havelimited their credit the banks have al-lowed their customers only a specificamount of credit

‘…the biggest surprise of 1999 was the reboundin the price of oil. In the early months of theyear commentators were talking about a fall to$5 a barrel but for the first time in two decades,the oil exporting countries got their act together,limited production and succeeded in pushingprices up’ [Financial Times]

limitation /�lm�teʃ(ə)n/ noun theact of allowing only a specific quantityof something � The contract imposeslimitations on the number of cars whichcan be imported. � limitation of liabil-ity the fact of making someone liablefor only a part of the damage or losslimited /�lmtd/ adjective restrictedlimited company /�lmtd�k�mp(ə)ni/ noun a company whereeach shareholder is responsible forrepaying the company’s debts only tothe face value of the shares he or sheowns. Abbreviation Ltd. Also calledlimited liability companylimited liability /�lmtd laə�blti/noun a situation where someone’sliability for debt is limited by lawlimited liability company /�lmtdlaə�blti �k�mp(ə)ni/ noun same aslimited companylimited market /�lmtd �mɑ�kt/noun a market which can take only aspecific quantity of goodslimited partnership /�lmtd�pɑ�tnəʃp/ noun a registered businesswhere the liability of the partners is lim-ited to the amount of capital they haveeach provided to the business and wherethe partners may not take part in the run-ning of the businesslimiting /�lmtŋ/ adjective whichlimits � a limiting clause in a contract� The short holiday season is a limitingfactor on the hotel trade.limit order /�lmt �ɔ�də/ noun an or-der to a broker to sell if a security fallsto a certain priceline /lan/ noun 1. a long mark printedor written on paper � paper with thin

blue lines � I prefer notepaper withoutany lines. � She drew a thick line beforethe column of figures. 2. a row of lettersor figures on a page 3. a block of shares(traded on a Stock Exchange)

‘…cash paid for overstocked lines, factoryseconds, slow sellers, etc.’ [AustralianFinancial Review]

line chart /�lan tʃɑ�t/ noun a chart orgraph using lines to indicate valuesline of credit /�lan əv �kredt/ noun1. the amount of money made availableto a customer by a bank as an overdraft� to open a line of credit or a creditline to make credit available to someone2. the borrowing limit on a credit cardline of shares /�lan əv �ʃeəz/ nouna large block of shares sold as one dealon the stock exchangelink /lŋk/ verb to join or to attach tosomething else � to link pensions to in-flation � to link bonus payments to pro-ductivity � His salary is linked to thecost of living. � index-linkedliquid /�lkwd/ adjective easily con-verted to cash, or containing a largeamount of cashliquid assets /�lkwd ��sets/ pluralnoun cash, or investments which can bequickly converted into cashliquidate /�lkwdet/ verb � to liqui-date a company to close a companyand sell its assets � to liquidate a debtto pay a debt in full � to liquidate stockto sell stock to raise cashliquidation /�lkw�deʃ(ə)n/ noun 1.� liquidation of a debt payment of adebt 2. the winding up or closing of acompany and selling of its assets � on aliquidation basis at a very low bid priceto encourage buyers � the companywent into liquidation the company wasclosed and its assets soldliquidator /�lkwdetə/ noun a per-son named to supervise the closing of acompany which is in liquidationliquidity /l�kwdti/ noun cash, or thefact of having cash or assets which canbe changed into cash � liquidity crisisnot having enough cash or other liquidassetsliquidity ratio /l�kwdti �reʃiəυ/noun a ratio of liquid assets (that is, cur-rent assets less stocks, but includingdebtors) to current liabilities, giving an

limitation 205 liquidity ratio

indication of a company’s solvency.Also called acid test ratio, quick ratioliquid market /�lkwd �mɑ�kt/noun a market in a security where thereare enough shares available to allowsales to take place without distorting theprice (the opposite is a ‘thin’ market)lira /�lərə/ noun 1. a former unit ofcurrency in Italy � the book cost 2,700lira or L2,700 (NOTE: Lira is usuallywritten L before figures: L2,700.) 2. aunit of currency used in TurkeyLISA abbreviation Lifetime IndividualSavings Accountlis pendens adverb a Latin phrasemeaning ‘pending suit’list /lst/ noun 1. several items writtenone after the other � They have an at-tractive list of products or product list.� I can’t find that item on our stock list.� Please add this item to the list. � Shecrossed the item off her list. 2. acataloguelisted company /�lstd �k�mp(ə)ni/noun a company whose shares can bebought or sold on the Stock Exchangelisted securities /�lstd s-�kjυərtiz/ plural noun shares whichcan be bought or sold on the StockExchange, shares which appear on theofficial Stock Exchange listListing Agreement /�lstŋ ə-��ri�mənt/ noun a document which acompany signs when being listed on theStock Exchange, in which it promises toabide by stock exchange regulationslisting details /�lstŋ �di�telz/, list-ing particulars /�lstŋ pə�tkjυləz/plural noun 1. details of a companywhich are published when the companyapplies for a stock exchange listing (theUS equivalent is the ‘registration state-ment’) 2. details of the institutionswhich are backing an issuelisting requirements /�lstŋ r-�kwaəmənts/ plural noun the con-ditions which must be met by a cor-poration before its stock can be listed onthe New York Stock Exchangelist price /�lst pras/ noun the pricefor something as given in a cataloguelitas /�li�tɑ�s/ noun a unit of currencyused in Lithuanialitigation /�lt��eʃ(ə)n/ noun thebringing of a lawsuit against someone

Little Board /�lt(ə)l bɔ�d/ noun sameas American Stock Exchangelively /�lavli/ adjective � lively mar-ket an active stock market, with manyshares being bought or soldLloyd’s /lɔdz/ noun the central Lon-don insurance market � a ship which isA1 at Lloyd’s a ship in very goodcondition

COMMENT: Lloyd’s is an old-establishedinsurance market. The underwriters whoform Lloyd’s are divided into syndicates,each made up of active underwriters whoarrange the business and non-workingunderwriters (called ‘names’) who standsurety for any insurance claims whichmay arise.

Lloyd’s broker /lɔdz �brəυkə/ nounan agent who represents a client whowants insurance and who arranges thisinsurance for him through a Lloyd’s un-derwriting syndicateLloyd’s Register /lɔdz �red$stə/noun a classified list showing details ofall the ships in the world and estimatesof their conditionLloyd’s syndicate /lɔdz �sndkət/noun a group of underwriters on theLloyd’s insurance market, made up ofactive underwriters who arrange thebusiness and non-working underwriters(called ‘names’) who stand surety forany insurance claims which may ariseLloyd’s underwriter /lɔdz��ndəratə/ noun a member of an insur-ance group at Lloyd’s who accepts tounderwrite insurancesLME abbreviation London MetalExchangeload /ləυd/ noun an amount of goodswhich are transported in a particular ve-hicle or aircraft � verb INSURANCE toadd extra charges to a priceload factor /�ləυd �f�ktə/ noun anumber of seats in a bus, plane or trainwhich are occupied by passengers whohave paid the full fareload fund /�ləυd f�nd/ noun a fundsold through a broker, with a high initialmanagement charge or commissionloan /ləυn/ noun money which hasbeen lent � verb to lend something �The truck has been loaned by the localhaulage company.

liquid market 206 loan

‘…over the last few weeks, companies raisingnew loans from international banks have beenforced to pay more, and an unusually highnumber of attempts to syndicate loans amongbanks has failed’ [Financial Times]

loan capital /�ləυn �k�pt(ə)l/ nouna part of a company’s capital which is aloan to be repaid at a later dateloan committee /�ləυn kə�mti/noun a committee which examines ap-plications for special loans, such ashigher loans than normally allowed by abankloan/deposit ratio /�ləυn d�pɒzt�reʃiəυ/ noun a ratio between theamount of loans made by a bank and theamount it holds on depositloan participation /�ləυn pɑ�-�tspeʃ(ə)n/ noun an arrangementwhereby several banks come together asa group to share a very large loan to onesingle customerloan portfolio /�ləυn pɔ�t�fəυliəυ/noun all the loans which a financial in-stitution has made and which are stilloutstandingloan shark /�ləυn ʃɑ�k/ noun a per-son who lends money at a very high in-terest rateloan stock /�ləυn stɒk/ noun stockissued by a company at a fixed rate ofinterest, as a means of raising a loanloan to value /�ləυn tə �v�lju�/ nounthe amount of a mortgage expressed as apercentage of the value of the property.Abbreviation LTVlocal adjective /�ləυk(ə)l/ referring to aparticular area, especially one nearwhere a factory or an office is based �noun 1. an independent dealer in futuresor options or an independent trader onthe LIFFE 2. US a branch of a nationaltrade union

‘…each cheque can be made out for the localequivalent of £100 rounded up to a convenientfigure’ [Sunday Times]‘…the business agent for Local 414 of the StoreUnion said his committee will recommend thatthe membership ratify the agreement’[Toronto Star]‘EC regulations insist that customers can buycars anywhere in the EC at the local pre-taxprice’ [Financial Times]

local authority /�ləυk(ə)l ɔ��θɒrti/noun an elected section of governmentwhich runs a small area of the country

local authority bond /�ləυk(ə)l ɔ�-�θɒrəti bɒnd/ noun a fixed-interestbond, repayable at a certain date, usedby a local authority in order to raise aloan and similar to a Treasury bondlocal authority deposits /�ləυk(ə)lɔ��θɒrəti d�pɒzts/ plural noun moneydeposited with a local authority to earninterest for the depositorlocal call /�ləυk(ə)l kɔ�l/ noun a tele-phone call to a number on the same ex-change as your own or to one on aneighbouring exchangelocal government /�ləυk(ə)l���v(ə)nmənt/ noun elected authoritiesand administrative organisations whichdeal with the affairs of small areas of acountrylocal labour /�ləυk(ə)l �lebə/ nounworkers who are recruited near a fac-tory, and are not brought there from adistancelocal press /�ləυk(ə)l �pres/ nounnewspapers which are sold in a smallarea of the country � The product wasonly advertised in the local press as itwas only being distributed in that areaof the country.lockbox /�lɒkbɒks/ noun US 1. a boxat a post office which can be rented andcan be opened only by the person orcompany renting it 2. a system wherecheques sent to a Post Office box arepicked up and deposited in a bankaccountlocking up /�lɒkŋ ��p/ noun � thelocking up of money in stock the act ofinvesting money in stock so that it can-not be used for other, possibly moreprofitable, investmentslock into /�lɒk �ntə/, lock in /�lɒk�n/ verb to be fixed to a certain interestrate or exchange rate � By buying francsforward the company is in effect lockingitself into a pound-franc exchange rateof 10.06. � to lock in profits to takeprofits, to sell investments at a profit toensure that the profit is realised � Theshares had become overpriced – it wastime to lock in the profits.lock up /�lɒk ��p/ verb � to lock upcapital to have capital invested in sucha way that it cannot be used for otherinvestmentslodge /lɒd$/ verb � to lodge moneywith someone to deposit money with

loan capital 207 lodge

someone � to lodge securities as collat-eral to put securities into a bank to beused as collateral for a loanlodgement /�lɒd$mənt/ noun the actof depositing money or cheques in anaccountLombard Rate /�lɒmbɑ�d ret/ nounthe rate at which the GermanBundesbank lends to commercial banksLondon Bullion Market /�l�ndən�bυliən �mɑ�kt/ noun an internationalmarket dealing in gold and silver bullionand gold coinsLondon Commodity Exchange/�l�ndən kə�mɒdəti ks�tʃend$/ nouna London exchange dealing in commod-ities such as cotton, coffee, cocoa, etc.,but not in metals. Abbreviation LCE

London Interbank Bid Rate/�l�ndən �ntəb�ŋk �bd ret/ nounthe rate at which banks are prepared toborrow from each other. AbbreviationLIBID

London Interbank Offered Rate/�l�ndən �ntəb�ŋk �ɒfəd ret/ nounthe rate at which banks offer to lendeurodollars to other banks. AbbreviationLIBOR

London International FinancialFutures and Options Exchange/�l�ndən �ntən�ʃ(ə)nəl fa�n�nʃ(ə)l�fju�tʃəz ən �ɒpʃənz ks�tʃend$/noun a market where futures contractsare traded in financial instrumentssuch as gilts, equity options,euroyen, US Treasury bonds, etc. andalso commodities such as cocoa, coffee,wheat, potatoes, barley and sugar. Ab-breviation LIFFE

London Metal Exchange /�l�ndən�met(ə)l ks�tʃend$/ noun a com-modity exchange dealing in aluminium,copper, lead, nickel, tin and zinc.Abbreviation LME

London Securities and Deriva-tives Exchange /�l�ndən s-�kjυərtiz ən d�rvətvz ks�tʃend$/noun the London exchange wheresecurities and derivatives are traded.Abbreviation OMLX

London Stock Exchange /�l�ndən�stɒk ks�tʃend$/ noun the main Brit-ish stock exchange where securities arebought and sold. Abbreviation LSE

London Traded Options Market/�l�ndən �tredd �ɒpʃənz �mɑ�kt/noun a market where options are traded.Abbreviation LTOMlong /lɒŋ/ adjective for a large periodof time � in the long term over a longperiod of time � to take the long viewto plan for a long period before currentinvestment becomes profitable � to belong of a stock or to go long to buy ashare as a long-term investment on theassumption that the price will riselong bond /�lɒŋ bɒnd/, long couponbond /lɒŋ �ku�pɒn bɒnd/ adjective abond which will mature in more than tenyears’ timelong credit /lɒŋ �kredt/ noun creditterms which allow the borrower a longtime to paylong-dated bill /�lɒŋ �detd �bl/noun a bill which is payable in morethan three months’ timelong-dated securities /�lɒŋ �detds�kjυərtiz/ plural noun same as longslong lease /lɒŋ �li�s/ noun a leasewhich runs for fifty years or more � totake an office building on a long leaselong position /lɒŋ pə�zʃ(ə)n/ nouna situation where an investor sells long(i.e. sells forward shares which heowns). Compare short positionlong-range /�lɒŋ �rend$/ adjectivefor a long period of time in the future �long-range economic forecast a fore-cast which covers a period of severalyearslongs /lɒŋz/ plural noun governmentstocks which will mature in over fifteenyears’ timelong-tail business /�lɒŋ tel�bzns/ noun insurance business wherea claim only arises some years after theinsurance contract was taken outlong-term /�lɒŋ �t%�m/ adjective overa long period of time � The manage-ment projections are made on along-term basis. � Sound long-termplanning will give the company moredirection. � It is in the company’slong-term interests to have a contentedstaff. � on a long-term basis continuingfor a long period of time � long-termdebts debts which will be repaid manyyears later � long-term forecast aforecast for a period of over three years

lodgement 208 long-term

� long-term loan a loan to be repaidmany years later � long-term objec-tives aims which will take years toachieve

‘…land held under long-term leases is notamortized’ [Hongkong Standard]‘…the company began to experience a demandfor longer-term mortgages when the flow ofmoney used to finance these loans diminished’[Globe and Mail (Toronto)]

long-term borrowings /�lɒŋ t%�m�bɒrəυŋz/ plural noun borrowingswhich do not have to be repaid for someyearslong-term security /�lɒŋ t%�m s-�kjυərti/ noun a security which willmature in more than fifteen years’ timeloophole /�lu�phəυl/ noun � to find aloophole in the law to find a means oflegally avoiding the law � to find a taxloophole to find a means of legally notpaying tax

‘…because capital gains are not taxed butmoney taken out in profits is taxed, owners ofbusinesses will be using accountants and taxexperts to find loopholes in the law’[Toronto Star]

loose change /lu�s �tʃend$/ nounmoney in coinslose /lu�z/ verb 1. not to have some-thing any more � to lose an order not toget an order which you were hoping toget � During the strike, the companylost six orders to American competitors.� to lose control of a company to findthat you have less than 50% of theshares and so are no longer able to con-trol the company 2. to have less money� He lost £25,000 in his father’s com-puter company. 3. to drop to a lowerprice � The dollar lost two cents againstthe yen. � Gold shares lost 5% on themarket yesterday. � the pound has lostvalue the pound is worth lessloss /lɒs/ noun 1. the state or processof not having something any more �loss of customers not keeping custom-ers because of bad service, high prices,etc. � loss of an order not getting an or-der which was expected � the companysuffered a loss of market penetrationthe company found it had a smallershare of the market � compensation forloss of earnings payment to someonewho has stopped earning money or whois not able to earn money � compensa-tion for loss of office payment to a di-rector who is asked to leave a company

before his or her contract ends 2. thestate of having less money than beforeor of not making a profit � the com-pany suffered a loss the company didnot make a profit � to report a loss notto show a profit in the accounts at theend of the year � The company reporteda loss of £1m on the first year’s trading.� the car was written off as a deadloss or a total loss the car was so badlydamaged that the insurers said it had novalue � at a loss making a loss, notmaking any profit � The company istrading at a loss. � We sold the shop ata loss. � to cut your losses to stop do-ing something which is losing money 3.damage to property or destruction ofproperty, which is then subject to an in-surance claim � the cargo was writtenoff as a total loss the cargo was sobadly damaged that the insurers said ithad no value

‘…against losses of FFr 7.7m two years ago, thecompany made a net profit of FFr 300,000 lastyear’ [Financial Times]

loss-leader /�lɒs �li�də/ noun an arti-cle which is sold at a loss to attract cus-tomers � We use these cheap films as aloss-leader.loss relief /�lɒs r�li�f/ noun anamount of tax not to be paid on oneyear’s profit to offset a loss in the previ-ous yearlot /lɒt/ noun 1. a group of items soldtogether at an auction � to bid for lot 23� At the end of the auction half the lotswere unsold. 2. a group of shares whichare sold � to sell a lot of shares � to sellshares in small lots 3. US a piece ofland, especially one to be used for rede-velopment � They bought a lot and builta house.lottery /�lɒtəri/ noun a game wherenumbered tickets are sold and prizesgiven for some of the numberslow /ləυ/ adjective not high or notmuch � Our a � Low overhead costskeep the unit cost low. � We try to keepour wages bill low. � The company of-fered him a mortgage at a low rate of in-terest. � The pound is at a very low rateof exchange against the dollar. � thetender will go to the lowest bidder thecontract will be awarded to the personwho offers the best terms � noun apoint where prices or sales are verysmall � Sales have reached a new low.

long-term borrowings 209 low

� highs and lows on the Stock Ex-change a list of shares which havereached a new high or low price in theprevious day’s trading � shares havehit an all-time low shares have reachedtheir lowest price ever

‘…after opening at 79.1 the index touched apeak of 79.2 and then drifted to a low of 78.8’[Financial Times]‘…the pound which had been as low as $1.02earlier this year, rose to $1.30’ [Fortune]

low coupon stocks /ləυ �ku�pɒn�stɒks/ plural noun government bondswhich pay a low rate of interestlower /�laυə/ adjective smaller or lesshigh � a lower rate of interest � Saleswere lower in December than in Novem-ber. � verb to make something smalleror less expensive � to lower prices tosecure a larger market share � Industri-alists have asked the bank to lower in-terest rates.

‘Canadian and European negotiators agreed to adeal under which Canada could keep its quotasbut lower its import duties’ [Globe andMail (Toronto)]

lowering /�ləυərŋ/ noun the act ofmaking smaller or less expensive �Lowering the prices has resulted in in-creased sales. � We hope to achieve lowprices with no lowering of quality.low gearing /ləυ ��ərŋ/ noun thefact of not having much borrowing inproportion to your capitallow-grade /�ləυ �red/ adjective notof very good quality � The car runs beston low-grade petrol.low-profile /ləυ �prəυfal/ adjective� low-profile company a companywhich does not publicise itself much

low yield /ləυ �ji�ld/ noun a yield onthe share price which is low for the sec-tor, suggesting that investors anticipatethat the company will grow fast, andhave pushed up the share price in expec-tation of growthloyalty /�lɔəlti/ noun the state of be-ing faithful to someone or somethingloyalty bonus /�lɔəlti �bəυnəs/noun a special privilege given to share-holders who keep their shares for a cer-tain period of time (used especially toattract investors to privatisation issues)LSE abbreviation London StockExchangeLtd abbreviation limited companyLTOM abbreviation London TradedOptions MarketLTV abbreviation loan to valuelull /l�l/ noun a quiet period � Afterlast week’s hectic trading this week’slull was welcome.lump sum /l�mp �s�m/ noun moneypaid in one single amount, not in severalsmall sums � When he retired he wasgiven a lump-sum bonus. � She sold herhouse and invested the money as a lumpsum.luncheon voucher /�l�nʃtən�vaυtʃə/ noun a ticket given by an em-ployer to an employee in addition totheir wages, which can be exchanged forfood in a restaurantluxury goods /�l�kʃəri �υdz/, lux-ury items /�l�kʃəri �atəmz/ pluralnoun expensive items which are not ba-sic necessitiesluxury tax /�l�kʃəri t�ks/ noun anextra tax levied on luxury goods

low coupon stocks 210 luxury tax

M

m abbreviation 1. metre 2. mile 3.millionM0 /�em �nɔ�t/ symbol the narrowestBritish measure of money supply, in-cluding coins and notes in circulationplus the deposits of commercial bankswith the Bank of England

‘Bank of England calculations of notes incirculation suggest that the main component ofthe narrow measure of money supply, M0, islikely to have risen by 0.4 per cent after seasonaladjustments’ [Times]

M1 /�em �w�n/ symbol a measure ofmoney supply, including all coins andnotes plus personal money in currentaccountsM2 /�em �tu�/ symbol a measure ofmoney supply, including coins andnotes and personal money in current anddeposit accountsM3 /�em �θri�/ symbol a broad measureof money supply, including M2 and per-sonal money in government depositsand deposits in currencies other thansterling (in the US, it includes timedeposits of more than $100,000 andmoney market funds and Eurodollarsheld by US residents)£M3 symbol a British measure of ster-ling money supply, including coins andnotes, personal money in current and de-posit accounts and government depositsMaastricht Treaty /�mɑ�strkt�tri�ti/ noun a treaty signed in 1992which sets out the principles for a Euro-pean Union and the convergence criteriafor states wishing to join the EMUmachine /mə�ʃi�n/ noun a devicewhich works with power from a motormachine-readable code /mə�ʃi�n�ri�dəb(ə)l �kəυd/ noun a set of signs orletters (such as a bar code or post code)which can be read by computersmacro- /m�krəυ/ prefix very large,covering a wide area

macroeconomics /�m�krəυi�kə-�nɒmks/ plural noun a study of theeconomics of a whole area, a whole in-dustry, a whole group of the populationor a whole country, in order to help ineconomic planning. Comparemicroeconomics (NOTE: takes a sin-gular verb)macro funds /�m�krəυ f�ndz/ plu-ral noun large hedge funds which bet onwhole economiesmacro hedge fund /�m�krəυ �hed$f�nd/ noun a hedge fund which investsin whole regionsMadam Chairman /�m�dəm�tʃeəmən/, Madam Chairwoman/�m�dəm �tʃeə�wυmən/ noun a way ofspeaking to a female chairman of acommittee or meetingmagazine /m��ə�zi�n/ noun a specialtype of newspaper, usually publishedonly weekly or monthly, often with aglossy cover and often devoted to aparticular subject � magazine insert anadvertising sheet put into a magazinewhen it is mailed or soldmagnetic character reading/m���netk �k�rktə �ri�dŋ/, mag-netic ink character recognition/m���netk ŋk �k�rktə �rekə�-�nʃ(ə)n/ noun a system that recognisescharacters by sensing magnetic ink(used on cheques). Abbreviation MCR,MICRmagnetic ink /m���netk �ŋk/noun a special ink with magnetic parti-cles in it, used for printing chequesmagnetic strip /m���netk �strp/,magnetic stripe /m���netk �strap/noun a black strip on credit cards andcashpoint cards, on which personal in-formation about the account is recordedmail /mel/ noun 1. a system of send-ing letters and parcels from one place toanother � The cheque was lost in the

mail. � The invoice was put in the mailyesterday. � Mail to some of the islandsin the Pacific can take six weeks. � bymail using the postal services, not send-ing something by hand or by messenger� we sent the order by first-class mailwe sent the order by the most expensivemail service, designed to be faster 2.same as email � verb 1. to send some-thing by mail 2. same as email

mail box /�mel bɒks/ noun 1. oneof several boxes where incomingmail is put in a large building 2. abox where letters which are being sentare put to be collected 3. an area of acomputer memory where emails arestoredmailing /�melŋ/ noun the sending ofsomething by post � the mailing of pub-licity materialmailing list /�melŋ lst/ noun a listof names and addresses of people whomight be interested in a product, or a listof names and addresses of members of asociety � to build up a mailing list �Your name is on our mailing list.mailing piece /�melŋ pi�s/ noun aleaflet suitable for sending by directmailmail order /�mel �ɔ�də/ noun a sys-tem of buying and selling from a cata-logue, placing orders and sending goodsby mail � We bought our kitchen unitsby mail order.mail-order business /�mel ɔ�də�bzns/ noun a company which sells itsproducts by mailmail-order catalogue /�mel ɔ�də�k�t(ə)lɒ�/ noun a catalogue fromwhich a customer can order items to besent by mailmail-order selling /�mel ɔ�də�selŋ/ noun a method of selling inwhich orders are taken and products aredelivered by mailmail shot /�mel ʃɒt/ noun 1. leafletssent by post to possible customers 2. asingle mailing of direct-mail advertisingliteraturemain /men/ adjective most important� main office � main building � one ofour main customers � The main build-ing houses our admin and financedepartments.

main market /men �mɑ�kt/ nounthe London Stock Exchange (as op-posed to the AIM market)mainstream corporation tax/�menstri�m �kɒ�pə�reʃ(ə)n t�ks/noun the total tax paid by a com-pany on its profits (less any advancecorporation tax, which a company hasalready paid when distributing profitsto its shareholders in the form of divi-dends). Abbreviation MCTMain Street /�men stri�t/ noun USthe most important street in a town,where the shops and banks usually aremaintain /men�ten/ verb 1. to keepsomething going or working � Wetry to maintain good relations with ourcustomers. � His trip aims to maintaincontact with his important overseasmarkets. 2. to keep something workingat the same level � to maintain an inter-est rate at 5% � The company has main-tained the same volume of business inspite of the recession. � to maintain adividend to pay the same dividend asthe previous yearmaintenance /�mentənəns/ noun 1.the process of keeping things going orworking � Maintenance of contacts isimportant for a sales rep. � It is essen-tial to ensure the maintenance of sup-plies to the factory. 2. the process ofkeeping a machine in good working or-der � We offer a full maintenanceservice.

‘…responsibilities include the maintenance oflarge computerized databases’ [Times]‘…the federal administration launched afull-scale investigation into the airline’smaintenance procedures’ [Fortune]

maintenance contract/�mentənəns �kɒntr�kt/ noun a con-tract by which a company keeps a pieceof equipment in good working ordermaintenance fee /�mentənəns fi�/noun a fee charged for keeping an ac-count or a contract goingmajeure /m��$%�/ � force majeuremajor /�med$ə/ adjective important �There is a major risk of fire. � majorshareholder a shareholder with a largenumber of shares

‘…if the share price sinks much further thecompany is going to look tempting to any majortakeover merchant’ [Australian FinancialReview]

mail box 212 major

‘…monetary officials have reasoned thatcoordinated greenback sales would be able todrive the dollar down against other majorcurrencies’ [Duns Business Month]

‘…a client base which includes many majorcommercial organizations and nationalizedindustries’ [Times]

majority /mə�d$ɒrti/ noun more thanhalf of a group � majority of the share-holders more than 50% of the share-holders � the board accepted theproposal by a majority of three to twothree members of the board voted to ac-cept the proposal and two voted againstaccepting itmajority shareholder /mə�d$ɒrəti�ʃeəhəυldə/ noun a person who ownsmore than half the shares in a companymajority shareholding /mə-�d$ɒrəti �ʃeəhəυldŋ/ noun a group ofshares which are more than half the totalmajority vote /mə�d$ɒrti vəυt/,majority decision /mə�d$ɒrti d-�s$(ə)n/ noun a decision which repre-sents the wishes of the largest group asshown by a votemake /mek/ verb 1. to do an action �to make a bid for something to offer tobuy something � to make a payment topay � to make a deposit to pay moneyas a deposit 2. to earn money � Hemakes £50,000 a year or £25 an hour. 3.to increase in value � The shares made$2.92 in today’s trading. 4. � to make aprofit to have more money after a deal� to make a loss to have less money af-ter a deal � to make a killing to make avery large profitmake out /�mek �aυt/ verb to writesomething � to make out an invoice �The bill is made out to Smith & Co. � tomake out a cheque to someone to writesomeone’s name on a chequemake over /�mek �əυvə/ verb totransfer property legally � to make overthe house to your childrenmaker /�mekə/ noun a person whosigns a promissory note in which he orshe promises to pay moneymake up /�mek ��p/ verb � to makeup accounts to complete the accountsmake up for /�mek ��p fɔ�/ verb tocompensate for something � to make upfor a short payment or for a latepayment

maladministration /�m�ləd�mn-�streʃ(ə)n/ noun incompetentadministrationmalfeasance /m�l�fi�z(ə)ns/ nounan unlawful actmanage /�m�nd$/ verb 1. to director to be in charge of something � tomanage a branch office � A competentand motivated person is required tomanage an important department in thecompany. 2. � to manage property tolook after rented property for the owner� to manage a currency to intervene inthe markets to influence a currency’sexchange rates

‘…the research director will manage and directa team of graduate business analysts reportingon consumer behaviour throughout the UK’[Times]

manageable /�m�nd$əb(ə)l/ adjec-tive which can be dealt with � The inter-est payments, though high, are stillmanageable. � The problems which thecompany faces are too large to be man-ageable by one person.managed derivatives fund/�m�nd$d d�rvətvz f�nd/ noun afund which uses mainly futures andoptions instead of investing in the un-derlying securitiesmanaged float /�m�nd$d fləυt/noun a process of floating of a currencywhere the exchange rate is controlled bythe central bank. Compare clean float.Also called dirty floatmanaged fund /�m�nd$d f�nd/noun a unit trust fund which is investedin specialist funds within the group andcan be switched from one specialised in-vestment area to anothermanaged unit trust /�m�nd$d�ju�nt tr�st/ noun same as managedfundmanagement /�m�nd$mənt/ noun1. the process of directing or running abusiness � a management graduate or agraduate in management � She studiedmanagement at university. � Good man-agement or efficient management is es-sential in a large organisation. � Badmanagement or inefficient managementcan ruin a business. 2. a group of man-agers or directors � The managementhas decided to give everyone a pay in-crease. (NOTE: Where managementrefers to a group of people it is some-times followed by a plural verb.) 3. the

majority 213 management

process of running a fund or investmentportfolio for a client

‘…the management says that the rate ofloss-making has come down and it expectsfurther improvement in the next few years’[Financial Times]

management accountant/�m�nd$mənt ə�kaυntənt/ noun anaccountant who prepares financial infor-mation for managers so that they cantake decisionsmanagement accounts/�m�nd$mənt ə�kaυnts/ plural nounfinancial information prepared for amanager so that decisions can be made,including monthly or quarterly financialstatements, often in great detail, withanalysis of actual performance againstthe budgetmanagement buyin /�m�nd$mənt�ban/ noun the purchase of a subsid-iary company by a group of outside di-rectors. Abbreviation MBImanagement buyout/�m�nd$mənt �baaυt/ noun the take-over of a company by a group ofemployees, usually senior managers anddirectors. Abbreviation MBOmanagement by objectives/�m�nd$mənt ba əb�d$ektvz/ nouna way of managing a business by plan-ning work for the managers to do andtesting if it is completed correctly andon timemanagement charge/�m�nd$mənt tʃɑ�d$/ noun same asannual management chargemanagement consultant/�m�nd$mənt kən�s�ltənt/ noun aperson who gives advice on how tomanage a businessmanagement course/�m�nd$mənt kɔ�s/ noun a trainingcourse for managersmanagement team /�m�nd$məntti�m/ noun all the managers who workin a particular companymanagement trainee/�m�nd$mənt tre�ni�/ noun a youngmember of staff who is being trained tobe a managermanagement training/�m�nd$mənt �trenŋ/ noun theprocess of training staff to be managers,by making them study problems andwork out solutions

manager /�m�nd$ə/ noun 1. thehead of a department in a company �She’s a department manager in an engi-neering company. � Go and see the hu-man resources manager if you have aproblem. � The production managerhas been with the company for only twoweeks. � Our sales manager started asa rep in London. 2. the person in chargeof a branch or shop � Mr Smith is themanager of our local Lloyds Bank. �The manager of our Lagos branch is inLondon for a series of meetings.

‘…the No. 1 managerial productivity problem inAmerica is managers who are out of touch withtheir people and out of touch with theircustomers’ [Fortune]

managerial /�m�nə�d$əriəl/ adjec-tive referring to managers � All themanagerial staff are sent for trainingevery year.managership /�m�nd$əʃp/ nounthe job of being a manager � After sixyears, she was offered the managershipof a branch in Scotland.managing agent /�m�nd$ŋ�ed$(ə)nt/ noun the person who runsthe day-to-day activities of a Lloyd’ssyndicatemanaging director /�m�nəd$ŋda�rektə/ noun the director who is incharge of a whole company. Abbrevia-tion MDmanaging underwriter/�m�nd$ŋ ��ndəratə/ noun US anunderwriting firm which organises theunderwriting of a share issuemanat /�m�n�t/ noun a unit of cur-rency used in TurkmenistanM&A abbreviation mergers andacquisitionsmandate /�m�ndet/ noun an orderwhich allows something to take placemandatory /�m�ndət(ə)ri/ adjectivewhich everyone must obey � Wearing asuit is mandatory for all managerialstaff. � mandatory meeting a meetingwhich all staff have to attend

‘…the wage talks are focusing on employmentissues such as sharing of work amongemployees and extension of employmentbeyond the mandatory retirement age of 60years’ [Nikkei Weekly]

mandatory bid /�m�ndət(ə)ri bd/noun an offer to purchase the shares of acompany which has to be made when a

management accountant 214 mandatory bid

shareholder acquires 30% of that com-pany’s sharesM&E fee /�em ən �i� fi�/ noun same asmortality and expense risk chargemanipulate /mə�npjυlet/ verb � tomanipulate the accounts to make falseaccounts so that the company seemsprofitable � to manipulate the marketto work to influence share prices in yourfavourmanpower forecasting/�m�npaυə �fɔ�kɑ�stŋ/ noun theprocess of calculating how many em-ployees will be needed in the future, andhow many will actually be availablemanpower planning /�m�npaυə�pl�nŋ/ noun the process of planningto obtain the right number of employeesin each jobmanufactured goods /�m�nju-�f�ktʃəd �υdz/ plural noun itemswhich are made by machinemarché noun the French word formarket. � MATIFmargin /�mɑ�d$n/ noun 1. the differ-ence between the money received whenselling a product and the money paid forit � we are cutting our margins veryfine we are reducing our margins to thesmallest possible in order to be competi-tive � our margins have beensqueezed profits have been reduced be-cause our margins have to be smaller tostay competitive 2. extra space or timeallowed 3. the difference between inter-est paid to depositors and interestcharged to borrowers (by a bank, build-ing society, etc.) 4. a deposit paid whenpurchasing a futures contract

‘…profit margins in the industries most exposedto foreign competition – machinery,transportation equipment and electrical goods –are significantly worse than usual’[Australian Financial Review]

marginal /�mɑ�d$n(ə)l/ adjective 1.hardly worth the money paid 2. not veryprofitable � a marginal return oninvestmentmarginal cost /�mɑ�d$n(ə)l �kɒst/noun the cost of making a single extraunit above the number already plannedmarginal land /�mɑ�d$n(ə)l l�nd/noun land which is almost not worthfarmingmarginal pricing /�mɑ�d$n(ə)l�prasŋ/ noun 1. the practice of basing

the selling price of a product on its vari-able costs of production plus a margin,but excluding fixed costs 2. the practiceof making the selling price the same asthe cost of a single extra unit above thenumber already plannedmarginal purchase /�mɑ�d$n(ə)l�p%�tʃs/ noun something which a buyerfeels is only just worth buyingmarginal rate of tax /�mɑ�d$n(ə)lret əv �t�ks/, marginal rate of taxa-tion /�mɑ�d$n(ə)l ret əv t�ks-�eʃ(ə)n/ noun the percentage of taxwhich a taxpayer pays at the top rate(which he therefore pays on every fur-ther pound or dollar he earns)

‘…pensioner groups claim that pensioners havethe highest marginal rates of tax. Income earnedby pensioners above $30 a week is taxed at 62.5per cent, more than the highest marginal rate’[Australian Financial Review]

marginal revenue /�mɑ�d$n(ə)l�revenju�/ noun the income from sell-ing a single extra unit above the numberalready soldmarginal tax rate /�mɑ�d$n(ə)l�t�ks ret/ noun same as marginalrate of taxmargin call /�mɑ�d$n kɔ�l/ noun arequest for a purchaser of a futures con-tract or an option to pay more margin,since the fall in the price of the securi-ties or commodity has removed thevalue of the original margin depositedmargin of error /�mɑ�d$n əv �erə/noun the number of mistakes which canbe accepted in a document or in acalculationmargin of safety /�mɑ�d$n əv�sefti/ noun the units produced (orsales of such units) which are above thebreakeven pointmarine underwriter /mə�ri�n��ndəratə/ noun a person or companythat insures ships and their cargoesmarital /�m�rt(ə)l/ adjective refer-ring to a marriagemarital deductions /�m�rt(ə)l d-�d�kʃ(ə)ns/ plural noun that part of anestate which is not subject to estate taxbecause it goes to the dead person’sspousemarital status /�m�rt(ə)l �stetəs/noun the condition of being married ornot

M&E fee 215 marital status

maritime law /�m�rtam �lɔ�/ nounlaws referring to ships, ports, etc.maritime lawyer /�m�rtam �lɔ�jə/noun a lawyer who specialises in legalmatters concerning ships and cargoesmark /mɑ�k/ noun 1. a sign put on anitem to show something 2. a former unitof currency in Germany � The pricewas twenty-five marks. � The mark roseagainst the dollar. (NOTE: Usually writ-ten DM after a figure: 25DM.)marka /�mɑ�kə/, markka noun a unitof currency used before the euro in Fin-land (NOTE: written MK)mark down /�mɑ�k �daυn/ verb tomake the price of something lower � tomark down a price to lower the priceof something � This range has beenmarked down to $24.99. � We havemarked all prices down by 30% for thesale.mark-down /�mɑ�k daυn/ noun 1. areduction of the price of something toless than its usual price 2. the percent-age amount by which a price has beenlowered � There has been a 30%mark-down on all goods in the sale.market /�mɑ�kt/ noun 1. an areawhere a product might be sold or thegroup of people who might buy a prod-uct � There is no market for this prod-uct. � Our share of the Far easternmarket has gone down. 2. a place wheremoney or commodities are traded �global financial markets world-widefinance markets � The global financialmarkets precipitated the Mexican crisisof 1994–95. 3. � to buy shares in theopen market to buy shares on the StockExchange, not privately � to come tothe market (of a company) to apply fora Stock Exchange listing, by offeringsome of the existing shares for sale, orby floating it as a new company � sell atthe market an instruction to stockbro-ker to sell shares at the best price possi-ble � to bring a company to themarket to arrange the flotation of acompany’s shares on the market � tomake a market in securities to offer tobuy or sell securities on a selected list atany time 4. a place where shares arebought and sold � The market in oilshares was very active or There was abrisk market in oil shares. 5. � to go upmarket, to go down market to makeproducts which appeal to a wealthy sec-

tion of the market or to a wider, lesswealthy section of the market � verb tosell a product, or to present and promotea product in a way which will help tosell it � This product is being marketedin all European countries.

‘…market analysts described the falls in thesecond half of last week as a technicalcorrection to a market which had been pushedby demand to over the 900 index level’[Australian Financial Review]

marketability /�mɑ�ktə�blti/ nounthe fact of being able to be sold easily �the marketability of shares in electroniccompaniesmarketable /�mɑ�ktəb(ə)l/ adjectivewhich can be sold easilymarketable securities/�mɑ�ktəb(ə)l s�kjυərtiz/ pluralnoun stocks, shares, CDs etc., whichcan be bought or sold on a stock marketmarket analysis /�mɑ�kt ə-�n�ləss/ noun the detailed examinationand report of a marketmarket analyst /�mɑ�kt ��nəlst/noun a person who studies the stockmarket in generalmarket basket /�mɑ�kt �bɑ�skt/noun same as shopping basketmarket capitalisation /�mɑ�kt�k�ptəla�zeʃ(ə)n/ noun � companywith a £1m capitalisationmarket cycle /�mɑ�kt �sak(ə)l/noun a period during which a marketexpands, then slows down and then ex-pands againmarket economist /�mɑ�kt -�kɒnəmst/ noun a person who special-ises in the study of financial structuresand the return on investments in thestock marketmarket economy /�mɑ�kt -�kɒnəmi/ noun same as free marketeconomymarket forces /�mɑ�kt �fɔ�sz/ plu-ral noun the influences on the sales of aproduct which bring about a change inpricesmarket forecast /�mɑ�kt �fɔ�kɑ�st/noun a forecast of prices on the stockmarketmarketing /�mɑ�ktŋ/ noun the busi-ness of presenting and promoting goodsor services in such a way as to makecustomers want to buy them

maritime law 216 marketing

‘…reporting to the marketing director, thesuccessful applicant will be responsible for thedevelopment of a training programme for thenew sales force’ [Times]

marketing agreement /�mɑ�ktŋə��ri�mənt/ noun a contract by whichone company will market another com-pany’s productsmarketing department /�mɑ�ktŋd�pɑ�tmənt/ noun the section of acompany dealing with marketing andsalesmarketing manager /�mɑ�ktŋ�m�nd$ə/ noun a person in charge of amarketing department � The marketingmanager has decided to start a new ad-vertising campaign.market leader /�mɑ�kt �li�də/ noun1. a product which sells most in a mar-ket 2. the company with the largest mar-ket share � We are the market leader inhome computers.

‘…market leaders may benefit from scaleeconomies or other cost advantages; they mayenjoy a reputation for quality simply by being atthe top, or they may actually produce a superiorproduct that gives them both a large marketshare and high profits’ [Accountancy]

marketmaker /�mɑ�ktmekə/ nouna person who buys or sells shares on thestock market and offers to do so in a cer-tain list of securities (a marketmaker op-erates a book, listing the securities he orshe is willing to buy or sell, and makeshis or her money by charging a commis-sion on each transaction)market neutral funds /�mɑ�kt�nju�trəl f�ndz/ plural noun hedgefunds not related to general marketmovements, but which try to find oppor-tunities to arbitrage temporary slightchanges in the relative values of particu-lar financial assetsmarket operator /�mɑ�kt�ɒpəretə/ noun a person who trades ona stock market or financial marketmarket opportunity /�mɑ�kt ɒpə-�tju�nti/ noun the possibility of goinginto a market for the first timemarket optimism /�mɑ�kt �ɒpt-�mzəm/ noun a feeling that the stockmarket will risemarket order /�mɑ�kt �ɔ�də/ nounan order to a broker to buy or sell at thecurrent pricemarket polarisation /�mɑ�kt�pəυləra�zeʃ(ə)n/ noun a situation

where a market is concentrated round afew suppliers or tradersmarket price /�mɑ�kt pras/ noun 1.the price at which a product can be sold2. the price at which a share stands in astock marketmarket professionals /�mɑ�ktprə�feʃ(ə)nəlz/ plural noun people whowork in a stock market, as brokers, ana-lysts, etc.market purchases /�mɑ�kt�p%�tʃsz/ plural noun purchases ofshares in a company on the normal stockmarket (by a company planning a take-over bid)market rate /�mɑ�kt ret/ noun thenormal price in the market � We pay themarket rate for secretaries or We paysecretaries the market rate.

‘…after the prime rate cut yesterday, there was afurther fall in short-term market rates’[Financial Times]

market research /�mɑ�kt r�s%�tʃ/noun the process of examining the pos-sible sales of a product and the possiblecustomers for it before it is put on themarketmarket sentiment /�mɑ�kt�sentmənt/ noun a general feelingamong investors or financial analysts ona stock marketmarket share /�mɑ�kt �ʃeə/ nounthe percentage of a total market whichthe sales of a company’s product cover� We hope our new product range willincrease our market share.market strategist /�mɑ�kt�str�təd$st/ noun a person who planshow to buy and sell on the stock marketmarket trends /�mɑ�kt �trendz/plural noun gradual changes takingplace in a marketmarket value /�mɑ�kt �v�lju�/ nounthe value of an asset, a share, a productor a company if sold todaymarket value added /�mɑ�kt�v�lju� ��dd/ noun the difference be-tween a company’s market value andthe amount of its invested capital. Ab-breviation MVAmarket value adjuster /�mɑ�kt�v�lju� ə�d$�stə/ noun a method ofcalculating the loss in market value of abond or insurance when it is being sur-rendered. Abbreviation MVA

marketing agreement 217 market value adjuster

market watcher /�mɑ�kt �wɒtʃə/noun a person who follows stock markettrends closelymark up /�mɑ�k ��p/ verb to increasethe price of something � to mark pricesup to increase prices � These priceshave been marked up by 10%.mark-up /�mɑ�k �p/ noun 1. an in-crease in price � We put into effect a10% mark-up of all prices in June. �Since I was last in the store they haveput at least a 5% mark-up on the wholerange of items. 2. the difference be-tween the cost of a product or serviceand its selling price � we work to a 3.5times mark-up or to a 350% mark-upwe take the unit cost and multiply by 3.5to give the selling pricemass production /m�s prə-�d�kʃən/ noun the manufacture of largequantities of identical productsmass unemployment /�m�s��nm�plɔmənt/ noun unemploymentaffecting large numbers of peopleMasterCard noun an internationalcredit organisation, backed by a groupof banks (NOTE: A similar organisationis Visa International.)matched bargains /m�tʃd�bɑ��nz/ plural noun sales and pur-chases of shares which are conducted atthe same time, where the buyers andsellers come together to agree on theprice (as opposed to the ‘quotation’ sys-tem, where the marketmakers make theselling prices for shares) � to trade on amatched bargain basis to arrange tosell shares for a client and buy them foranother client, without having to take aposition in the sharesMATIF noun the French financial fu-tures market. Full form marché àterme des instruments financiersmature /mə�tjυə/ adjective � matureeconomy a fully developed economy �verb to become due � bills which ma-ture in three weeks’ time bills whichwill be due for payment in three weeksmaturity /mə�tjυərti/ noun 1. thethird stage in a product life cycle when aproduct is well established in the marketthough no longer enjoying increasingsales, after which sooner or later it willstart to decline 2. the time at whichsomething becomes due for payment orrepayment � amount payable on matu-

rity the amount received by the insuredperson when a policy maturesmaturity date /mə�tʃυərti det/noun a date when a government stock,an assurance policy or a debenture willbecome due for payment. Also calleddate of maturitymaturity yield /mə�tʃυərti ji�ld/noun a calculation of the yield on afixed-interest investment, assuming it isbought at a certain price and held tomaturitymaximisation /�m�ksma-�zeʃ(ə)n/, maximization noun the pro-cess of making something as large aspossible � profit maximisation or maxi-misation of profitmaximise /�m�ksmaz/, maximizeverb to make something as large as pos-sible � Our aim is to maximise profits.� The cooperation of the workforce willbe needed if we are to maximise produc-tion. � He is paid on results, and so hasto work flat out to maximise hisearnings.maximum /�m�ksməm/ noun thelargest possible number, price or quan-tity � It is the maximum the insurancecompany will pay. (NOTE: The plural ismaxima or maximums.) � up to amaximum of £10 no more than £10 � toincrease exports to the maximum toincrease exports as much as possible �adjective largest possible � 40% is themaximum income tax rate or the maxi-mum rate of tax. � The maximum loadfor the truck is one ton. � Maximumproduction levels were reached lastweek. � to increase production to themaximum level to increase it as muchas possibleMay Day /�me de/ noun the changein practices on American Stock Ex-changes which took place on 1st May1975, with the removal of the system offixed commissions. This allowedcheaper stock trading by brokers whodid not offer any investment advice, andultimately led to computerised financialdealing in general. (NOTE: The UK termis Big Bang.)MBO abbreviation management buyoutmean /mi�n/ adjective average � Themean annual increase in sales is 3.20%.� mean price the average price of ashare in a day’s trading � noun the av-

market watcher 218 mean

erage or number calculated by addingseveral quantities together and dividingby the number of quantities added �Unit sales are over the mean for the firstquarter or above the first-quarter mean.means /mi�nz/ noun a way of doingsomething � Do we have any means ofcopying all these documents quickly? �Bank transfer is the easiest means ofpayment. (NOTE: The plural is means.)� plural noun money or resources � Thecompany has the means to launch thenew product. � Such a level of invest-ment is beyond the means of a small pri-vate company.means test /�mi�nz test/ noun an in-quiry into how much money someoneearns to see if they are eligible for statebenefits � verb to find out how muchmoney someone has in savings and as-sets � All applicants will bemeans-tested.measure /�me$ə/ noun 1. a way ofcalculating size or quantity � as a mea-sure of the company’s performance asa way of judging if the company’s re-sults are good or bad 2. a type of action� to take measures to prevent some-thing happening to act to stop some-thing happening � verb � to measurethe government’s performance tojudge how well the government is doingmeasurement /�me$əmənt/ noun away of judging something � growthmeasurement � performance measure-ment or measurement of performancemeasurement of profitability/�me$əmənt əv �prɒftə�blti/ noun away of calculating how profitable some-thing ismechanic’s lien /m�k�nks �li�ən/noun US a lien on buildings or otherproperty which can be enforced byworkmen until they have been paidmedian /�mi�diən/ noun the middlenumber in a list of numbersmedical insurance /�medk(ə)l n-�ʃυərəns/ noun insurance which paysthe cost of medical treatment, especiallywhen someone is travelling abroadmedium /�mi�diəm/ adjective middleor average � The company is of mediumsize.medium-dated stocks /�mi�diəm�detd �stɒks/ plural noun same asmediums

mediums /�mi�diəmz/ plural noungovernment stocks which mature inseven to fifteen years’ timemedium-sized company/�mi�diəm sazd �k�mp(ə)ni/ noun acompany which has a turnover of lessthan £5.75m and does not employ morethan 250 staff � a medium-sized engi-neering companymedium-term /�mi�diəm t%�m/ ad-jective referring to a point between shortterm and long term � medium-termforecast a forecast for two or threeyears � medium-term loan a bank loanfor three to five yearsmedium-term bond /�mi�diəmt%�m �bɒnd/ noun a bond which ma-tures within five to fifteen yearsmeet /mi�t/ verb 1. to be satisfactoryfor something � We must have a prod-uct which meets our requirements. � wewill try to meet your price we will tryto offer a price which is acceptable toyou � they failed to meet the deadlinethey were not able to complete in time2. to pay for something � The companywill meet your expenses. � He was un-able to meet his mortgage repayments.(NOTE: meeting – met)meeting /�mi�tŋ/ noun an event atwhich a group of people come togetherin order to discuss matters of commoninterest to them � to hold a meeting toorganise a meeting of a group of people� The meeting will be held in the com-mittee room. � to open a meeting tostart a meeting � to conduct a meetingto be in the chair for a meeting � toclose a meeting to end a meeting � toaddress a meeting to speak to a meet-ing � to put a resolution to a meetingto ask a meeting to vote on a proposal

‘…in proportion to your holding you have astake in every aspect of the company,including a vote in the general meetings’[Investors Chronicle]

mega-cap /�me�ə k�p/ noun a sharewith the very highest capitalisation andgrowth. � cap, mid-cap, small-capmember /�membə/ noun 1. a personwho belongs to a group, society or or-ganisation � Committee members votedon the proposal. � They were electedmembers of the board. � Every em-ployer is a member of the employers’federation. 2. a shareholder in a com-pany 3. an organisation which belongs

means 219 member

to a larger organisation � the membercompanies of a trade association � Themember states of the EU. � The mem-bers of the United Nations.

‘…it will be the first opportunity for partymembers and trade union members to expresstheir views on the tax package’[Australian Financial Review]

member bank /�membə b�ŋk/ nouna bank which is part of the Federal Re-serve systemmember firm /�membə f%�m/ noun astockbroking firm which is a member ofa stock exchangemember’s agent /�membəz�ed$ənt/ noun a person who works onbehalf of the names in a Lloyd’ssyndicatemembership /�membəʃp/ noun allthe members of a group � The unionmembership was asked to vote for thenew president.

‘…the bargaining committee will recommendthat its membership ratify the agreement at ameeting called for June’ [Toronto Star]

Member States /�membə stets/plural noun states which are members ofan organisation such as the EU or theUN � the member countries of the EU �the members of the United Nations � themember companies of a tradeassociationmemorandum and articles ofassociation /memə�r�ndəm ənd�ɑ�tik(ə)lz əv ə�səυsi�eʃ(ə)n/, memo-randum of association /memə-�r�ndəm əv ə�səυsi�eʃ(ə)n/ noun thelegal documents which set up a limitedcompany and give details of its name,aims, authorised share capital, conductof meetings, appointment of directorsand registered officementee /men�ti�/ noun a less experi-enced employee who is offered specialguidance and support by a respected andtrusted person with more experience (amentor)mentor /�mentɔ�/ noun a person whois respected and trusted by a less experi-enced employee and offers special guid-ance and support to themmercantile /�m%�kəntal/ adjectivecommercial � mercantile country acountry which earns income from trade� mercantile law laws relating tobusiness

mercantile agency /�m%�kəntal�ed$(ə)nsi/ noun same ascredit-reference agencymercantile agent /�m%�kəntal�ed$ənt/ noun a person who sells onbehalf of a business or another personand earns a commissionmercantile marine /�m%�kəntalmə�ri�n/ noun all the commercial shipsof a countrymerchant /�m%�tʃənt/ noun acompany, shop or other business whichaccepts a certain type of credit card forpurchasesmerchant bank /�m%�tʃənt b�ŋk/noun 1. a bank which arranges loansto companies, deals in international fi-nance, buys and sells shares andlaunches new companies on the StockExchange, but does not provide normalbanking services to the general public 2.US a bank which operates a credit cardsystem (accepting payment on creditcards from retailers or ‘merchants’)merchant banker /�m%�tʃənt�b�ŋkə/ noun a person who has a highposition in a merchant bankmerchant marine /�m%�tʃənt mə-�ri�n/, merchant navy /�m%�tʃənt�nevi/ noun all the commercial ships ofa countrymerchant number /�m%�tʃənt�n�mbə/ noun a number of the mer-chant, printed at the top of the report slipwhen depositing credit card paymentsmerge /m%�d$/ verb to join together �The two companies have merged. � Thefirm merged with its main competitor.merger /�m%�d$ə/ noun the joining to-gether of two or more companies � As aresult of the merger, the company is nowthe largest in the field.merger accounting /�m%�d$ə ə-�kaυntŋ/ noun a way of presenting theaccounts of a newly acquired companywithin the group accounts, so as to showit in the best possible lightmerit increase /�mert �nkri�s/noun an increase in pay given to an em-ployee because his or her work is goodmerit rating /�mert �retŋ/ noun theprocess of judging how well an em-ployee works, so that payment can beaccording to merit

member bank 220 merit rating

metal /�met(ə)l/ noun a material (ei-ther an element or a compound) whichcan carry heat and electricity

COMMENT: Only some metals are tradedas commodities: these are the base met-als aluminium, copper, lead, nickel, tin,zinc (which are traded on the LondonMetal Exchange) and the precious metalsgold, silver, platinum and palladium(which are traded on the London BullionMarket, COMEX, and other exchanges).

method /�meθəd/ noun a way of do-ing something � They devised a newmethod of sending data. � What is thebest method of payment? � His organis-ing methods are out of date. � Theirmanufacturing methods or productionmethods are among the most modern inthe country.metical /�metk(ə)l/ noun a unit ofcurrency used in Mozambiquemezzanine class stock/�metsəni�n klɑ�s �stɒk/ noun a type ofcommon stock rated at a level below thetop double-A or triple-A ratingsmezzanine finance /�metsəni�n�fan�ns/ noun finance provided to acompany after it has received start-upfinance

COMMENT: Mezzanine finance is slightlyless risky than start-up finance, since thecompany has usually already started trad-ing; it is, however, unsecured. This type offinance is aimed at consolidating a com-pany’s trading position before it is floatedon a stock exchange.

MFN abbreviation most favourednationMibtel /�mbtel/ noun an index ofshare prices on the Milan stock ex-change in Italymicro- /makrəυ/ prefix very smallmicro-cap /�makrəυ k�p/ noun ashare in a company with very smallcapitalisationmicroeconomics /�makrəυ i�kə-�nɒmks/ plural noun the study of theeconomics of people or single compa-nies. Compare macroeconomics(NOTE: takes a singular verb)

microfiche /�makrəυ�fi�ʃ/ noun anindex sheet, made of several microfilmphotographs � We hold our records onmicrofiche.

microfilm /�makrəυflm/ noun a rollof film on which a document is photo-graphed in very small scale � We holdour records on microfilm. � verb tomake a very small-scale photograph �Send the 1998 correspondence to be mi-crofilmed or for microfilming.micropayments /�makrəυ-�pemənts/ plural noun a technologydeveloped to allow visitors to spendvery small amounts of money (normallyfor information) on an Internet site

COMMENT: When people are purchasinggoods or spending more than £5 on anInternet site, it is commercially viable forthe retailer to accept payment by creditcard or any other form of e-money. Whenpeople are being charged very smallamounts (normally a few pence or cents)for information, it is not worth while col-lecting the payment from a standard creditcard. Micropayments allow the retailer todebit the visitor’s e-purse or bank accountdirectly.

mid- /md/ prefix middle � from mid2001 from the middle of 2001 � Thefactory is closed until mid-July.mid-cap /�md k�p/, midcap noun ashare in a company with medium-sizedcapitalisation (on the London Stock Ex-change, a capitalisation of between£300m and £2.5bn)middle /�md(ə)l/ adjective in the cen-tre or between two pointsmiddle-income /�md(ə)l �ŋk�m/adjective � people in the mid-dle-income bracket people with aver-age incomes, not very high or very lowmiddleman /�md(ə)l�m�n/ noun aperson who negotiates with large com-panies on behalf of personal clientsmiddle management /�md(ə)l�m�nd$mənt/ noun department man-agers in a company, who carry out thepolicy set by the directors and organisethe work of a group of employeesmiddle price /�md(ə)l pras/ noun aprice between the buying and sellingprice (usually shown in indices)middle rate /�md(ə)l ret/ noun anexchange rate between the buy and sellrates for a foreign currencymid-month /�md m�nθ/ adjectivewhich happens in the middle of themonth � mid-month accounts

metal 221 mid-month

mid-sized /�md sazd/, midsize/�mdsaz/ adjective � mid-sized com-pany US a company which is largerthan a small company but smaller than alarge companymid-week /�md wi�k/ adjectivewhich happens in the middle of a week� the mid-week lull in salesmill /ml/ noun one-fifth of a centmillion /�mljən/ noun number1,000,000 � The company lost £10 mil-lion in the African market. � Our turn-over has risen to $13.4 million. �billion, trillion (NOTE: Can be writtenm after figures: $5m (say ‘five milliondollars.’))millionaire /�mljə�neə/ noun a per-son who has more than one millionpounds or dollarsmin abbreviation 1. minute 2.minimummini- /mni/ prefix very smallminibudget /�mni�b�d$t/ noun aninterim statement about financial plansfrom a finance ministerminimum /�mnməm/ noun thesmallest possible quantity, price or num-ber � to keep expenses to a minimum �to reduce the risk of a loss to a minimum(NOTE: The plural is minima or mini-mums.) � adjective smallest possible �minimum dividend the smallest divi-dend which is legal and accepted by theshareholders � minimum payment thesmallest payment necessary � mini-mum quantity the smallest quantitywhich is acceptableminimum balance /�mnməm�b�ləns/ noun the smallest amount ofmoney which must be kept in an ac-count to qualify for the servicesprovidedMinimum Lending Rate/�mnməm �lendŋ ret/ nounformerly, the rate at which the Bank ofEngland used to lend to other banks(now called the ‘base rate’). Abbrevia-tion MLRminimum reserves /�mnməm r-�z%�vz/ plural noun the smallest amountof reserves which a commercial bankmust hold with a central bankminimum wage /�mnməm �wed$/noun the lowest hourly wage which acompany can legally pay its employees

mining /�manŋ/ � data miningmining concession /�manŋ kən-�seʃ(ə)n/ noun the right to dig a mine ona piece of landminister /�mnstə/ noun a member ofa government who is in charge of a min-istry � a government minister � theMinister of Trade or the Trade Minister� the Minister of Foreign Affairs or theForeign Minister

COMMENT: In the US, heads of govern-ment departments are called secretary:the Secretary for Commerce. In the UK,heads of government departments arecalled Secretary of State: the Secretaryof State for Defence.

ministry /�mnstri/ noun a depart-ment in the government � a ministry of-ficial or an official from the ministry �She works in the Ministry of Finance orthe Finance Ministry. � He is in chargeof the Ministry of Information or of theInformation Ministry. (NOTE: In the UKand the USA, important ministries arecalled departments: the Departmentof Trade and Industry, the Com-merce Department.)minor /�manə/ adjective less impor-tant � Items of minor expenditure arenot listed separately. � The minorshareholders voted against the pro-posal. � noun a person less than eigh-teen years oldminority /ma�nɒrti/ noun 1. a num-ber or quantity which is less than half ofthe total � A minority of board membersopposed the chairman. � A minority ofthe union members opposed the motion.� in the minority being fewer than half� Good salesmen are in the minority inour sales team. 2. a section of the popu-lation from a specific racial group,which does nor make up the majority ofthe populationminority shareholder /ma�nɒrəti�ʃeə�həυldə/ noun a person who owns agroup of shares but less than half of theshares in a companyminority shareholding /ma-�nɒrəti �ʃeəhəυldŋ/ noun a group ofshares which are less than half the total� He acquired a minority shareholdingin the company.mint /mnt/ noun a factory where coinsare made � verb to make coins

mid-sized 222 mint

minus /�manəs/ preposition, adverbless, without � Net salary is gross sal-ary minus tax and National Insurancedeductions. � Gross profit is sales mi-nus production costs. � adjective � theaccounts show a minus figure the ac-counts show that more has been spentthan has been received � noun a printedsign (-) showing a loss or decrease � Atthe end of the day the index showed aseries of minuses, with very few pluses.minus factor /�manəs �f�ktə/ nounan unfavourable factor � To have lostsales in the best quarter of the year is aminus factor for the sales team. (NOTE:The opposite is plus.)

MIRAS abbreviation mortgage interestrelief at sourcemirror fund /�mrə f�nd/ noun an in-vestment trust where the manager alsoruns a unit trust with the sameobjectivesmisappropriate /�msə�prəυpriet/verb to use illegally money which is notyours, but with which you have beentrustedmisappropriation /�msəprəυpri-�eʃ(ə)n/ noun the illegal use of moneyby someone who is not the owner butwho has been trusted to look after itmiscalculate /ms�k�lkjυlet/ verbto calculate wrongly, or to make a mis-take in calculating something � Thesalesman miscalculated the discount, sowe hardly broke even on the deal.miscalculation /ms�k�lkjυ-�leʃ(ə)n/ noun a mistake in calculatingmiscount noun /�mskaυnt/ a mis-take in counting � verb /ms�kaυnt/ tocount wrongly, or to make a mistake incounting something � The shopkeepermiscounted, so we got twenty-five barsof chocolate instead of two dozen.misfeasance /ms�fi�z(ə)ns/ nounthe offence of doing something in animproper waymismanage /ms�m�nd$/ verb tomanage something badly � The com-pany had been badly mismanaged underthe previous MD.mismanagement /ms-�m�nd$mənt/ noun bad management� The company failed because of thechairman’s mismanagement.

misrepresent /�msrepr�zent/ verbto report facts or what someone sayswrongly � Our spokesman was totallymisrepresented in the Sunday papers.misrepresentation /�msreprzen-�teʃ(ə)n/ noun 1. the act of making awrong statement in order to persuadesomeone to enter into a contract such asone for buying a product or service 2.the act of wrongly reporting factsmistake /m�stek/ noun an act or de-cision which is wrong, or something thathas been done wrongly � It was a mis-take to let him name his own salary. �There was a mistake in the address. � tomake a mistake to do something wrong� The shop made a mistake and sent thewrong items. � He made a mistake inaddressing the letter. � by mistake inerror, wrongly � They sent the wrongitems by mistake. � She put my letterinto an envelope for the chairman bymistake.misuse /ms�ju�s/ noun a wrong use� the misuse of funds or of assetsMittelstand noun the German wordfor the sector of medium-sizedcompaniesmixed /mkst/ adjective 1. made up ofdifferent sorts or of different types ofthings together 2. neither good nor bad

‘…prices closed on a mixed note after amoderately active trading session’[Financial Times]

mixed economy /mkst �kɒnəmi/noun a system which contains both na-tionalised industries and privateenterpriseMMC abbreviation Monopolies andMergers Commissionmobilise /�məυblaz/, mobilize verbto bring things or people together andprepare them for action, especially tofight � to mobilise capital to collectcapital to support something � to mobi-lise resources to defend a takeover bidto get the support of shareholders, etc.,to stop a company being taken overmode /məυd/ noun a way of doingsomething � mode of payment the wayin which payment is made, e.g. cash orchequemodel /�mɒd(ə)l/ noun 1. a small copyof something made to show what it willlook like when finished � They showedus a model of the new office building. 2.

minus 223 model

a style or type of product � This is thelatest model. � The model on display islast year’s. � I drive a 2001 modelRange Rover. 3. a person whose job isto wear new clothes to show them topossible buyers 4. something which canbe copied � the Swedish model of indus-trial relations 5. a description in theform of mathematical data � adjectivewhich is a perfect example to be copied� a model agreement � verb to wearnew clothes to show them to possiblebuyers � She has decided on a career inmodelling. (NOTE: UK English is mod-elling – modelled, but the US spellingis modeling – modeled.)

model risk /�mɒd(ə)l rsk/ noun thepossibility that a computer model usedwhen investing may have a flaw whichmakes it function badly in extreme mar-ket conditionsmodem /�məυdem/ noun a devicewhich links a computer to a telephoneline, allowing data to be sent from onecomputer to anothermodest /�mɒdst/ adjective small �Oil shares showed modest gains overthe week’s trading.modified accounts /�mɒdfad ə-�kaυntz/ plural noun less detailed an-nual accounts which can be depositedwith the Registrar of Companies bysmall or medium-sized companiesmomentum /məυ�mentəm/ noun amovement upwards of share prices, sug-gesting that prices will continue to risemomentum investor /məυ-�mentəm n�vestə/ noun an investorwho buys shares which seem to be mov-ing upwardsmonetarism /�m�ntə�rz(ə)m/ nouna theory that the amount of money in theeconomy affects the level of prices, sothat inflation can be controlled by regu-lating money supplymonetarist /�m�ntərst/ noun a per-son who believes in monetarism andacts accordingly � adjective accordingto monetarism � monetarist theoriesmonetary /�m�nt(ə)ri/ adjective re-ferring to money or currency

‘…the decision by the government to tightenmonetary policy will push the annual inflationrate above the year’s previous high’[Financial Times]

‘…it is not surprising that the Fed started to easemonetary policy some months ago’[Sunday Times]‘…a draft report on changes in the internationalmonetary system’ [Wall Street Journal]

monetary control /�m�nt(ə)ri kən-�trəυl/ noun control of the moneysupplymonetary policy /�m�nt(ə)ri�pɒlsi/ noun the government’s policyrelating to finance, e.g. bank interestrates, taxes, government expenditureand borrowingMonetary Policy Committee/�m�nt(ə)ri �pɒlsi kə�mti/ noun acommittee of the Bank of England,chaired by the Governor of the Bank,which has responsibility for setting in-terest rates independently of the Britishgovernment. Its aim is to set rates with aview to keeping inflation at a certainlevel, and avoiding deflation. Abbrevia-tion MPC

‘Its Monetary Policy Committee (MPC) gets anopportunity to reveal whether it is still affectedby the Christmas spirit when it meets thisWednesday’ [The Times]‘The Fed next meets to consider interest rates onFebruary 3 and 4, just one day ahead of theFebruary MPC meeting’ [The Times]

monetary standard /�m�nt(ə)ri�st�ndəd/ noun the fixing of a fixed ex-change rate for a currencymonetary targets /�m�nt(ə)ri�tɑ��tz/ plural noun figures such as themoney supply or the PSBR, which aregiven as targets by the governmentwhen setting out its budget for the forth-coming yearmonetary unit /�m�nt(ə)ri �ju�nt/noun a main item of currency of a coun-try (a dollar, pound, yen, etc.)money /�m�ni/ noun 1. coins andnotes used for buying and selling � toearn money to have a wage or salary �to earn good money to have a largewage or salary � to lose money to makea loss, not to make a profit � the com-pany has been losing money formonths the company has been workingat a loss for months � to get yourmoney back to make enough profit tocover your original investment � tomake money to make a profit � to putmoney into the bank to deposit moneyinto a bank account � to put moneyinto a business to invest money in a

model risk 224 money

business � She put all her redundancymoney into a shop. � to put moneydown to pay cash, especially as a de-posit � We put £25 down and paid therest in instalments. � money up frontpayment in advance � They are askingfor £10,000 up front before they willconsider the deal. � He had to putmoney up front before he could clinchthe deal. � they are worth a lot ofmoney they are valuable 2. � in themoney referring to an option to buy at alower price or to sell at a higher pricethan the share is currently at � out ofthe money referring to an option to buyat a higher price or to sell at a lowerprice than a share is currently trading atmoney at call /�m�ni ət �kɔ�l/,money on call /�m�ni ɒn �kɔ�l/ nounsame as call moneymoney-back guarantee /�m�ni�b�k ��rən�ti�/, money-back offer/�m�ni �b�k �ɒfə/ noun a guarantee thatmoney will be paid back to customerswho are not satisfied with theirpurchasesmoneyback option /�m�ni�b�k�ɒpʃən/ noun an option that guaranteesto return the premium if the option is nottaken upmoney broker /�m�ni �brəυkə/ nouna dealer operating in the interbank andforeign exchange marketsmoney-changer /�m�ni �tʃend$ə/noun same as changermoney laundering /�m�ni�lɔ�ndərŋ/ noun the act of passing ille-gal money into the normal bankingsystemmoneylender /�m�ni�lendə/ noun aperson who lends money at interestmoney lying idle /�m�ni �laŋ�ad(ə)l/ noun money which is not beingused to produce interest, which is not in-vested in businessmoney-making /�m�ni �mekŋ/ ad-jective which makes money � amoney-making planmoney management /�m�ni�m�nd$mənt/ noun same as fundmanagementmoney market /�m�ni �mɑ�kt/noun 1. a place where large sums ofmoney are lent or borrowed 2. a marketfor buying and selling short-term loans

or financial instruments such as Trea-sury bills and CDs, which can be easilyconverted to cash � The internationalmoney markets are nervous.money market basis /�m�ni�mɑ�kt �bess/ noun � on a moneymarket basis calculated on a year of365 daysmoney market fund /�m�ni�mɑ�kt f�nd/ noun an investmentfund, which only invests in money mar-ket instrumentsmoney market instruments/�m�ni �mɑ�kt �nstrυmənts/ pluralnoun short-term investments, such asCDs, which can be easily turned intocash and are traded on the moneymarketsmoney order /�m�ni �ɔ�də/ noun adocument which can be bought as a wayof sending money through the postmoney purchase scheme /�m�ni�p%�tʃs ski�m/ noun any pensionscheme to which members make contri-butions which determine the final pen-sion (as opposed to a ‘final salaryscheme’ where the pension is a percent-age of the final salary earned)money rates /�m�ni rets/ pluralnoun rates of interest for borrowers orlendersmoney-spinner /�m�ni �spnə/ nounan item which sells very well or whichis very profitable � The home-deliveryservice has proved to be a realmoney-spinner.money supply /�m�ni sə�pla/ nounthe amount of money which exists in acountry

COMMENT: Money supply is believed bysome to be at the centre of control of acountry’s economy. If money supply istight (i.e. the government restricts the is-sue of new notes and reduces the possi-bility of lending) the amount of moneyavailable in the economy is reduced andthus may reduce spending. Money supplyis calculated in various ways: M0 (or nar-row money supply), including coins andnotes in circulation plus the deposits ofcommercial banks with the Bank of Eng-land; M1, including all coins and notesplus personal money in current accounts;M2, including coins and notes and per-sonal money in current and deposit ac-counts; M3, including coins and notes,

money at call 225 money supply

personal money in current and depositaccounts, government deposits and de-posits in currencies other than sterling(called £M3 in Britain); M4, including M3plus money on deposit in banks and Trea-sury bills; M5, the broadest measure,which is formed of M4 plus building soci-ety accounts and accounts with nationalsavings. In the US, money supply also in-cludes L, which is calculated as M3, plusTreasury bills, bonds and commercialpaper.

monies /�m�niz/ plural noun sums ofmoney � monies owing to the company� to collect monies duemonitor /�mɒntə/ noun a screen on acomputer � He brought up the informa-tion on the monitor. � verb to check orto examine how something is working �He is monitoring the progress of sales.� How do you monitor the performanceof the sales reps?Monopolies and Mergers Com-mission /mə�nɒpəliz ən �m%�d$əzkə�mʃ(ə)n/ noun a government organi-sation which examines takeover bids atthe request of the Office of Fair Trading,to see if a successful bid would result ina monopoly and so harm the consumerby reducing competition. AbbreviationMMCmonopoly /mə�nɒpəli/ noun a situa-tion where one person or company is theonly supplier of a particular product orservice � to be in a monopoly situation� The company has the monopoly of im-ports of Brazilian wine. � The factoryhas the absolute monopoly of jobs in thetown. (NOTE: The more usual US termis trust.)month /m�nθ/ noun one of twelve pe-riods which make a year � bills due atthe end of the current month � The com-pany pays him £100 a month. � Sheearns £2,000 a month. � paid by themonth paid once each month � to givea customer two months’ credit to al-low a customer to pay not immediately,but after two monthsmonth end /m�nθ �end/ noun the endof a calendar month, when accountshave to be drawn up � The accounts de-partment are working on the month-endaccounts.monthly /�m�nθli/ adjective happen-ing every month or which is receivedevery month � We get a monthly state-

ment from the bank. � She makesmonthly payments to the credit cardcompany. � He is paying for his car bymonthly instalments. � My monthly sal-ary cheque is late. � monthly ticket aticket for travel which is good for onemonth � monthly statement a state-ment sent to a customer at the end ofeach month, itemising transactionswhich have taken place in his or her ac-count � adverb every month � Heasked if he could pay monthly by directdebit. � The account is creditedmonthly.monthly sales report /�m�nθli�selz r�pɔ�t/ noun a report made everymonth showing the number of itemssold or the amount of money a companyhas received for selling stockMoody’s Investors Service/�mu�di�z n�vestəz �s%�vs/ noun anAmerican rating organisation, whichgives a rating showing the reliability ofa debtor organisation (its ratings runfrom AAA to C). It also issues ratingson municipal bonds, running fromMIG1 (the highest rating) to MIG4. �Standard & Poor’smoonlight /�mu�nlat/ verb to do asecond job for cash (often in the eve-ning) as well as a regular job (informal.)moonlighter /�mu�nlatə/ noun aperson who moonlightsmoonlighting /�mu�nlatŋ/ nounthe practice of doing a second job � Hemakes thousands a year frommoonlighting.moratorium /�mɒrə�tɔ�riəm/ noun atemporary stop to repayments of intereston loans or capital owed � The bankscalled for a moratorium on payments.(NOTE: The plural is moratoria or mor-atoriums.)Morningstar /�mɔ�nŋstɑ�/ noun USan agency which gives ratings to mutualfundsmortality and expense riskcharge /mɔ��t�lti ən k�spens �rsktʃɑ�d$/ noun an extra charge to pay onsome annuities to guarantee that if thepolicyholder dies his heirs will receive abenefit, and also that the insurance com-pany will be compensated for an annu-itant who lives longer than he or sheshould according to the mortality tables.Also called M&E fee

monies 226 mortality

mortality rate /mɔ��t�ləti ret/ nounthe number of deaths occurring during aparticular period, shown as a percentageof the total populationmortgage /�mɔ��d$/ noun moneylent on the security of a house or otherproperty owned by the borrower, usu-ally in order to enable the borrower tobuy the property � to buy a house with a£200,000 mortgage � mortgage pay-ments money paid each month as inter-est on a mortgage, plus repayment of asmall part of the capital borrowed �first mortgage the main mortgage on aproperty � to pay off a mortgage to payback the principal and all the interest ona loan to buy a property � mortgagequeue a list of people waiting for mort-gages � verb to use a property as secu-rity for a loan � The house is mortgagedto the bank. � He mortgaged his houseto set up in business. � to foreclose on amortgaged property to sell a propertybecause the owner cannot repay moneywhich he or she has borrowed, using theproperty as security

‘…mortgage payments account for just 20 percent of the average first-time buyer’s grossearnings against an average of 24 per centduring the past 15 years’ [Times]‘…mortgage money is becoming tighter.Applications for mortgages are running at a highlevel and some building societies areintroducing quotas’ [Times]‘…for the first time since mortgage rates beganfalling a financial institution has raised chargeson homeowner loans’ [Globe and Mail(Toronto)]

mortgage arrears /�mɔ��d$ ə�rəz/plural noun mortgage payments whichare due but have not been paidmortgage-backed securities/�mɔ��d$ b�kt s�kjυərtiz/ pluralnoun shares which are backed by the se-curity of a mortgagemortgage bank /�mɔ��d$ b�ŋk/noun a bank which lends money to pur-chasers of properties, on the security ofthe propertymortgage bond /�mɔ��d$ bɒnd/noun a certificate showing that a mort-gage exists and that property is securityfor itmortgage broker /�mɔ��d$�brəυkə/ noun a person who arrangesmortgages, by putting a borrower intouch with a possible lender

mortgage debenture /�mɔ��d$ d-�bentʃə/ noun a debenture where thelender can be repaid by selling the com-pany’s propertymortgagee /mɔ��ə�d$i�/ noun a per-son or company which lends money forsomeone to buy a propertymortgage famine /�mɔ��d$�f�mn/ noun a situation where there isnot enough money available to offermortgages to house buyersmortgage interest relief /�mɔ��d$�ntrəst r�li�f/ noun a tax benefit whichallows people to pay no tax on mortgageinterest payments up to a certain levelmortgage interest relief atsource /�mɔ��d$ �ntrəst r�li�f ət�sɔ�s/ noun a scheme by which the bor-rower may repay interest on a mortgageless the standard rate tax which he orshe would otherwise have to pay on it(i.e. he or she does not pay the full inter-est and then reclaim the tax). Abbrevia-tion MIRASmortgage lender /�mɔ��d$ �lendə/noun a financial institution such as abank or building society that lendsmoney to people buying propertymortgage portfolio /�mɔ��d$ pɔ�t-�fəυliəυ/ noun all the mortgages madeby a bank or building society whichhave not been paid offmortgager /�mɔ��d$ə/, mortgagornoun a person who borrows money tobuy a propertymortgage refinancing /�mɔ��d$ri��fan�nsŋ/ noun the act of arrang-ing to increase a mortgage on a propertyso as to pay for improvements to thepropertymortgage REIT /�mɔ��d$ ret/noun a trust which provides mortgagesto property developers. Full form mort-gage Real Estate Investment Trustmortgage relief /�mɔ��d$ r�li�f/noun a reduction in tax on interest paidon a mortgagemost favoured nation /məυst�fevəd �neʃ(ə)n/ noun a foreign coun-try to which the home country allowsthe best trade terms. Abbreviation MFNmost-favoured-nation clause/məυst �fevəd �neʃ(ə)n klɔ�z/ nounan agreement between two countries

mortality rate 227 most-favoured-nation clause

that each will offer the best possibleterms in commercial contractsmotivation /�məυt�veʃ(ə)n/ nouneagerness to work well or sell largequantities of a productmounting /�maυntŋ/ adjective in-creasing � He resigned in the face ofmounting pressure from the sharehold-ers. � The company is faced withmounting debts.mount up /�maυnt ��p/ verb to in-crease rapidly � Costs are mounting up.move /mu�v/ verb to propose formallythat a motion be accepted by a meeting� He moved that the accounts beagreed. � I move that the meetingshould adjourn for ten minutes.movement /�mu�vmənt/ noun an actof changing position or going up ordown � movements in the money mar-kets � cyclical movements of trademovement of capital /�mu�vməntəv �k�pt(ə)l/ noun same as capitalflowmover /�mu�və/ noun a person whoproposes a motionmoving average /�mu�vŋ��v(ə)rd$/ noun an average of shareprices on a stock market, where the cal-culation is made over a period whichmoves forward regularly

COMMENT: The commonest are 100-dayor 200-day averages, or 10- or 40-weekmoving averages. The average is calcu-lated as the average figure for the wholeperiod, and moves forward one day orweek at a time. These averages are oftenused by chartists.

MPC abbreviation Monetary PolicyCommitteemulti- /m�lti/ prefix referring to manythingsmulticurrency /�m�lt�k�rənsi/ ad-jective in several currencies �multicurrency loan a loan in severalcurrenciesmultilateral /�m�lti�l�t(ə)rəl/ adjec-tive between several organisations orcountries � a multilateral agreement �multilateral trade trade between sev-eral countriesmultilateral netting /�m�lti-�l�t(ə)rəl �netŋ/ noun a method ofputting together sums from varioussources into one currency (used by

groups of banks trading in several cur-rencies at the same time)multi-manager fund /m�lti�m�nd$ə f�nd/ noun a hedge fundwhich uses a wide portfolio of fundmanagers to produce a balanced expo-sure for relatively small investors. �hedge fund, managermultimillion /�m�lti�mljən/ adjec-tive referring to several million poundsor dollars � They signed a multimillionpound deal.multimillionaire /�m�ltimljə�neə/noun a person who owns property or in-vestments worth several million poundsor dollarsmultinational /�m�lti�n�ʃ(ə)nəl/noun, adjective (a company) which hasbranches or subsidiary companies inseveral countries � The company hasbeen bought by one of the big multina-tionals. Also called transnational

‘…the number of multinational firms hasmushroomed in the past two decades. As theirsweep across the global economy accelerates,multinational firms are posing pressing issuesfor nations rich and poor, and those in between’[Australian Financial Review]

multiple /�m�ltp(ə)l/ adjective many� noun 1. � share on a multiple of 5 ashare with a P or E ratio of 5 (i.e. 5 isthe result when dividing the currentmarket price by the earnings per share)2. a company with stores in several dif-ferent towns

‘…many independents took advantage of thebank holiday period when the big multipleswere closed’ [The Grocer]‘…the multiple brought the price down to £2.49in some stores. We had not agreed to this dealand they sold out very rapidly. When theyreordered we would not give it to them. Thiskind of activity is bad for the brand and wecannot afford it’ [The Grocer]

multiple applications /�m�ltp(ə)l��pl�keʃ(ə)nz/ plural noun severalapplications for a new issue of shares,made by the same person, but under dif-ferent names (in some share issues, peo-ple making multiple applications maybe prosecuted)multiple entry visa /�m�ltp(ə)l�entri �vi�zə/ noun a visa which allowsa visitor to enter a country many timesmultiple ownership /�m�ltp(ə)l�əυnəʃp/ noun a situation where some-thing is owned by several parties jointly

motivation 228 multiple ownership

multiple store /�m�ltp(ə)l stɔ�/noun one store in a chain of storesmultiplication /�m�ltpl�keʃ(ə)n/noun an act of multiplyingmultiplication sign /�m�ltpl-�keʃ(ə)n san/ noun a sign (x) used toshow that a number is being multipliedby anothermultiplier /�m�ltplaə/ noun a num-ber which multiplies another, or a factorwhich tends to multiply something (asthe effect of new expenditure on totalincome and reserves)multiply /�m�ltpla/ verb 1. to calcu-late the sum of various numbers addedtogether a certain number of times � Ifyou multiply twelve by three you getthirty-six. � Square measurements arecalculated by multiplying length bywidth. 2. to grow or to increase �Profits multiplied in the boom years.muni /�mju�ni/ noun same as munici-pal bond (informal.)municipal bond /mju��nsp(ə)lbɒnd/ noun US a bond issued by a townor district (NOTE: The UK term is localauthority bond.)municipal bond fund /mju�-�nsp(ə)l bɒnd f�nd/, muni fund/�mju�ni f�nd/ noun US a fund in-vested in municipal bonds (NOTE:Usually called munis.)Murphy’s law /�m%�fiz �lɔ�/ noun alaw, based on wide experience, which

says that in commercial life if some-thing can go wrong it will go wrong, orthat when you are thinking that thingsare going right, they will inevitably startto go wrongmutual adjective /�mju�tʃuəl/ belong-ing to two or more people � noun anycommercial organisation owned by itsmembers, such as a building societymutual association /�mju�tʃuəl ə-�səυsieʃ(ə)n/ noun US a form of sav-ings and loan association which isowned by its membersmutual company /�mju�tʃuəl�k�mp(ə)ni/ noun same as mutual in-surance company

mutual fund /�mju�tʃuəl f�nd/ nounan organisation which takes moneyfrom small investors and invests it instocks and shares for them, the invest-ment being in the form of shares in thefund (NOTE: The UK term is unit trust.)

mutual insurance company/�mju�tʃuəl n�ʃυərəns �k�mp(ə)ni/noun a company which belongs toinsurance policy holders. Also calledmutual company

mutual savings bank /�mju�tʃuəl�sevŋz b�ŋk/ noun a savings bankwhich is owned by the customers whohave deposits with itMVA abbreviation 1. market valueadded 2. market value adjuster

multiple store 229 MVA

N

N abbreviation nairanail /nel/ noun � to pay on the nail topay promptly, to pay rapidlynaira /�narə/ noun a unit of currencyused in Nigeria (NOTE: no plural; nairais usually written N before figures:N2,000 say ‘two thousand naira’)

naked /�nekd/ adjective without anyhedge or without any reserves to protecta positionname /nem/ noun 1. the word usedfor referring to a person, animal or thing� I cannot remember the name of themanaging director of Smith’s Ltd. �His first name is John, but I am notsure of his other names. � under thename of using a particular name �trading under the name of ‘BestFoods’ using the name ‘Best Foods’ asa commercial name, and not thename of the company 2. a person whoprovides security for insurance arrangedby a Lloyd’s of London syndicate. �Lloyd’snamed /nemd/ adjective � the per-son named in the policy the personwhose name is given on an insurancepolicy as the person insurednarrow market /�n�rəυ �mɑ�kt/noun a market in a share where very fewshares are available for sale, and wherethe price can vary sharplyNASDAQ /�n�zd�k/ abbreviation asystem which provides quotations viacomputer for the US electronic tradingmarket, mainly in high tech stocks, andalso for some large corporations listedon the NYSE, and publishes an index ofstock price movements. Full form Na-tional Association of SecuritiesDealers Automated Quotations sys-tem (NOTE: The UK term is SEAQ.)

nation /�neʃ(ə)n/ noun a country andthe people living in it

national /�n�ʃ(ə)nəl/ adjective refer-ring to the whole of a particular countryNational Association of Securi-ties Dealers Automated Quota-tions system noun full form ofNASDAQnational bank /�n�ʃ(ə)nəl b�ŋk/noun US a bank which is chartered bythe federal government and is part of theFederal Reserve system (as opposed to a‘state bank’)national central bank /�n�ʃ(ə)nəl�sentrəl �b�ŋk/ noun one of centralbanks of the countries which form theeurozone, under the overall EuropeanCentral Bank. Abbreviation NCBnational currency /�n�ʃ(ə)nəl�k�rənsi/ noun the official currency of acountry, which is legal tender in thatcountryNational Debt /�n�ʃ(ə)nəl �det/noun money borrowed by a governmentnational income /�n�ʃ(ə)nəl�nk�m/ noun the value of income fromthe sales of goods and services in acountryNational Insurance contribution/�n�ʃ(ə)nəl n�ʃυərəns kɒntr-�bju�ʃ(ə)n/ noun a proportion ofincome paid each month by an em-ployee and the employee’s companyto the National Insurance scheme whichhelps to fund sickness and unemploy-ment benefit and state pensions.Abbreviation NICnationalisation /�n�ʃ(ə)nəla-�zeʃ(ə)n/, nationalization noun thetaking over of private industry by thestatenationalise /�n�ʃ(ə)nəlaz/, nation-alize verb to put a privately-ownedindustry under state ownership and con-trol � The government is planning tonationalise the banking system.

nationalised industry /�n�ʃ(ə)nə-�lazd �ndəstri/ noun an industrywhich was privately owned, but is nowowned by the statenationality /�n�ʃə�n�lti/ noun thestate of being a citizen of a particularcountry � he is of British nationalityhe is a British citizennationality declaration /�n�ʃə-�n�ləti �dekləreʃ(ə)n/ noun a declara-tion on some share application formsthat the applicant is of a certainnationalityNational Lottery /�n�ʃ(ə)nəl�lɒtəri/ noun a British lottery whichtakes place twice a weeknational press /�n�ʃ(ə)nəl �pres/noun newspapers which sell in all partsof the country � The new car has beenadvertised in the national press.National Savings & Investments/�n�ʃ(ə)nəl �sevŋz ənd n-�vestmənts/ noun part of the Exche-quer, a savings scheme for small inves-tors including savings certificates andpremium bonds. Abbreviation NS&INational Savings certificates/�n�ʃ(ə)nəl �sevŋz sə�tfkəts/ pluralnoun certificates showing that someonehas invested in National Savings (theNS&I issues certificates with stated in-terest rates and stated maturity dates,usually five or ten years)NAV abbreviation net asset valueNB abbreviation from a Latin phrasemeaning ‘note (this) well’, i.e. pay at-tention to this. Full form Nota beneNCB abbreviation national centralbankNDIP abbreviation non-deposit invest-ment productnear-liquid asset /nə �lkwd��set/, near money /nə �m�ni/ nounan asset which can easily be convertedto cashnegative /�ne�ətv/ adjective mean-ing ‘no’ � the answer was in the nega-tive the answer was ‘no’negative carry /�ne�ətv �k�ri/noun a deal where the cost of finance ismore than the return on the capital usednegative cash flow /�ne�ətv �k�ʃfləυ/ noun a situation where moremoney is going out of a company than iscoming in

negative equity /�ne�ətv �ekwti/noun a situation where a house boughtwith a mortgage becomes less valuablethan the money borrowed to buy it (be-cause of falling house prices)negative yield curve /�ne�ətv�ji�ld k%�v/ noun a situation where theyield on a long-term investment is lessthan that on a short-term investmentneglected /n��lektd/ adjective notwell looked after � neglected sharesshares which are not bought or sold of-ten � Bank shares have been a ne-glected sector of the market this week.neglected business /n��lektd�bzns/ noun a company which has notbeen actively run by its owners andcould therefore do betternegligence /�ne�ld$əns/ noun 1. alack of proper care or failure to carry outa a duty (with the result that a person orproperty is harmed) 2. the act of not do-ing a job properly when one is capableof doing itnegligible /�ne�ld$b(ə)l/ adjectivevery small � shares of negligible valueshares which are considered by the in-come tax to have no value, because thecompany has ceased to exist. (Com-panies in receivership are not of negligi-ble value, though they may end up inthat category.)negotiable /n��əυʃiəb(ə)l/ adjective1. which can be transferred from oneperson to another or exchanged for cash� not negotiable which cannot be ex-changed for cash � ‘not negotiable’words written on a cheque to show thatit can be paid only to a specific person �negotiable cheque a cheque made pay-able to bearer, i.e. to anyone who holdsit 2. which can be discussed so that anagreement is reached � The employer’soffer was not negotiable, so when it wasturned down a strike seemed inevitable.� All parts of the offer are negotiable,with the exception of the new manninglevels. � The salary for the job isnegotiable.

‘…initial salary is negotiable around $45,000per annum’ [Australian Financial Review]

negotiable certificate of deposit/n��əυʃiəb(ə)l sə�tfkət əv d�pɒzt/,negotiable CD /n��əυʃiəb(ə)l �si��di�/ noun a receipt issued by a bank fora large sum deposited with the bank,which acts as an interest-bearing deposit

nationalised industry 231 negotiable certificate of deposit

negotiable instrument /n-��əυʃiəb(ə)l �nstrυmənt/ noun a doc-ument which can be exchanged for cash,e.g. a bill of exchange or a chequenegotiable order of withdrawal/n��əυʃiəb(ə)l �ɔ�də əv wð�drɔ�əl/adjective a cheque written on a NOWaccountnegotiable order of withdrawalaccount /n��əυʃiəb(ə)l �ɔ�də əvwð�drɔ�əl ə�kaυnt/ noun US full formof NOW account

negotiable paper /n��əυʃiəb(ə)l�pepə/ noun a document which can betransferred from one owner to anotherfor cashnegotiate /n��əυʃiet/ verb � to ne-gotiate with someone to discuss a prob-lem or issue formally with someone, soas to reach an agreement � The manage-ment refused to negotiate with the un-ion. � to negotiate terms andconditions or a contract to discuss andagree the terms of a contract � he nego-tiated a £250,000 loan with the bankhe came to an agreement with the bankfor a loan of £250,000

‘…many of the large travel agency chains areable to negotiate even greater discounts’[Duns Business Month]

negotiated commission /n-��əυʃietd kə�mʃ(ə)n/ noun a com-mission agreed with an advertisingagency before work starts, and whichmay be different from standardcommissionsnegotiation /n��əυʃi�eʃ(ə)n/ nounthe discussion of terms and conditionsin order to reach an agreement � con-tract under negotiation a contractwhich is being discussed � a matter fornegotiation something which must bediscussed before a decision is reached �to enter into or to start negotiations tostart discussing a problem � to resumenegotiations to start discussing a prob-lem again, after talks have stopped for atime � to break off negotiations to stopdiscussing a problem � to conduct ne-gotiations to negotiate � negotiationsbroke down after six hours discus-sions stopped because no agreementwas possible

‘…after three days of tough negotiations, thecompany reached agreement with its 1,200unionized workers’ [Toronto Star]

negotiator /n��əυʃietə/ noun 1. aperson who discusses a problem withthe aim of achieving agreement betweendifferent people or groups of people �experienced union negotiator a mem-ber of a union who has a lot of experi-ence of discussing terms of employmentwith management 2. a person whoworks in an estate agencynest egg /�nest e�/ noun moneywhich someone has saved over a periodof time (usually kept in an inter-est-bearing account, and intended foruse after retirement)net /net/ adjective 1. referring to aprice, weight, pay, etc., after all deduc-tions have been made 2. � termsstrictly net payment has to be the fullprice, with no discount allowed � verbto make a true profit � to net a profit of£10,000 (NOTE: netting – netted) � tonet out to balance debits and credits togive a net result

‘…out of its earnings a company will pay adividend. When shareholders receive this it willbe net, that is it will have had tax deducted at 30per cent’ [Investors Chronicle]

net asset value per share /net��set �v�lju� pə �ʃeə/ noun the valueof a company calculated by dividing theshareholders’ funds by the number ofshares issuednet borrowings /net �bɒrəυŋz/ plu-ral noun a company’s borrowings, lessany cash the company is holding in itsbank accountsnet cash flow /net �k�ʃ fləυ/ nounthe difference between the money com-ing in and the money going outnet change on the day /net�tʃend$ ɒn ðə �de/ adjective the dif-ference between the opening price of ashare at the beginning of a day’s tradingand the closing price at the endnet current assets /net �k�rənt��sets/ plural noun the current assets ofa company (cash and stocks) less any li-abilities. Also called net workingcapitalnet dividend per share /net �dv+dend pə �ʃeə/ noun the dividend pershare after deduction of personal in-come taxnet earnings /net �%�nŋz/ pluralnoun the total earnings of a business af-ter tax and other deductions

negotiable instrument 232 net earnings

net income /net �nk�m/ noun a per-son’s income which is left after takingaway tax and other deductionsnet interest margin /net �ntrəst�mɑ�d$n/ noun the difference betweenwhat a bank receives in interest on loansand what it pays out in interest ondepositsnet loss /net �lɒs/ noun an actual loss,after deducting overheadsnet margin /net �mɑ�d$n/ noun thepercentage difference between receivedprice and all costs, including overheadsnet price /net �pras/ noun the priceof goods or services which cannot be re-duced by a discountnet profit /net �prɒft/ noun theamount by which income from sales islarger than all expenditure. Also calledprofit after taxnet receipts /net r�si�ts/ plural nounreceipts after deducting commission,tax, discounts, etc.net return /net r�t%�n/ noun a returnon an investment after tax has been paidnet salary /net �s�ləri/ noun the sal-ary which is left after deducting tax andNational Insurance contributionsnet sales /net �selz/ plural noun thetotal amount of sales less damaged orreturned items and discounts to retailersnet weight /net �wet/ noun theweight of goods after deducting thepacking material and containernet working capital /net �w%�kŋ�k�pt(ə)l/ noun same as net currentassetsnet worth /net �w%�θ/ noun the valueof all the property of a person or com-pany after taking away what the personor company owes � The upmarket prod-uct is targeted at individuals of high networth.net yield /net �ji�ld/ noun the profitfrom investments after deduction of taxneurolinguistic programming/�njυərəυlŋ�wstk �prəυ�r�mŋ/noun a theory of behaviour and commu-nication based on how people avoidchange and how to help them to change.Abbreviation NLPnew /nju�/ adjective recent or not old �under new management with a newowner

new issue /nju� �ʃu�/ noun an issueof new shares to raise finance for acompanynew issue market /nju� �ʃu��mɑ�kt/ noun a market where compa-nies can raise finance by issuing newshares, or by a flotationnew issue sale /nju� �ʃu� sel/noun a sale of a new issue of sharesnew issues department /nju��ʃu�z d�pɑ�tmənt/ noun the section ofa bank which deals with issues of newsharesnew money /nju� �m�ni/ noun fi-nance provided by a new issue of sharesor by the transfer of money from one ac-count to anothernews agency /�nju�z �ed$ənsi/noun an office which distributes news tonewspapers and television stationsnew time /�nju� tam/ noun the nextaccount on a Stock Exchange (wheresales in the last few days of the previousaccount are credited to the followingaccount)New York Cotton Exchange/�nju� jɔ�k �kɒtən ks�tʃend$/ noun acommodity exchange, based in NewYork, dealing in cotton and other com-modities, and also in financial futuresthrough the NYFE. Abbreviation NYCENew York Futures Exchange/�nju� jɔ�k �fju�tʃəz ks�tʃend$/ nouna financial futures and options ex-change, based in New York, part of theNYCE. Abbreviation NYFENew York Stock Exchange /�nju�jɔ�k �stɒk ks�tʃend$/ noun the mainUS stock exchange, situated on WallStreet in New York. AbbreviationNYSE. Also called Big Boardngultrum /əŋ��υltrəm/ noun a unit ofcurrency used in BhutanNIC abbreviation National Insurancecontributionsniche /ni�ʃ/ noun a special place in amarket, occupied by one company (a‘niche company’) � They seem to havediscovered a niche in the market.niche bank /�ni�ʃ b�ŋk/ noun a spe-cialised bank which deals only with cer-tain types of customers or servicesniche company /ni�ʃ �k�mp(ə)ni/noun company specialising in a particu-

net income 233 niche company

lar type of product or service, which oc-cupies a market nichenickel /�nk(ə)l/ noun 1. a valuablemetal traded on commodity exchanges,such as the London Metal Exchange 2.US a five cent coinNIF abbreviation note issuance facilitynight /nat/ noun a period of time fromevening to morningnight rate /�nat ret/ noun a cheaprate for telephone calls at nightnight safe /�nat sef/ noun a safe inthe outside wall of a bank, where moneyand documents can be deposited atnight, using a special doorNikkei Average /n�ke ��v(ə)rd$/an index of prices on the Tokyo StockExchange, based on about 200 leadingsharesnil /nl/ noun zero or nothing � The ad-vertising budget has been cut to nil.nil paid shares /�nl ped �ʃeəz/ plu-ral noun new shares which have not yetbeen paid fornil return /nl r�t%�n/ noun a reportshowing no sales, income, tax, etc.NLP abbreviation neurolinguisticprogrammingNo., No abbreviation numberno-claims bonus /nəυ �klemz�bəυnəs/ noun a lower premium paidbecause no claims have been madeagainst the insurance policyno-load fund /nəυ �ləυd f�nd/ nouna fund sold directly by the fund com-pany, with low management chargesand no commission to a brokernominal /�nɒmn(ə)l/ adjective (of apayment) very small � They are payinga nominal rent. � The employmentagency makes a nominal charge for itsservices.nominal capital /�nɒmn(ə)l�k�pt(ə)l/ noun the total of the facevalue of all the shares which a companyis authorised to issuenominal interest rate /�nɒmn(ə)l�ntrəst ret/ noun an interest rate ex-pressed as a percentage of the face valueof a bond, not on its market valuenominal ledger /�nɒmn(ə)l �led$ə/noun a book which records a company’stransactions in the various accounts

nominal value /�nɒmn(ə)l �v�lju�/noun same as face valuenominate /�nɒmnet/ verb to suggestsomeone for a job � to nominate some-one to a post to appoint someone to apost without an election � to nominatesomeone as proxy to name someone asyour proxynomination /�nɒm�neʃ(ə)n/ nounthe act of nominating someone for apositionnominee /�nɒm�ni�/ noun a personwho is nominated, especially someonewho is appointed to deal with financialmatters on your behalfnominee account /�nɒm�ni� ə-�kaυnt/ noun an account held on behalfof someone

COMMENT: Shares can be purchasedand held in nominee accounts so that theidentity of the owner of the shares cannotbe discovered easily.

non- /nɒn/ prefix notnon-acceptance /�nɒn ək�septəns/noun a situation in which the personwho is to pay a bill of exchange does notaccept itnon-bank /�nɒn b�ŋk/ noun a finan-cial institution which is not a commer-cial bank according to the officialdefinition (so an institution which onlymakes loans, and does not take depositsdoes not fall within the official defini-tion of a bank and is not subject to thesame regulations)noncash items /�nɒn k�ʃ �atəmz/plural noun cheques, drafts and similaritems which are not in the form of cashnoncompete agreement/�nɒnkəm�pi�t ə��ri�mə�nt/ noun US atype of contract of employment bywhich an employee guarantees that hewill not work for a competing firm afterleaving his or her jobnondeductible /�nɒnd�d�ktb(ə)l/adjective which cannot be deductedfrom income taxnon-delivery /nɒn d�lv(ə)r/ nounthe failure to deliver goods that havebeen orderednon-deposit investment product/nɒnd�pɒzt n�vestmənt �prɒd�kt/noun US any investment, such as secu-rities or mutual funds, which is not in-sured by the FDIC. Abbreviation NDIP

nickel 234 non-deposit investment product

non-durables /nɒn �djυərəb(ə)lz/,non-durable goods /nɒn �djυərəb(ə)l�υdz/ plural noun goods which are usedup soon after they have been bought,e.g. food or newspapersnon-exec /�nɒn��zek/ noun same asnon-executive directornon-executive director /nɒn �-�zekjυtv da�rektə/ noun a directorwho attends board meetings and givesadvice, but does not work full-time forthe company. Also called outsidedirector

COMMENT: Non-executive directors keepan eye on the way the company is run,and in particular make sure that the exec-utive directors are doing their work prop-erly. They may also intervene in disputesbetween directors, or between sharehold-ers and directors.

non-feasance /nɒn�fi�z(ə)ns/ nounfailure to do something which should bedone by lawnon-interest /nɒn�ntrəst/ noun abank’s income from fees and charges, asopposed to income from interestnon-legal /nɒn�li��(ə)l/ adjective notlegalnon-legal investment /nɒn�li��(ə)ln�vestmənt/ noun US an investmentwhich is not on the legal list, and whicha bank cannot invest innonmember bank /nɒn�membəb�ŋk/ noun US a bank which is not amember of the Federal Reserve Systemnon-negotiable instrument /nɒnn��əυʃəb(ə)l �nstrυmənt/ noun adocument which cannot be exchangedfor cash, e.g. a crossed chequenon-payment /nɒn �pemənt/ noun� non-payment of a debt the act of notpaying a debt that is duenon-performing loan /nɒn p%�-�fɔ�mŋ �ləυn/ noun US a loan wherethe borrower is not likely to pay any in-terest nor to repay the principal (as inthe case of loans to Third World coun-tries by western banks)non-profit-making organisation/�nɒn�prɒft�mekŋ ɔ��əna�zeʃən/,non-profit organisation /nɒn �prɒftɔ��əna�zeʃ(ə)n/ noun an organisation(such as a club) which is not al-lowed by law to make a profit �Non-profit-making organisations are

exempted from tax. (NOTE: Non-profitorganisations include charities, profes-sional associations, trade unions, andreligious, arts, community, research,and campaigning bodies. The US termis non-profit corporation.)

non-recurring items /nɒn r�k%�rŋ�atəmz/ plural noun special items in aset of accounts which appear only oncenon-refundable /nɒn r�f�ndəb(ə)l/adjective which will not be refunded �You will be asked to make anon-refundable deposit.nonregulated /nɒn�re�jυlettd/ ad-jective which is not subject to govern-ment regulations � a nonregulatedsubsidiary that builds and manages en-ergy projects for industrial customers �The banking industry was totallynonregulated in the nineteenth century.non-resident /nɒn �rezdənt/; /nɒn�rezd(ə)nt/ noun, adjective (a person)who is not considered a resident of acountry for tax purposes � He has anon-resident bank account.non-statutory /nɒn �st�tʃυt(ə)ri/adjective not covered by legislationnon-sufficient funds /nɒn sə-�fʃənt �f�ndz/ noun US not enoughmoney in a bank account to pay acheque drawn on that account. Abbrevi-ation NSF. Also called insufficientfunds, not sufficient fundsnon-taxable /nɒn �t�ksəb(ə)l/ ad-jective which is not subject to tax �non-taxable income � Lottery prizes arenon-taxable.non-voting shares /nɒn �vəυtŋʃeəz/ plural noun shares which do notallow the shareholder to vote at meet-ings (also called ‘A’ shares)normal working week /�nɔ�m(ə)l�w%�kŋ wi�k/ noun the usual numberof hours worked per week � Eventhough she is a freelance, she works anormal working week.nostro account /�nɒstrəυ ə�kaυnt/noun an account which a bank has witha correspondent bank in another coun-try. � vostro accountnotary public /�nəυtəri �p�blk/noun a lawyer who has the authority towitness documents and spoken state-ments, making them official (NOTE: Theplural is notaries public.)

non-durables 235 notary public

note /nəυt/ noun 1. a short documentor piece of writing, or a short piece ofinformation � to send someone a note �I left a note on her desk. � notes to theaccounts notes attached to a company’saccounts by the auditors to explainitems in the accounts or to explain theprinciples of accounting used 2. same asbanknote � verb to notice an advertise-ment in a publication but not necessarilyread or understand itnote issuance facility /nəυt�ʃuəns fə�slti/ noun a credit facilitywhere a company obtains a loan under-written by banks and can issue a seriesof short-term eurocurrency notes toreplace others which have expired. Ab-breviation NIFnote of hand /�nəυt əv �h�nd/ nouna document stating that someone prom-ises to pay an amount of money on acertain datenotice /�nəυts/ noun 1. a piece ofwritten information � The companysecretary pinned up a notice aboutthe pension scheme. 2. an officialwarning that a contract is going to endor that terms are going to be changed �until further notice until different in-structions are given � You must pay£200 on the 30th of each month untilfurther notice. 3. the time allowed be-fore something takes place � We re-quire three months’ notice � at shortnotice with very little warning � Thebank manager will not see anyone atshort notice. � you must give sevendays’ notice of withdrawal you mustask to take money out of the accountseven days before you want itnotional /�nəυʃ(ə)n(ə)l/ adjectiveprobable but not known exactly or notquantifiablenotional income /�nəυʃ(ə)n(ə)l�nk�m/ noun an invisible benefitwhich is not money or goods andservicesnotional rent /�nəυʃ(ə)n(ə)l rent/noun a sum put into accounts as rentwhere the company owns the building itis occupying and so does not pay an ac-tual rentnot sufficient funds /�nɒt sə-�fʃ(ə)nt �f�ndz/ noun US same asnon-sufficient funds. abbreviationNSF

nought /nɔ�t/ noun the figure 0 � Amillion pounds can be written as ‘£1m’or as one and six noughts. (NOTE:Nought is commoner in UK English; inUS English, zero is more usual.)novation /nəυ�veʃ(ə)n/ noun anagreement to change a contract by sub-stituting a third party for one of the twooriginal partiesNOW account /�naυ ə�kaυnt/ nounUS an interest-bearing account with abank or savings and loan association, onwhich cheques (called ‘negotiable or-ders of withdrawal’) can be drawn. Fullform negotiable order of withdrawalaccountNS&I abbreviation National Savings &InvestmentsNSF abbreviation not sufficient fundsor non-sufficient fundsnull /n�l/ adjective which cannot le-gally be enforced � the contract wasdeclared null and void the contract wassaid to be not validnumber /�n�mbə/ noun 1. a quantityof things or people � The number ofpersons on the payroll has increasedover the last year. � The number of dayslost through strikes has fallen. 2. aprinted or written figure that identifies aparticular thing � Please write your ac-count number on the back of the cheque.� If you have a complaint to make, al-ways quote the batch number. � Henoted the cheque number in the ledger.3. an amount in figures � verb to put afigure on a document � to number anorder � I refer to your invoice num-bered 1234.number cruncher /�n�mbə�kr�ntʃə/ noun a person who makescalculations involving large figures (in-formal.)numbered account /�n�mbəd ə-�kaυnt/ noun a bank account (usu-ally in Switzerland) which is referredto only by a number, the name ofthe person holding it being kept secretnumeric /nju��merk/, numerical/nju��merk(ə)l/ adjective referring tonumbersnumerical order /nju��merk(ə)l�ɔ�də/ noun an arrangement by numbers� Put these invoices in numerical order.� in numerical order in the order of

note 236 numerical order

figures, e.g. 1 before 2, 33 before 34 �Put these invoices in numerical order.numeric data /nju��merk �detə/noun data in the form of figuresnumeric keypad /nju��merk�ki�p�d/ noun the part of a computerkeyboard which is a programmable setof numbered keys

NV abbreviation a Dutch private lim-ited company. Full form naamlozevenootschapNYCE abbreviation New York CottonExchangeNYFE abbreviation New York FuturesExchangeNYSE abbreviation New York StockExchange

numeric data 237 NYSE

O

OAC abbreviation on approved creditO & M abbreviation organisation andmethodsobjective /əb�d$ektv/ noun some-thing which you hope to achieve � Thecompany has achieved its objectives. �We set the sales forces specific objec-tives. � Our recruitment objectives areto have well-qualified and well-placedstaff. � long-term or short-term objec-tive an aim which you hope to achievewithin a few years or a few months �adjective considered from a generalpoint of view rather than from that ofthe person involved � You must be ob-jective in assessing the performance ofthe staff. � They have been asked tocarry out an objective survey of themarket. (NOTE: The opposite is subjec-tive.)obligate /�ɒbl�et/ verb � to be obli-gated to do something to have a legalduty to do somethingobligation /�ɒbl��eʃ(ə)n/ noun 1. aduty to do something � There is no obli-gation to help out in another department� There is no obligation to buy. � twoweeks’ free trial without obligationthe customer can try the item at homefor two weeks without having to buy itat the end of the test � to be under anobligation to do something to feel it isyour duty to do something � he is underno contractual obligation to buy hehas signed no contract which forces himto buy � to fulfil your contractual obli-gations to do what is stated in a contract2. a debt � to meet your obligations topay your debtso.b.o. abbreviation or best offeroccupational /�ɒkjυ�peʃ(ə)nəl/ ad-jective referring to a joboccupational accident/�ɒkjυpeʃ(ə)nəl ��ksd(ə)nt/ noun anaccident which takes place at work

occupational pension/�ɒkjυpeʃ(ə)nəl �penʃə/ noun a pen-sion which is paid by the company bywhich a worker has been employedoccupational pension scheme/�ɒkjυpeʃ(ə)nəl �penʃən ski�m/ nouna pension scheme where the worker getsa pension from a fund set up by thecompany he or she has worked for,which is related to the salary he or shewas earning. Also called companypension schemeoccupier /�ɒkjυpaə/ noun a personwho lives in a propertyodd /ɒd/ adjective � a hundred oddapproximately one hundred � keep theodd change keep the small changewhich is left overodd lot /ɒd �lɒt/ noun 1. a group ofmiscellaneous items for sale at an auc-tion 2. a group of miscellaneous items,such as a small block of sharesoddments /�ɒdmənts/ plural nounleft-over pieces of large items, soldseparatelyOECD abbreviation Organisation forEconomic Co-operation andDevelopment

‘…calling for a greater correlation betweenlabour market policies, social policies andeducation and training, the OECD warned thatlong-term unemployment would remainunacceptably high without a reassessment oflabour market trends’ [Australian FinancialReview]

Oeic abbreviation open-ended invest-ment companyOFEX noun private trading facilitiesfor buying and selling shares in compa-nies which are not quoted on the Lon-don Stock Exchangeoff /ɒf/ adverb 1. taken away from aprice � We give 5% off for quick settle-ment. 2. lower than a previous price �The shares closed 2% off. � preposition

1. subtracted from � to take £25 off theprice � We give 10% off our normalprices. 2. not included � items off bal-ance sheet or off balance sheet assetsfinancial items which do not appear in acompany’s balance sheet as assets (suchas equipment acquired under an operat-ing lease)

‘…its stock closed Monday at $21.875 a share inNYSE composite trading, off 56% from its highlast July’ [Wall Street Journal]

off-balance-sheet financing /ɒf�b�ləns ʃi�t �fan�nsŋ/ noun financ-ing by leasing equipment instead ofbuying it, so that it does not appear inthe balance sheet as an assetoffer /�ɒfə/ noun 1. a statement thatyou are willing to give or do something,especially to pay a specific amount ofmoney to buy something � to make anoffer for a company � We made an offerof £10 a share. � We made a writ-ten offer for the house. � £1,000 is thebest offer I can make. � We accepted anoffer of £1,000 for the car. � the houseis under offer someone has made anoffer to buy the house and the offer hasbeen accepted provisionally � we areopen to offers we are ready to discussthe price which we are asking � or nearoffer, US, or best offer or an offer of aprice which is slightly less than the priceasked � The car is for sale at £2,000 ornear offer. 2. a statement that you arewilling to sell something � on offer forsale or available 3. a statement that youare willing to employ someone � shereceived six offers of jobs or six joboffers six companies told her she couldhave a job with them 4. a statement thata company is prepared to buy anothercompany’s shares and take the companyover � verb 1. to say that you are will-ing to do something � We offered to gowith them to the meeting. � to offersomeone a job to tell someone that theycan have a job in your company � Shewas offered a directorship with SmithLtd. 2. to say that you are willing to paya specific amount of money for some-thing � to offer someone £100,000 fortheir house � She offered £10 a share.3. to say that you are willing to sellsomething � We offered the house forsale. � They are offering special priceson winter holidays in the USA.offer document /�ɒfə �dɒkjυmənt/noun a formal document where a com-

pany offers to buy shares at a certainprice as part of a takeover bidoffered market /�ɒfəd �mɑ�kt/noun a market where there are moresellers than buyersoffered price /�ɒfəd �pras/ noun aprice at which shares are offered for saleby a marketmaker on the Stock Ex-change (the opposite, i.e. the price atwhich an investor sells shares, is the‘bid price’; the difference between thetwo is the ‘spread’)offered rate /�ɒfəd �ret/ noun a rateof interest at which banks are preparedto lend each other moneyoffer for sale /�ɒfə fə �sel/ noun asituation where a company advertisesnew shares for sale to the public as away of launching itself on the Stock Ex-change (NOTE: The other ways oflaunching a company are a ‘tender’ ora ‘placing.’)offer for subscription /�ɒfə fə səb-�skrpʃ(ə)n/ noun a similar to an offerfor sale, except there is a minimum levelof subscription for the shares, and if thisis not reached the offer is withdrawnoffering /�ɒf(ə)rŋ/ noun an action ofstating that you are prepared to sellsomething at a certain price

‘…shares of newly public companies postedtheir worst performance of the year last monthas a spate of initial public offerings disappointedfollowers’ [Wall Street Journal]‘…if the partnership supports a sale, a publicoffering of shares would be set for as early asthe fourth quarter’ [Wall Street Journal]

offering circular /�ɒf(ə)rŋ�s%�kjυlə/ noun a document whichgives information about a companywhose shares are being sold to the pub-lic for the first timeoffer period /�ɒfə �pəriəd/ noun atime during which a takeover bid for acompany is openoffer price /�ɒfə pras/ noun the priceat which investors buy new shares orunits in a unit trust (the opposite, i.e. theselling price, is called the ‘bid price’;the difference between the two is the‘spread’)office /�ɒfs/ noun 1. a set of roomswhere a company works or where busi-ness is done � for office use only some-thing which must only be used in anoffice 2. a room where someone works

off-balance-sheet financing 239 office

and does business � Come into my of-fice. � The human resources manager’soffice is on the third floor. 3. a govern-ment department 4. a post or position �She holds or performs the office of trea-surer � compensation for loss of officepayment to a director who is asked toleave a company before his contractendsoffice hours /�ɒfs aυəz/ plural nounthe time when an office is open � Donot make private phone calls during of-fice hours.Office of Fair Trading /�ɒfs əv feə�tredŋ/ noun a government depart-ment which protects consumers againstunfair or illegal business. AbbreviationOFTOffice of Management andBudget /�ɒfs əv �m�nd$mənt ən�b�d$t/ noun US a government depart-ment which prepares the US federalbudget. Abbreviation OMBOffice of Thrift Supervision /�ɒfsəv �θrft su�pə�v$(ə)n/ noun a USgovernment department which regulatesthe Savings and Loan Associationsofficer /�ɒfsə/ noun a person who hasan official position, especially an unpaidone in a club or other association � Theelection of officers takes place nextweek.office staff /�ɒfs stɑ�f/ noun peoplewho work in officesofficial /ə�fʃ(ə)l/ adjective from agovernment department or organisation� She went to France on official busi-ness. � He left official documents in hiscar. � She received an official letter ofexplanation. � speaking in an officialcapacity speaking officially � to gothrough official channels to deal withofficials, especially when making a re-quest � noun a person working in agovernment department � airport offi-cials inspected the shipment � Govern-ment officials stopped the importlicence. � minor official a person in alow position in a government depart-ment � Some minor official tried to stopmy request for building permission.officialese /ə�fʃə�li�z/ noun the lan-guage used in government documentswhich can be difficult to understandofficial exchange rate /ə�fʃ(ə)lks�tʃend$ ret/ noun an exchange

rate which is imposed by the govern-ment � The official exchange rate is tento the dollar, but you can get fifty on theblack market.official intervention /ə�fʃ(ə)l�ntə�venʃ(ə)n/ noun an attempt by agovernment to influence the exchangerate by buying or selling foreigncurrencyOfficial List /ə�fʃ(ə)l �lst/ noun adaily publication by the London StockExchange of the highest and lowestprices recorded for each share duringthe trading sessionofficial market /ə�fʃ(ə)l �mɑ�kt/noun the market in shares on the Lon-don Stock Exchange (as opposed to thegrey market)official receiver /ə�fʃ(ə)l r�si�və/noun a government official who is ap-pointed to run a company which isin financial difficulties, to pay off itsdebts as far as possible and to close itdown � The company is in the hands ofthe offical receiver.official return /ə�fʃ(ə)l r�t%�n/noun an official reportofficio /ə�fʃəυ/ � ex officiooffload /ɒf�ləυd/ verb to pass some-thing which you do not want to someoneelse � to offload excess stock to try tosell excess stock � to offload costs ontoa subsidiary company to try to get asubsidiary company to pay somecharges so as to reduce taxoffre publique d’achat noun theFrench word for takeover bid. Abbrevia-tion OPAoffset /ɒf�set/ verb to balance onething against another so that they canceleach other out � to offset losses againsttax � Foreign exchange losses morethan offset profits in the domestic mar-ket. (NOTE: offsetting – offset)offshore /�ɒfʃɔ�/ adjective, adverb 1.on an island or in the sea near to land �an offshore oil field � an offshore oilplatform 2. on an island which is a taxhaven 3. based outside a country (espe-cially in a tax haven)offshore account /�ɒfʃɔ� ə�kaυnt/noun an account in a tax havenoffshore banking /�ɒfʃɔ� �b�ŋkŋ/noun banking in a tax haven

office hours 240 offshore banking

offshore fund /�ɒf ʃɔ� �f�nd/ noun afund which is based outside the UK, andusually in a country which has less stricttaxation than in the UK, such as theBahamasoffshore investments /�ɒfʃɔ� n-�vestmənts/ plural noun investmentswhich are sold and run by companies li-censed in an offshore tax haven, such asJersey, Guernsey or the Isle of Manoff-the-job training /�ɒf ðə d$ɒb�trenŋ/ noun training given to em-ployees away from their place of work(such as at a college or school)off-the-shelf company /�ɒf ðə �ʃelf�k�mp(ə)ni/ noun a company which hasalready been registered by an accoun-tant or lawyer, and which is ready forsale to someone who wants to set up anew company quicklyOFT abbreviation Office of FairTradingoil-exporting country /�ɔl k-�spɔ�tŋ �k�ntri/ noun a country whichproduces oil and sells it to othersoil-importing country /ɔlm-�pɔ�tŋ �k�ntri/ noun a country whichimports oiloil-producing country /ɔl prə-�dju�sŋ �k�ntri/ noun a country whichproduces oiloil shares /�ɔl ʃeəz/, oils /ɔlz/ plu-ral noun shares in companies engaged inextracting or selling oil and petrolOld Lady of ThreadneedleStreet /əυld �ledi əv θred�ni�d(ə)lstri�t/ noun the Bank of England (infor-mal.)oligopoly /ɒl��ɒpəli/ noun a situa-tion where only a few sellers control themarket � An oligopoly means thatprices can be kept high.OMB abbreviation Office of Manage-ment and Budgetombudsman /�ɒmbυdzmən/ nounan official who investigates complaintsby the public against government de-partments or other large organisations

‘…radical changes to the disciplinary system,including appointing an ombudsman to reviewcases where complainants are not satisfied withthe outcome, are proposed in a consultativepaper the Institute of Chartered Accountantsissued last month’ [Accountancy]COMMENT: There are several ombuds-men: the main one is the Parliamentary

Commissioner, who is a civil servant andinvestigates complaints against govern-ment departments. The Banking Ombuds-man, the Investment Ombudsman, theBuilding Societies Ombudsman, the Pen-sions Ombudsman and the InsuranceOmbudsman are independent officialswho investigate complaints by the publicagainst banks, financial advisers, buildingsocieties, pension funds or insurancecompanies. They are all regulated by theFinancial Services Authority.

omission /əυ�mʃ(ə)n/ noun a thingwhich has been omitted, or the act ofomitting somethingomit /əυ�mt/ verb not to do some-thing � He omitted to tell the managingdirector that he had lost the documents.(NOTE: omitting – omitted) � to omit adividend US to pay no dividend in acertain yearOMLX abbreviation the London Secu-rities & Derivatives Exchangeon /ɒn/ preposition 1. being a memberof a group � to sit on a committee � Sheis on the boards of two companies. � Wehave 250 people on the payroll. � She ison our full-time staff. 2. in a certain way� on a commercial basis � to buy some-thing on approval � to buy a car onhire-purchase � to get a mortgage oneasy terms � He is still on probation. �She is employed on very generous terms.� on the understanding that on condi-tion that, provided that � We accept theterms of the contract, on the under-standing that it has to be ratified by ourmain board. 3. at a time � The shop isclosed on Wednesday afternoons. � Wework 7 hours a day on weekdays. � Thewhole staff has the day off on May 24th.4. doing something � The director is onholiday. � She is in the States on busi-ness. � The switchboard operator is onduty from 6 to 9.on approved credit /ɒn ə�pru�vd�kredt/ adjective US showing that abank loan has been made available to aclient who has a good credit history. Ab-breviation OAConcosts /�ɒnkɒsts/ plural nounmoney spent in producing a product,which does not rise with the quantity ofthe product made. Also called fixedcostsone-man business /�w�n m�n�bzns/, one-man firm /�w�n m�n

offshore fund 241 one-man business

'fÆ:m/, one-man company /�w�nm�n �k�mp(ə)ni/ noun a business runby one person alone with no staff orpartnersone-off /�w�n �ɒf/ adjective done ormade only once � one-off item � one-offdeal � one-off paymentonerous /�əυnərəs/ adjective heavy,needing a lot of effort or money � therepayment terms are particularlyonerous the loan is particularly difficultto pay backone-sided /w�n �sadd/ adjectivewhich favours one side and not the otherin a negotiationone-stop banking /�w�n stɒp�b�ŋkŋ/ noun a type of banking wherea single organisation offers a wholerange of services (including such thingsas mortgages, loans and pensions)one-stop shopping /�w�n stɒp�ʃɒpŋ/ noun the practice of taking arange of financial services from a singleorganisation, e.g. from a bank which of-fers loans, mortgages, pensions and in-surance as well as the normal personalbanking servicesone-way ticket /�w�n we �tkt/noun a ticket for a journey from oneplace to anotherone-way trade /�w�n we �tred/noun a situation where one country sellsto another, but does not buy anything inreturnone-year money /�w�n jə �m�ni/noun money placed for one yearonline /ɒn�lan/; /�ɒnlan/ adjective,adverb linked via a computer directly toanother computer, a computer networkor, especially, the Internet; on theInternet � The sales office is online tothe warehouse. � We get our data on-line from the stock control department.

‘…there may be a silver lining for‘clicks-and-mortar’ stores that have both anonline and a high street presence. Many of theseare accepting returns of goods purchased onlineat their traditional stores. This is a service thatmay make them more popular as consumersbecome more experienced online shoppers’[Financial Times]

‘…a survey found that even among experiencedusers – those who shop online at least once amonth – about 10% abandoned a plannedpurchase because of annoying online delays andprocedures’ [Financial Times]

‘…some online brokers failed to foresee thehuge increase in private dealing and hadproblems coping with the rising volume. It hasbeen the year when private investors were ableto trade online quickly, cheaply, and on thewhole, with little bother’ [Financial Times]

online banking /�ɒnlan �b�ŋkŋ/noun a system by which customers havebank accounts which they can access di-rect from their home computers, usingthe Internet, and can carry out opera-tions such as checking on their accountbalance, paying invoices and receivingtheir salaries electronicallyonline bill paying /�ɒnlan �bl�peŋ/ noun a system of paying bills di-rectly from an account using the Interneto.n.o. abbreviation or near offeron-the-job training /�ɒn ðə d$ɒb�trenŋ/ noun training given to em-ployees at their place of workon the side /ɒn ðə �sad/ adverbseparate from your normal work, andhidden from your employer � He worksin an accountant’s office, but he runs aconstruction company on the side. �Her salary is too small to live on, so thefamily lives on what she can make onthe side.OPA abbreviation offre publiqued’achatOPEC /�əυpek/ abbreviation Organi-sation of Petroleum Exporting Countriesopen /�əυpən/ adjective 1. at work,not closed � The store is open onSunday mornings. � Our offices areopen from 9 to 6. � They are open forbusiness every day of the week. 2. readyto accept something � the job is open toall applicants anyone can apply for thejob � open to offers ready to accept areasonable offer � the company is opento offers for the empty factory thecompany is ready to discuss an offerwhich is lower than the suggested price� verb 1. to start a new business � Shehas opened a shop in the High Street. �We have opened a branch in London. 2.to start work, to be at work � The officeopens at 9 a.m. � We open for businesson Sundays. 3. to begin something � toopen negotiations to begin negotiating� She opened the discussions with a de-scription of the product. � The chair-man opened the meeting at 10.30. 4. toset something up or make somethingavilable � to open a bank account � to

one-off 242 open

open a line of credit � to open a loan 5.� shares opened lower share priceswere lower at the beginning of the day’strading

‘…after opening at 79.1 the index touched apeak of 79.2 and then drifted to a low of 78.8’[Financial Times]

open account /�əυpən ə�kaυnt/noun an account where the supplier of-fers the purchaser credit withoutsecurityopen cheque /�əυpən �tʃek/ nounsame as uncrossed chequeopen credit /�əυpən �kredt/ nouncredit given to good customers withoutsecurityopen-end /�əυpən �end/ verb US tomake a fund open-ended � adjectivesame as open-endedopen-ended /�əυpən �endd/ adjec-tive with no fixed limit or with someitems not specified � They signed anopen-ended agreement. � The candidatewas offered an open-ended contractwith a good career plan. (NOTE: The USterm is open-end.)

open-ended credit /�əυpən �endd�kredt/ noun same as revolving creditopen-ended fund /�əυpən �enddf�nd/ noun a fund (such as a unit trust)where investors buy units, the moneypaid being invested in a range of securi-ties (as opposed to a closed fund, suchas an investment trust, where the inves-tor buys shares in the trust company,and receives dividends)Open-ended investment com-pany /�əυpən �endd n�vestmənt�k�mp(ə)ni/ noun a new form of unittrust, in which the investor purchasesshares at a single price, as opposed tothe offer/bid pricing system used by or-dinary unit trusts. Abbreviation Oeicopening /�əυp(ə)nŋ/ noun the act ofstarting a new business � the opening ofa new branch � the opening of a newmarket or of a new distribution network� adjective being at the beginning, orthe first of severalopening balance /�əυp(ə)nŋ�b�ləns/ noun a balance at the begin-ning of an accounting periodopening bid /�əυp(ə)nŋ bd/ nounthe first bid at an auction

opening entry /�əυp(ə)nŋ �entri/noun the first entry in an accountopening hours /�əυp(ə)nŋ aυəz/plural noun the hours when a shop orbusiness is openopening price /�əυp(ə)nŋ pras/noun a price at the start of a day’stradingopening stock /�əυp(ə)nŋ stɒk/noun the stock details at the beginningof an accounting periodopen market /�əυpən �mɑ�kt/ nouna market where anyone can buy or sellopen market operation /�əυpən�mɑ�kt ɒpə�reʃ(ə)n/ noun a sale orpurchase of government stock by ordi-nary investors, used by the governmentas a means of influencing money supplyopen outcry system /�əυpən�aυtkra �sstəm/ noun a system ofbuying and selling used in some ex-changes, where the brokers shout prices,offers or orders to each otheropen ticket /�əυpən �tkt/ noun aticket which can be used on any dateoperate /�ɒpəret/ verb to do busi-ness, or to run a business or a machine

‘…the company gets valuable restaurantlocations which will be converted to thefamily-style restaurant chain that it operates andfranchises throughout most parts of the US’[Fortune]

operating /�ɒpəretŋ/ noun the gen-eral running of a business or of amachine

‘…the company blamed over-capacity andcompetitive market conditions in Europe for a£14m operating loss last year’ [Financial Times]

operating budget /�ɒpəretŋ�b�d$t/ noun a forecast of income andexpenditure over a period of timeoperating costs /�ɒpəretŋ �kɒsts/plural noun the costs of the day-to-dayactivities of a company. Also called op-erating expenses, running costs

operating income /�ɒpəretŋ�nk�m/, operating profit /�ɒpəretŋ�prɒft/ noun the profit made by a com-pany in its usual business. Also calledoperating earnings

operating loss /�ɒpəretŋ lɒs/noun a loss made by a company in itsusual business

open account 243 operating loss

operating manual /�ɒpəretŋ�m�njυəl/ noun a book which showshow to work a machineoperating system /�ɒpəretŋ�sstəm/ noun the main program whichoperates a computeroperation /�ɒpə�reʃ(ə)n/ noun an ac-tivity or a piece of work, or the task ofrunning something � the company’s op-erations in West Africa � He heads upthe operations in Northern Europe.

‘…a leading manufacturer of business,industrial and commercial products requires abranch manager to head up its mid-westernCanada operations based in Winnipeg’[Globe and Mail (Toronto)]

operational /�ɒpə�reʃ(ə)nəl/ adjec-tive referring to the day-to-day activitiesof a business or to the way in whichsomething is runoperational budget /�ɒpəreʃ(ə)nəl�b�d$t/ noun a forecast of expenditureon running a businessoperational costs /�ɒpəreʃ(ə)nəl�kɒsts/ plural noun the costs of runninga businessoperational gearing/�ɒpəreʃ(ə)nəl ��ərŋ/ noun a situa-tion where a company has high fixedcosts which are funded by borrowingsoperational planning/�ɒpəreʃ(ə)nəl �pl�nŋ/ noun the plan-ning of how a business is to be runoperational research/�ɒpəreʃ(ə)nəl r�s%�tʃ/ noun a studyof a company’s way of working to see ifit can be made more efficient andprofitableoperations department /�ɒpə-�reʃ(ə)nz d�pɑ�tmənt/ noun the gen-eral administration department of acompanyoperations review /�ɒpəreʃ(ə)nzr�vju�/ noun an act of examining theway in which a company or departmentworks to see how it can be made moreefficient and profitableoperator /�ɒpəretə/ noun 1. a personwho runs a business 2. (on the StockExchange) a person who buys and sellsshares hoping to make a quick profit

‘…a number of block bookings by Americantour operators have been cancelled’ [Economist]

OPM abbreviation other people’smoney

opportunity /�ɒpə�tju�nti/ noun achance to do something successfully

‘…the group is currently undergoing a period ofrapid expansion and this has created an excitingopportunity for a qualified accountant’[Financial Times]

opportunity cost /�ɒpə�tju�ntikɒst/ noun 1. the cost of a business ini-tiative in terms of profits that could havebeen gained through an alternative plan� It’s a good investment plan and wewill not be deterred by the opportunitycost. 2. the value of another method ofinvestment which could have been used,instead of the one adoptedoppose /ə�pəυz/ verb to try to stopsomething happening; to vote againstsomething � A minority of board mem-bers opposed the motion. � We are allopposed to the takeover. � A minority ofunion members opposed the deal.optimal /�ɒptm(ə)l/ adjective bestoptimism /�ɒptmz(ə)m/ noun astate of mind in which you are sure thateverything will work out well � He hasconsiderable optimism about sales pos-sibilities in the Far East.optimistic /�ɒpt�mstk/ adjectivefeeling sure that everything will workout well � he takes an optimistic viewof the exchange rate he expects the ex-change rate will go in his favouroptimum /�ɒptməm/ adjective best� The market offers optimum conditionsfor sales.option /�ɒpʃən/ noun the opportunityto buy or sell something within a fixedperiod of time at a fixed price � to grantsomeone a six-month option on aproduct to allow someone six monthsto decide if they want to manufacturethe product � to take up an option or toexercise an option to accept the optionwhich has been offered and to put it intoaction � They exercised their option orthey took up their option to acquire solemarketing rights to the product. � Iwant to leave my options open I wantto be able to decide what to do when thetime is right � to take the soft option todecide to do something which involvesthe least risk, effort or problemsoptional /�ɒpʃ(ə)n(ə)l/ adjectivewhich can be done or not done, taken ornot taken, as a person chooses � The in-surance cover is optional. � Attendanceat staff meetings is optional, although

operating manual 244 optional

the management encourages employeesto attend.option contract /�ɒpʃən �kɒntr�kt/noun a right to buy or sell shares at afixed priceoption dealing /�ɒpʃən �di�lŋ/ nounbuying and selling share optionsoption holder /�ɒpʃən �həυldə/ nounSTOCK EXCHANGE a person who holdsan option (i.e. who has bought anoption)option to purchase /�ɒpʃən tə�p%�tʃs/ noun an option which givessomeone the possibility to buy some-thing within a period of timeoption to sell /�ɒpʃn tə �sel/ noun anoption which gives someone the possi-bility to sell something within a periodof timeoption trading /�ɒpʃən �tredŋ/noun the business of buying and sellingshare optionsorder /�ɔ�də/ noun 1. the way in whichrecords such as filing cards or invoicesare arranged � in alphabetical ornumerical order 2. an official requestfor goods to be supplied � to give some-one an order or to place an order withsomeone for twenty filing cabinets �The management ordered the workforceto leave the factory. � to fill an order,to fulfil an order to supply items whichhave been ordered � We are so under-staffed we cannot fulfil any more ordersbefore Christmas. � items availableto order only items which will bemanufactured only if someone ordersthem � on order ordered but not deliv-ered � This item is out of stock, but is onorder. 3. a document which allowsmoney to be paid to someone � She sentus an order on the Chartered Bank. 4.(Stock Exchange) an instruction to abroker to buy or sell 5. � pay to MrSmith or order pay money to Mr Smithor as he orders � pay to the order ofMr Smith pay money directly to MrSmith or to his account � verb to givean official request for something to bedone or for something to be supplied �to order twenty filing cabinets to be de-livered to the warehouseorder book /�ɔ�də bυk/ noun a bookwhich records orders receivedorder cheque /�ɔ�də tʃek/ noun acheque which is paid to a named person

with the words ‘or order’ after thepayee’s name, showing that he can en-dorse it and pass it to someone else if hewishesorder-driven system /�ɔ�də�drv(ə)n �sstəm/, order-driven mar-ket /�ɔ�də �drv(ə)n �mɑ�kt/ noun aprice system on a stock exchange,where prices vary according to thelevel of orders (as opposed to a‘quote-driven’ system)order fulfilment /�ɔ�də fυl�flmənt/noun the process of supplying itemswhich have been orderedorder processing /�ɔ�də�prəυsesŋ/ noun the work of dealingwith ordersordinary /�ɔ�d(ə)n(ə)ri/ adjective notspecialordinary interest /�ɔ�d(ə)n(ə)ri�ntrəst/ noun annual interest calcu-lated on the basis of 360 days (as op-posed to ‘exact interest’ which iscalculated on 365 days)ordinary member /�ɔ�d(ə)n(ə)ri�membə/ noun a person who pays asubscription to belong to a groupordinary resolution /�ɔ�d(ə)n(ə)ri�rezə�lu�ʃ(ə)n/ noun a resolution putbefore an AGM, usually referring tosome general procedural matter, andwhich requires a simple majority ofvotes to be acceptedordinary share capital/�ɔ�d(ə)n(ə)ri �ʃeə �k�pt(ə)l/ noun thecapital of a company in the form ofmoney paid for ordinary sharesordinary shareholder/�ɔ�d(ə)n(ə)ri �ʃeəhəυldə/ noun a per-son who owns ordinary shares in acompanyordinary shares /�ɔ�d(ə)n(ə)ri ʃeəz/plural noun normal shares in a com-pany, which have no special benefits orrestrictions (NOTE: The US term iscommon stock.)organic growth /ɔ����nk ��rəυθ/noun same as internal growthorganisation /�ɔ��əna�zeʃ(ə)n/,organization noun 1. a way of arrang-ing something so that it works effi-ciently � the organisation of the headoffice into departments � The chairmanhandles the organisation of the AGM. �The organisation of the group is too

option contract 245 organisation

centralised to be efficient. 2. a group orinstitution which is arranged for effi-cient work

‘…working with a client base which includesmany major commercial organizations andnationalized industries’ [Times]

organisational /�ɔ��əna-�zeʃ(ə)n(ə)l/, organizational adjec-tive referring to the way in which some-thing is organised � The paper gives adiagram of the company’s organisa-tional structure.organisational chart /�ɔ��əna-�zeʃ(ə)n(ə)l tʃɑ�t/ noun a chartshowing the hierarchical relationshipsbetween employees in a companyorganisation and methods/�ɔ��ənazeʃ(ə)n ən �meθədz/ noun aprocess of examining how an officeworks, and suggesting how it can bemade more efficient. Abbreviation O &Morganisation chart /�ɔ��əna-�zeʃ(ə)n tʃɑ�t/ noun same as organi-sational chartOrganisation for EconomicCo-operation and Development/�ɔ��ənazeʃ(ə)n fər i�kə�nɒmk kəυ-�ɒpəreʃ(ə)n ən d�veləpmənt/ nounan organisation representing the indus-trialised countries, aimed at encouraginginternational trade, wealth and employ-ment in member countries. AbbreviationOECDorganise /�ɔ��ənaz/, organize verb1. to set up a system for doing some-thing � The company is organised intosix profit centres. � The group is organ-ised by sales areas. 2. to arrange some-thing so that it works

‘…we organize a rate with importers who havelarge orders and guarantee them space at a fixedrate so that they can plan their costs’[Lloyd’s List]

organised labour /�ɔ��ənazd�lebə/ noun employees who are mem-bers of trade unions

‘…governments are coming under increasingpressure from politicians, organized labour andbusiness to stimulate economic growth’[Duns Business Month]

Organization of Petroleum Ex-porting Countries/�ɔ��ənazeʃ(ə)n əv pə�trəυliəm ek-�spɔ�tŋ �k�ntriz/ noun a group ofmajor countries who are producers andexporters of oil. Abbreviation OPEC

originating fee /ə�rd$netŋ fi�/,origination fee /ə�rd$�neʃ(ə)n fi�/noun US a front-end fee charged tocover the costs of dealing with an appli-cation for a loanorphan stock /�ɔ�f(ə)n stɒk/ noun aneglected share, which is not often rec-ommended by market analystsOTC abbreviation over-the-counterother people’s money /��ðə�pi�p(ə)lz �m�ni/ noun money thatbelongs to customers, clients or share-holders, i.e. not to the people who areusing it or investing it. AbbreviationOPMouguiya /u���i�jə/ noun a unit of cur-rency used in Mauritaniaounce /aυns/ noun a measure ofweight (= 28 grams) (NOTE: Usuallywritten oz after figures: 25oz. Notealso that the ounce is now no longerofficially used in the UK.)out /aυt/ adverb 1. on strike � Theworkers have been out on strike for fourweeks. � As soon as the managementmade the offer, the staff came out. � Theshop stewards called the workforce out.2. � to be out to be wrong in calculatingsomething, or to be wrongly calculated� the balance is £10 out � we are£20,000 out in our calculations wehave £20,000 too much or too little 3.US away from work because of illness(NOTE: The UK term for this sense isoff.)outbid /aυt�bd/ verb to offer a betterprice than someone else � We offered£100,000 for the warehouse, but an-other company outbid us. (NOTE: out-bidding – outbid)outflow /�aυtfləυ/ noun � outflow ofcapital from a country capital which issent out of a country for investmentabroadoutflows /�aυtfləυz/ plural nounmoney withdrawn from a fund in whichit was previously investedoutgoings /�aυt�əυŋz/ plural nounmoney which is paid outoutlay /�aυtle/ noun money spent, ex-penditure � for a modest outlay for asmall sum � For a modest outlay he wasable to take control of the business.outlook /�aυtlυk/ noun a view of whatis going to happen in the future � The

organisational 246 outlook

economic outlook is not good. � Thestock market outlook is worrying.

‘American demand has transformed the profitoutlook for many European manufacturers’[Duns Business Month]

out-of-date cheque /�aυt əv det�tʃek/ noun a cheque which has notbeen cleared because its date is too old,normally more than six monthsout-of-favour adjective, adverbneglected, not liked (NOTE: The USspelling is out-of-favor.)out of pocket /�aυt əv �pɒkt/adjective, adverb having paid outmoney personally � The deal has leftme out of pocket.out-of-pocket expenses /�aυt əv�pɒkt k�spensz/ plural noun anamount of money paid back to an em-ployee who has spent his or her personalmoney on company businessoutperform /�aυtpə�fɔ�m/ verb to dobetter than other companies

‘…on the fairly safe assumption that there islittle to be gained in attempting to find the shareor trust that outperforms everything else, there isevery reason to buy an index-tracking fund’[Money Observer]

outperformance /�aυtpə�fɔ�məns/noun the fact of doing better than othercompaniesoutput /�aυtpυt/ noun the amountwhich a company, person or machineproduces � Output has increased by10%. � 25% of our output is exported.

‘…crude oil output plunged during the lastmonth and is likely to remain near its presentlevel for the near future’ [Wall Street Journal]

output per hour /�aυtpυt pər �aυə/noun the amount of something producedin one houroutput tax /�aυtpυt t�ks/ noun VATcharged by a company on goods or ser-vices sold, and which the company paysto the governmentoutright /�aυt�rat/ adverb, adjectivecompletelyoutsell /aυt�sel/ verb to sell more thansomeone � The company is easily out-selling its competitors. (NOTE: outsell-ing – outsold)outside /�aυtsad/ adjective, adverb1. not in a company’s office or building� to send work to be done outside tosend work to be done in other offices 2.

� outside office hours not during officehours, when the office is not openoutside dealer /�aυtsad �di�lə/noun a person who is not a member ofthe Stock Exchange but is allowed totradeoutside director /�aυtsad da-�rektə/ noun a director who is not em-ployed by the company, a non-executivedirectoroutside line /�aυtsad �lan/ noun aline from an internal office telephonesystem to the main telephone exchange� You dial 9 to get an outside line.outside office hours /�aυtsad�ɒfs aυəz/ adverb when the office isnot openoutside shareholder /�aυtsad�ʃeəhəυldə/ same as minorityshareholderoutside worker /�aυtsad �w%�kə/noun an employee who does not work ina company’s officesoutstanding /aυt�st�ndŋ/ adjectivenot yet paid or completed � outstand-ing debts debts which are waiting to bepaid � outstanding orders orders re-ceived but not yet supplied � what isthe amount outstanding? how muchmoney is still owed? � matters out-standing from the previous meetingquestions which were not settled at theprevious meeting

COMMENT: Note the difference between‘outstanding’ and ‘overdue’. If a debtorhas 30 days credit, then his debts are out-standing until the end of the 30 days, andthey only become overdue on the 31stday.

outstanding cheque /aυt�st�ndŋ�tʃek/ noun a cheque which has beenwritten and therefore has been enteredin the company’s ledgers, but which hasnot been presented for payment and sohas not been debited from the com-pany’s bank accountoutturn /�aυtt%�n/ noun an amountproduced by a country or companyoutvote /aυt�vəυt/ verb to defeatsomeone in a vote � the chairman wasoutvoted the majority voted against thechairmanoverall /�əυvər�ɔ�l/ adjective coveringor including everything � the companyreported an overall fall in profits the

out-of-date cheque 247 overall

company reported a general fall in prof-its � overall plan a plan which coverseverythingoverall balance of payments/�əυvərɔ�l �b�ləns əv �pemənts/noun the total of current and long-termbalance of paymentsoverbook /�əυvə�bυk/ verb to bookmore people than there are seats orrooms available � The hotel or Theflight was overbooked.overbooking /�əυvə�bυkŋ/ noun theact of taking more bookings than thereare seats or rooms availableoverborrowed /�əυvə�bɒrəυd/ ad-jective referring to a company whichhas very high borrowings compared toits assets, and has difficulty in meetingits interest paymentsoverbought /�əυvə�bɔ�t/ adjectivehaving bought too much � the marketis overbought prices on the stock mar-ket are too high, because there havebeen too many people wanting to buy

‘…they said the market was overbought whenthe index was between 860 and 870 points’[Australian Financial Review]

overcapacity /�əυvəkə�p�sti/ nounan unused capacity for producingsomething

‘…with the present overcapacity situation in theairline industry the discounting of tickets iswidespread’ [Business Traveller]

overcapitalised /�əυvə-�k�ptəlazd/, overcapitalized adjec-tive referring to a company with morecapital than it needsovercharge noun /�əυvətʃɑ�d$/ acharge which is higher than it should be� to pay back an overcharge � verb/�əυvə�tʃɑ�d$/ to ask someone for toomuch money � They overcharged us forour meals. � We asked for a refund be-cause we’d been overcharged.overdraft /�əυvədrɑ�ft/ noun 1. anamount of money which a company orperson can withdraw from a bankaccount, with the bank’s permission,despite the fact that the account is empty� The bank has allowed me an overdraftof £5,000. (NOTE: The US term is over-draft protection.) � we have exceededour overdraft facilities we have takenout more than the overdraft allowed bythe bank 2. US a negative amount ofmoney in an account, i.e. a situation

where a cheque is more than the moneyin the account on which it is drawnoverdraft facilities /�əυvədrɑ�ft fə-�sltiz/ plural noun an arrangementwith a bank to have an overdraftoverdraft limit /�əυvədrɑ�ft �lmt/noun a total which is agreed betweenthe bank and a customer as the maxi-mum amount the customer’s accountmay be overdrawnoverdraft protection /�əυvədrɑ�ftprə�tekʃ(ə)n/ noun a system which pro-tects a customer from overdrawing hisaccount, either by switching moneyautomatically from another account, orby offering a line of creditoverdraw /�əυvə�drɔ�/ verb to takeout more money from a bank accountthan there is in itoverdue /�əυvə�dju�/ adjective whichhas not been paid on time � interestpayments are three weeks overdue in-terest payments which should have beenmade three weeks ago � See note atoutstandingoverestimate /�əυvər�estmet/ verbto think something is larger orworse than it really is � Heoverestimated the amount of timeneeded to fit out the factory. � Theyoverestimated the costs of moving theoffices to central London.overexposure /�əυvərks�pəυ$ə/noun the fact of being too exposed torisky loansoverextend /�əυvərk�stend/ verb �the company overextended itself thecompany borrowed more money than itsassets would allowoverfunding /�əυvə�f�ndŋ/ noun asituation where the government borrowsmore money than it needs for expendi-ture, by selling too much governmentstockovergeared /�əυvə��ərd/ adjectivereferring to a company which has highborrowings in comparison to its assetsoverhang noun a large quantity ofshares or of a commodity or of unsoldstock available for sale, which has theeffect of depressing the market price �verb � to overhang the market to beavailable for sale, and so depress theshare price

overall balance of payments 248 overhang

overhead budget /�əυvəhed�b�d$t/ noun a plan of probable over-head costsoverhead costs /�əυvəhed �kɒsts/,overhead expenses /�əυvəhed k-�spensz/ plural noun same asoverheads

overheads /�əυvəhedz/ plural nounthe indirect costs of the day-to-day run-ning of a business, i.e. not money spentof producing goods, but money spent onsuch things as renting or maintainingbuildings and machinery � The salesrevenue covers the manufacturing costsbut not the overheads. (NOTE: The usualUS term is overhead.)

overheating /�əυvə�hi�tŋ/ noun arise in industrial activity in an economy,leading to a rise in inflation (the econ-omy is then said to be ‘overheated’)overnight /�əυvə�nat/ adverb fromthe evening of one day to the morning ofthe nextovernight money /�əυvənat �m�ni/noun money deposited for less than 24hoursovernight repo /�əυvənat �ri�pəυ/noun a repurchase agreement, wherebanks sell securities for cash and repur-chase them the next day at a higher price(used by central banks as a means ofregulating the money markets)overpaid /�əυvə�ped/ adjective paidtoo much � Our staff are overpaid andunderworked.overpay /�əυvə�pe/ verb 1. to pay toomuch to someone or for something �We overpaid the invoice by $245. 2. topay an extra amount to reduce the totalcapital borrowed on a mortgageoverpayment /�əυvə�pemənt/ noun1. an act of paying too much 2. the pay-ment of a lump sum to reduce the capitalborrowed on a mortgageoverrated /�əυvə�retd/ adjectivevalued more highly than it should be �The effect of the dollar on Europeanbusiness cannot be overrated. � Their‘first-class service’ is very overrated.overrider /�əυvəradə/, overridingcommission /�əυvəradŋ kə-�mʃ(ə)n/ noun a special extra commis-sion which is above all othercommissions

overseas adjective /�əυvəsi�z/, ad-verb /�əυvə�si�z/ across the sea, or to orin foreign countries � Managementtrainees knew that they would be sentoverseas to learn about the export mar-kets. � Some workers are going over-seas to find new jobs. � noun/�əυvə�si�z/ foreign countries � Theprofits from overseas are far higherthan those of the home division.overseas division /�əυvəsi�z d-�v$(ə)n/ noun the section of a companydealing with trade with other countriesoverseas funds /�əυvə�si�z f�ndz/plural noun investment funds based inother countriesoverseas markets /�əυvə�si�z�mɑ�kts/ plural noun markets in for-eign countriesoverseas money order /�əυvəsi�z�m�ni �ɔ�də/ noun a money order in aforeign currency which is payable tosomeone living in a foreign countryoverseas trade /�əυvəsi�z �tred/noun same as foreign tradeoversell /�əυvə�sel/ verb to sell morethan you can produce � he is oversoldhe has agreed to sell more product thanhe can produce � the market is over-sold stock-market prices are too low,because there have been too manysellersoverspend /�əυvə�spend/ verb tospend too much � to overspend yourbudget to spend more money than is al-lowed in your budgetoverspending /�əυvə�spendŋ/noun the act of spending more than isallowed � The board decided to limitthe overspending by the productiondepartments.overstock /�əυvə�stɒk/ verb to havea bigger stock of something than isneeded � to be overstocked with spareparts to have too many spare parts instock

‘Cash paid for your stock: any quantity, anyproducts, overstocked lines, factory seconds’[Australian Financial Review]

overstocks /�əυvəstɒks/ plural nounUS more stock than is needed to supplyorders � We will have to sell off theoverstocks to make room in thewarehouse.oversubscribe /�əυvəsəb�skrab/verb � the share offer was oversub-

overhead budget 249 oversubscribe

scribed six times people applied for sixtimes as many new shares as wereavailableoversubscription /�əυvəsəb-�skrpʃ(ə)n/ noun a situation wherepeople have subscribed for more sharesin a new issue than are being issuedover-the-counter /�əυvə ðə�kaυntə/ adjective involving shareswhich are not listed on the main StockExchange. Abbreviation OTCover-the-counter market /�əυvəðə �kaυntə �mɑ�kt/ noun a secondarymarket in shares which are not listed onthe main Stock Exchangeover-the-counter sales /�əυvə ðə�kaυntə �selz/ plural noun the legalselling of shares which are not listed inthe official Stock Exchange list, usuallycarried out by telephoneovertime /�əυvətam/ noun hoursworked in addition to your normalworking hours � to work six hours’overtime � The overtime rate is one anda half times normal pay. � adverb � towork overtime to work longer hoursthan stated in the contract ofemploymentovertime ban /�əυvətam b�n/ nounan order by a trade union which forbidsovertime work by its membersovertime pay /�əυvətam pe/ nounpay for extra time workedovertrading /�əυvə�tredŋ/ noun asituation where a company increasessales and production too much and tooquickly, so that it runs short of cashovervalue /�əυvə�v�lju�/ verb togive a higher value to something orsomeone than is right � these shares

are overvalued at £1.25 the shares areworth less than the £1.25 for which theyare selling � the pound is overvaluedagainst the dollar the exchange rategives too many dollars to the pound,considering the strength of the twocountries’ economies

‘…the fact that sterling has been overvalued forthe past three years shows that currencies canremain above their fair value for very longperiods’ [Investors Chronicle]

owe /əυ/ verb to have to pay money �He owes the bank £250,000. � they stillowe the company for the stock theypurchased last year they have still notpaid for the stockowing /�əυŋ/ adjective which is owed� money owing to the directors � Howmuch is still owing to the company by itsdebtors?own /əυn/ verb to have or to possess �He owns 50% of the shares.owner /�əυnə/ noun a person whoowns something � The owners of acompany are its shareholders. � goodssent at owner’s risk a situation wherethe owner has to insure the goods whilethey are being transportedowner-occupier /�əυnər �ɒkjυpaə/noun a person who owns the property inwhich he or she livesowners’ equity /�əυnəz �ekwti/noun a value of the shares in a companyowned by the owners of the companyownership /�əυnəʃp/ noun the factof owning something � the ownershipof the company has passed to thebanks the banks have become ownersof the companyoz abbreviation ounce(s)

oversubscription 250 oz

P

P* symbol US a measure of M2 shownas a ratio of the velocity of money, usedas an indication of inflationP45 /�pi� fɔ�ti �fav/ noun a form givento an employee who leaves a company,showing how much tax has been de-ducted from his or her salaryp.a. abbreviation per annumpa’anga /�pɑ�ŋ�ə/ noun a unit of cur-rency used in TongaPacific Rim /pə�sfk �rm/ noun thecountries on the edge of the PacificOcean: especially Hong Kong, Japan,Korea, Malaysia, Singapore, Thailandand Taiwanpackage /�p�kd$/ noun a group ofdifferent items joined together in onedeal

‘…airlines offer special stopover rates and hotelpackages to attract customers to certain routes’[Business Traveller]‘…the remuneration package will include anattractive salary, profit sharing and a companycar’ [Times]‘…airlines will book not only tickets but alsohotels and car hire to provide a completepackage’ [Business Traveller]

package deal /�p�kd$ di�l/ noun anagreement which deals with several dif-ferent items at the same time � Theyagreed a package deal which involvesthe construction of the factory, trainingof staff and purchase of the product.Pac-man /�p�k m�n/ noun a methodof defence against a takeover bid, wherethe target company threatens to takeover the company which is trying totake it overpaid /ped/ adjective 1. for whichmoney has been given � The invoice ismarked ‘paid’. 2. � paid holidays holi-days where the worker’s wages are stillpaid even though he or she is not work-ing 3. referring to an amount which hasbeen settled � The order was sent car-

riage paid. � paid bills bills which havebeen settledpaid assistant /ped ə�sst(ə)nt/noun an assistant who receives a salarypaid-in capital /�ped n �k�pt(ə)l/noun capital in a business which hasbeen provided by its shareholders (usu-ally in the form of payments for sharesabove their par value)paid-up capital /�ped �p�k�pt(ə)l/, paid-up share capital/�ped �p �ʃeə �k�pt(ə)l/ noun anamount of money paid for the issuedcapital shares (it does not includecalled-up capital which has not yet beenpaid for)paid-up shares /�ped �p �ʃeəz/noun shares which have been com-pletely paid for by the shareholderspalmtop /�pɑ�mtɒp/ noun a verysmall computer which can be held inyour hand and which usually has a char-acter recognition screen instead of akeyboardPAN abbreviation primary accountnumberP&L abbreviation profit and losspanel /�p�n(ə)l/ noun 1. a flat surfacestanding upright 2. a group of peoplewho give advice on a problem � a panelof expertspanic /�p�nk/ noun a state of beingvery frightened � panic selling of ster-ling a rush to sell sterling at any pricebecause of possible devaluationpanic buying /�p�nk �baŋ/ noun arush to buy something at any price be-cause stocks may run outpaper /�pepə/ noun 1. � on paper intheory � On paper the system is ideal,but we have to see it working before wewill sign the contract. 2. a documentwhich can represent money (e.g. a bill

of exchange or a promissory note) 3.shares in the form of share certificatespaperchase /�pepə�tʃes/ noun atakeover bid where the purchasing com-pany issues large numbers of new sharesto offer in exchange for the shares in thecompany being boughtpaper gain /�pepə ��en/ noun sameas paper profit

‘…the profits were tax-free and the interest onthe loans they incurred qualified for income taxrelief; the paper gains were rarely changed intospending money’ [Investors Chronicle]

paper loss /�pepə �lɒs/ noun a lossmade when an asset has fallen in valuebut has not been soldpaper millionaire /�pepə �mljə-�neə/ noun a person who owns shareswhich, if sold, would be worth one mil-lion pounds or dollarspaper money /�pepə �m�ni/ nounbanknotespaper offer /�pepə �ɒfə/ noun atakeover bid, where the purchasingcompany offers its shares in exchangefor shares in the company being takenover (as opposed to a cash offer)paper profit /�pepə �prɒft/ noun aprofit on an asset which has increased inprice but has not been sold � He isshowing a paper profit of £25,000 on hisinvestment. Also called paper gain,unrealised profitpaperwork /�pepəw%�k/ noun officework, especially writing memos and fill-ing in forms � Exporting to Russia in-volves a large amount of paperwork.par /pɑ�/ adjective equal, at the sameprice � shares at par shares whose mar-ket price is the same as their face valueparallel markets /�p�rəlel�mɑ�kts/ plural noun money markets,where institutions such as banks, or or-ganisations such as local authorities, canlend or borrow money without having togo through the main money marketsparameter /pə�r�mtə/ noun a fixedlimit � The budget parameters are fixedby the finance director. � Spending byeach department has to fall within cer-tain parameters.parcel of shares /�pɑ�s(ə)l əv �ʃeəz/noun a group of shares (such as 50 or100) which are sold as a group � Theshares are on offer in parcels of 50.

parcel rate /�pɑ�s(ə)l ret/ noun thepostage (calculated by weight) for send-ing a parcelparent company /�peərənt�k�mp(ə)ni/ noun a company whichowns more than 50% of the shares ofanother companyPareto’s Law /pə�ri�təυz lɔ�/,Pareto Effect /pə�ri�təυ �fekt/ nounthe theory that incomes are distributedin the same way in all countries, what-ever tax regime is in force, and that asmall percentage of a total is responsiblefor a large proportion of value or re-sources. Also called eighty/twenty law

COMMENT: Also called the 80/20 law, be-cause 80/20 is the normal ratio betweenmajority and minority figures: so 20% ofaccounts produce 80% of turnover; 80%of GDP enriches 20% of the population,etc.

pari passu /�p�ri �p�su�/ adverb aLatin phrase meaning ‘equally’ � Thenew shares will rank pari passu with theexisting ones.Paris Club /�p�rs kl�b/ noun theGroup of Ten, the major world eco-nomic powers working within theframework of the IMF (there are in facteleven: Belgium, Canada, France,Germany, Italy, Japan, Netherlands,Sweden, Switzerland, United Kingdomand the United States. It is called the‘Paris Club’ because its first meetingwas in Paris)parity /�p�rti/ noun the fact of beingat an equal level or price with somethingelse

‘…the draft report on changes in theinternational monetary system casts doubt aboutany return to fixed exchange-rate parities’[Wall Street Journal]

Parkinson’s law /�pɑ�knsənz �lɔ�/noun a law, based on wide experience,that in business the amount of work in-creases to fill the time available for itpart /pɑ�t/ noun � in part not com-pletely � to contribute in part to thecosts or to pay the costs in partpart delivery /pɑ�t d�lv(ə)ri/ nouna delivery that contains only some of theitems in an orderpart exchange /�pɑ�t ks�tʃend$/noun the act of giving an old product aspart of the payment for a new one � totake a car in part exchange

paperchase 252 part exchange

partial /�pɑ�ʃ(ə)l/ adjective not com-plete � partial loss a situation whereonly part of the insured property hasbeen damaged or lost � he got partialcompensation for the damage to hishouse he was compensated for part ofthe damageparticipate /pɑ��tspet/ verb to takepart in an activity or enterprise � Thestaff are encouraged to participate ac-tively in the company’s decision-makingprocesses.participating preference shares/pɑ��tspetŋ �pref(ə)rəns ʃeəz/,participating preferred stock /pɑ�-�tspetŋ pr�f%�d �stɒk/ plural nounpreference shares which get an extra bo-nus dividend if company profits reach acertain levelparticipation /pɑ��ts�peʃ(ə)n/noun the act of taking part � The work-ers are demanding more participationin the company’s affairs. � Participa-tion helps to make an employee feel partof the organisation.participation fee /pɑ��ts�peʃ(ə)nfi�/ noun a fee paid to a bank for takingpart in underwriting a loanparticipator /pɑ��tspetə/ noun aperson who has an interest in a company(e.g. an ordinary or preference share-holder, a creditor or the owner of rightsto shares)particular average /pə�tkjυlə��v(ə)rd$/ noun a situation where partof a shipment is lost or damaged and theinsurance costs are borne by the ownerof the lost goods and not shared amongall the owners of the shipmentpartly /�pɑ�tli/ adverb not completely� partly-secured creditors creditorswhose debts are not fully covered by thevalue of the securitypartly-paid capital /�pɑ�t(ə)li ped�k�pt(ə)l/ noun a capital which repre-sents partly-paid sharespartly-paid up shares /�pɑ�t(ə)liped �p �ʃeəz/, partly-paid shares/�pɑ�t(ə)li ped �ʃeəz/ plural nounshares where the shareholders have notpaid the full face valuepartner /�pɑ�tnə/ noun a person whoworks in a business and has an equalshare in it with other partners � I be-came a partner in a firm of solicitors.

partnership /�pɑ�tnəʃp/ noun an un-registered business where two or morepeople (but not more than twenty) sharethe risks and profits according to a part-nership agreement � to go into partner-ship with someone � to join withsomeone to form a partnership � to of-fer someone a partnership, to takesomeone into partnership with you tohave a working business and bringsomeone in to share it with you � to dis-solve a partnership to bring a partner-ship to an end � to go into partnershipwith someone to join with someone toform a partnershippartnership agreement/�pɑ�tnəʃp ə��ri�mənt/ noun a doc-ument setting up a partnership, givingthe details of the business and theamount each partner is contributing to it.Also called articles of partnershippart order /pɑ�t �ɔ�də/ noun same aspart deliverypart-owner /pɑ�t �əυnə/ noun a per-son who owns something jointly withone or more other people � I ampart-owner of the restaurant.part-ownership /pɑ�t �əυnəʃp/noun a situation where two or more per-sons own the same propertypart payment /pɑ�t �pemənt/ nounthe paying of part of a whole payment �I gave him £250 as part payment for thecar.part shipment /pɑ�t �ʃpmənt/ nounsame as part deliverypart-time /�pɑ�t �tam/ adjective, ad-verb not working for the whole workingweek � a part-time worker � It is apart-time job that � We are looking forpart-time staff to work our computers. �She only works part-time as she hassmall children to look after.part-time work /�pɑ�t tam �w%�k/,part-time employment /�pɑ�t tamm�plɔmənt/ noun work for part of aworking week (officially, between 8 and16 hours per week) � He is trying tofind part-time work when the childrenare in school.party /�pɑ�ti/ noun a person or organi-sation involved in a legal dispute or le-gal agreement � How many parties arethere to the contract? � The company isnot a party to the agreement.

partial 253 party

par value /pɑ� �v�lju�/ noun same asface valuepass /pɑ�s/ verb 1. � to pass a divi-dend to pay no dividend in a certainyear 2. to approve something � The fi-nance director has to pass an invoicebefore it is sent out. � The loan has beenpassed by the board. � to pass a resolu-tion to vote to agree to a resolution� The meeting passed a proposal thatsalaries should be frozen. 3. to be suc-cessful in an examination or test � Hepassed his typing test. � She has passedall her exams and now is a qualifiedaccountant.passbook /�pɑ�sbυk/ noun a bookgiven by a bank or building societywhich shows money which you depositor withdraw from your savings accountor building society account

‘…instead of customers having transactionsrecorded in their passbooks, they will presentplastic cards and have the transactions printedout on a receipt’ [Australian Financial Review]

passbook account /�pɑ�sbυk ə-�kaυnt/ noun an account which carries apassbookpassive /�p�sv/ adjective not takingany actionpassive investor /�p�sv n�vestə/noun same as sleeping partnerpassive stake /�p�sv stek/ noun ashareholding where the shareholdertakes no active part in running thecompanypass off /�pɑ�s �ɒf/ verb � to passsomething off as something else to pre-tend that something is another thing inorder to cheat a customer � She tried topass off the wine as French, when in factit came from outside the EU.password /�pɑ�sw%�d/ noun a specialword which a user has to give when car-rying out operations on an account byphonepataca /pə�tɑ�kə/ noun a unit of cur-rency used in Macaopatent /�petənt, �p�tənt/ noun anofficial document showing that a personhas the exclusive right to make and sellan invention � to take out a patent for anew type of light bulb � to apply for apatent for a new invention � ‘patent ap-plied for’, ‘patent pending’ words on aproduct showing that the inventor hasapplied for a patent for it � to forfeit a

patent to lose a patent because pay-ments have not been made � to infringea patent to make and sell a productwhich works in the same way as a pat-ented product and not pay a royalty forit � to file a patent application to applyfor a patent � verb � to patent an in-vention to register an invention with thepatent office to prevent other peoplefrom copying itpatent agent /�petənt �ed$ənt/noun a person who advises on patentsand applies for patents on behalf ofclientspatented /�petəntd, �p�təntd/ ad-jective which is protected by a patentpatent office /�petənt �ɒfs/ noun agovernment office which grants patentsand supervises thempatent rights /�petənt rats/ pluralnoun the rights which an inventor holdsbecause of a patentpathfinder prospectus/�pɑ�θfandə prə�spektəs/ noun apreliminary prospectus about a com-pany which is going to be launched onthe Stock Exchange, sent to potentialmajor investors before the issue date,giving details of the company’s back-ground, but not giving the price at whichshares will be soldpattern /�p�t(ə)n/ noun the generalway in which something usually hap-pens � The pattern of sales or The salespattern is quite different this year.pattern of trade /�p�t(ə)n əv �tred/noun a general way in which trade iscarried on � The company’s tradingpattern shows high export sales in thefirst quarter and high home sales in thethird quarter.pawn /pɔ�n/ noun � to put somethingin pawn to leave a valuable object withsomeone in exchange for a loan whichhas to be repaid if you want to take backthe object � to take something out ofpawn to repay the loan and so get backthe object which has been pawned �verb � to pawn a watch to leave awatch with a pawnbroker who gives aloan against itpawnbroker /�pɔ�nbrəυkə/ noun aperson who lends money against the se-curity of valuable objectspawnshop /�pɔ�nʃɒp/ noun a pawn-broker’s shop

par value 254 pawnshop

pawn ticket /pɔ�n �tkt/ noun a re-ceipt given by the pawnbroker for anobject left in pawnpay /pe/ noun a salary or wages,money given to someone for regularwork � holiday with pay a holidaywhich an employee can take by contractand for which he or she is paid � verb 1.to give money to buy an item or a ser-vice � to pay £1,000 for a car � Howmuch did you pay to have the officecleaned? � ‘pay cash’ words written ona crossed cheque to show that it can bepaid in cash if necessary � to pay in ad-vance to pay before you receive theitem bought or before the service hasbeen completed � We had to pay in ad-vance to have the new telephone systeminstalled. � to pay in instalments topay for an item by giving small amountsregularly � We are buying the van bypaying instalments of £500 a month. �to pay cash to pay the complete sum incash � to pay by cheque to pay by giv-ing a cheque, not by using cash or creditcard � to pay by credit card to pay us-ing a credit card, not a cheque or cash 2.to produce or distribute money � to paya dividend to give shareholders a partof the profits of a company � Theseshares pay a dividend of 1.5p. � to payinterest to give money as interest onmoney borrowed or invested � Somebuilding societies pay interest of 5%. 3.to give an employee money for workdone � The workforce has not been paidfor three weeks. � We pay good wagesfor skilled workers. � How much dothey pay you per hour? � to be paid bythe hour to get money for each hourworked � to be paid at pieceworkrates to get money for each piece ofwork finished 4. to give money which isowed or which has to be paid � He waslate paying the bill. � We phoned to askwhen they were going to pay the invoice.� You will have to pay duty on these im-ports. � She pays tax at the highest rate.� to pay on demand to pay moneywhen it is asked for, not after a period ofcredit � please pay the sum of £10please give £10 in cash or by cheque 5.� to pay a cheque into an account todeposit money in the form of a cheque(NOTE: [all verb senses] paying – paid)

‘…recession encourages communication notbecause it makes redundancies easier, but

because it makes low or zero pay increaseseasier to accept’ [Economist]‘…the yield figure means that if you buy theshares at their current price you will be getting5% before tax on your money if the companypays the same dividend as in its last financialyear’ [Investors Chronicle]

payable /�peəb(ə)l/ adjective whichis due to be paid � payable in advancewhich has to be paid before the goodsare delivered � payable on deliverywhich has to be paid when the goods aredelivered � payable on demand whichmust be paid when payment is asked for� payable at sixty days which has to bepaid by sixty days after the date on theinvoice � cheque made payable tobearer a cheque which will be paid tothe person who has it, not to any particu-lar name written on it � shares payableon application shares which must bepaid for when you apply to buy them �electricity charges are payable by thetenant the tenant (and not the landlord)must pay for the electricitypay as you earn /�pe əz ju� �%�n/noun a tax system, where income taxis deducted from the salary before itis paid to the worker. AbbreviationPAYE (NOTE: The US term ispay-as-you-go.)pay-as-you-go /�pe əz ju� ��əυ/noun 1. US same as pay as you earn2. a payment system where the pur-chaser pays in small instalments as he orshe uses the servicepay back /�pe �b�k/ verb to givemoney back to someone � Banks arewarning students not to take out loanswhich they cannot pay back. � I lent him£50 and he promised to pay me back ina month. � He has never paid me backthe money he borrowed.payback /�peb�k/ noun the act ofpaying back money which has beenborrowedpayback clause /�peb�k klɔ�z/noun a clause in a contract which statesthe terms for repaying a loanpayback period /�peb�k �pəriəd/noun 1. a period of time over which aloan is to be repaid or an investment isto pay for itself 2. the length of time itwill take to earn back the money in-vested in a projectpay-cheque /�pe tʃek/ noun amonthly cheque by which an employee

pawn ticket 255 pay-cheque

is paid (NOTE: The US spelling is pay-check.)pay day /�pe de/ noun a day onwhich wages are paid to employees(usually Friday for employees paid oncea week, and during the last week of themonth for employees who are paid oncea month)pay desk /�pe desk/ noun a place ina store where you pay for goods boughtpay differentials /�pe dfə�renʃəlz/plural noun the difference in salary be-tween employees in similar types ofjobs. Also called salary differentials,wage differentialspay down /pe �daυn/ verb � to paymoney down to make a deposit � Theypaid £50 down and the rest in monthlyinstalments.paydown /�pedaυn/ noun a repay-ment of part of a sum which has beenborrowedPAYE abbreviation pay as you earnpayee /pe�i�/ noun a person who re-ceives money from someone, or the per-son whose name is on a chequepayer /�peə/ noun a person who givesmoney to someonepayer bank /�peə b�ŋk/ noun abank which pays a cheque drawn on oneof its accountspay hike /�pe hak/ noun an increasein salarypaying /�peŋ/ adjective 1. whichmakes a profit � It is a paying business.� it is not a paying proposition it is nota business which is going to make aprofit 2. which pays � noun the act ofgiving moneypaying agent /�peŋ �ed$ənt/ nouna bank which pays dividend or interestto a bondholderpaying-in book /�peŋ �n bυk/noun a book of forms for paying moneyinto a bank account or a building societyaccountpaying-in slip /�peŋ �n slp/ nouna printed form which is filled in whenmoney is being deposited in a bankpayment /�pemənt/ noun 1. the actof giving money in exchange for goodsor a service � We always ask for pay-ment in cash or cash payment and notpayment by cheque. � The payment of

interest or the interest payment shouldbe made on the 22nd of each month. �payment on account paying part of themoney owed � payment on invoicepaying money as soon as an invoice isreceived � payment in kind paying bygiving goods or food, but not money �payment by results money given whichincreases with the amount of work doneor goods produced 2. money paid � re-payable in easy payments repayablewith small sums regularlypayment date /�pemənt det/ nouna date when a payment should be or hasbeen madepayment gateway /�pemənt��etwe/ noun software that processesonline credit-card payments. It getsauthorisation for the payment from thecredit-card company and transfersmoney into the retailer’s bank account.payment holiday /�pemənt�hɒlde/ noun a period when paymentsdo not need to be made, especially whenrepaying a debt or a mortgagepayment order /�pemənt �ɔ�də/noun an order to someone to make apaymentpay negotiations /�pe n�əυʃi-�eʃ(ə)nz/, pay talks /�pe tɔ�ks/ pluralnoun discussions between managementand employees about pay increasespay off /�pe �ɒf/ verb 1. to finish pay-ing money which is owed for something� He won the lottery and paid off hismortgage. � She is trying to pay off theloan by monthly instalments. 2. to termi-nate somebody’s employment and payall wages that are due � When the com-pany was taken over the factory wasclosed and all the workers were paid off.payoff /�peɒf/ noun money paid tofinish paying something which is owed,such as money paid to a worker whenhis or her employment is terminated

‘…the finance director of the group is to receivea payoff of about £300,000 after deciding toleave the company and pursue other businessopportunities’ [Times]

payoff period /�peɒf �pəriəd/ nounsame as payback periodpay out /�pe �aυt/ verb to give money� The company pays out thousands ofpounds in legal fees. � We have paid outhalf our profits in dividends.

pay day 256 pay out

payout /�peaυt/ noun money paid tohelp a company or person in difficulties,a subsidy � The company only exists onpayouts from the government.

‘…after a period of recession followed by arapid boost in incomes, many tax payersembarked upon some tax planning to minimizetheir payouts’ [Australian Financial Review]

pay package /�pe �p�kd$/ nounthe salary and other benefits offeredwith a job � The job carries an attrac-tive pay package.pay packet /�pe �p�kt/ noun an en-velope containing the pay slip and thecash paypay phone /�pe fəυn/ noun a publictelephone which works if you put coinsinto itpay restraint /�pe r�strent/ nounthe process of keeping increases inwages under controlpay review /�pe r�vju�/ noun an oc-casion when an employee’s salary isconsidered and usually increased � I’msoon due for a pay review and hope toget a rise.pay rise /�pe raz/ noun an increasein paypayroll /�perəυl/ noun 1. the list ofpeople employed and paid by a com-pany � The company has 250 on thepayroll. 2. the money paid by a com-pany in salaries � The office has aweekly payroll of £10,000.payroll clerk /�perəυl klɑ�k/ noun aperson employed to administer the pay-ment of employees. Also called wagesclerk

payroll ledger /�perəυl �led$ə/noun a list of staff and their salariespayroll tax /�pe�rəυl t�ks/ noun atax on the people employed by acompanypay scale /�pe skel/ noun a tablethat sets out the range of pay offered foreach grade of job in an organisation.Also called salary scale, wage scale

pay slip /�pe slp/, pay statement/�pe �stetmənt/ noun a piece of papershowing the full amount of an em-ployee’s pay, and the money deductedas tax, pension and National Insurancecontributions

pay threshold /�pe �θreʃhəυld/noun a point at which pay increases be-cause of a threshold agreementpay up /�pe ��p/ verb to give moneywhich is owed � The company only paidup when we sent them a letter from oursolicitor. � He finally paid up sixmonths late.PC abbreviation personal computerPCB abbreviation petty cash bookP/E abbreviation price/earningspeak /pi�k/ noun the highest point �The shares reached their peak in Janu-ary. � The share index has fallen 10%since the peak in January. � With-drawals from bank accounts reached apeak in the week before Christmas. �He has reached the peak of his career. �verb to reach the highest point � Pro-ductivity peaked in January. � Shareshave peaked and are beginning to slipback. � He peaked early and neverachieved his ambition of becomingmanaging director. � Demand peaks inAugust, after which sales usuallydecline.peak output /pi�k �autpυt/ noun thehighest outputpeak year /�pi�k jə/ noun the yearwhen the largest quantity of productswas produced or when sales werehighestpeanuts /�pi�n�ts/ plural noun a smallamount of money (informal.)pecuniary /p�kju�niəri/ adjective re-ferring to money � he gained no pecu-niary advantage he made no profitpeddle /�ped(ə)l/ verb to sell goodsfrom door to door or in the streetpeg /pe�/ verb to maintain or fix some-thing at a specific level � to peg a cur-rency to fix an exchange rate for acurrency which previously was floating� to peg prices to fix prices to stopthem rising � to peg wage increases tothe cost-of-living index to limit in-creases in wages to the increases in thecost-of-living index � noun a hook tohang clothes onP/E multiple /pi��i� �m�ltp(ə)l/ nounUS same as price/earnings ratiopenalise /�pi�nəlaz/, penalize verbto punish or fine someone � to penalisea supplier for late deliveries � Theywere penalised for bad time-keeping.

payout 257 penalise

penalty /�pen(ə)lti/ noun 1. a punish-ment, often a fine, which is imposed ifsomething is not done or is done incor-rectly or illegally 2. money withheldfrom an investor if he or she withdrawsmoney from an interest-bearing accountearlypenalty clause /�pen(ə)lti klɔ�z/noun a clause which lists the penaltieswhich will be imposed if the terms ofthe contract are not fulfilled � The con-tract contains a penalty clause whichfines the company 1% for every weekthe completion date is late.penalty-free /�pen(ə)lti �fri�/ adjec-tive without incurring any penalty, with-out losing any interest on moneyinvested � penalty-free withdrawalpence /pens/ plural noun � pennypenny /�peni/ noun 1. GB a smallcoin, of which one hundred make apound (NOTE: Written p after a figure:26p; the plural is pence.) 2. US a smallcoin, one cent (informal.) (NOTE: Theplural in US English is pennies. In UKEnglish, say ‘pee’ for the coin, and‘pee’ or ‘pence’ for the amount: a five‘pee’ coin; it costs ten ‘pee’ or ten‘pence’. In US English, say ‘pennies’for coins and ‘cents’ for the amount.)penny share /�peni ʃeə/ noun a verycheap share, costing about 10p or lessthan $1 (NOTE: The US term is pennystock.)

COMMENT: These shares can be consid-ered as a good speculation, since buyingeven large numbers of them does not in-volve a large amount of money, and theshare price of some companies can risedramatically; the price can of course fall,but in the case of penny shares, the lossis not likely to be as much as with shareswith a higher market value.

pension /�penʃən/ noun money paidregularly to someone who no longerworks � verb � to pension someone offto ask someone to retire and take apensionpensionable /�penʃənəb(ə)l/ adjec-tive able to receive a pensionpensionable age /�penʃənəb(ə)l�ed$/ noun an age after which someonecan stop working and take a pensionpensionable service/�penʃənəb(ə)l �s%�vs/ noun the periodof service used in calculating pension

benefits from an occupational pensionschemepension contributions /�penʃənkɒntr�bju�ʃ(ə)nz/ plural noun moneypaid by a company or employee into apension fundpension drawdown /�penʃən�drɔ�daυn/ noun same as incomedrawdownpension entitlement /�penʃən n-�tat(ə)lmənt/ noun the amount ofpension which someone has the right toreceive when he or she retirespensioner /�penʃənə/ noun a personwho receives a pensionpension fund /�penʃən f�nd/ noun alarge sum of money made up of contri-butions from employees and their em-ployer which provides pensions forretired employeespension funds /�penʃ(ə)n f�ndz/plural noun investments managed bypension companies to produce pensionsfor investorspension plan /�penʃən pl�n/, pen-sion scheme /�penʃən ski�m/ noun aplan worked out by an insurance com-pany which arranges for employees topay part of their salary over many yearsand receive a regular payment whenthey retirePeople’s Bank of China /�pi�p(ə)lzb�ŋk əv �tʃanə/ noun the CentralBank of ChinaPEP abbreviation Personal Equity Planpeppercorn rent /�pepəkɔ�n �rent/noun a very small or nominal rent � tolease a property for or at a peppercornrent � The charity pays only a pepper-corn rent.per /p%�, pə/ preposition 1. � as peraccording to � as per invoice as statedin the invoice � as per sample as shownin the sample � as per previous orderaccording to the details given in our pre-vious order 2. for each � we pay £10per hour we pay £10 for each hourworked � the earnings per share thedividend received for each share � theaverage sales per representative theaverage sales achieved by onerepresentative

‘…a 100,000 square-foot warehouse generates$600 in sales per square foot of space’[Duns Business Month]

penalty 258 per

PER abbreviation price/earnings ratioper annum /pər ��nəm/ adverb in ayear � What is their turnover per an-num? � What is his total income per an-num? � She earns over £100,000 perannum.P/E ratio /�pi� �i� �reʃiəυ/ �price/earnings ratioper capita /pə �k�ptə/ adjective, ad-verb for each person � average incomeper capita or per capita income aver-age income of one personper cent /pə �sent/ adjective, adverbout of each hundred, or for each hundred� 10 per cent ten in every hundred �What is the increase per cent? � Fiftyper cent of nothing is still nothing.

‘…this would represent an 18 per cent growthrate – a slight slackening of the 25 per centturnover rise in the first half’ [Financial Times]‘…buildings are depreciated at two per cent perannum on the estimated cost of construction’[Hongkong Standard]

percentage /pə�sentd$/ noun anamount shown as part of one hundred

‘…state-owned banks cut their prime rates apercentage point to 11%’ [Wall Street Journal]‘…a good percentage of the excess stock wastaken up during the last quarter’[Australian Financial Review]‘…the Federal Reserve Board, signalling itsconcern about the weakening Americaneconomy, cut the discount rate by one-halfpercentage point to 6.5%’ [Wall Street Journal]

percentage discount /pə�sentd$ds�kaυnt/ noun a discount calculatedat an amount per hundredpercentage increase /pə�sentd$�nkri�s/ noun an increase calculated onthe basis of a rate for one hundredpercentile /pə�sental/ noun one of aseries of ninety-nine figures belowwhich a percentage of the total fallsper contra /p%� �kɒntrə/ noun wordsshowing that a contra entry has beenmadeperform /pə�fɔ�m/ verb to do well orbadly � how did the shares perform?did the shares go up or down?performance /pə�fɔ�məns/ noun 1.the way in which someone or somethingacts � Last year saw a dip in the com-pany’s performance. � the poor perfor-mance of the shares on the stockmarket the fall in the share price on thestock market � as a measure of the

company’s performance as a way ofjudging if the company’s results aregood or bad � performance of staffagainst objectives how staff haveworked, measured against the objectivesset 2. the way in which a share increasesin value

‘…inflation-adjusted GNP edged up at a 1.3%annual rate, its worst performance since theeconomic expansion began’ [Fortune]

performance fund /pə�fɔ�mənsf�nd/ noun a fund invested in shares toprovide capital growth, but probablywith less dividend income than usualperformance incentive /pə-�fɔ�məns n�sentv/ noun an extrapayment to reward an employee’s per-formance at workperformance-linked bonus /pə-�fɔ�məns �lŋkt �bəυnəs/ noun a bonuscalculated according to the performanceof a worker or group of workersperformance rating /pə�fɔ�məns�retŋ/ noun a judgement of how well ashare or a company has performedperformance review /pə�fɔ�mənsr�vju�/ noun a yearly interview be-tween a manager and each worker todiscuss how the worker has worked dur-ing the yearperformance share /pə�fɔ�mənsʃeə/ noun a share which is likely toshow capital growth, though perhaps notincome. These are usually riskier sharesthan those which provide income.per head /pə �hed/ adverb for eachperson � Allow £15 per head for ex-penses. � Representatives cost on aver-age £50,000 per head per annum.period /�pəriəd/ noun a length of time� for a period of time or for a period ofmonths or for a six-year period � salesover a period of three months � to de-posit money for a fixed periodperiodic /�pəri�ɒdk/, periodical/�pəri�ɒdk(ə)l/ adjective happeningfrom time to time � a periodic review ofthe company’s performanceperiod of account /�pəriəd əv ə-�kaυnt/ noun the period usually coveredby a firm’s accountsperiod of qualification /�pəriəd əvkwɒlf�keʃ(ə)n/ noun the time whichhas to pass before someone qualifies forsomething

PER 259 period of qualification

perk /p%�k/ noun an extra item givenby a company to employees in additionto their salaries (such as company carsor private health insurance) (informal.) �She earns a good salary and in additionhas all sorts of perks.permanent /�p%�mənənt/ adjectivewhich will last for a long time or forever � the permanent staff andpart-timers � She has found a perma-nent job. � She is in permanentemployment.permanent interest-bearingshare /�p%�mənənt �intrəst �beərŋ�ʃeə/ noun a share issued by a buildingsociety to attract investment capital. Ab-breviation PIBSpermit noun /�p%�mt/ an official doc-ument which allows someone to dosomething � verb /pə�mt/ to allowsomeone to do something � This docu-ment permits you to export twenty-fivecomputer systems. � The ticket permitsthree people to go into the exhibition. �Will we be permitted to use her name inthe advertising copy? � Smoking is notpermitted in the design studio. (NOTE:permitting – permitted)perpetual inventory /pə�petʃuəl�nvənt(ə)ri/ noun a stock recordingand valuation system where each itemof stock purchased is added to the totaland each item sold is deducted, so thatthe stock figures are always correct andup-to-dateper pro /pə �prəυ/ abbreviation perprocurationem � The secretary signedper pro the manager.per procurationem /pə�prɒkjυr�s�əυnəm/ preposition ‘aLatin phrase meaning ‘on behalf of’ or‘acting as the representative of’’perquisite /�p%�kwzt/ noun same asperkperson /�p%�s(ə)n/ noun 1. someone(a man or a woman) � an insurance pol-icy which covers a named person � thepersons named in the contract thepeople whose names are given in thecontract � the document should bewitnessed by a third person someonewho is not named in the documentshould witness it 2. � in person by do-ing something or going somewhereyourself, not through another person ormeans � this important package is to

be delivered to the chairman in per-son the package has to be given to thechairman himself (and not to his secre-tary, assistant, etc.)personal /�p%�s(ə)n(ə)l/ adjective re-ferring to one person � apart from thefamily shares, she has a personalshareholding in the company apartfrom shares belonging to her family as agroup, she has shares which she ownsherself � the car is for his personal usethe car is for him to use himselfpersonal allowance /�p%�s(ə)n(ə)lə�laυəns/ noun a part of a person’s in-come which is not taxedpersonal assets /�p%�s(ə)n(ə)l��sets/ plural noun moveable assetswhich belong to a personpersonal banker /�p%�s(ə)nəl�b�ŋkə/ noun a bank employee wholooks after a client, and is the one whomthe client contacts when there areproblemspersonal call /�p%�s(ə)n(ə)l kɔ�l/noun 1. a telephone call where you askthe operator to connect you with a par-ticular person 2. a telephone call not re-lated to business � Staff are not allowedto make personal calls during officehours.personal computer /�p%�s(ə)n(ə)lkəm�pju�tə/ noun a small computerwhich can be used by one person in thehome or office. Abbreviation PC

personal customer /�p%�s(ə)nəl�k�stəmə/ noun a private individualwho has an account with a bank, as op-posed to a business customerPersonal Equity Plan /�p%�s(ə)nəl�ekwti pl�n/ noun an account held un-der a UK-government-backed scheme toencourage share-ownership and invest-ment in industry, allowing individualtaxpayers to invest a certain amount ofmoney in shares each year, and not paytax on either the income or the capitalgains, provided that the shares are heldfor a certain period of time. Abbrevia-tion PEP

COMMENT: There are several types ofequity PEP: the single company PEP,where only shares in one company are al-lowed, and the general PEP, whereshares in several companies can be heldor other types of investment.

perk 260 Personal Equity Plan

Personal Identification Number/�p%�s(ə)n(ə)l adentf�keʃ(ə)n�n�mbə/ noun a unique numberallocated to the holder of a cash card orcredit card, by which he or she can enteran automatic banking system, as forexample to withdraw cash from a cashmachine or to pay in a store. Abbrevia-tion PIN

personal income /�p%�s(ə)n(ə)l�nk�m/ noun the income received byan individual person before tax is paidPersonal Investment Authority/�p%�s(ə)n(ə)l n�vestmənt ɔ��θɒrti/noun a self-regulatory body whichregulates the activities of financial ad-visers, insurance brokers and otherswho give financial advice or arrangefinancial services for small clients.Abbreviation PIA

personalised /�p%�s(ə)nəlazd/, per-sonalized adjective with the name orinitials of a person printed on it � Shehas a personalised briefcase.personal loan /�p%�s(ə)nəl ləυn/noun a loan to a person for household orother personal use, not for business usepersonal pension plan/�p%�s(ə)n(ə)l �penʃən pl�n/ noun apension plan which applies to oneemployee only, usually a self-employedperson, not to a group. AbbreviationPPP

personal property /�p%�s(ə)n(ə)l�prɒpəti/ noun things which belong to aperson � The fire caused considerabledamage to personal property.personal sector /�p%�s(ə)nəl �sektə/noun the part of the investment marketwhich is owned by private investors (asopposed to the corporate or institutionalsector)personnel department /�p%�sə�neld�pɑ�tmənt/ noun same as human re-sources department

personnel officer /�p%�sə�nel�ɒfsə/ noun same as human re-sources officer

person-to-person call /�p%�s(ə)ntə �p%�s(ə)n kɔ�l/ noun a telephone callwhere you ask the operator to connectyou with a named personpeseta /pə�setə/ noun a unit of cur-rency used before the euro in Spain

(NOTE: Usually written ptas after a fig-ure: 2,000ptas.)peso /�pesəυ/ noun a unit of currencyused in Mexico and many other coun-tries such as Argentina, Bolivia, Chile,Colombia, Cuba, the Dominican Repub-lic, the Philippines and Uruguaypessimism /�pesmz(ə)m/ noun astate of mind in which you expect thateverything will turn out badly � Thereis considerable pessimism about jobopportunities.pessimistic /�pes�mstk/ adjectivefeeling sure that things will work outbadly � he takes a pessimistic view ofthe exchange rate he expects the ex-change rate to fallpeter out /�pi�tər �aυt/ verb to cometo an end gradually

‘…economists believe the economy is pickingup this quarter and will do better in the secondhalf of the year, but most expect growth to peterout next year’ [Sunday Times]

Peter principle /�pi�tə �prnsp(ə)l/noun a law, based on wide experience,that people are promoted until they oc-cupy positions for which they areincompetentpetrocurrency /�petrəυk�rənsi/noun a foreign currency which is earnedby exporting oilpetrodollar /�petrəυdɒlə/ noun adollar earned by a country from export-ing oil, then invested outside thatcountrypetroleum /pə�trəυliəm/ noun rawnatural oil, found in the groundpetroleum industry /pə�trəυliəm�ndəstri/ noun an industry which usespetroleum to make other products (e.g.petrol or soap)petroleum products /pə�trəυliəm�prɒd�kts/ plural noun products (suchas petrol, soap and paint) which aremade from crude petroleumpetroleum revenues /pə�trəυliəm�revənju�z/ plural noun income fromselling oilpetty /�peti/ adjective not importantpetty cash /�peti �k�ʃ/ noun a smallamount of money kept in an office topay small debtspetty cash book /�peti �k�ʃ bυk/noun a book in which petty cash pay-ments are noted. Abbreviation PCB

Personal Identification Number 261 petty cash book

petty cash box /�peti �k�ʃ bɒks/noun a locked metal box in an officewhere the petty cash is keptpetty expenses /�peti k�spensz/plural noun small sums of money spentPGP noun a method of encrypting in-formation so that only the intended re-cipient can read the message; often usedto send credit card details via electronicmail. Full form pretty good privacyphase /fez/ noun a period or part ofsomething which takes place � the firstphase of the expansion programmephase in /�fez �n/ verb to bringsomething in gradually � The new in-voicing system will be phased in overthe next two months.

‘…the budget grants a tax exemption for$500,000 in capital gains, phased in over thenext six years’ [Toronto Star]

phase out /�fez �aυt/ verb to removesomething gradually � Smith Ltd will bephased out as a supplier of spare parts.phoenix company /�fi�nks�k�mp(ə)ni/ noun a company formedby the directors of a company which hasgone into receivership, which trades inthe same way as the first company, andin most respects (except its name) seemsto be exactly the same as the firstcompany

‘…the prosecution follows recent calls for areform of insolvency legislation to preventdirectors from leaving behind a trail of debtwhile continuing to trade in phoenix companies– businesses which fold only to rise again, oftenunder a slightly different name in the hands ofthe same directors and management’[Financial Times]

physical market /�fzk(ə)l �mɑ�kt/noun a commodity market where pur-chasers actually buy the commodities(as opposed to the futures market, wherethey buy and sell the right to purchasecommodities at a future date)physical price /�fzk(ə)l pras/noun a current cash price for a commod-ity for immediate deliveryphysicals /�fzk(ə)lz/ plural nounactual commodities which are sold onthe current market (as opposed tofutures)physical stock check /�fzk(ə)l�stɒk tʃek/ noun the task of countingactual items of stock (and then checkingthis figure against stock records)

PIA abbreviation Personal InvestmentAuthorityPIB abbreviation permanent inter-est-bearing sharepick /pk/ noun a thing chosen � theformer research analyst never beforetalked to the press about his stock picks� verb to choose � The board pickedthe finance director to succeed the retir-ing MD. � The Association has pickedParis for its next meeting. � to pickstocks to select which shares to buypicking /�pkŋ/ noun � stockpickingpick up /�pk ��p/ verb 1. to get betteror to improve � Business or Trade ispicking up. 2. to fetch something orsomeone in a vehicle � The companysent a driver to pick him up at the air-port. � We sent a courier to pick up thepacket and deliver it to the designer.piece rate /�pi�s ret/ noun a rate ofpay calculated as an amount for eachproduct produced or for each piece ofwork done and not as an amount foreach hour worked � to earn piece ratespiecework /�pi�sw%�k/ noun work forwhich employees are paid in accordancewith the number of products producedor pieces of work done and not at anhourly ratepieceworker /�pi�sw%�kə/ noun aperson who is employed at a piece ratepie chart /�pa tʃɑ�t/ noun a diagramwhere information is shown as a circlecut up into sections of different sizespiggybacking /�p�ib�kŋ/ nounUS the practice of selling existingshares in a company, as well as newshares being offered for sale for the firsttimepilot /�palət/ noun a test project, un-dertaken to see whether something islikely to be successful or profitablePIN abbreviation Personal Identifica-tion Numberpink slip /pŋk �slp/ noun US an of-ficial letter of dismissal given to an em-ployee (in place of a final interview)Pink ’Un /�pŋk ən/ noun same as Fi-nancial Times (informal.)

pit /pt/ noun US the area of a stock ex-change or of a commodities exchangewhere dealers trade

petty cash box 262 pit

place /ples/ verb to put � to placemoney in an account to deposit moneyin an account � to place a block ofshares to find a buyer for a block ofshares � to place a contract to decidethat a certain company shall have thecontract to do work � to place some-thing on file to file something � toplace an issue to find buyers (usually asmall number of investors) for all of anew issue of sharesplacement /�plesmənt/ noun 1. theact of finding work for someone � Thebureau specialises in the placement offormer executives. 2. US the act of find-ing buyers for an issue of new shares(NOTE: The UK term is placing.)placing /�plesŋ/ noun the act of find-ing a single buyer or a group of institu-tional buyers for a large number ofshares in a new company or a companythat is going public � the placing of aline of shares finding a purchaser for ablock of shares which was overhangingthe marketplaintiff /�plentf/ noun a person whostarts an action against someone in thecivil courts (NOTE: Since April 1999,this term has been replaced by claim-ant.)plain vanilla swap /�plen və�nlə�swɒp/ noun an interest rate swap,where a company with fixed interestborrowings may swap them for variableinterest borrowings of another companyplan /pl�n/ noun 1. an idea of howsomething should be done, which hasbeen decided on and organised in ad-vance � the government’s economicplans the government’s proposals forrunning the country’s economy 2. an or-ganised way of doing something � aninvestment plan � a pension plan � asavings plan � verb to organise care-fully how something should be done inthe future � to plan for an increase inbank interest charges to change a wayof doing things because you think therewill be an increase in bank interestcharges � to plan investments to pro-pose how investments should be made

‘…the benefits package is attractive and thecompensation plan includes base, incentive andcar allowance totalling $50,000+’[Globe and Mail (Toronto)]

planned economy /�pl�nd -�kɒnəmi/ noun a system where the gov-

ernment plans all business activity, reg-ulates supply, sets production targetsand itemises work to be done. Alsocalled command economy, centralplanningplanner /�pl�nə/ noun a person whoplans � the government’s economicplanners people who plan the futureeconomy of the country for thegovernmentplanning /�pl�nŋ/ noun the processof organising how something should bedone in the future � Setting up a new in-centive scheme with insufficient plan-ning could be a disaster. � Thelong-term planning or short-term plan-ning of the project has been completed.

‘…buildings are closely regulated by planningrestrictions’ [Investors Chronicle]

plastic money /�pl�stk �m�ni/noun credit cards and charge cardsplatinum /�pl�tnəm/ noun a rareprecious metal traded on bullionmarketsplatinum card /�pl�tnəm kɑ�d/noun a special credit card for peoplewith very large incomesplay /ple/ noun � in play likely to bethe object of a takeover � company inplay company which is being targetedby several takeover bidsPlc, PLC, plc abbreviation public lim-ited companypledge /pled$/ noun an object givento a pawnbroker as security for moneyborrowed � to redeem a pledge to payback a loan and interest and so get backthe security � verb � to pledge sharecertificates to deposit share certificateswith a lender as security for money bor-rowed (the title to the certificates is nottransferred and the certificates are re-turned when the debt is repaid)pledgee /�pled$�i�/ noun a person whoreceives an item as a pledge against aloanpledgor /�pled$�ɔ�/ noun a personwho pledges a piece of his or her prop-erty as security for a loanplenary meeting /�pli�nəri �mi�tŋ/,plenary session /�pli�nəri �seʃn/ nouna meeting at a conference when all thedelegates meet togetherplough back /�plaυ �b�k/ verb(NOTE: The US spelling is plow back.)

place 263 plough back

� to plough back profits into the com-pany to invest the profits in the business(and not pay them out as dividends tothe shareholders) by using them to buynew equipment or to create newproductsplug /pl��/ verb to block or to stop �The company is trying to plug the drainon cash reserves. (NOTE: plugging –plugged)plummet /�pl�mt/, plunge /pl�nd$/verb to fall sharply � Share pricesplummeted or plunged on the news ofthe devaluation.

‘…in the first six months of this yearsecondhand values of tankers have plummetedby 40%’ [Lloyd’s List]‘…crude oil output plunged during the pastmonth’ [Wall Street Journal]

plus preposition /pl�s/ added to � Hersalary plus commission comes to morethan £45,000. � Production costs plusoverheads are higher than revenue. �adverb more than � houses valued at£100,000 plus houses valued at over£100,000 � adjective /pl�s/ favourable,good and profitable � A plus factor forthe company is that the market is muchlarger than they had originally thought.� the plus side of the account the creditside of the account � on the plus sidethis is a favourable point � On the plusside, we must take into account the newproduct line. � noun /pl�s/ 1. a printedsign (+) showing an addition or increase� At the end of the day the index showeda series of pluses, with very few mi-nuses. 2. a good or favourable point �To have achieved £1m in new sales inless than six months is certainly a plusfor the sales team. � His marketing ex-perience is a definite plus.p.m. /pi� �em/ adverb in the afternoonor in the evening, after 12 o’clock mid-day � The train leaves at 6.50 p.m. � Ifyou phone New York after 6 p.m. thecalls are at a cheaper rate. (NOTE: TheUS spelling is P.M.)pocket /�pɒkt/ noun � to be £25 inpocket to have made a profit of £25 � tobe £25 out of pocket to have lost £25point /pɔnt/ noun 1. a place or posi-tion 2. same as decimal point 3. a unitfor calculations � the dollar gained twopoints the dollar increased in valueagainst another currency by two hun-dredths of a cent � the exchange fell

ten points the stock market index fellby ten units

‘…sterling M3, the most closely watchedmeasure, rose by 13% in the year to August –seven percentage points faster than the rate ofinflation’ [Economist]‘…banks refrained from quoting forwardUS/Hongkong dollar exchange rates aspremiums of 100 points replaced discounts of upto 50 points’ [South China Morning Post]

point of sale /�pɔnt əv �sel/ noun aplace where a product is sold, e.g. ashop. Abbreviation POSpoint-of-sale material /�pɔnt əv�sel mə�təriəl/ noun display materialto advertise a product where it is beingsold, e.g. posters or dump bins. Abbre-viation POS materialpoint of sale terminal /�pɔnt əv�sel �t%�mn(ə)l/ noun an electroniccash terminal at a pay desk which re-cords transactions and stock movementsautomatically when an item is bought.Abbreviation POS terminalpoison pill /�pɔz(ə)n �pl/ noun anaction taken by a company to make it-self less attractive to a potential take-over bid

COMMENT: In some cases, the officers ofa company will vote themselves extremelyhigh redundancy payments if a takeoveris successful; or a company will borrowlarge amounts of money and give it awayto the shareholders as dividends, so thatthe company has an unacceptably highlevel of borrowing.

polarisation /�pəυləra�zeʃ(ə)n/,polarization noun a provision of theFinancial Services Act by which a fi-nancial adviser must either be tied toone financial product provider, or com-pletely independentpolice record /pə�li�s �rekɔ�d/ nouna note of previous crimes for whichsomeone has been convicted � He didnot say that he had a police record.policy /�pɒlsi/ noun 1. a course of ac-tion or set of principles determining thegeneral way of doing something � acompany’s trading policy � The coun-try’s economic policy seems to lack anydirection. � We have a policy of onlyhiring qualified staff. � Our policy is tosubmit all contracts to the legal depart-ment. � company policy the company’sagreed plan of action or the company’sway of doing things � What is the com-

plug 264 policy

pany policy on credit? � It is againstcompany policy to give more than thirtydays’ credit. 2. a contract for insurance� to take out a policy to sign the con-tract for an insurance and start payingthe premiums � She took out a life in-surance policy or a house insurancepolicy.policyholder /�pɒlsi �həυldə/ nouna person who is insured by an insurancecompanypool /pu�l/ noun 1. an unused supply �a pool of unemployed labour or of ex-pertise 2. US a group of mortgages andother collateral used to back a loan �verb � to pool resources to put all re-sources together so as to be more pow-erful or profitable � to pool interests toexchange shares between companieswhen a merger takes placepoor /pɔ�/ adjective 1. without muchmoney � The company tries to help thepoorest members of staff with loans. � Itis one of the poorest countries in theworld. 2. not very good � poor quality� poor service � poor performance byoffice staff � poor organisation of work-ing methodspoorly /�pɔ�li/ adverb badly � The of-fices are poorly laid out. � The plan waspoorly presented. � poorly-paid staffstaff with low wagespopulation /�pɒpjυ�leʃ(ə)n/ noun 1.all the people living in a particular coun-try or area � Paris has a population ofover three million. � Population statis-tics show a rise in the 18–25 age group.� Population trends have to be takeninto account when drawing up economicplans. � The working population of thecountry is getting older. 2. the group ofitems or people in a survey or studypopulation forecast /�pɒpjυ-�leʃ(ə)n �fɔ�kɑ�st/ noun a calculationof how many people will be living in acountry or in a town at some point in thefuturepork bellies /�pɔ�k �beliz/ pluralnoun meat from the underside of pigcarcasses used to make bacon, traded asfutures on some American exchangesportability /�pɔ�tə�blti/ noun thefact of being able to be moved aroundportable /�pɔ�təb(ə)l/ adjective whichcan be carried � a portable computer �noun � a portable a computer or type-

writer which can be carried � He keysall his orders on his portable and thenemails them to the office.portable pension /�pɔ�təb(ə)l�penʃən/, portable pension plan/�pɔ�təb(ə)l �penʃən pl�n/ noun a pen-sion entitlement which can be movedfrom one company to another withoutloss (as an employee changes jobs)portfolio /pɔ�t�fəυliəυ/ noun 1. � aportfolio of shares all the shares ownedby a single investor 2. a folder contain-ing a selection of samples � The studentbrought a portfolio of designs to showthe design department manager.portfolio investments /pɔ�t-�fəυliəυ n�vestmənts/ plural noun in-vestments in shares and governmentstocks (as opposed to investments inproperty, etc.)portfolio management /pɔ�t-�fəυliəυ �m�nd$mənt/ noun the buy-ing and selling shares to make profitsfor a single investorportfolio manager /pɔ�t�fəυliəυ�m�nd$ə/ noun a person who managesa share portfolioportfolio theory /pɔ�t�fəυliəυ �θəri/noun a basis for managing a portfolio ofinvestments (a mix of safe stocks andmore risky ones)portfolio value /pɔ�t�fəυliəυ�v�lju�/ noun the value of someone’sportfolio of investmentsPOS, p.o.s. abbreviation point of saleposition /pə�zʃ(ə)n/ noun 1. a situa-tion or state of affairs � what is thecash position? what is the state of thecompany’s current account? � to covera position to have enough money to payfor a forward purchase 2. the state of aperson’s current financial holding in astock � to close a position to arrangeyour affairs so that you no longer haveany liability to pay (as by selling allyour securities or when a purchaser of afutures contract takes on a sales contractfor the same amount to offset the risk) �to take a bear position to act on the as-sumption that the market will fall � totake a position in a share to buy shareson your own account, expecting to sellthem later at a profitpositioning /pə�zʃ(ə)nŋ/ noun thepromotion of a product in a particulararea of a market

policyholder 265 positioning

position of trust /pə�zʃ(ə)n əv�tr�st/ noun a job in which a person istrusted to act correctly and honestlypositive /�pɒztv/ adjective meaning‘yes’ � The board gave a positive reply.positive carry /�pɒztv �k�ri/ nouna deal where the cost of the finance isless than the returnpositive cash flow /�pɒztv �k�ʃfləυ/ noun a situation where moremoney is coming into a company than isgoing outpositive yield curve /�pɒztv �ji�ldk%�v/ noun a situation where the yieldon a short-term investment is less thanthat on a long-term investmentPOS material /�pi� əυ �es mə�təriəl/abbreviation point-of-sale materialpossess /pə�zes/ verb to own some-thing � The company possesses prop-erty in the centre of the town. � He lostall he possessed in the collapse of hiscompany. Compare repossess

possession /pə�zeʃ(ə)n/ noun thefact of owning or having something �the documents are in his possession heis holding the documentspossessions /pə�zeʃ(ə)nz/ pluralnoun property, things owned � Theylost all their possessions in the fire.Compare repossession

post /pəυst/ noun a system of sendingletters and parcels from one place to an-other � to send an invoice by post � Heput the letter in the post. � The chequewas lost in the post. � to send a replyby return of post to reply to a letter im-mediately � verb 1. to send a letter orparcel by post 2. to record or entersomething � to post an entry to transferan entry to an account � to post up aledger to keep a ledger up to date 3. �to post an increase to let people knowthat an increase has taken place

‘Toronto stocks closed at an all-time high,posting their fifth day of advances in heavytrading’ [Financial Times]

postal /�pəυst(ə)l/ adjective referringto the postpostal account /�pəυst(ə)l ə�kaυnt/noun a bank account where all dealingsare done by post, so reducing overheadcosts and allowing a higher interest tobe paid

postal ballot /�pəυst(ə)l �b�lət/,postal vote /�pəυst(ə)l vəυt/ nounan election where the voters send theirballot papers by postpostal charges /�pəυst(ə)l�tʃɑ�d$z/ plural noun money to be paidfor sending letters or parcels by post �Postal charges are going up by 10% inSeptember.postal order /�pəυst(ə)l �ɔ�də/ nouna document bought at a post office, usedas a method of paying small amounts ofmoney by postpost-balance sheet event /pəυst�b�ləns ʃi�t �vent/ noun somethingwhich happens after the date when thebalance sheet is drawn up, and beforethe time when the balance sheet is offi-cially approved by the directors, whichaffects a company’s financial positionpostdate /�pəυst�det/ verb to put alater date on a document � He sent us apostdated cheque. � His cheque waspostdated to June.post-earnings-announcementdrift /pəυst �%�nŋz ə�naυnsməntdrft/ noun an unexplained downwardmovement of shares in companies fol-lowing announcements that quarterlyearnings have exceeded expectationsposting /�pəυstŋ/ noun the action ofentering transactions in accountspotential /pə�tenʃəl/ adjective possi-ble � potential customers people whocould be customers � potential marketa market which could be exploited �noun the possibility of becoming some-thing � a share with a growth poten-tial or with a potential for growth ashare which is likely to increase in value� a product with considerable salespotential a product which is likely tohave very large sales � to analyse themarket potential to examine the mar-ket to see how large it possibly is

‘…career prospects are excellent for someonewith growth potential’ [Australian FinancialReview]‘…for sale: established general cleaningbusiness; has potential to be increased to over 1million dollar turnover’ [Australian FinancialReview]

pound /paυnd/ noun 1. a measure ofweight (= 0.45 kilos) � to sell orangesby the pound � a pound of oranges �Oranges cost 50p a pound. (NOTE:Usually written lb after a figure: 25lb.

position of trust 266 pound

Note also that the pound is now no lon-ger officially used in the UK.) 2. a unitof currency used in the UK and manyother countries including Cyprus,Egypt, Lebanon, Malta, Sudan, Syriaand, before the euro, Irelandpoundage /�paυndd$/ noun a ratecharged per pound in weightpound-cost averaging /�paυndkɒst ��v(ə)rd$ŋ/ noun the practice ofbuying securities at different times, butalways spending the same amount ofmoneypound sterling /paυnd �st%�lŋ/noun the official term for the Britishcurrencypower /�paυə/ noun 1. strength orability � the power of a consumergroup ability of a group to influence thegovernment or manufacturers 2. a forceor legal right � the full power of thelaw the full force of the law when ap-plied � We will apply the full power ofthe law to get possession of our propertyagain. � There was a power struggle inthe boardroom, and the finance directorhad to resign.power of appointment /�paυər əvə�pɔntmənt/ noun the power of atrustee to dispose of interests in propertyto another personpower of attorney /�paυər əv ə-�t%�ni/ noun a legal document whichgives someone the right to act on some-one’s behalf in legal mattersp.p. abbreviation per procurationem �verb � to p.p. a letter to sign a letter onbehalf of someone � Her assistantp.p.’d the letter while the manager wasat lunch.PPP abbreviation personal pensionplanpractice /�pr�kts/ noun a way of do-ing things, a custom or habit � His prac-tice was to arrive at work at 7.30 andstart counting the cash. � restrictivepractices ways of working which makepeople less free (such as when trade un-ions stop workers from doing certainjobs, or stores do not allow customers afree choice of product)

‘…the EC demanded international arbitrationover the pricing practices of the provincialboards’ [Globe and Mail (Toronto)]

preannouncement /�pri�ə-�naυnsmənt/ noun an announcement of

something earlier than the date on whichit should normally be announcedprecautionary measure /pr-�kɔ�ʃ(ə)n(ə)ri �me$ə/ noun an actiontaken to prevent something unwantedtaking placeprecious metals /�preʃəs �met(ə)lz/plural noun very valuable metals, suchas gold and platinumpredator /�predətə/ noun an individ-ual (or company) who spends most ofthe time looking for companies to pur-chase cheaplypredict /pr�dkt/ verb to say thatsomething will happen in the futurepredictability /pr�dktə�blti/ nounthe ability to be predictedpre-empt /pri��empt/ verb to stopsomething happening or stop someonedoing something by taking actionquickly before anyone else can � Theystaged a management buyout topre-empt a takeover bid.pre-emption right /pri��empʃənrat/ noun the right of an existing share-holder to be first to buy a new stockissuepre-emptive /pri��emptv/ adjectivewhich is done before anyone else takesaction in order to stop something hap-pening � pre-emptive strike against atakeover bid rapid action taken to pre-vent a takeover bidpreference /�pref(ə)rəns/ noun 1. athing which someone prefers � the cus-tomers’ preference for small cornershops 2. a thing which has an advantageover something elsepreference shareholder/�pref(ə)rəns �ʃeəhəυldə/ noun anowner of preference sharespreference shares /�pref(ə)rənsʃeəz/ plural noun shares (often with novoting rights) which receive their divi-dend before all other shares and are re-paid first (at face value) if the companygoes into liquidation (NOTE: The USterm is preferred stock.)

COMMENT: Preference shares, becausethey have less risk than ordinary shares,normally carry no voting rights.

preferential /�prefə�renʃəl/ adjectiveshowing that something is preferredmore than another

poundage 267 preferential

preferential creditor /�prefə-�renʃ(ə)l �kredtə/, preferred creditor/pr�f%�d �kredtə/ noun a creditor whomust be paid first if a company is inliquidationpreferred shares /pr�f%�d �ʃeəz/,preferred stock /pr�f%�d �stɒk/ pluralnoun same as preference sharespre-financing /pri��fan�nsŋ/ nounfinancing in advanceprelim /�pri�lm/ noun same as pre-liminary announcement (informal.)preliminary /pr�lmn(ə)ri/ adjectiveearly, happening before anything else

‘…preliminary indications of the level ofbusiness investment and activity during theMarch quarter will be available this week’[Australian Financial Review]

preliminary announcement /pr-�lmn(ə)ri ə�naυnsmənt/ noun anannouncement of a company’s full-yearresults, given out to the press before thedetailed annual report is releasedpreliminary prospectus /pr-�lmn(ə)ri prə�spektəs/ noun same aspathfinder prospectuspre-market trading /pri� �mɑ�kt�tredŋ/ noun trading that takes placebefore a Stock Exchange officiallyopens in the morningpremium noun /�pri�miəm/ 1. a regu-lar payment made to an insurance com-pany for the protection provided by aninsurance policy 2. an amount to be paidto a landlord or a tenant for the right totake over a lease � flat to let with a pre-mium of £10,000 � annual rent: £8,500,premium: £25,000 3. an extra sum ofmoney in addition to a normal charge,wage, price or other amount 4. a gift,discount or other incentive to encouragesomeone to buy � adjective 1. of veryhigh quality 2. very high

‘…greenmail, the practice of buying back stockat a premium from an acquirer who threatens atakeover’ [Duns Business Month]

‘…responsibilities include the production ofpremium quality business reports’ [Times]

premium bond /�pri�miəm bɒnd/noun a government bond, part of theNational Savings scheme, which paysno interest, but gives the owner thechance to win a weekly or monthly prizepremium income /�pri�miəm�nk�m/ noun income which an insur-

ance company derives from premiumspaid by insured personspremium offer /�pri�miəm �ɒfə/noun a free gift offered to attract morecustomersprepaid /pri��ped/ adjective paid inadvanceprepaid reply card /�pri�ped r-�pla kɑ�d/ noun a stamped addressedcard which is sent to someone so thatthey can reply without paying thepostageprepay /pri��pe/ verb to pay some-thing in advance (NOTE: prepaying –prepaid)prepayment /pri��pemənt/ noun 1.a payment in advance, or the act of pay-ing in advance � to ask for prepay-ment of a fee to ask for the fee to bepaid before the work is done 2. US therepayment of the principal of a loan be-fore it is dueprepayment penalty /pri��pemənt�pen(ə)lti/ noun US a charge levied onsomeone who repays a loan (such as amortgage) before it is duepresent adjective /�prez(ə)nt/ 1. hap-pening now � The shares are too expen-sive at their present price. � What is thepresent address of the company? 2. be-ing there when something happens �Only six directors were present at theboard meeting. � verb /pr�zent/ tobring or send and show a document � topresent a bill for acceptance to presenta bill for payment by the person who hasaccepted it � to present a bill for pay-ment to send a bill to be paidpresentation /�prez(ə)n�teʃ(ə)n/noun the showing of a document �cheque payable on presentation acheque which will be paid when it ispresented � free admission on presen-tation of this card you do not pay to goin if you show this cardpresentment /pr�zentmənt/ nounUS same as presentationpresent value /�prez(ə)nt �v�lju�/noun 1. the value something has now �In 1984 the pound was worth five timesits present value. 2. the value now of aspecified sum of money to be receivedin the future, if invested at current inter-est rates. Abbreviation PV

COMMENT: The present value of a futuresum of money is found by discounting that

preferential creditor 268 present value

future sum, and can be used to decidehow much money to invest now at currentinterest rates in order to receive the sumyou want to have in a given number ofyears’ time.

press /pres/ noun newspapers andmagazines � We plan to give the prod-uct a lot of press publicity. � There wasno mention of the new product in thepress.press conference /�pres�kɒnf(ə)rəns/ noun a meeting wherenewspaper and TV reporters are invitedto hear news of something such as a newproduct or a takeover bidpress coverage /�pres �k�v(ə)rd$/noun reports about something in news-papers, and magazines and other media� The company had good press cover-age for the launch of its new model.press cutting /�pres �k�tŋ/ noun apiece cut out of a newspaper or maga-zine which refers to an item which youfind interesting � We have kept a file ofpress cuttings about the new car.pressing /�presŋ/ adjective urgent �pressing engagements meetings whichhave to be attended � pressing billsbills which have to be paidpress recommendation /�pres�rekəmen�deʃ(ə)n/ noun a sharewhich has been tipped as a good buy inthe financial column of a newspaperpress release /�pres r�li�s/ noun asheet giving news about somethingwhich is sent to newspapers and TV andradio stations so that they can use the in-formation � The company sent out apress release about the launch of thenew car.pressure /�preʃə/ noun somethingwhich forces you to do something � hewas under considerable financialpressure he was forced to act becausehe owed money � to put pressure onsomeone to do something to try toforce someone to do something � Thegroup tried to put pressure on the gov-ernment to act. � The banks put pres-sure on the company to reduce itsborrowings. � working under highpressure working with customers ask-ing for supplies urgently or with a man-ager telling you to work faster � thepound has come under pressure onthe foreign exchanges many people

have been trying to sell pounds, and thishas brought down its exchange rate �The group tried to put pressure on thegovernment to act. � The banks putpressure on the company to reduce itsborrowings.pressure group /�preʃə �ru�p/ nouna group of people who try to influencethe government, the local town councilor some other organisationpre-tax /�pri�t�ks/, pretax adjectivebefore tax has been deducted or paid

‘…the company’s goals are a growth in sales ofup to 40 per cent, a rise in pre-tax earnings ofnearly 35 per cent and a rise in after-tax earningsof more than 25 per cent’ [Citizen (Ottawa)]‘EC regulations which came into effect in Julyinsist that customers can buy cars anywhere inthe EC at the local pre-tax price’[Financial Times]

pretax profit /�pri�t�ks �prɒft/noun the amount of profit a companymakes before taxes are deducted � Thedividend paid is equivalent to one quar-ter of the pretax profit. Also calledprofit before tax, profit on ordinaryactivities before taxpretax profit margin /�pri�t�ks�prɒft �mɑ�d$n/ noun the pretaxprofit shown as a percentage of turnoverin a profit and loss accountprevious /�pri�viəs/ adjective whichhappens earlier or which existed before� List all previous positions with thesalaries earned.previous balance /�pri�viəs�b�ləns/ noun a balance in an accountat the end of the accounting period be-fore the current oneprey /pre/ noun company which is be-ing attacked by another (the ‘predator’)in a takeover bidprice /pras/ noun money which has tobe paid to buy something � askingprice price which the seller is hoping tobe paid for the item when it is sold �competitive price a low price aimed tocompete with a rival product � to sellgoods off at half price to sell goods athalf the price at which they were beingsold before � cars in the £18–19,000price range cars of different makes,selling for between £18,000 and£19,000 � price ex warehouse the pricefor a product which is to be collectedfrom the manufacturer’s or agent’swarehouse and so does not include de-

press 269 price

livery � to increase in price to becomemore expensive � Petrol has increasedin price or the price of petrol has in-creased. � to increase prices, to raiseprices to make items more expensive �we will try to meet your price we willtry to offer a price which is acceptableto you � to cut prices to reduce pricessuddenly � to lower prices, to reduceprices to make items cheaper � verb togive a price to a product � We have twoused cars for sale, both priced at£5,000. � competitively priced sold ata low price which competes with that ofsimilar goods from other companies �the company has priced itself out ofthe market the company has raised itsprices so high that its products do notsell

‘…the average price per kilogram for thisseason has been 300c’ [Australian FinancialReview]‘European manufacturers rely heavily onimported raw materials which are mostly pricedin dollars’ [Duns Business Month]‘…after years of relying on low wages for theircompetitive edge, Spanish companies arefinding that rising costs and the strength of thepeseta are pricing them out of the market’[Wall Street Journal]‘…that British goods will price themselves backinto world markets is doubtful as long as sterlinglabour costs continue to rise’ [Sunday Times]

price/book ratio /�pras �bυk�reʃiəυ/ noun a ratio of the price of astock to its book valueprice ceiling /�pras �si�lŋ/ noun thehighest price which can be reachedprice change /�pras tʃend$/ nounan amount by which the price of a sharemoves during a day’s tradingprice controls /�pras kən�trəυlz/plural noun legal measures to preventprices rising too fastprice cutting /�pras �k�tŋ/ noun asudden lowering of pricesprice-cutting war /�pras �k�tŋwɔ�/ noun same as price warprice differential /�pras dfə-�renʃəl/ noun the difference in price be-tween products in a rangeprice/earnings ratio /�pras �%�nŋz�reʃiəυ/ noun a ratio between the cur-rent market price of a share and theearnings per share (the current dividendit produces), calculated by dividing themarket price by the earnings per share �

these shares sell at a P/E ratio of 7 Alsocalled P/E ratio. Abbreviation PER(NOTE: The US term is price/earningsmultiple.)

COMMENT: The P/E ratio is an indicationof the way investors think a company willperform in the future, as a high marketprice suggests that investors expect earn-ings to grow and this gives a high P/E fig-ure; a low P/E figure implies that investorsfeel that earnings are not likely to rise.

price ex factory /�pras eks�f�kt(ə)ri/, price ex works /�pras eks�w%�ks/ noun a price not includingtransport from the maker’s factoryprice fixing /�pras �fksŋ/ noun anillegal agreement between companies tocharge the same price for competingproductsprice label /�pras �leb(ə)l/ noun alabel which shows a priceprice list /�pras lst/ noun a sheetgiving prices of goods for saleprice movement /�pras�mu�vmənt/ noun a change in theprices of shares or commoditiesprice range /�pras rend$/ noun aseries of prices for similar productsfrom different suppliersprice-sensitive /pras �sensətv/adjective referring to a product forwhich demand will change significantlyif its price is increased or decreasedprice tag /�pras t��/ noun 1. a labelattached to an item being sold thatshows its price 2. the value of a personor thing � The takeover bid put a $2mprice tag on the company.price war /�pras wɔ�/ noun a compe-tition between companies to get a largermarket share by cutting prices. Alsocalled price-cutting warpricing /�prasŋ/ noun the act of giv-ing a price to a productpricing model /�prasŋ �mɒd(ə)l/noun a computerised system for calcu-lating a price, based on costs, antici-pated margins, etc.pricing policy /�prasŋ �pɒlisi/noun a company’s policy in givingprices to its products � Our pricing pol-icy aims at producing a 35% grossmargin.primary /�praməri/ adjective 1. basic2. first, most important

price/book ratio 270 primary

‘…farmers are convinced that primary industryno longer has the capacity to meet new capitaltaxes or charges on farm inputs’[Australian Financial Review]

primary account number/�praməri ə�kaυnt �n�mbə/ noun aseries of figures on a credit card, whichare the number of the issuing bank andthe personal number of the account. Ab-breviation PANprimary commodities /�pramərikə�mɒdtiz/ plural noun farm producegrown in large quantities, such as corn,rice or cottonprimary dealer /�praməri �di�lə/noun a marketmaker dealing in govern-ment stocksprimary industry /�praməri�ndəstri/ noun an industry dealing withbasic raw materials such as coal, woodor farm produceprimary market /�praməri �mɑ�kt/noun a market where new securities orbonds are issued. Also called new is-sue marketprimary products /�praməri�prɒd�kts/ plural noun products whichare basic raw materials, e.g. wood, milkor fishprime /pram/ adjective 1. most im-portant 2. basic � noun same as primerateprime bills /�pram �blz/ plural nounbills of exchange which do not involveany riskprime cost /�pram �kɒst/ noun thecost involved in producing a product,excluding overheadsprime rate /�pram ret/ noun US thebest rate of interest at which an Ameri-can bank lends to its customers

‘…the base lending rate, or prime rate, is therate at which banks lend to their top corporateborrowers’ [Wall Street Journal]

COMMENT: Not the same as the Britishbank base rate, which is only a notionalrate, as all bank loans in the UK are at acertain percentage point above the baserate.

prime sites /�pram �sats/ pluralnoun the most valuable commercialsites (i.e. in main shopping streets) asopposed to secondary sitesprime time /�pram tam/ noun themost expensive advertising time for TV

commercials � We are putting out a se-ries of prime-time commercials.priming /�pramŋ/ noun � pumpprimingprincipal /�prnsp(ə)l/ noun 1. a per-son or company that is represented byan agent � The agent has come to Lon-don to see his principals. 2. a personacting for himself, such as amarketmaker buying securities on hisown account 3. money invested or bor-rowed on which interest is paid � to re-pay principal and interest � We try torepay part of principal each month.(NOTE: Do not confuse with principle.)� adjective most important � The prin-cipal shareholders asked for a meeting.� The country’s principal products arepaper and wood. � The company’s prin-cipal asset is its design staff.

‘…the company was set up with funds totallingNorKr 145m with the principal aim of makingcapital gains on the secondhand market’[Lloyd’s List]

principle /�prnsp(ə)l/ noun a basicpoint or general rule � in principle inagreement with a general rule � agree-ment in principle agreement with thebasic conditions of a proposalprior /�praə/ adjective earlier � prioragreement an agreement which wasreached earlier � without prior knowl-edge without knowing beforeprior-charge capital /�praə�tʃɑ�d$ �k�pt(ə)l/ noun a capital in theform of preference shares, which ranksbefore other capital in terms of distribu-tions of profits and repayment when acompany goes into liquidationpriority /pra�ɒrti/ noun � to havepriority to have the right to be first � tohave priority over or to take priorityover something to be more importantthan something � Reducing overheadstakes priority over increasing turnover.� Debenture holders have priority overordinary shareholders. � to give some-thing top priority to make somethingthe most important itemprivacy /�prvəsi/ noun a method ofensuring that a person’s personal orcredit card payment details cannot be in-tercepted and read when transferredover the Internetprivate /�pravət/ adjective belongingto a single person or to individual peo-ple, not to a company or the state � a

primary account number 271 private

letter marked ‘private and confidential’ aletter which must not be opened by any-one other than the person it is addressedto

‘…in the private sector the total number of newhouse starts was 3 per cent higher than in thecorresponding period last year, while publicsector starts were 23 per cent lower’[Financial Times]

‘…management had offered to take thecompany private through a leveraged buyout for$825 million’ [Fortune]

private banking /�pravət �b�ŋkŋ/noun a special banking services offeredto very rich peopleprivate client stockbroker/�pravət �klaənt �stɒkbrəυkə/ nouna stockbroker who deals on behalf ofprivate investorsprivate enterprise /�pravət�entəpraz/ noun businesses which areowned privately, not nationalised � Theproject is completely funded by privateenterprise.private income /�pravət �nk�m/noun income from dividends, interest orrent which is not part of a salaryprivate investor /�pravət n�vestə/noun an ordinary person with money toinvestprivate limited company /�pravət�lmtd �k�mp(ə)ni/ noun 1. acompany with a small number of share-holders, whose shares are not traded onthe Stock Exchange 2. a subsidiarycompany whose shares are not listed onthe Stock Exchange, while those of itsparent company are (NOTE: [all senses]shortened to Ltd)

private means /�pravət �mi�nz/ plu-ral noun income from dividends, inter-est or rent which is not part ofsomeone’s salaryprivate ownership /�pravət�əυnəʃp/ noun a situation where acompany is owned by privateshareholdersprivate placing /�pravət �plesŋ/,private placement /�pravət�plesmənt/ noun the act of placing anew issue of shares with a group ofselected financial institutionsprivate property /�pravət �prɒpəti/noun property which belongs to a pri-vate person, not to the public

private sector /�pravət �sektə/noun all companies which are owned byprivate shareholders, not by the state �The expansion is completely funded bythe private sector. � Salaries in the pri-vate sector have increased faster than inthe public sector.privatisation /�pravəta�zeʃ(ə)n/,privatization noun the process of sell-ing a nationalised industry to privateownersprivatise /�pravətaz/, privatizeverb to sell a nationalised industry toprivate ownerspro /prəυ/ preposition forprobate /�prəυbet/ noun legal accep-tance that a document, especially a will,is valid � the executor was grantedprobate or obtained a grant of pro-bate the executor was told officially thatthe will was validprobate court /�prəυbet kɔ�t/ nouna court which examines wills to see ifthey are validprocedure /prə�si�d$ə/ noun a way inwhich something is done � The inquiryfound that the company had not fol-lowed the approved procedures. � Themanagement complained that the unionsdid not follow the proper procedure. �this procedure is very irregular this isnot the proper way to do something �accounting procedures set ways of do-ing the accounts of a company

‘…this was a serious breach of disciplinaryprocedure and the dismissal was unfair’[Personnel Management]

proceed /prə�si�d/ verb to go on, tocontinue � The negotiations are pro-ceeding slowly. � to proceed againstsomeone to start a legal action againstsomeone � to proceed with somethingto go on doing something � Shall weproceed with the committee meeting?proceedings /prə�si�dŋz/ pluralnoun � to institute proceedingsagainst someone to start a legal actionagainst someoneproceeds /�prəυsi�dz/ plural nounmoney received from selling something� the proceeds of a sale money re-ceived from a sale after deducting ex-penses � He sold his shop and investedthe proceeds in a computer repairbusiness.

private banking 272 proceeds

process /�prəυses/ noun � deci-sion-making processes ways in whichdecisions are reached � verb 1. � toprocess figures to sort out informationto make it easily understood � The salesfigures are being processed by our ac-counts department. � The data is beingprocessed by our computer. 2. to dealwith something in the usual routine way� It usually takes at least two weeks toprocess an insurance claim. � Ordersare processed in our warehouse.processing /�prəυsesŋ/ noun 1. theact of sorting information � the process-ing of information or of statistics by acomputer 2. � the processing of aclaim for insurance putting a claim forinsurance through the usual office rou-tine in the insurance companyproduce noun /�prɒdju�s/ productsfrom farms and gardens, especially fruitand vegetables � home produce � agri-cultural produce � farm produce � verb/prə�dju�s/ 1. to bring something outand show it � He produced documentsto prove his claim. � The negotiatorsproduced a new set of figures. � Thecustoms officer asked him to producethe relevant documents. 2. to make ormanufacture something � The factoryproduces cars or engines. � to massproduce to make large quantities of aproduct 3. to give an interest � invest-ments which produce about 10% perannumproduct /�prɒd�kt/ noun 1. some-thing which is made or manufactured 2.a manufactured item for saleproduct advertising /�prɒd�kt��dvətazŋ/ noun the advertising of aparticular named product, not the com-pany which makes itproduct analysis /�prɒd�kt ə-�n�ləss/ noun an examination of eachseparate product in a company’s rangeto find out why it sells, who buys it, etc.product design /�prɒd�kt d�zan/noun the design of consumer productsproduct development /�prɒd�ktd�veləpmənt/ noun the process of im-proving an existing product line to meetthe needs of the marketproduct engineer /�prɒd�kt�end$�nə/ noun an engineer in chargeof the equipment for making a product

production /prə�d�kʃən/ noun 1. theact of showing something � on produc-tion of when something is shown � Thecase will be released by customs on pro-duction of the relevant documents. �Goods can be exchanged only on pro-duction of the sales slip. 2. the work ofmaking or manufacturing of goods forsale � We are hoping to speed up pro-duction by installing new machinery. �Higher production is rewarded withhigher pay.production cost /prə�d�kʃən kɒst/noun the cost of making a productproduction department /prə-�d�kʃən d�pɑ�tmənt/ noun the sectionof a company which deals with the mak-ing of the company’s productsproduction line /prə�d�kʃən lan/noun a system of making a product,where each item such as a car movesslowly through the factory with newsections added to it as it goes along �He works on the production line. � Sheis a production-line worker.production manager /prə�d�kʃən�m�nd$ə/ noun the person in charge ofthe production departmentproduction target /prə�d�kʃən�tɑ��t/ noun the amount of units a fac-tory is expected to produceproduction unit /prə�d�kʃən�ju�nt/ noun a separate small group ofworkers producing a productproductive /prə�d�ktv/ adjectivewhich produces, especially which pro-duces something useful � productivediscussions useful discussions whichlead to an agreement or decisionproductive capital /prə�d�ktv�k�pt(ə)l/ noun capital which is in-vested to give interestproductivity /�prɒd�k�tvti/ nounthe rate of output per employee or permachine in a factory � Bonus paymentsare linked to productivity. � The com-pany is aiming to increase productivity.� Productivity has fallen or risen sincethe company was taken over.

‘…though there has been productivity growth,the absolute productivity gap between manyBritish firms and their foreign rivals remains’[Sunday Times]

productivity agreement /�prɒd�k-�tvti ə��ri�mənt/ noun an agreementto pay a productivity bonus

process 273 productivity agreement

productivity bonus /�prɒd�k�tvti�bəυnəs/ noun an extra payment madeto employees because of increased pro-duction per employeeproductivity drive /�prɒd�k�tvtidrav/ noun an extra effort to increaseproductivityproduct management /�prɒd�kt�m�nd$mənt/ noun the process of di-recting the making and selling of a prod-uct as an independent itemproduct mix /�prɒd�kt mks/ noun arange of different products which acompany has for saleprofession /prə�feʃ(ə)n/ noun 1. anoccupation for which official qualifica-tions are needed and which is oftenmade a lifelong career � The managingdirector is an accountant by profession.� HR management is now more widelyrecognised as a profession. 2. a group ofspecialised workers � the accountingprofession � the legal profession

‘…one of the key advantages of an accountancyqualification is its worldwide marketability.Other professions are not so lucky: lawyers, forexample, are much more limited in where theycan work’ [Accountancy]

professional /prə�feʃ(ə)n(ə)l/ adjec-tive 1. referring to one of the professions� The accountant sent in his bill forprofessional services. � We had to askour lawyer for professional advice onthe contract. � The professional insti-tute awards diplomas. � professionalman, professional woman a man orwoman who works in one of the profes-sions (such as a lawyer, doctor or ac-countant) 2. doing work for money � aprofessional tennis player � he is a pro-fessional troubleshooter he makes hisliving by helping companies to sort outtheir problemsprofessional qualification /prə-�feʃ(ə)n(ə)l kwɒlf�keʃ(ə)n/ noun adocument which shows that someonehas successfully finished a course ofstudy which allows him or her to workin one of the professionsprofit /�prɒft/ noun money gainedfrom a sale which is more than themoney spent on making the item sold oron providing the service offered � totake your profit to sell shares at ahigher price than was paid for them, andso realise the profit, rather than to keepthem as an investment � to show a

profit to make a profit and state it in thecompany accounts � We are showing asmall profit for the first quarter. � tomake a profit to have more money as aresult of a deal � to move into profit tostart to make a profit � The company isbreaking even now, and expects to moveinto profit within the next two months. �to sell at a profit to sell at a price whichgives you a profit � healthy profit quitea large profit

‘…because capital gains are not taxed andmoney taken out in profits and dividends istaxed, owners of businesses will be usingaccountants and tax experts to find loopholes inthe law’ [Toronto Star]‘…the bank transferred $5 million to generalreserve compared with $10 million the previousyear which made the consolidated profit andloss account look healthier’ [HongkongStandard]

profitability /�prɒftə�blti/ noun 1.the ability to make a profit � We doubtthe profitability of the project. 2. theamount of profit made as a percentageof costsprofitable /�prɒftəb(ə)l/ adjectivewhich makes a profit � She runs a veryprofitable employment agency.profitably /�prɒftəbli/ adverb mak-ing a profit � The aim of every companymust be to trade profitably.profit after tax /�prɒft ɑ�ftə �t�ks/noun same as net profitprofit and loss account /�prɒftən �lɒs ə�kaυnt/ noun the accounts fora company showing expenditure and in-come over a period of time, usually onecalendar year, balanced to show a finalprofit or loss. Also called P&L account(NOTE: The US term is profit and lossstatement or income statement.)profit before tax /�prɒft bfɔ��t�ks/ noun same as pretax profitprofit centre /�prɒft �sentə/ noun aperson, unit or department within an or-ganisation which is considered sepa-rately for the purposes of calculating aprofit � We count the kitchen equipmentdivision as a single profit centre.profiteer /�prɒf�tə/ noun a personwho makes too much profit, especiallywhen goods are rationed or in shortsupplyprofiteering /�prɒf�tərŋ/ noun thepractice of making too much profit

productivity bonus 274 profiteering

profit-making /�prɒft �mekŋ/ ad-jective which makes a profit � Thewhole project was expected to beprofit-making by 2001 but it still hasn’tbroken even. � It is hoped to make itinto a profit-making concern.profit margin /�prɒft �mɑ�d$n/noun the percentage difference betweensales income and the cost of salesprofit on ordinary activities be-fore tax /�prɒft ɒn �ɔ�d(ə)n(ə)ri �k-�tvtiz b�fɔ� �t�ks/ noun same aspretax profitprofit-sharing /�prɒft �ʃeərŋ/ nounan arrangement where workers get ashare of the profits of the company theywork for � The company runs aprofit-sharing scheme.profit squeeze /�prɒft skwi�z/noun strict control of the amount ofprofits which companies can pay out asdividendprofits tax /�prɒfts t�ks/ noun a taxto be paid on profitsprofit-taker /�prɒft �tekə/ noun aperson who sells an investment in orderto realise a profitprofit-taking /�prɒft �tekŋ/ nounthe act of selling investments to realisethe profit, rather than keeping them �Share prices fell under continuedprofit-taking.

‘…some profit-taking was seen yesterday asinvestors continued to lack fresh incentives torenew buying activity’ [Financial Times]

pro forma /prəυ �fɔ�mə/ adverb ‘forthe sake of form’ � verb to issue a proforma invoice � Can you pro forma thisorder? � noun a document issued be-fore all relevant details are known, usu-ally followed by a final versionpro forma invoice /prəυ �fɔ�mə�nvɔs/, pro forma /prəυ �fɔ�mə/noun an invoice sent to a buyer beforethe goods are sent, so that payment canbe made or so that goods can be sent to aconsignee who is not the buyer � Theysent us a pro forma invoice. � We onlysupply that account on pro forma.program /�prəυ�r�m/ noun 1. USsame as programme 2. a set of instruc-tions that tell a computer to carry outspecific tasks � verb to write a programfor a computer � to program a com-puter to install a program in a computer

� The computer is programmed to printlabels.programmable /prəυ��r�məb(ə)l/adjective which can be programmedprogramme /�prəυ�r�m/ noun aplan of things which will be done � todraw up a programme of investment oran investment programme � She is run-ning the development programme or theresearch programme. � The trainingprogramme sends all managers for re-training every year. � We are initiatinga new recruitment programme. (NOTE:The US spelling is program.)

programmed trading /�prəυ�r�md�tredŋ/ noun same as programtrading

programming engineer /�prəυ-��r�mŋ �end$�nə/ noun an engineerin charge of programming a computersystemprogramming language/�prəυ�r�mŋ �l�ŋ�wd$/ noun asystem of signs, letters and words usedto instruct a computerprogram trader /�prəυ�r�m�tredə/ noun a person who buys orsells according to a computer programprogram trading /�prəυ�r�m�tredŋ/ noun the practice of buyingand selling shares according to instruc-tions given by a computer program (thecomputer is programmed to buy or sellwhen certain prices are reached or whena certain volume of sales on the marketis reached)progress noun /�prəυ�res/ the move-ment of work towards completion � toreport on the progress of the work or ofthe negotiations � to make a progressreport to report how work is going � inprogress which is being done but is notfinished � negotiations in progress �work in progress � verb /prəυ��res/ tomove forward, to go ahead � The con-tract is progressing through variousdepartments.progressive /prə��resv/ adjectivewhich moves forward in stagesprogressive taxation /prə��resvt�k�seʃ(ə)n/ noun a taxation systemwhere tax levels increase as the incomeis higher. Also called graduated taxa-tion. Compare regressive taxation

profit-making 275 progressive taxation

progress payment /�prəυ�res�pemənt/ noun a payment made as aparticular stage of a contract is com-pleted � The fifth progress payment isdue in March.prohibitive /prəυ�hbtv/ adjectivewith a price so high that you cannot af-ford to pay it � The cost of redesigningthe product is prohibitive.project /�prɒd$ekt/ noun 1. a plan �He has drawn up a project for develop-ing new markets in Europe. 2. a particu-lar job of work which follows a plan �We are just completing an engineeringproject in North Africa. � The companywill start work on the project nextmonth.project analysis /�prɒd$ekt ə-�n�ləss/ noun the examination of allthe costs or problems of a project beforework on it is startedprojected /prə�d$ektd/ adjectiveplanned or expected � projected sales aforecast of sales � Projected sales inEurope next year should be over £1m.project engineer /�prɒd$ekt�end$�nə/ noun an engineer in chargeof a projectprojection /prə�d$ekʃən/ noun aforecast of something which will hap-pen in the future � Projection of profitsfor the next three years. � The salesmanager was asked to draw up salesprojections for the next three years.project manager /�prɒd$ekt�m�nd$ə/ noun the manager in chargeof a projectpromise /�prɒms/ noun an act of say-ing that you will do something � tokeep a promise to do what you said youwould do � He says he will pay nextweek, but he never keeps his promises. �to go back on a promise not to do whatyou said you would do � The manage-ment went back on its promise to in-crease salaries across the board. � apromise to pay a promissory note �verb to say that you will do something �They promised to pay the last instalmentnext week. � The personnel managerpromised he would look into the griev-ances of the office staff.promissory note /�prɒmsəri �nəυt/noun a document stating that someonepromises to pay an amount of money ona specific date

promote /prə�məυt/ verb 1. to givesomeone a more important job or tomove someone to a higher grade � Hewas promoted from salesman to salesmanager. 2. to advertise a product � topromote a new product to increase thesales of a new product by a sales cam-paign, by TV commercials or free gifts,or by giving discounts 3. � to promotea new company to organise the settingup of a new companypromotion /prə�məυʃ(ə)n/ noun 1.the fact of being moved up to a moreimportant job � I ruined my chances ofpromotion when I argued with the man-aging director. � The job offers goodpromotion chances or promotion pros-pects. � to earn promotion to workhard and efficiently and so be promoted2. all means of conveying the messageabout a product or service to potentialcustomers, e.g. publicity, a sales cam-paign, TV commercials or free gifts �Our promotion budget has been dou-bled. � The promotion team has put for-ward plans for the launch. � We areoffering free holidays in France as partof our special in-store promotion. � Wea running a special promotion offeringtwo for the price of one. 3. � promotionof a company the setting up of a newcompanypromotional /prə�məυʃ(ə)n(ə)l/ ad-jective used in an advertising campaign� The admen are using balloons as pro-motional material.promotional budget /prə-�məυʃ(ə)n(ə)l �b�d$t/ noun a forecastof the cost of promoting a new productprompt /prɒmpt/ adjective rapid ordone immediately � We got very promptservice at the complaints desk. � Thankyou for your prompt reply to my letter. �prompt payment payment made rap-idly � prompt supplier a supplier whodelivers orders rapidly

‘…they keep shipping costs low and can takeadvantage of quantity discounts and otherallowances for prompt payment’ [DunsBusiness Month]

prompt date /�prɒmpt det/ noun adate for delivery, stated on a futurescontractprompt payer /prɒmpt �peə/ noun acompany or person that pays billsrapidly

progress payment 276 prompt payer

proof /pru�f/ noun evidence whichshows that something is true-proof /pru�f/ suffix which preventssomething getting in or getting out orharming something � a dustproof cover� an inflation-proof pension � a sound-proof studioproperty /�prɒpəti/ noun 1. land andbuildings � Property taxes are higher inthe inner city. � They are assessingdamage to property or property damageafter the storm. � The commercial prop-erty market is booming. 2. a building �We have several properties for sale inthe centre of the town. 3. things which aperson or organisation ownsproperty bond /�prɒpəti bɒnd/noun an investment in a fund invested inproperties or in property companiesproperty company /�prɒpəti�k�mp(ə)ni/ noun a company whichbuys buildings to lease themproperty developer /�prɒpəti d-�veləpə/ noun a person who buys oldbuildings or empty land and plans andbuilds new houses or factories for saleor rentproperty development /�prɒpətid�veləpmənt/ noun the business ofrenovating old buildings or buildingnew ones on their sitesproperty portfolio /�prɒpəti pɔ�t-�fəυliəυ/ noun all the investment prop-erty which belongs to one person orcompanyproperty shares /�prɒpəti ʃeəz/plural noun shares in propertycompaniesproperty tax /�prɒpəti t�ks/ noun atax paid on building or land (such as thecouncil tax in the UK)proportion /prə�pɔ�ʃ(ə)n/ noun a partof a total � A proportion of the pre-taxprofit is set aside for contingencies. �Only a small proportion of our sales co-mes from retail shops. � in proportionto compared to something else, by anamount related to something else �Profits went up in proportion to the fallin overhead costs. � Sales in Europe aresmall in proportion to those in the USA.proportional /prə�pɔ�ʃ(ə)n(ə)l/ ad-jective directly related � The increase inprofit is proportional to the reduction inoverheads.

proportionately /prə�pɔ�ʃ(ə)nətli/adverb in a way that is directly relatedproprietary /prə�praət(ə)ri/ noun,adjective (a product, e.g. a medicine)which is made and owned by a companyproprietary company /prə-�praət(ə)ri �k�mp(ə)ni/ noun US acompany formed to invest in stock ofother companies so as to control them.Abbreviation pty (NOTE: The UK termis holding company.)

proprietary drug /prə�praət(ə)ri�dr��/ noun a drug which is made by aparticular company and marketed undera brand namepro rata /prəυ �rɑ�tə/ adjective, ad-verb at a rate which varies according tothe size or importance of something �When part of the shipment was de-stroyed we received a pro rata payment.� The full-time pay is £500 a week andthe part-timers are paid pro rata. � div-idends are paid pro rata dividends arepaid according to the number of sharesheldprospect /�prɒspekt/ noun a chanceor possibility that something will hap-pen in the future � her job prospectsare good she is very likely to find a jobprospective /prə�spektv/ adjectivewhich may happen in the futureprospective dividend /prə�spektv�dvdend/ noun a dividend which acompany expects to pay at the end of thecurrent yearprospective P/E ratio /prə�spektv�pi� �i� �reʃiəυ/ noun a P/E ratio ex-pected in the future on the basis of fore-cast dividendsprospectus /prə�spektəs/ noun adocument which gives information toattract buyers or customers � The res-taurant has people handing out pro-spectuses in the street.

‘…when the prospectus emerges, existingshareholders and any prospective new investorscan find out more by calling the free shareinformation line; they will be sent a leaflet.Non-shareholders who register in this way willreceive a prospectus when it is published;existing shareholders will be sent oneautomatically’ [Financial Times]

prosperity /prɒ�sperti/ noun thestate of being rich � in times of pros-perity when people are rich

proof 277 prosperity

prosperous /�prɒsp(ə)rəs/ adjectiverich � a prosperous shopkeeper � aprosperous townprotect /prə�tekt/ verb to defendsomething against harm � The workersare protected from unfair dismissal bygovernment legislation. � The cover issupposed to protect the machine fromdust. � to protect an industry by im-posing tariff barriers to stop a local in-dustry from being hit by foreigncompetition by taxing foreign productswhen they are importedprotection /prə�tekʃən/ noun 1.a defence against harm � The legisla-tion offers no protection to part-timeworkers. � The new equipment offersmore protection against noise. 2. theimposing of tariffs to protect domesticproducers from competition fromimportsprotectionism /prə�tekʃənz(ə)m/noun the practice of protecting produc-ers in the home country against foreigncompetitors by banning or taxing im-ports or by imposing import quotasprotective /prə�tektv/ adjectivewhich protectsprotective tariff /prə�tektv �t�rf/noun a tariff which tries to ban importsto stop them competing with localproductspro tem /�prəυ �tem/ adverb tempo-rarily, for a timeprotest noun /�prəυtest/ 1. a state-ment or action to show that you do notapprove of something � to make a pro-test against high prices 2. an officialdocument which proves that a bill of ex-change has not been paid � verb/prə�test/ � to protest a bill to draw upa document to prove that a bill of ex-change has not been paidprovide /prə�vad/ verb 1. to give orsupply something 2. � to provide for toallow for something which may happenin the future � The contract provides foran annual increase in charges. �£10,000 of expenses have been providedfor in the budget. 3. to put money asidein accounts to cover expenditure or lossin the future � £25,000 is providedagainst bad debts.provident /�prɒvd(ə)nt/ adjectiveproviding benefits in case of illness, old

age or other cases of need � a providentfund � a provident societyprovision /prə�v$(ə)n/ noun 1. � tomake provision for to see that some-thing is allowed for in the future 2. a le-gal condition � we have madeprovision to this effect we have putinto the contract terms which will makethis work 3. an amount of money putaside in accounts for anticipated expen-diture where the timing or amount of ex-penditure is uncertain � The bank hasmade a £2m provision for bad debts or a$5bn provision against Third Worldloans.

‘…landlords can create short lets of dwellingswhich will be free from the normal security oftenure provisions’ [Times]

provisional /prə�v$(ə)n(ə)l/ adjec-tive temporary, not final or permanent �He was given a provisional posting tosee � The sales department has beenasked to make a provisional forecast ofsales. � The provisional budget hasbeen drawn up for each department. �They faxed their provisional acceptanceof the contract.provisionally /prə�v$(ə)nəli/ ad-verb not finally � The contract has beenaccepted provisionally.proxy /�prɒksi/ noun 1. a documentwhich gives someone the power to acton behalf of someone else � to sign byproxy 2. a person who acts on behalf ofsomeone else � She asked the chairmanto act as proxy for her.proxy form /�prɒksi fɔ�m/, proxycard /�prɒksi kɑ�d/ noun a form whicha shareholders receive with their invita-tions to attend an AGM, and which theyfill in if they want to appoint a proxy tovote for them on a resolutionproxy statement /�prɒksi�stetmənt/ noun a document, filedwith the SEC, outlining executive paypackages, option grants and other perks,and also giving details of dealings byexecutives in shares of the companyproxy vote /�prɒksi vəυt/ noun avote made by proxy � The proxy voteswere all in favour of the board’srecommendation.prudent /�pru�dənt/ adjective careful,not taking any risksprudential /pru�denʃ(ə)l/ adjectivewhich is careful, prudent

prosperous 278 prudential

prudential ratio /pru�denʃ(ə)l�reʃiəυ/ noun a ratio of capital to assetswhich a bank feels it is prudent to have,according to EU regulationsprudent man rule /�pru�d(ə)nt�m�n ru�l/ noun a rule that trustees whomake financial decisions on behalf ofother people should act carefully (as anormal prudent person would)PSBR abbreviation Public Sector Bor-rowing Requirementptas abbreviation pesetasPte abbreviation (in Singapore) privatelimited companyPty abbreviation proprietary companyPty Ltd abbreviation private limitedcompanypublic /�p�blk/ adjective 1. referringto all the people in general 2. referringto the government or the statepublic expenditure /�p�blk k-�spendtʃə/ noun money spent by thelocal or central governmentpublic finance /�p�blk �fan�ns/noun the raising of money by govern-ments (by taxes or borrowing) and thespending of itpublic funds /�p�blk �f�ndz/ pluralnoun government money available forexpenditurepublic holiday /�p�blk �hɒlde/noun a day when all employees are enti-tled to take a holidaypublicity budget /p��blsti�b�d$t/ noun money allowed for ex-penditure on publicitypublic limited company /�p�blk�lmtd �k�mp(ə)ni/ noun a companywhose shares can be bought on theStock Exchange. Abbreviation Plc,PLC, plc. Also called public companypublic monopoly /�p�blk mə-�nɒpəli/ noun a situation where an or-ganisation owned and run by the state(e.g. the Post Office) is the only supplierof a product or servicepublic offering /�p�blk �ɒf(ə)rŋ/noun an offering of new shares in a cor-poration for sale to the public as a wayof launching the corporation on theStock Exchangepublic ownership /�p�blk�əυnəʃp/ noun a situation where the

government owns a business, i.e. wherean industry is nationalisedpublic placing /�p�blk �plesŋ/,public placement /�p�blk�plesmənt/ noun an act of offering anew issue of shares to certain investinginstitutions, though not to private inves-tors in generalpublic sector /�p�blk �sektə/ nounnationalised industries and services � areport on wage rises in the public sectoror on public-sector wage settlementsAlso called government sectorPublic Sector Borrowing Re-quirement /�p�blk �sektə �bɒrəυŋr�kwaəmənt/ noun the amount ofmoney which a government has to bor-row to pay for its own spending. Abbre-viation PBSRpublic spending /�p�blk �spendŋ/noun spending by the government or bylocal authoritiespublic-to-private deal /�p�blk tə�pravət di�l/ noun an arrangementby which a quoted company leavesthe Stock Exchange and becomes aprivately owned investment. �take-privatepublic utilities /�p�blk ju��tltiz/plural noun companies (such as electric-ity, gas or transport companies) whichprovide a service used by the wholecommunitypula /�pu�lə/ noun a unit of currencyused in Botswanapull off /�pυl �ɒf/ verb to succeed innegotiating a deal (informal.)pull out /�pυl �aυt/ verb to stop beingpart of a deal or agreement � Our Aus-tralian partners pulled out of thecontract.pump /p�mp/ verb to put something inby force � Venture capitalists have beenpumping money into the company tokeep it afloat.

‘…in each of the years 1986 to 1989, Japanpumped a net sum of the order of $100bn intoforeign securities, notably into US governmentbonds’ [Financial Times Review]

pump priming /�p�mp �pramŋ/noun government investment in newprojects which it hopes will benefit theeconomypunt /p�nt/ noun 1. a former unit ofcurrency in the Republic of Ireland 2. agamble, bet (informal.) � That stock is

prudential ratio 279 punt

worth a punt. � He took a punt on theexchange rate falling. � verb to gambleor to bet (on something)punter /�p�ntə/ noun 1. a person whogambles or who hopes to make moneyon the Stock Exchange � The shareprice shot up as punters rushed to buy.2. a customer (informal.) � The productlooks attractive but will the punters likeit?

‘…if punters don’t come in for their regularpacket of cigarettes, then they are unlikely tomake any impulse buys’ [The Grocer]

purchase /�p%�tʃs/ noun a product orservice which has been bought � tomake a purchase to buy something �verb to buy something � to purchasesomething for cash to pay cash forsomethingpurchase acquisition /�p%�tʃs��kw�zʃ(ə)n/ noun same as acquisi-tion accountingpurchase book /�p%�tʃs bυk/ nouna book in which purchases are recordedpurchase ledger /�p%�tʃs �led$ə/noun a book in which expenditure isnotedpurchase order /�p%�tʃs �ɔ�də/noun an official order made out by apurchasing department for goods whicha company wants to buy � We cannotsupply you without a purchase ordernumber.purchase price /�p%�tʃs pras/noun a price paid for somethingpurchaser /�p%�tʃsə/ noun a personor company that purchases � The com-pany has found a purchaser for itswarehouse. � the company is lookingfor a purchaser the company is tryingto find someone who will buy itpurchase tax /�p%�tʃs t�ks/ noun atax paid on things which are boughtpurchasing /�p%�tʃsŋ/ noun, adjec-tive buyingpurchasing department/�p%�tʃsŋ d�pɑ�tmənt/ noun thesection of a company which deals withthe buying of stock, raw materials,equipment, etc.purchasing manager /�p%�tʃsŋ�m�nd$ə/ noun the head of a purchas-ing departmentpurchasing officer /�p%�tʃsŋ�ɒfsə/ noun a person in a company or

organisation who is responsible for buy-ing stock, raw materials, equipment, etc.purchasing power /�p%�tʃsŋ�paυə/ noun the quantity of goodswhich can be bought by a particulargroup of people or with a particular sumof money � the purchasing power of theschool market � The purchasing powerof the pound has fallen over the last fiveyears.purse /p%�s/ noun a small, usuallyleather, bag for keeping money inpush /pυʃ/ verb � to push a share totry to persuade investors to buy a share(using forceful means)put /pυt/ verb to place or to fix � theaccounts put the stock value at£10,000 the accounts state that the valueof the stock is £10,000 � to put a pro-posal to the vote to ask a meeting tovote for or against a proposal � to put aproposal to the board to ask the boardto consider a suggestionput down /�pυt �daυn/ verb 1. tomake a deposit � to put down money ona house 2. to write an item in a ledger oran account book � to put down a figurefor expensesput in /�pυt �n/ verb � to put in a bidfor something to offer to buy some-thing, usually in writing � to put in anestimate for something to give some-one a written calculation of the probablecosts of carrying out a job � to put in aclaim for damage to ask an insurancecompany to pay for damage � the unionput in a 6% wage claim the unionasked for a 6% increase in wagesput into /�pυt ntυ/ verb � to putmoney into a business to invest moneyin a businessput on /�pυt �ɒn/ verb � to put anitem on the agenda to list an item fordiscussion at a meeting � to put an em-bargo on trade to forbid tradeput option /pυt �ɒpʃən/ noun an op-tion to sell shares at a certain price(NOTE: The opposite is call option.)put out /�pυt �aυt/ verb to send some-thing out for other people to work on �We are planning to put out most of thework to freelancers. � to put work outto contract to decide that work shouldbe done by a company on a contract,rather than employ members of staff todo it

punter 280 put out

put up /�pυt ��p/ verb 1. � who putup the money for the shop? who pro-vided the investment money for theshop to start? � to put something upfor sale to advertise that something isfor sale � When he retired he decided toput his town flat up for sale. 2. to in-crease something, to make somethinghigher � The shop has put up all itsprices by 5%.PV abbreviation present valuepyramiding /�prəmdŋ/ noun 1. theprocess of building up a major group byacquiring controlling interests in manydifferent companies, each larger thanthe original company 2. the illegal prac-

tice of using new investors’ deposits topay the interest on the deposits made byexisting investorspyramid selling /�prəmd �selŋ/noun an illegal way of selling goods orinvestments to the public, where eachselling agent pays for the franchise tosell the product or service, and sells thatright on to other agents together withstock, so that in the end the person whomakes most money is the original fran-chiser, and sub-agents or investors maylose all their investments

‘…much of the population had committed theirlife savings to get-rich-quick pyramidinvestment schemes – where newcomers pay theoriginal investors until the money runs out –which inevitably collapsed’ [Times]

put up 281 pyramid selling

Q

qty abbreviation quantityquadruplicate /kwɒ�dru�plkət/noun � in quadruplicate with the origi-nal and three copies � The invoices areprinted in quadruplicate. � The applica-tion form should be completed inquadruplicate.qualification /�kwɒlf�keʃ(ə)n/noun a document or some other formalproof of the fact that someone has suc-cessfully completed a specialised courseof study or has acquired a skill � Youmust have the right qualifications forthe job. � Job-hunting is difficult if youhave no qualifications.

‘…personnel management is not an activitythat can ever have just one set ofqualifications as a requirement for entry into it’[Personnel Management]

qualification of accounts/�kwɒlfkeʃ(ə)n əv ə�kaυnts/ nounsame as auditors’ qualificationqualified /�kwɒlfad/ adjective 1.having passed special examinations in asubject � She is a qualified accountant.� We have appointed a qualified de-signer to supervise the decorating of thenew reception area. � highly qualifiedwith very good results in examinations� All our staff are highly qualified. �They employ twenty-six highly qualifiedengineers. 2. with some reservations orconditions � qualified acceptance of acontract � The plan received qualifiedapproval from the board.

‘…applicants will be professionally qualifiedand ideally have a degree in Commerce andpostgraduate management qualifications’[Australian Financial Review]

qualified accounts /�kwɒlfad ə-�kaυnts/ plural noun accounts whichhave been noted by the auditors becausethey contain something with which theauditors do not agreequalify /�kwɒlfa/ verb � to qualifyfor to be entitled to something � The

company does not qualify for agovernment grant. � She qualifies forunemployment benefit.

‘…federal examiners will also determine whichof the privately insured savings and loansqualify for federal insurance’ [WallStreet Journal]

qualifying distribution/�kwɒlfaŋ �dstr�bju�ʃ(ə)n/ noun apayment of a dividend to a shareholder,on which advance corporation tax ispaidqualifying period /�kwɒlfaŋ�pəriəd/ noun a time which has to passbefore something or someone qualifiesfor something, e.g. a grant or subsidy �There is a six-month qualifying periodbefore you can get a grant from the lo-cal authority.qualifying ratio /�kwɒlfaŋ�reʃiəυ/ noun a calculation of howmuch mortgage a borrower can afford,by comparing his monthly incomingagainst his monthly outgoingsqualifying service /�kwɒlfaŋ�s%�vs/ noun the period for which anemployee must be employed by a com-pany before becoming eligible to join agroup pension schemequalifying shares /�kwɒlfaŋʃeəz/ plural noun the number of shareswhich you need to earn to get a bonusissue or to be a director of the company,etc.quality control /�kwɒlti kən�trəυl/noun the process of making sure that thequality of a product is goodquant funds /�kwɒnt f�ndz/ pluralnoun same as quantitative fundsquantifiable /�kwɒntfaəb(ə)l/ ad-jective which can be quantified � Theeffect of the change in the discountstructure is not quantifiable.quantify /�kwɒntfa/ verb � toquantify the effect of something to

show the effect of something in figures� It is impossible to quantify the effectof the new legislation on our turnover.quantitative /�kwɒnttətv/ adjec-tive referring to quantity

‘…the collection of consumer behaviour data inthe book covers both qualitative and quantitativetechniques’ [Quarterly Review of Marketing]

quantitative funds /�kwɒnttətvf�ndz/ plural noun funds which investaccording to the instructions given by acomputer modelquantity /�kwɒntti/ noun an amount,especially a large amountquantity discount /�kwɒntti�dskaυnt/ noun a discount given topeople who buy large quantitiesquantity purchase /�kwɒntti�p%�tʃs/ noun a large quantity of goodsbought at one time � The company of-fers a discount for quantity purchase.quantum meruit /�kw�ntυm�merut/ phrase a Latin phrase meaning‘as much as has been earned’quarter /�kwɔ�tə/ noun 1. one of fourequal parts (25%) � He paid only aquarter of the list price. � a quarter ofan hour 15 minutes 2. a period of threemonths � The instalments are payableat the end of each quarter. 3. US a 25cent coin (informal.)

‘…corporate profits for the first quarter showeda 4 per cent drop from last year’s final threemonths’ [Financial Times]‘…economists believe the economy is pickingup this quarter and will do better still in thesecond half of the year’ [Sunday Times]

quarter day /�kwɔ�tə de/ noun a dayat the end of a quarter, when rents, feesetc. should be paid

COMMENT: In England, the quarter daysare 25th March (Lady Day), 24th June(Midsummer Day), 29th September(Michaelmas Day) and 25th December(Christmas Day).

quarterly /�kwɔ�təli/ adjective, ad-verb happening once every three months� There is a quarterly charge for elec-tricity. � The bank sends us a quarterlystatement. � We agreed to pay the rentquarterly or on a quarterly basis. �noun the results of a corporation, pro-duced each quarterquartile /�kwɔ�tal/ noun one of a se-ries of three figures below which 25%,50% or 75% of the total falls

quasi- /kweza/ prefix almost orwhich seems like � a quasi-officialbodyquasi-loan /�kweza ləυn/ noun anagreement between two parties whereone agrees to pay the other’s debts, pro-vided that the second party agrees to re-imburse the first at some later datequasi-public corporation/�kweza �p�blk �kɔ�pə�reʃ(ə)n/noun a US institution which is privatelyowned, but which serves a public func-tion (such as the Federal National Mort-gage Association)quetzal /�kets(ə)l/ noun a unit of cur-rency used in Guatemalaqueue /kju�/ noun 1. a line of peoplewaiting one behind the other � to form aqueue or to join a queue � Queuesformed at the doors of the bank whenthe news spread about its possible col-lapse. 2. a series of documents (such asorders or application forms) which aredealt with in order � his order went tothe end of the queue his order wasdealt with last � mortgage queue a listof people waiting for mortgages � verbto form a line one after the other forsomething � When food was rationed,people had to queue for bread. � Wequeued for hours to get tickets. � A listof companies queueing to be launchedon the Stock Exchange. � The candi-dates queued outside the interviewingroom.quick /kwk/ adjective fast, not takingmuch time � The company made aquick recovery. � He is looking for aquick return on his investments. � Weare hoping for a quick sale.quick assets /kwk ��sets/ pluralnoun cash, or bills which can easily bechanged into cashquick ratio /kwk �reʃiəυ/ nounsame as liquidity ratioquid pro quo /�kwd prəυ �kwəυ/noun money paid or an action carriedout in return for something � He agreedto repay the loan early, and as a quidpro quo the bank released the collateral.quiet /�kwaət/ adjective calm, not ex-cited � The market is very quiet. � Cur-rency exchanges were quieter after thegovernment’s statement on exchangerates.

quantitative 283 quiet

quitclaim /�kwtklem/ noun a re-lease of someone from any claim thatmight exist against him or her or that heor she might have on somethingquorum /�kwɔ�rəm/ noun a minimumnumber of people who have to be pres-ent at a meeting to make it valid � tohave a quorum to have enough peoplepresent for a meeting to go ahead � Dowe have a quorum?

COMMENT: If there is a quorum at ameeting, the meeting is said to be‘quorate’; if there aren’t enough peoplepresent to make a quorum, the meeting is‘inquorate’.

quota /�kwəυtə/ noun a limitedamount of something which is allowedto be produced, imported, etc.

‘Canada agreed to a new duty-free quota of600,000 tonnes a year’ [Globe andMail (Toronto)]

quota system /�kwəυtə �sstəm/noun 1. a system where imports or sup-plies are regulated by fixed maximumamounts 2. an arrangement for distribu-tion which allows each distributor onlya certain number of itemsquotation /kwəυ�teʃ(ə)n/ noun 1. anestimate of how much something willcost � They sent in their quotation forthe job. � Our quotation was muchlower than all the others. � We acceptedthe lowest quotation. 2. � the companyis going for a quotation on the StockExchange the company has applied tothe Stock Exchange to have its shareslisted � We are seeking a stock marketquotation.quote /kwəυt/ verb 1. to repeat wordsor a reference number used by someone

else � He quoted figures from the an-nual report. � In reply please quote thisnumber. � When making a complaintplease quote the batch number printedon the box. � She replied, quoting thenumber of the account. 2. to estimatewhat a cost or price is likely to be � toquote a price for supplying stationery �Their prices are always quoted in dol-lars. � He quoted me a price of £1,026.� Can you quote for supplying 20,000envelopes? � noun an estimate of howmuch something will cost (informal.) �to give someone a quote for supplyingcomputers � We have asked for quotesfor refitting the shop. � His quote wasthe lowest of three. � We accepted thelowest quote.

‘…banks operating on the foreign exchangemarket refrained from quoting forwardUS/Hongkong dollar exchange rates’[South China Morning Post]

quoted company /�kwəυtd�k�mp(ə)ni/ noun a company whoseshares can be bought or sold on theStock Exchangequote-driven system /�kwəυt�drv(ə)n �sstəm/ noun a system ofworking a stock market, wheremarketmakers quote a price for a stock(as opposed to an order-driven system)quoted shares /�kwəυtd �ʃeəz/ plu-ral noun shares which can be bought orsold on the Stock Exchangeqwerty keyboard /�kw%�ti �ki�bɔ�d/noun an English language keyboard,where the first letters of the top row areQ-W-E-R-T-Y � The computer has anormal qwerty keyboard.

quitclaim 284 qwerty keyboard

R

racket /�r�kt/ noun an illegal dealwhich makes a lot of money � He runsa cut-price ticket racket.racketeer /�r�k�tə/ noun a personwho runs a racketracketeering /�r�k�tərŋ/ noun USthe crime of carrying on an illegal busi-ness to make money

‘…he was charged with 98 counts ofracketeering and securities fraud and went on toserve two years in jail. He was banned for lifefrom the securities industry’ [Times]

rack rent /�r�k rent/ noun a veryhigh rentraid /red/ noun a sudden attackraid alarm /�red ə�lɑ�m/ noun an au-tomatic alarm in a bank which goes offwhen a robbery is taking placeraider /�redə/ noun a person or com-pany which buys a stake in anothercompany before making a hostile take-over bid. Also called corporate raider

‘…bear raiding involves trying to depress atarget company’s share price by heavy selling ofits shares, spreading adverse rumours or acombination of the two. As an addedrefinement, the raiders may sell short. The aimis to push down the price so that the raiders canbuy back the shares they sold at a lower price’[Guardian]

raise /rez/ noun US an increase in sal-ary � He asked the boss for a raise. �She is pleased – she has had her raise. �She got her raise last month. (NOTE: TheUK term is rise.) � verb 1. � to raisean invoice to write out or print out aninvoice � to raise a cheque to write outa cheque, either by hand or by machine2. to increase or to make higher � Thegovernment has raised the tax levels. �Air fares will be raised on June 1st. �The company raised its dividend by10%. � When the company raised itsprices, it lost half of its share of the mar-ket. � The organisation will raise wagesif inflation gets worse. � This increase

in production will raise the standard ofliving in the area. 3. to obtain money orto organise a loan � The company is try-ing to raise the capital to fund its expan-sion programme. � The governmentraises more money by indirect taxationthan by direct. � Where will he raise themoney from to start up his business?

‘…the company said yesterday that its recentshare issue has been oversubscribed, raisingA$225.5m’ [Financial Times]‘…investment trusts can raise capital, but thishas to be done as a company does, by a rightsissue of equity’ [Investors Chronicle]‘…over the past few weeks, companies raisingnew loans from international banks have beenforced to pay more’ [Financial Times]

raised check /�rezd �tʃek/ noun acheque where the amount has been in-creased by hand illegallyrake in /�rek �n/ verb to gather some-thing together � to rake in cash, torake it in to make a lot of moneyrake-off /�rek ɒf/ noun a person’sshare of profits from a deal, especially ifobtained illegally � The group gets arake-off on all the company’s sales. �He got a £100,000 rake-off for introduc-ing the new business. (NOTE: The pluralis rake-offs.)rally /�r�li/ noun a rise in price whenthe trend has been downwards � Sharesstaged a rally on the Stock Exchange. �After a brief rally shares fell back to anew low. � verb to rise in price, whenthe trend has been downwards � Sharesrallied on the news of the latest govern-ment figures.

‘…when Japan rallied, it had no difficulty insurpassing its previous all-time high, and thisreally stretched the price-earnings ratios into thestratosphere’ [Money Observer]‘…bad news for the US economy ultimatelymay have been the cause of a late rally in stockprices yesterday’ [Wall Street Journal]

ramp /r�mp/ noun an act of buyingshares in order to force up the price (as

racket 285 ramp

when a company buys its own shares il-legally during a takeover bid)rand /r�nd/ noun a unit of currencyused in South AfricaR&D abbreviation research anddevelopmentrandom /�r�ndəm/ adjective donewithout making any special selectionrandom check /�r�ndəm �tʃek/noun a check on items taken from agroup without any special selectionrandom error /�r�ndəm �erə/ noun acomputer error for which there is nospecial reasonrandom sample /�r�ndəm�sɑ�mpəl/ noun a sample taken withoutany selectionrandom sampling /�r�ndəm�sɑ�mplŋ/ noun the action of choosingof samples for testing without any spe-cial selectionrandom walk /�r�ndəm �wɔ�k/ noun1. a sampling technique which allowsfor random selection within specificlimits set up by a non-random technique2. a movement which cannot be pre-dicted (used to describe movements inshare prices which cannot be forecast)range /rend$/ noun a scale of itemsfrom a low point to a high one � rangeof prices the difference between thehighest and lowest price for a share orbond over a period of timerange forward /rend$ �fɔ�wəd/noun a forward currency contract whichincludes an option to purchase currencyfutures and so has the effect of limitingpotential exchange lossesrank /r�ŋk/ noun a position in a com-pany or an organisation, especially onewhich shows how important someone isrelative to others � All managers are ofequal rank. � Promotion means movingup from a lower rank. � in rank orderin order according to position of impor-tance � verb 1. to classify in order ofimportance � Candidates are ranked inorder of their test results. 2. to be in acertain position � The non-votingshares rank equally with the votingshares. � Deferred ordinary shares donot rank for dividend.rata /�rɑ�tə/ � pro ratarate /ret/ noun 1. the money chargedfor time worked or work completed 2.

an amount of money paid, e.g. as inter-est or dividend (shown as a percentage)3. the value of one currency against an-other � What is today’s rate or the cur-rent rate for the dollar? � to calculatecosts on a fixed exchange rate to cal-culate costs on an exchange rate whichdoes not change 4. an amount, numberor speed compared with something else� the rate of increase in redundancies �The rate of absenteeism or The absen-teeism rate always increases in fineweather.

‘…state-owned banks cut their prime rate apercentage point to 11%’ [Wall Street Journal]‘…the unions had argued that public sector payrates had slipped behind rates applying inprivate sector employment’ [AustralianFinancial Review]‘…royalties have been levied at a rate of 12.5%of full production’ [Lloyd’s List]‘…the minister is not happy that banks arepaying low interest on current accounts of lessthan 10 per cent, but are charging rates ofbetween 60 and 71 per cent on loans’[Business in Africa]

rateable value /�retəb(ə)l �v�lju�/noun a value of a property as a basis forcalculating local taxesrate of exchange /�ret əv ks-�tʃend$/ noun same as exchange rate� The current rate of exchange is $1.60to the pound.rate of inflation /�ret əv n-�fleʃ(ə)n/ noun the percentage increasein prices over a twelve-month periodrate of interest /�ret əv �ntrəst/noun same as interest raterate of production /�ret əv prə-�d�kʃən/ noun the speed at which itemsare made. Also called production raterate of return /�ret əv r�t%�n/ nounthe amount of interest or dividend whichcomes from an investment, shown as apercentage of the money investedrate of sales /�ret əv �selz/ nounthe speed at which units are soldrate of unemployment /�ret əv��nm�plɔmənt/ noun same as unem-ployment raterates plural noun local UK taxes for-merly levied on property in the UK andnow replaced by the council taxrating /�retŋ/ noun 1. the act of giv-ing something a value, or the valuegiven 2. the valuing of property for localtaxes. � ratings

rand 286 rating

rating agency /�retŋ �ed$ənsi/noun an organisation which gives a rat-ing to companies or other organisationsissuing bondsrating officer /�retŋ �ɒfsə/ nounan official in a local authority who de-cides the rateable value of a commercialpropertyratings /�retŋz/ plural noun the esti-mated number of people who watch TVprogrammes � The show is high in theratings, which means it will attract goodpublicity.ratio /�reʃiəυ/ noun a proportion orquantity of something compared tosomething else � the ratio of successesto failures � Our product outsells theirsby a ratio of two to one. � With lessmanual work available, the ratio ofworkers to managers is decreasing.ratio analysis /�reʃiəυ ə�n�ləss/noun a method of analysing the perfor-mance of a company by showing thefigures in its accounts as ratios and com-paring them with those of othercompaniesraw /rɔ�/ adjective in the original stateor not processed

‘…it makes sense for them to produce goods forsale back home in the US from plants in Britainwhere raw materials are relatively cheap’[Duns Business Month]

raw data /rɔ� �detə/ noun data as it isput into a computer, without beinganalysedraw materials /rɔ� mə�təriəlz/ plu-ral noun basic materials which have tobe treated or processed in some way be-fore they can be used, e.g. wood, ironore or crude petroleumRCPC abbreviation regional checkprocessing centerR/D abbreviation refer to drawerRDG abbreviation regional develop-ment grantre- /ri�/ prefix againreach /ri�tʃ/ verb to get to something �to reach an accommodation withcreditors to agree terms for settlementwith creditorsreact /ri��kt/ verb � to react to to door to say something in reply to whatsomeone has done or said � Shares re-acted sharply to the fall in the exchange

rate. � How will the chairman reactwhen we tell him the news?reaction /ri��kʃən/ noun a change oraction in reply to something said ordone � the reaction of the shares to thenews of the takeover bid � His immedi-ate reaction was to make half theworkforce redundant.read /ri�d/ verb to look at printedwords and understand them � The termsand conditions are printed in very smallletters so that they are difficult to read.� Has the managing director read yourreport on sales in India? � can thecomputer read this information? canthe computer take in this informationand understand it or analyse it?readable /�ri�dəb(ə)l/ adjective whichcan be read � the data has to be pre-sented in computer-readable form ina form which a computer can readreader/sorter /�ri�də �sɔ�tə/ noun amachine in a bank which reads chequesand sorts them automaticallyreadjust /�ri�ə�d$�st/ verb to adjustsomething again or in a new way, or tochange in response to new conditions �to readjust prices to take account of therise in the costs of raw materials � toreadjust salary scales � Share pricesreadjusted quickly to the news of thedevaluation.readjustment /�ri�ə�d$�stmənt/noun an act of readjusting � a readjust-ment in pricing � After the devaluationthere was a period of readjustment inthe exchange rates.ready /�redi/ adjective quick � theseitems find a ready sale in the MiddleEast these items sell rapidly or easily inthe Middle Eastready cash /�redi �k�ʃ/ noun moneywhich is immediately available forpaymentready money /�redi �m�ni/ nouncash or money which is immediatelyavailablereal1 /rəl/ adjective (of prices oramounts) shown in terms of money ad-justed for inflation � in real terms actu-ally or really � Salaries have gone up by3% but with inflation running at 5% thatis a fall in real terms.

‘…real wages have been held downdramatically: they have risen as an annual rateof only 1% in the last two years’ [Sunday Times]

rating agency 287 real

‘…sterling M3 rose by 13.5% in the year toAugust – seven percentage points faster than therate of inflation and the biggest increase in realterms for years’ [Economist]‘Japan’s gross national product for theApril-June quarter dropped 0.4% in real termsfrom the previous quarter’ [Nikkei Weekly]‘…the Federal Reserve Board has eased interestrates in the past year, but they are still athistorically high levels in real terms’[Sunday Times]

real2 /re�ɑ�l/ noun a unit of currencyused in Brazilreal earnings /rəl �%�nŋz/ pluralnoun income which is available forspending after tax and other contribu-tions have been deducted, corrected forinflation. Also called real income, realwagesreal estate /�rəl �stet/ noun prop-erty in the form of land or buildings

‘…on top of the cost of real estate, theinvestment in inventory and equipment to opena typical warehouse comes to around $5 million’[Duns Business Month]

real estate agent /�rəl �stet�ed$ənt/ noun US a person who sellsproperty for customersreal estate investment trust /rəl�stet n�vestmənt tr�st/ noun a pub-lic trust company which invests only inproperty. Abbreviation REITreal income /rəl �nk�m/ noun sameas real earningsreal interest rate /rəl �ntrəst ret/noun an interest rate after taking infla-tion into accountrealisable assets /�rəlazəb(ə)l��sets/ noun assets which can be soldfor moneyrealisation /�rəla�zeʃ(ə)n/, real-ization noun the act of making real �the realisation of a project putting aproject into action � The plan moved astage nearer realisation when the con-tracts were signed.realisation of assets /�rəla-�zeʃ(ə)n əv/ noun the act of selling ofassets for moneyrealise /�rəlaz/, realize verb 1. tomake something become real � to real-ise a project or a plan to put a projector a plan into action 2. to sell for money� The company was running out ofcash, so the board decided to realisesome property or assets. � The salerealised £100,000.

realised profit /�rəlazd �prɒft/noun an actual profit made when some-thing is sold (as opposed to paper profit)real money /rəl �m�ni/ noun cashused for settling debts (as opposed tocheques, drafts, etc.)real rate of return /rəl �ret əv r-�t%�n/ noun an actual rate of return, cal-culated after taking inflation intoaccountreal return after tax /rəl r�t%�n�ɑ�ftə �t�ks/ noun the return calculatedafter deducting tax and inflationreal time /�rəl tam/ noun the timewhen a computer is working on the pro-cessing of data while the event to whichthe data refers is actually taking place �The website allows you to check shareprices in real time or gives real time in-formation on share prices.real-time gross settlement sys-tem /�rəl tam �rəυs �set(ə)lmənt�sstəm/ noun an international systemfor making computerised transfers ofmoney. Abbreviation RTGS systemreal-time system /�rəl tam�sstəm/ noun a computer system wheredata is inputted directly into the com-puter which automatically processes itto produce information which can beused immediatelyrealtor /�rəltə/ noun US a person whosells real estate for customersrealty /�rəlti/ noun property or realestatereal value /rəl �v�lju�/ noun a valueof an investment which is kept the same(e.g. by index-linking)real wages /rəl �wed$z/ pluralnoun same as real earningsreasonable /�ri�z(ə)nəb(ə)l/ adjec-tive 1. sensible, or not annoyed � Themanager of the shop was very reason-able when I tried to explain that I hadleft my credit cards at home. � no rea-sonable offer refused we will acceptany offer which is not extremely low 2.moderate or not expensive � The res-taurant offers good food at reasonableprices. � The union has decided to putin a reasonable wage claim.reassess /�ri�ə�ses/ verb to assessagain � The manager was asked to reas-sess the department staff, after the as-

real 288 reassess

sessments were badly done by thesupervisors.reassessment /�ri�ə�sesmənt/ nouna new assessmentreassurance /�ri�ə�ʃυərəns/ nounthe act of making someone feel lessworriedreassure /�ri�ə�ʃυə/ verb 1. to makesomeone calm or less worried � Themarkets were reassured by the govern-ment statement on import controls. �The manager tried to reassure her thatshe would not lose her job. 2. to rein-sure, to spread the risk of an insuranceby asking another insurance company tocover part of it and receive part of thepremiumrebate /�ri�bet/ noun 1. a reduction inthe amount of money to be paid � Weare offering a 10% rebate on selectedgoods. 2. money returned to someonebecause they have paid too much � Shegot a tax rebate at the end of the year.rebound /r�baυnd/ verb to go backup again quickly � The market re-bounded on the news of the govern-ment’s decision.recapitalisation /ri��k�pt(ə)la-�zeʃ(ə)n/, recapitalization noun achange in the capital structure of a com-pany (as when new shares are issued),especially when undertaken to avoid thecompany going into liquidationrecapitalise /ri��k�pt(ə)laz/, re-capitalize verb to change the capitalstructure of a company (as by issuingnew shares), especially to avoid thecompany going into liquidationrecd abbreviation receivedreceipt /r�si�t/ noun 1. a piece of pa-per showing that money has been paidor that something has been received �Please produce your receipt if you wantto exc � He kept the customs receipt toshow that he had paid duty on thegoods. � Keep the receipt for items pur-chased in case you need to change themlater. 2. the act of receiving something� Goods will be supplied within thirtydays of receipt of order. � Invoices arepayable within thirty days of receipt. �On receipt of the notification, the com-pany lodged an appeal. � to acknowl-edge receipt of a letter to write to saythat you have received a letter � We ac-knowledge receipt of your letter of the

15th. � receipts � verb to stamp or tosign a document to show that it has beenreceived, or to stamp an invoice to showthat it has been paid � Receipted in-voices are filed in the ring binder.receipt book /r�si�t bυk/ noun abook of blank receipts to be filled inwhen purchases are madereceipts /r�si�ts/ plural noun moneytaken in sales � to itemise receipts andexpenditure � Receipts are downagainst the same period of last year.

‘…the public sector borrowing requirement iskept low by treating the receipts from sellingpublic assets as a reduction in borrowing’[Economist]‘…gross wool receipts for the selling season toend June appear likely to top $2 billion’[Australian Financial Review]

receipts and payments basis /r-�si�ts ən �pemənts �bess/ noun amethod of preparing the accounts of abusiness, where receipts and paymentsare shown at the time when they aremade (as opposed to showing debits orcredits which are outstanding at the endof the accounting period; also called‘cash basis’)receivable /r�si�vəb(ə)l/ adjectivewhich can be receivedreceivables /r�si�vəb(ə)lz/ pluralnoun money which is owed to acompanyreceive /r�si�v/ verb to get somethingwhich is given or delivered to you � Wereceived the payment ten days ago. �The workers have not received any sal-ary for six months. � The goods werereceived in good condition. � ‘receivedwith thanks’ words put on an invoice toshow that a sum has been paidreceiver /r�si�və/ noun 1. a personwho receives something � He signed asreceiver of the shipment. 2. same as of-ficial receiverreceivership /r�si�vəʃp/ noun � thecompany went into receivership thecompany was put into the hands of areceiver

‘…it suggests a classic case for receivership.There appear to be good businesses to be sold tothe right owner within a group that is terminallysick’ [Times]

receiving /r�si�vŋ/ noun an act ofgetting something which has beendelivered

reassessment 289 receiving

receiving bank /r�si�vŋ b�ŋk/noun a bank which receives money viaelectronic transferreceiving clerk /ri�si�vŋ klɑ�k/noun an official who works in a receiv-ing officereceiving department /ri�si�vŋ d-�pɑ�tmənt/ noun a section of a com-pany which deals with incoming goodsor paymentsreceiving office /r�si�vŋ �ɒfs/noun an office where goods or pay-ments are receivedreceiving order /ri�si�vŋ �ɔ�də/noun an order from a court appointingan official receiver to a companyrecession /r�seʃ(ə)n/ noun a periodwhere there is a decline in trade or in theeconomy � The recession has reducedprofits in many companies. � Severalfirms have closed factories because ofthe recession.

COMMENT: There are various ways of de-ciding if a recession is taking place: theusual one is when the GNP falls for threeconsecutive quarters.

reciprocal /r�sprək(ə)l/ adjectivedone by one person, company or coun-try to another one, which does the samething in return � We signed a reciprocalagreement or a reciprocal contract witha Russian company.reciprocal holdings /r�sprək(ə)l�həυldŋz/ plural noun a situationwhere two companies own shares ineach other to prevent takeover bidsreciprocal trade /r�sprək(ə)l�tred/ noun trade between twocountriesreciprocate /r�sprəket/ verb to dothe same thing for someone as that per-son has done for you � They offered usan exclusive agency for their cars andwe reciprocated with an offer of theagency for our buses.

‘…in 1934 Congress authorized PresidentRoosevelt to seek lower tariffs with any countrywilling to reciprocate’ [Duns Business Month]

reckon /�rekən/ verb to calculatesomething � to reckon the costs at£25,000 � We reckon the loss to be over£1m. � They reckon the insurance coststo be too high.reclamation /�reklə�meʃ(ə)n/ nounUS the process of recovering money

owed by a bank or securities firm to acustomer because of an errorrecognise /�rekə�naz/, recognizeverb � to recognise a union to agreethat a union can act on behalf of em-ployees in a company � Although morethan half the staff had joined the union,the management refused to recognise it.recognised agent /�rekə�nazd�ed$ənt/ noun an agent who is ap-proved by the company for which theyactrecommended retail price/�rekəmendd �ri�tel pras/ noun theprice at which a manufacturer suggests aproduct should be sold on the retail mar-ket, though this may be reduced by theretailer. Abbreviation RRP. Also calledadministered price, manufacturer’srecommended pricereconcile /�rekənsal/ verb to maketwo financial accounts or statementsagree � She is trying to reconcile oneaccount with another or to reconcile thetwo accounts.reconciliation /�rekənsli�eʃ(ə)n/,reconcilement /�rekənsalmənt/ nounthe act of making two accounts or state-ments agreereconciliation statement/�rekənsli�eʃ(ə)n �stetmənt/ noun astatement which explains how two ac-counts can be made to agreerecord noun /�rekɔ�d/ 1. a report ofsomething which has happened � Thechairman signed the minutes as a truerecord of the last meeting. � He has avery poor timekeeping record. � for therecord or to keep the record straightin order that everyone knows what thereal facts of the matter are � For the re-cord, I should like to say that these salesfigures have not yet been checked by thesales department. � on record reportedin a published document, e.g. in a news-paper � The chairman is on record assaying that profits are set to rise. � offthe record unofficially, in private � Hemade some remarks off the record aboutthe disastrous home sales figures. 2. asuccess which is better than anythingbefore � Last year was a record yearfor the company. � Our top sales rephas set a new record for sales per call. �record sales, record losses, recordprofits sales, losses or profits which are

receiving bank 290 record

higher than ever before � we broke ourrecord for June we sold more than wehave ever sold before in June � Saleslast year equalled the record set in1997. � verb /r�kɔ�d/ to note or reportsomething � The company has recordedanother year of increased sales.record book /�rekɔ�d bυk/ noun abook in which minutes of meetings arekeptrecord-breaking /�rekɔ�d �brekŋ/adjective better or worse than anythingwhich has happened before � We areproud of our record-breaking profits in2000.record date /�rekɔ�d det/ nounsame as date of recordrecorded delivery /r�kɔ�dd d-�lv(ə)ri/ noun a mail service where theletters are signed for by the person re-ceiving them � We sent the documents(by) recorded delivery.recording /r�kɔ�dŋ/ noun the act ofmaking a note of something � the re-cording of an order or of a complaintrecording of a lien /r�kɔ�dŋ əv ə�li�ən/ noun a note in the public recordsshowing a lien on a property (such as amortgage)records /�rekɔ�dz/ plural noun docu-ments which give information � Thenames of customers are kept in the com-pany’s records. � We find from our re-cords that our invoice number 1234 hasnot been paid.recoup /r�ku�p/ verb � to recoupyour losses to get back money whichyou thought you had lostrecourse /r�kɔ�s/ noun a right of alender to compel a borrower to repaymoney borrowed � to decide to haverecourse to the courts to obtainmoney due to decide in the end to suesomeone to obtain money owedrecover /r�k�və/ verb 1. to get backsomething which has been lost � to re-cover damages from the driver of thecar � to start a court action to recoverproperty � He never recovered hismoney. � The initial investment wasnever recovered. 2. to get better, to rise� The market has not recovered fromthe rise in oil prices. � The stock marketfell in the morning, but recovered dur-ing the afternoon.

recoverable /r�k�v(ə)rəb(ə)l/ ad-jective which can be got backrecoverable ACT /r�k�v(ə)rəb(ə)le si� �ti�/ noun advance corporation taxwhich can be set against corporation taxpayable for the periodrecoverable amount /r�k�v(ə)rəblə�maυnt/ noun the value of an asset, ei-ther the price it would fetch if sold, or itsvalue to the company when used(whichever is the larger figure)recovery /r�k�v(ə)ri/ noun 1. the actof getting back something which hasbeen lost � to start an action for recov-ery of property � We are aiming for thecomplete recovery of the money in-vested. 2. a movement upwards ofshares or of the economy � signs of re-covery after a slump � The economystaged a recovery.recovery share /r�k�v(ə)ri ʃeə/noun a share which is likely to go up invalue because the company’s perfor-mance is improvingrectify /�rektfa/ verb to correctsomething, to make something right �to rectify an entry (NOTE: rectifies –rectifying – rectified)

recurrent /r�k�rənt/ adjective whichhappens again and again � a recurrentitem of expenditure � There is a recur-rent problem in supplying this part.recurring /r�k%�rŋ/ adjective whichhappens again and againrecurring payments /r�k%�rŋ�pemənts/ plural noun payments, suchas mortgage interest or payments on ahire purchase agreement, which aremade each monthrecycle /ri��sak(ə)l/ verb to usemoney in a different way (as by invest-ing profits from industry in developingenvironmental resources)recycling /ri��saklŋ/ noun the actionof banks in putting deposits into a bankwhich is in difficulties, in order to keepit afloatred /red/ noun � in the red showing adebit or loss � My bank account is in thered. � The company went into the red in1998. � The company is out of the redfor the first time since 1990.Red Book /�red bυk/ noun a docu-ment published on Budget Day, with the

record book 291 Red Book

text of the Chancellor of the Exche-quer’s financial statement and budgetRed chips /�red tʃps/ plural noungood risk-free Chinese companiesred clause credit /�red klɔ�z�kredt/ noun a letter of credit authoris-ing the holder to receive an advancepayment, usually so that he can continuetradingred day /�red de/ noun US a daywhich is not profitable (NOTE: The op-posite is green day.)redeem /r�di�m/ verb 1. to pay off aloan or a debt � to redeem a mortgage �to redeem a debt 2. � to redeem a bondto sell a bond for cash 3. to exchange avoucher, coupon or stamp for a gift or areduction in priceredeemable /r�di�məb(ə)l/ adjectivereferring to a bond which can be sold forcashredeemable government stock/r�di�məb(ə)l ���v(ə)nmənt �stɒk/noun stock which can be redeemed forcash at some time in the future (in theUK, only the War Loan is irredeemable)redeemable preference share/r�di�məb(ə)l �pref(ə)rəns ʃeə/ noun apreference share which must be boughtback by the company at a certain dateand for a certain priceredeemable security /r-�di�məb(ə)l s�kjυərti/ noun a securitywhich can be redeemed at its face valueat a certain date in the futureredemption /r�dempʃən/ noun 1.the repayment of a loan � redemptionbefore due date paying back a loan be-fore the date when repayment is due 2.the repayment of a debt � redemption ofa mortgageredemption date /r�dempʃən det/noun a date on which a loan or debt isdue to be repaidredemption value /r�dempʃən�v�lju�/ noun a value of a securitywhen redeemedredemption yield /r�dempʃənji�ld/ noun a yield on a security includ-ing interest and its redemption valuered herring /red �herŋ/ noun US apreliminary prospectus, the first pro-spectus for a new share issue, producedto see the market reaction to the pro-posed issue, but without giving a price

for the new shares (similar to the British‘pathfinder prospectus’; called this be-cause the first page has a notice printedin red which states that it is not a fulloffer)rediscount /ri��dskaυnt/ verb todiscount a bill of exchange which hasalready been discounted by a commer-cial bankredistribute /�ri�d�strbju�t/ verb tomove items, work or money to differentareas or people � The government aimsto redistribute wealth by taxing the richand giving grants to the poor. � The or-ders have been redistributed among thecompany’s factories.redistribution of risk/�ri�dstrbju�ʃən əv �rsk/ noun theprocess of spreading the risk of aninvestment or of an insurance amongvarious insurersredistribution of wealth/�ri�dstrbju�ʃən əv �welθ/ noun theprocess of sharing wealth among thewhole populationredlining /�redlanŋ/ noun the illegalpractice of discriminating against pro-spective borrowers because of the areaof the town in which they livered tape /red �tep/ noun official pa-perwork which takes a long time tocomplete � The start of the new projecthas been held up by extra checks andgovernment red tape.reduce /r�dju�s/ verb 1. to makesomething smaller or lower � We mustreduce expenditure if we want to stay inbusiness. � They have reduced prices inall departments. � We were expectingthe government to reduce taxes not toincrease them. � We have made somestaff redundant to reduce overmanning.� The company reduced output becauseof a fall in demand. � The government’spolicy is to reduce inflation to 5%. � toreduce staff to make employees redun-dant in order to have a smaller numberof staff 2. to lower the price of some-thing � Carpets have been reduced from£100 to £50.reduced /r�dju�st/ adjective lower �Reduced prices have increased unitsales. � Prices have fallen due to a re-duced demand for the goods.reduced rate /r�dju�st �ret/ noun aspecially cheap charge

Red chips 292 reduced rate

reducing balance method /r-�dju�sŋ �b�ləns �meθəd/ noun amethod of depreciating assets, where theasset is depreciated at a constant per-centage of it cost each yearreduction /r�d�kʃən/ noun an act ofmaking something smaller or less � Re-duction in demand has led to the cancel-lation of several new projects. � Thecompany was forced to make reductionsin its advertising budget. � Price reduc-tions have had no effect on our sales. �Working only part-time will mean a sig-nificant reduction in take-home pay.redundancy /r�d�ndənsi/ noun thedismissal of a person whose job no lon-ger needs to be doneredundancy payment /r�d�ndənsi�pemənt/ noun a payment made to aworker to compensate for losing his orher jobredundancy rebate /r�d�ndənsi�ri�bet/ noun a payment made to acompany to compensate for redundancypayments maderedundant /r�d�ndənt/ adjective 1.more than is needed, useless � a redun-dant clause in a contract � The new leg-islation has made clause 6 redundant. �Retraining can help workers whose oldskills have become redundant. 2. � tomake someone redundant to dismissan employee who is not needed anymoreredundant staff /r�d�ndənt �stɑ�f/noun staff who have lost their jobs be-cause they are not needed any morere-export noun /ri��ekspɔ�t/ the ex-porting of goods which have been im-ported � The port is a centre for there-export trade. � We import wool forre-export. � The value of re-exports hasincreased. � verb /�ri�ek�spɔ�t/ to ex-port something which has beenimportedre-exportation /�ri�ekspɔ��teʃ(ə)n/noun the exporting of goods which havebeen importedref abbreviation referencerefer /r�f%�/ verb � ‘refer to drawer’(R/D) words written on a cheque whicha bank refuses to pay and returns it tothe person who wrote it � the bank re-ferred the cheque to drawer the bankreturned the cheque to person who

wrote it because there was not enoughmoney in the account to pay itreference /�ref(ə)rəns/ noun 1. theprocess of mentioning or dealing withsomething � with reference to your let-ter of May 25th 2. a series of numbers orletters which make it possible to find adocument which has been filed � ourreference: PC/MS 1234 � Thank you foryour letter (reference 1234). � Pleasequote this reference in all correspon-dence. 3. a written report on someone’scharacter or ability � to write someone areference or to give someone a refer-ence � to ask applicants to supply refer-ences � to ask a company for tradereferences or for bank references toask for reports from traders or a bank onthe company’s financial status andreputationrefinance /�ri�fa�n�ns/ verb to ex-tend a loan by exchanging it for a newone (normally done when the terms ofthe new loan are better)refinancing /ri��fan�nsŋ/ noun �refinancing of a loan the act of takingout a new loan to pay back a previousloan

‘…the refinancing consisted of a two-for-fiverights issue, which took place in September thisyear, to offer 55.8m shares at 2p and raise aboutœ925,000 net of expenses’ [Accountancy]

reflate /ri��flet/ verb � to reflate theeconomy to stimulate the economy byincreasing the money supply or by re-ducing taxes, often leading to increasedinflation � The government’s attemptsto reflate the economy were notsuccessful.reflation /ri��fleʃ(ə)n/ noun an act ofstimulating the economy by increasingthe money supply or by reducing taxesreflationary measures /ri�-�fleʃ(ə)n(ə)ri �meʃəz/ plural noun ac-tions which are likely to stimulate theeconomyrefund noun /�ri�f�nd/ money paidback � The shoes don’t fit – I’m goingto ask for a refund. � She got a refundafter complaining to the manager. �verb /r�f�nd/ to pay back money � torefund the cost of postage � All moneywill be refunded if the goods are notsatisfactory.refundable /r�f�ndəb(ə)l/ adjectivewhich can be paid back � We ask for arefundable deposit of £20. � The en-

reducing balance method 293 refundable

trance fee is refundable if you purchase£5 worth of goods.refunding /ri��f�ndŋ/ noun the pro-cess, on the part of a government, offunding a debt again, by issuing newstock to replace stock which is about tomatureregion /�ri�d$ən/ noun a large area ofa country � Her territory consists of allthe eastern region of the country.regional /�ri�d$(ə)nəl/ adjective refer-ring to a regionregional bank /�ri�d$(ə)nəl b�ŋk/noun a bank which services one part ofthe countryregional check processing cen-ter /�ri�d$(ə)nəl tʃek �prəυsesŋ�sentə/ noun US a Federal Reserveclearing centre which clears chequesfrom banks within a certain area. Abbre-viation RCPCregional development grant/�ri�d$(ə)nəl d�veləpmənt �rɑ�nt/noun a grant given to encourage a busi-ness to establish itself in a certain part ofthe country. Abbreviation RDGregional planning /�ri�d$(ə)nəl�pl�nŋ/ noun the work of planning theindustrial development of a regionregional stock exchange/�ri�d$(ə)nəl �stɒk ks�tʃend$/ noun astock exchange which is not in the mainfinance centre (e.g. not in New York orLondon)register /�red$stə/ noun an officiallist � to enter something in a register �to keep a register up to date � people onthe register of electors � verb 1. towrite something in an official list � toregister a fall in the numbers of unem-ployed teenagers � You must registerthe trademark i � To register a com-pany you must pay a fee to CompaniesHouse. � When a property is sold, thesale is registered at the Land Registry.2. to send a letter by registered post � Iregistered the letter, because it con-tained some money.registered /�red$stəd/ adjectivewhich has been noted on an official list� a registered share transactionregistered cheque /�red$stəd�tʃek/ noun a cheque written on a bankaccount on behalf of a client who doesnot have a bank account

registered company /�red$stəd�k�mp(ə)ni/ noun company which hasbeen officially set up and registeredwith the Registrar of Companiesregistered letter /�red$stəd �letə/,registered parcel /�red$stəd�pɑ�s(ə)l/ noun a letter or parcel whichis noted by the post office before it issent, so that the sender can claim com-pensation if it is lostregistered office /�red$stəd �ɒfs/noun the office address of a companywhich is officially registered with theCompanies’ Registrarregistered security /�red$stəd s-�kjυərti/ noun a security (such as ashare in a quoted company) which isregistered with Companies House andwhose holder is listed in the company’sshare registerregister of directors /�red$stə əvda�rektəz/ noun an official list of thedirectors of a company which has to besent to the Registrar of Companiesregister of interests in shares/�red$stə əv �ntrəsts n �ʃeəz/ nouna list kept by a company of those share-holders who own more than 3% of itssharesregistrar /�red$�strɑ�/ noun a personwho keeps official recordsRegistrar of Companies/�red$strɑ� əv �k�mp(ə)niz/ noun agovernment official whose duty isto ensure that companies are properlyregistered, and that, when registered,they file accounts and other informationcorrectlyregistration /�red$�streʃ(ə)n/ nounthe act of having something noted on anofficial list � the registration of a trade-mark or of a share transactionregistration fee /�red$�streʃ(ə)nfi�/ noun 1. money paid to have some-thing registered 2. money paid to attenda conferenceregistration number /�red$-�streʃ(ə)n �n�mbə/ noun an officialnumber, e.g. the number of a carregistration statement /�red$-�streʃ(ə)n �stetmənt/ noun a docu-ment which gives information about acompany when it is registered and listedon a stock exchange (NOTE: The UKterm is listing particulars.)

refunding 294 registration statement

regression analysis /r��reʃ(ə)n ə-�n�ləss/, regression model /r-��reʃ(ə)n �mɒd(ə)l/ noun a method ofdiscovering the ratio of one dependentvariable and one or more independentvariables, so as to give a value to the de-pendent variableregressive taxation /r��resv t�k-�seʃ(ə)n/ noun a system of taxation inwhich tax gets progressively less as in-come rises. Compare progressivetaxationregular /�re�jυlə/ adjective whichhappens or comes at the same time eachday, each week, each month or eachyear � His regular train is the 12.45. �The regular flight to Athens leaves at06.00.regular income /�re�jυlər �nk�m/noun an income which comes in everyweek or month � She works freelanceso she does not have a regular income.regulate /�re�jυlet/ verb 1. to adjustsomething so that it works well or iscorrect 2. to change or maintain some-thing by law � prices are regulated bysupply and demand prices are in-creased or lowered according to supplyand demand � government-regulatedprice a price which is imposed by thegovernmentregulated consumer creditagreement /�re�jυletd kən�sju�mə�kredt ə��ri�mənt/ verb a credit agree-ment according to the Consumer CreditActregulation /�re�jυ�leʃ(ə)n/ noun 1. alaw or rule � the new government regu-lations on housing standards � Fireregulations or Safety regulations werenot observed at the restaurant. � Regu-lations concerning imports and exportsare set out in this leaflet. 2. the processof making sure that something will workwell or correctly � government regula-tion of trading practices

‘EC regulations which came into effect in Julyinsist that customers can buy cars anywhere inthe EC at the local pre-tax price’[Financial Times]‘…a unit trust is established under theregulations of the Department of Trade, with atrustee, a management company and a stock ofunits’ [Investors Chronicle]‘…fear of audit regulation, as much as financialpressures, is a major factor behind the increasingnumber of small accountancy firms deciding to

sell their practices or merge with another firm’[Accountancy]

regulation agency /�re�jυ�leʃ(ə)n�ed$ənsi/ noun an organisation whichsees that members of an industry followgovernment regulationsRegulation Q /�re�jυleʃ(ə)n �kju�/noun US a federal regulation which lim-its the amount of interest banks can payon depositsRegulation S-X /�re�jυleʃ(ə)n es�eks/ noun the rule of the US Securitiesand Exchange Commission which regu-lates annual reports from companiesregulator /�re�jυletə/ noun a personwhose job it is to see that regulations arefollowed

‘…the regulators have sought to protectinvestors and other market participants fromthe impact of a firm collapsing’ [BankingTechnology]

regulatory /�re�jυlət(ə)ri/ adjectivewhich applies regulationsregulatory powers /�re�jυlət(ə)ri�paυəz/ noun powers to enforce govern-ment regulationsreimburse /�ri�m�b%�s/ verb � to re-imburse someone their expenses topay someone back for money whichthey have spent � You will be reim-bursed for your expenses or Your ex-penses will be reimbursed.reimbursement /�ri�m�b%�smənt/noun the act of paying back money �reimbursement of expensesreinstatement /�ri�n�stetmənt/noun the act of giving a borrower backhis or her former credit status after he orshe has paid off outstanding debtsreinsurance /�ri�n�ʃυərəns/ nouninsurance where a second insurer (thereinsurer) agrees to cover part of the riskinsured by the first insurerreinsure /�ri�n�ʃυə/ verb to spreadthe risk of an insurance, by asking an-other insurance company to cover partof it and receive part of the premiumreinsurer /�ri�n�ʃυərə/ noun an in-surance company which accepts to in-sure part of the risk for another insurerreintermediation /ri�ntəmi�di-�eʃ(ə)n/ noun the act of withdrawingfunds from investments such as sharesor bonds and transferring them into cashdeposits in banks (NOTE: The oppositeis disintermediation.)

regression analysis 295 reintermediation

reinvest /�ri�n�vest/ verb to investmoney again � He sold his shares andreinvested the money in governmentstocks.reinvestment /�ri�n�vestmənt/noun 1. the act of investing moneyagain in the same securities 2. the act ofinvesting a company’s earnings in itsown business by using them to createnew products for sale

‘…many large US corporations offershareholders the option of reinvesting their cashdividend payments in additional company stockat a discount to the market price. But to somebig securities firms these discount reinvestmentprograms are an opportunity to turn a quickprofit’ [Wall Street Journal]

REIT abbreviation US real estate in-vestment trust. � equity REIT, mort-gage REITreject noun /�ri�d$ekt/, adjective(something) which has been thrown outbecause it is not of the usual standard �sale of rejects or of reject items � to selloff reject stock � verb /r�d$ekt/ torefuse to accept something, or to saythat something is not satisfactory �The union rejected the management’sproposals. � the company rejected thetakeover bid the directors recom-mended that the shareholders should notaccept the bidrejection /r�d$ekʃən/ noun a refusalto accept something, such as a refusal togive a customer credit � The rejectionof the company’s offer meant that thenegotiations had to start again. � Afterthe union’s rejection of the offer, man-agement came back with new redun-dancy terms. � The board recommendedrejection of the bid.related /r�letd/ adjective connectedor linked � related items on the agendarelated company /r�letd�k�mp(ə)ni/ noun a company in whichanother company makes a long-termcapital investment in order to gain con-trol or influencerelative strength index /�relətvstreŋθ �ndeks/ noun an indicator usedto compare the current price of an in-strument or market to the price at a pre-vious period. It identifies when a shareis overbought or oversold. AbbreviationRSIrelative value funds /�relətv�v�lju� f�ndz/ plural noun hedge

funds not related to general marketmovements, but which try to find op-portunities to arbitrage temporaryslight changes in the relative valuesof particular financial assetsrelease /r�li�s/ noun 1. the act of set-ting someone free or of making some-thing or someone no longer subject to anobligation or restriction � release froma contract � the release of goods fromcustoms � He was offered early releaseso that he could take up his new job. 2.the act of making something public, or apublic announcement 3. the act of putt-ing something on the market, or some-thing put on the market � verb 1. to freesomething or someone � to releasegoods from customs � to release some-one from a debt � Customs released thegoods against payment of a fine. 2. tomake something public � The companyreleased information about the newmine in Australia. � The governmenthas refused to release figures for thenumber of unemployed women. 3. to putsomething on the market � They re-leased several new CDs this month. � torelease dues to send off orders whichhad been piling up while a product wasout of stock

‘…pressure to ease monetary policy mountedyesterday with the release of a set of pessimisticeconomic statistics’ [Financial Times]

‘…the national accounts for the Marchquarter released by the Australian Bureau ofStatistics showed a real increase in GDP’[Australian Financial Review]

release note /r�li�s nəυt/ noun anote from a bank to say that a bill of ex-change has been paidrelevant /�reləv(ə)nt/ adjective whichhas to do with what is being discussedor the current situation � Which is therelevant government department? �Can you give me the relevant papers? �The new assistant does not have any rel-evant experience.relief /r�li�f/ noun helpreminder /r�mandə/ noun a letter toremind a customer that he or she has notpaid an invoice � to send someone areminderremission of taxes /r�mʃ(ə)n əv�t�ksz/ noun a refund of taxes whichhave been overpaid

reinvest 296 remission of taxes

remit /r�mt/ verb to send money � toremit by cheque (NOTE: remitting –remitted)remittance /r�mt(ə)ns/ noun moneywhich is sent (e.g. to pay back a debt orto pay an invoice) � Please send remit-tances to the treasurer. � The familylives on a weekly remittance from theirfather in the USA.remittance advice /r�mt(ə)ns əd-�vas/, remittance slip /r�mt(ə)nsslp/ noun an advice note sent with pay-ment, showing why it is being made (i.e.quoting the invoice number or a refer-ence number)remitting bank /r�mtŋ b�ŋk/ verba bank into which a person has depos-ited a cheque, and which has the duty tocollect the money from the account ofthe writer of the chequeremunerate /r�mju�nəret/ verb topay someone for doing something � Thecompany refused to remunerate themfor their services.remuneration /r�mju�nə�reʃ(ə)n/noun payment for services � The job isinteresting but the remuneration is low.� She receives a small remuneration of£400 a month. � No one will work hardfor such poor remuneration.

COMMENT: Remuneration can take sev-eral forms: e.g. a regular monthly salarycheque, a cheque or cash payment forhours worked or for work completed.

remunerative /r�mju�nərətv/ ad-jective referring to a job which payswell � She is in a highly remunerativejob.render /�rendə/ verb � to render anaccount to send in an account � Pleasefind enclosed payment per accountrendered.renege /r�ne�, r�ni��/ verb � to re-nege on a promise not to do somethingwhich you had promised to do (formal.)� I was furious when he reneged on thedeal.renegotiate /�ri�n��əυʃiet/ verb tonegotiate something again � The com-pany was forced to renegotiate theterms of the loan.renew /r�nju�/ verb to continue some-thing for a further period of time � Wehave asked the bank to renew the bill ofexchange. � The tenant wants to renewhis lease. � His contract was renewed

for a further three years. � to renew asubscription to pay a subscription foranother year � to renew an insurancepolicy to pay the premium for anotheryear’s insurancerenewal /r�nju�əl/ noun the act of re-newing � renewal of a lease or of a sub-scription or of a bill � renewal of acontract � His contract is up for re-newal � When is the renewal date of thebill? � to be up for renewal to be dueto be renewed � His contract is up forrenewal in January. � The lease is upfor renewal next month.renewal notice /r�nju�əl �nəυts/noun a note sent by an insurance com-pany asking the insured person to renewthe insurancerenewal premium /r�nju�əl�pri�miəm/ noun a premium to be paidto renew an insurancerenminbi /�renmnbi�/ noun a unit ofcurrency used in Chinarent /rent/ noun money paid to use anoffice, house or factory for a period oftime � the flat is let at an economicrent at a rent which covers all costs tothe landlord � nominal rent a verysmall rent � verb 1. to pay money tohire an office, house, factory or piece ofequipment for a period of time � to rentan office or a car � He rents an office inthe centre of town. � They were drivinga rented car when they were stopped bythe police. 2. � to rent (out) to own acar, office, etc., and let someone use itfor money � We rented part of thebuilding to an American company.rental /�rent(ə)l/ noun money paid touse an office, house, factory, car, pieceof equipment, etc., for a period of time� The car rental bill comes to over£1000 a quarter.

‘…top quality office furniture: short orlong-term rental 50% cheaper than any otherrental company’ [Australian Financial Review]

‘…until the vast acres of empty office spacestart to fill up with rent-paying tenants, rentalswill continue to fall and so will values. Despitethe very sluggish economic recovery under way,it is still difficult to see where the new tenantswill come from’ [Australian Financial Review]

rental value /�rent(ə)l �v�lju�/ nouna full value of the rent for a property if itwere charged at the current market rate(i.e. calculated between rent reviews)

remit 297 rental value

rent control /�rent kən�trəυl/ noungovernment regulation of rentsrente noun the French word for a gov-ernment annuityrent review /�rent r�vju�/ noun anincrease in rents which is carried outduring the term of a lease (most leasesallow for rents to be reviewed everythree or five years)rent tribunal /�rent tra�bju�n(ə)l/noun a court which can decide if a rentis too high or lowrenunciation /r�n�nsi�eʃ(ə)n/ nounan act of giving up ownership of sharesreorder /ri��ɔ�də/ noun a further orderfor something which has been orderedbefore � The product has only been onthe market ten days and we are alreadygetting reorders. � verb to place a neworder for something � We must reorderthese items because stock is getting low.reorder interval /ri��ɔ�də �ntəv(ə)l/noun a period of time before a new or-der for a stock item is placedreorder level /ri��ɔ�də �lev(ə)l/ nouna minimum amount of an item which acompany holds in stock, such that, whenstock falls to this amount, the item mustbe reorderedreorganisation /ri��ɔ��əna-�zeʃ(ə)n/, reorganization noun theprocess of organising a company in adifferent way (as in the USA, when abankrupt company applies to be treatedunder Chapter 11 to be protected fromits creditors while it is beingreorganised)reorganise /ri��ɔ��ənaz/, reorga-nize verb to organise something in anew way � We have reorganised all ourreps’ territories.repatriation /ri��p�tri�eʃ(ə)n/ nounthe return of foreign investments to thehome country of their ownerrepay /r�pe/ verb to pay somethingback, or to pay back money to someone� to repay money owed � The companyhad to cut back on expenditure in orderto repay its debts. � he repaid me infull he paid me back all the money heowed merepayable /r�peəb(ə)l/ adjectivewhich can be paid back � loan which isrepayable over ten years

repayment /r�pemənt/ noun the actof paying money back or money whichis paid back � The loan is due for repay-ment next year. � he fell behind withhis mortgage repayments he was latein paying back the instalments on hismortgagerepayment mortgage /r�pemənt�mɔ��d$/ noun a mortgage where theborrower pays back both interest andcapital over the period of the mortgage(as opposed to an endowment mortgage,where only the interest is repaid, and aninsurance is taken out to repay the capi-tal at the end of the term of themortgage)replacement cost accounting /r-�plesmənt kɒst ə�kaυntŋ/ noun amethod of accounting in which assetsare valued at the amount it would cost toreplace them, rather than at the originalcost. Also called current cost ac-counting. Compare historical costaccountingreplacement cost depreciation/r�plesmənt kɒst d�pri�ʃi�eʃ(ə)n/noun depreciation based on the actualcost of replacing the asset in the currentyearreplacement price /r�plesməntpras/ noun a price at which the re-placement for an asset would have to beboughtreplacement value /r�plesmənt�v�lju�/ noun the value of somethingfor insurance purposes if it were to bereplaced � The computer is insured atits replacement value.reply coupon /r�pla �ku�pɒn/ nouna form attached to a coupon ad whichhas to be filled in and returned to theadvertiserrepo /�ri�pəυ/ noun same as repur-chase agreement (informal.) (NOTE:The plural is repos.)report /r�pɔ�t/ noun 1. a statement de-scribing what has happened or describ-ing a state of affairs � to make a reportor to present a report or to send in a re-port on market opportunities in the FarEast � The accountants are drafting areport on salary scales. � The salesmanager reads all the reports from thesales team. � The chairman has re-ceived a report from the insurance com-pany. � the treasurer’s report a

rent control 298 report

document from the honorary treasurerof a society to explain the financial stateof the society to its members 2. an offi-cial document from a government com-mittee � The government has issued areport on the credit problems of export-ers. � They reported for work at theusual time. � verb 1. to make a state-ment describing something � {+ � Thesalesforce reported an increased de-mand for the product. � He reported thedamage to the insurance company. �We asked the bank to report on his fi-nancial status. 2. � to report to some-one to be responsible to or to be undersomeone � She reports direct to themanaging director. � The salesforce re-ports to the sales director. 3. to publishthe results of a company for a periodand declare the dividend

‘…a draft report on changes in the internationalmonetary system’ [Wall Street Journal]‘…responsibilities include the production ofpremium quality business reports’ [Times]‘…the research director will manage a team ofbusiness analysts monitoring and reporting onthe latest development in retail distribution’[Times]‘…the successful candidate will report to thearea director for profit responsibility for sales ofleading brands’ [Times]

reporting season /r�pɔ�tŋ�si�z(ə)n/ noun a period when manylarge companies declare their dividendsrepossess /�ri�pə�zes/ verb to takeback an item which someone is buyingunder a hire-purchase agreement, or aproperty which someone is buying un-der a mortgage, because the purchasercannot continue the paymentsrepossession /�ri�pə�zeʃ(ə)n/ nounan act of repossessing � Repossessionsare increasing as people find it difficultto meet mortgage repayments.represent /�repr�zent/ verb 1. towork for a company, showing goods orservices to possible buyers � He repre-sents an American car firm in Europe. �Our French distributor represents sev-eral other competing firms. 2. to act onbehalf of someone � He sent his solici-tor and accountant to represent him atthe meeting. � Three managers repre-sent the workforce in discussions withthe directors.re-present /�ri� pr�zent/ verb topresent something again � He

re-presented the cheque two weeks laterto try to get payment from the bank.representation /�reprzen�teʃ(ə)n/noun 1. the right to sell goods for acompany, or a person or organisationthat sells goods on behalf of a company� We offered them exclusive representa-tion in Europe. � They have no repre-sentation in the USA. 2. the fact ofhaving someone to act on your behalf �The minority shareholders want repre-sentation on the board. � The ordinaryshop floor workers want representationon the committee.representative /�repr�zentətv/ ad-jective which is an example of what allothers are like � We displayed a repre-sentative selection of our product range.� The sample chosen was not represen-tative of the whole batch. � noun 1. acompany which works for another com-pany, selling their goods � We have ap-pointed Smith & Co our exclusiverepresentatives in Europe. 2. a personwho acts on someone’s behalf � He senthis solicitor and accountant to act as hisrepresentatives at the meeting. � Theboard refused to meet the representa-tives of the workforce.reprice /ri��pras/ verb to change theprice on an item (usually, to increase itsprice)repudiate /r�pju�diet/ verb to refuseto accept somethingrepurchase /ri��p%�tʃs/ verb to buysomething again, especially somethingwhich you have recently bought andthen soldrepurchase agreement /ri��p%�tʃsə��ri�mənt/ noun an agreement, wherea bank agrees to buy something and sellit back later (in effect, giving a cash loanto the seller; this is used especially toraise short-term finance)require /r�kwaə/ verb 1. to ask for orto demand something � to require a fullexplanation of expenditure � The lawrequires you to submit all income to thetax authorities. 2. to need something �The document requires careful study. �Writing the program requires a special-ist knowledge of computers.requirement /r�kwaəmənt/ noun 1.something which someone wants orneeds � We hope the items will meet thecustomer’s requirements. � If you will

reporting season 299 requirement

supply us with a list of your require-ments, we shall see if we can meet them.2. something which is necessary to en-able something to be done � Are com-puting skills a requirement for this job?requisition /�rekw�zʃ(ə)n/ noun anofficial order for something � What isthe reference number of your latest req-uisition? � verb to put in an official or-der for something or to ask for suppliesto be sent � We have requisitioned threetrucks to move the stock.rerate /ri��ret/ verb to change the rat-ing of a share on the Stock Exchange(either upwards or downwards)rerating /ri��retŋ/ noun the act ofchanging the value of a share on theStock Exchange, either upwards ordownwardsresale /�ri�sel/ noun the selling ofgoods which have been bought � to pur-chase something for resale � The con-tract forbids resale of the goods to theUSA.resale price maintenance /�ri�sel�pras �mentənəns/ noun a system inwhich the price for an item is fixed bythe manufacturer and the retailer is notallowed to sell it at a lower price. Ab-breviation RPMreschedule /ri��ʃedju�l/ verb to ar-range new credit terms for the repay-ment of a loan � Third World countrieswhich are unable to keep up the interestpayments on their loans from westernbanks have asked for their loans to berescheduled.rescind /r�snd/ verb to annul or tocancel something � to rescind a con-tract or an agreementrescission /r�s$(ə)n/ noun an act ofrescinding a contractrescue /�reskju�/ noun the act of sav-ing someone or something from danger� verb to save someone or somethingfrom danger � The company nearly col-lapsed, but was rescued by the banks.rescue operation /�reskju� ɒpə-�reʃ(ə)n/ noun an arrangement by agroup of people to save a company fromcollapse � The banks planned a rescueoperation for the company.research /r�s%�tʃ/ noun the processof trying to find out facts or information� verb to study or try to find out infor-

mation about something � They are re-searching the market for their newproduct.research and development /r-�s%�tʃ ən d�veləpmənt/ noun 1.scientific investigation which leads tomaking new products or improving ex-isting products � The company spendsmillions on research and development.Abbreviation R&D 2. activities thatare designed to produce new knowledgeand ideas and to develop ways in whichthese can be commercially exploitedby a business (NOTE: Research and de-velopment activities are often groupedtogether to form a separate division ordepartment within an organisation.)

COMMENT: Research costs can be di-vided into (a) applied research, which isthe cost of research leading to a specificaim, and (b) basic, or pure, research,which is research carried out without aspecific aim in mind: these costs are writ-ten off in the year in which they are in-curred. Development costs are the costsof making the commercial products basedon the research.

research and development ex-penditure /r�s%�tʃ ən d�veləpməntk�spendtʃə/ noun money spent on R& Dresearch department /r�s%�tʃ d-�pɑ�tmənt/ noun 1. the section of acompany which carries out research 2.the section of a broker’s office whichdoes research into companiesresearcher /r�s%�tʃə/ noun a personwho carries out research � Governmentstatistics are a useful source of informa-tion for the desk researcher.resell /ri��sel/ verb to sell somethingwhich has just been bought � The carwas sold in June and the buyer resold itto an dealer two months later. (NOTE:reselling – resold)

reseller /ri��selə/ noun somebody inthe marketing chain who buys to sell tosomebody else such as wholesalers, dis-tributors, and retailersreserve /r�z%�v/ noun money fromprofits not paid as dividend but keptback by a company in case it is neededfor a special purpose � reserve for baddebts money kept by a company tocover debts which may not be paid

requisition 300 reserve

COMMENT: The accumulated profits re-tained by a company usually form its mostimportant reserve.

reserve currency /r�z%�v �k�rənsi/noun a strong currency used in interna-tional finance, held by other countries tosupport their own weaker currenciesreserved market /r�z%�vd �mɑ�kt/noun a market in which producers agreenot to sell more than a specific amountin order to control competitionreserve fund /r�z%�v f�nd/ nounprofits in a business which have notbeen paid out as dividend but have beenploughed back into the businessreserve price /r�z%�v pras/ nounthe lowest price which a seller will ac-cept, e.g. at an auction or when sellingsecurities through a broker � The paint-ing was withdrawn when it failed toreach its reserve price.reserve requirement /r�z%�v r-�kwaəmənt/ noun US the amount ofreserves which an American bank has tohold on deposit with a Federal ReserveBankreserves /r�z%�vz/ plural noun 1.supplies kept in case of need � Our re-serves of fuel fell during the winter. �The country’s reserves of gas or gas re-serves are very large. 2. money fromprofits not paid as dividend, but keptback by a company in case it is neededfor a special purposeresidence /�rezd(ə)ns/ noun 1. ahouse or flat where someone lives � Hehas a country residence where hespends his weekends. 2. the fact of liv-ing or operating officially in a countryresidence permit /�rezd(ə)ns�p%�mt/ noun an official document al-lowing a foreigner to live in a country �He has applied for a residence permit. �She was granted a residence permit forone year or a one-year residence permit.resident /�rezd(ə)nt/ noun, adjective(a person or company) considered to beliving or operating in a country for offi-cial or tax purposes � The company isresident in France.residential property /�rezdenʃ(ə)l�prɒpəti/ noun houses or flats owned oroccupied by individual residentsresidual /r�zdjuəl/ adjective re-maining after everything else has gone

residual value /r�zdjuəl �v�lju�/noun a value of an asset after it has beendepreciated in the company’s accountsresidue /�rezdju�/ noun money leftover � After paying various bequeststhe residue of his estate was split be-tween his children.resist /r�zst/ verb to fight againstsomething, not to give in to something �The chairman resisted all attempts tomake him resign. � The company is re-sisting the takeover bid.resistance /r�zstəns/ noun opposi-tion felt or shown by people to some-thing � There was a lot of resistancefrom the team to the new plan. � Thechairman’s proposal met with strong re-sistance from the banks.resistance level /r�zst(ə)ns�lev(ə)l/ noun a price or index levelwhich investors feel marks a boundarywhich they are reluctant to cross, sincebeyond that boundary the price wouldbe too high or too low

COMMENT: Resistance levels on theStock Exchange relate to ‘sentiment’; if ashare is selling at $2.95, and does notrise, it may be that investors see the priceof $3.00 as a point above which they feelthe share is overvalued; if the price‘breaks through’ the $3.00 barrier, then itmay continue to rise rapidly, as the resis-tance level has been broken. The sameapplies in reverse: if the pound/dollar ex-change rate is $1.65, and the pound be-comes weaker, the resistance level of$1.60, when broken, may be the sign of afurther slide in the pound’s value.

resolution /�rezə�lu�ʃ(ə)n/ noun a de-cision to be reached at a meeting � toput a resolution to a meeting to ask ameeting to vote on a proposal � Themeeting carried or adopted a resolutionto go on strike. � The meeting rejectedthe resolution or The resolution was de-feated by ten votes to twenty. � A reso-lution was passed to raise salaries bysix per cent.

COMMENT: There are three types or reso-lution which can be put to an AGM: the‘ordinary resolution’, usually referring tosome general procedural matter, andwhich requires a simple majority of votes;and the ‘extraordinary resolution’ and‘special resolution’, such as a resolutionto change a company’s articles of associ-ation in some way, both of which need

reserve currency 301 resolution

75% of the votes before they can becarried.

resolve /r�zɒlv/ verb to decide to dosomething � The meeting resolved thata dividend should not be paid. � Themeeting resolved that a strike ballotshould be held.resources /r�sɔ�sz/ plural noun 1. asupply of something 2. the money avail-able for doing somethingrestitution /�rest�tju�ʃ(ə)n/ noun 1.the act of giving back property � Thecourt ordered the restitution of assets tothe company. 2. compensation or pay-ment for damage or lossrestraint /r�strent/ noun controlrestraint of trade /r�strent əv�tred/ noun 1. a situation where em-ployees are not allowed to use theirknowledge in another company onchanging jobs 2. an attempt by compa-nies to fix prices, create monopolies orreduce competition, which could affectfree traderestrict /r�strkt/ verb to limit some-thing or to impose controls on some-thing � to restrict credit � to restrict theflow of trade or to restrict imports � Weare restricted to twenty staff by the sizeof our offices. � to sell into a restrictedmarket to sell goods into a marketwhere the supplier has agreed to limitsales to avoid competitionrestricted market /r�strktd�mɑ�kt/ noun same as reservedmarketrestriction /r�strkʃən/ noun a limitor control � import restrictions or re-strictions on imports � to impose re-strictions on imports or credit to startlimiting imports or credit � to lift creditrestrictions or import restrictions toallow credit to be given freely or im-ports to enter the country freelyrestrictive /r�strktv/ adjectivewhich limitsrestrictive covenant /r�strktv�k�vənənt/ noun a clause in a contractwhich prevents someone from doingsomethingrestrictive endorsement /r-�strktv n�dɔ�smənt/ noun an en-dorsement on a bill of exchange whichrestricts the use which can be made of itby the person it is endorsed to

restrictive trade practices /r-�strktv �tred �pr�ktsz/, restric-tive practices /r�strktv �pr�ktsz/plural noun 1. an arrangement betweencompanies to fix prices or to share themarket in order to restrict trade 2. waysof working which make people less free(such as trade unions stopping workersfrom doing certain jobs or companiesnot allowing customers a free choice ofproduct) � Restrictive practices in in-dustry mean that employers will not beable to afford to take on more labour.restructure /ri��str�ktʃə/ verb to re-organise the financial basis of acompanyrestructuring /ri��str�ktʃərŋ/ nounthe process of reorganising the financialbasis of a company � the restructuringof an economy reorganising the basicways in which an economy is set upresult /r�z�lt/ noun 1. a profit or lossaccount for a company at the end of atrading period � The company’s resultsfor last year were an improvement onthose of the previous year. 2. somethingwhich happens because of somethingelse � What was the result of the priceinvestigation? � The company doubledits sales force with the result that thesales rose by 26%. � the expansionprogramme has produced results hasproduced increased sales � payment byresults being paid for profits or in-creased sales � verb � to result from tohappen because of � We have to fill sev-eral vacancies resulting from the recentinternal promotions

‘…the company has received the backing of anumber of oil companies who are willing to payfor the results of the survey’ [Lloyd’s List]‘…some profit-taking was noted, but underlyingsentiment remained firm in a steady stream ofstrong corporate results’ [Financial Times]

retail /�ri�tel/ noun the sale of smallquantities of goods to the general public� the goods in stock have a retailvalue of £1m the value of the goods ifsold to the public is £1m, before dis-counts and other factors are taken intoaccount � adverb � he buys wholesaleand sells retail he buys goods in bulk ata wholesale discount and sells in smallquantities to the public � verb 1. � toretail goods to sell goods direct to thepublic 2. to sell for a price � these itemsretail at or for £2.50 the retail price ofthese items is £2.50

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retail bank /�ri�tel b�ŋk/ noun abank which provides normal bankingservices for customers (in the UK, this isdone by the main high street banks)retail banking /�ri�tel �b�ŋkŋ/noun the provision of normal bankingservices for customers by the main highstreet banks (as opposed to wholesalebanking)retail dealer /�ri�tel �di�lə/ noun aperson who sells to the general publicretail deposit /�ri�tel d�pɒzt/ nouna deposit placed by an individual with abankretailer /�ri�telə/ noun a person whoruns a retail business, selling goods di-rect to the publicretailer number /�ri�telə �n�mbə/noun the number of the retailer, printedat the top of the report slip when depos-iting credit card paymentsretail fund /�ri�tel f�nd/ noun a fundsold direct to private investorsretailing /�ri�telŋ/ noun the sellingof full-price goods to the public � Fromcar retailing the company branched outinto car leasing.retail investor /�ri�tel n�vestə/noun a private investor, as opposed toinstitutional investorsretail outlet /�ri�tel �aυt(ə)let/ nouna shop which sells to the general publicretail price /�ri�tel �pras/ noun theprice at which the retailer sells to the fi-nal customerretail price index /�ri�tel �pras�ndeks/, retail prices index /�ri�tel�prasz �ndeks/ noun an index whichshows how prices of consumer goodshave increased or decreased over a pe-riod of time. Abbreviation RPI

COMMENT: In the UK, the RPI is calcu-lated on a group of essential goods andservices; it includes both VAT and mort-gage interest; the US equivalent is theConsumer Price Index.

retail service provider /�ri�tel�s%�vs prəυ�vadə/, retail house/�ri�tel haυs/ noun a large stock-broking company dealing directly withprivate retail investors. AbbreviationRSPretain /r�ten/ verb 1. to keep some-thing or someone � measures to retainexperienced staff � Out of the profits,

the company has retained £50,000 asprovision against bad debts. 2. � to re-tain a lawyer to act for a company toagree with a lawyer that he or she willact for you (and pay him or her a fee inadvance)retained earnings /r�tend�%�nŋz/, retained income /r�tend�nk�m/, retained profit /r�tend�prɒft/ plural noun an amount of profitafter tax which a company does not payout as dividend to the shareholders, butwhich is kept to be used for the furtherdevelopment of the business. Alsocalled retentionsretainer /r�tenə/ noun money paid inadvance to someone so that they willwork for you, and not for someone else� We pay them a retainer of £1,000.retention /r�tenʃən/ noun the act ofkeeping the loyalty of existing custom-ers, as opposed to acquisition, which isthe act of acquiring new customers(both can be aims of advertisingcampaigns)

‘…a systematic approach to human resourceplanning can play a significant part in reducingrecruitment and retention problems’[Personnel Management]

retentions /r�tenʃənz/ plural nounsame as retained earningsretiral /r�taərəl/ noun US same asretirementretire /r�taə/ verb 1. to stop work andtake a pension � She retired with a£15,000 pension. � The founder of thecompany retired at the age of 85. � Theshop is owned by a retired policeman. 2.to make an employee stop work andtake a pension � They decided to retireall staff over 50. 3. to come to the end ofan elected term of office � The trea-surer retires from the council after sixyears. � Two retiring directors offerthemselves for re-election.retirement /r�taəmənt/ noun 1. theact of retiring from work � I am lookingforward to my retirement. � Older staffare planning what they will do in retire-ment. � to take early retirement to re-tire from work before the usual age 2.the period when a person is retiredretirement age /r�taəmənt ed$/noun the age at which people retire (inthe UK usually 65 for men and 60, butsoon to become 65 for women)

retail bank 303 retirement age

retirement pension /r�taəmənt�penʃən/ noun a state pension given to aman who is over 65 or and woman whois over 60retrenchment /r�trentʃmənt/ nouna reduction of expenditure or of newplans � The company is in for a periodof retrenchment.retroactive /�retrəυ��ktv/ adjectivewhich takes effect from a time in thepast � The union is asking for a retroac-tive pay rise. � They got a pay rise ret-roactive to last January.

‘The salary increases, retroactive from April ofthe current year, reflect the marginal rise inprivate sector salaries’ [Nikkei Weekly]

retroactively /�retrəυ��ktvli/ ad-verb going back to a time in the pastreturn /r�t%�n/ noun 1. a profit or in-come from money invested � We arebuying technology shares because theybring in a quick return. � What is thegross return on this line? 2. an officialstatement or form that has to be sent into the authorities � to fill in a VAT re-turn to complete the form showingVAT receipts and expenditure � verb 1.to send back � to return unsold stock tothe wholesaler � to return a letter tosender 2. to make a statement � to re-turn income of £15,000 to the taxauthorities

‘…with interest rates running well aboveinflation, investors want something that offers areturn for their money’ [Business Week]‘Section 363 of the Companies Act 1985requires companies to deliver an annual returnto the Companies Registration Office. Failure todo so before the end of the period of 28 daysafter the company’s return date could lead todirectors and other officers in default beingfined up to £2000’ [Accountancy]

return date /r�t%�n det/ noun a dateby which a company’s annual return hasto be made to the Registrar ofCompaniesreturn on capital employed /r-�t%�n ɒn �k�pt(ə)l m�plɔd/, returnon assets /r�t%�n ɒn ��sets/, returnon equity /r�t%�n ɒn �ekwti/ noun aprofit shown as a percentage of the capi-tal or money invested in a business. Ab-breviation ROCE, ROA, ROEreturn on investment /r�t%�n ɒnn�vestmənt/ noun interest or divi-dends shown as a percentage of themoney invested. Abbreviation ROI

returns /r�t%�nz/ plural noun 1. prof-its or income from investment � Thecompany is looking for quick returns onits investment. 2. unsold goods, espe-cially books, newspapers or magazines,sent back to the supplierrevaluation /ri��v�ljυ�eʃən/ noun 1.an act of revaluing � The balance sheettakes into account the revaluation of thecompany’s properties. 2. the increasingof the value of a currency � The revalu-ation of the dollar against the euro.revalue /ri��v�lju�/ verb to valuesomething again (usually setting ahigher value on it than before) � Thecompany’s properties have been reval-ued. � The dollar has been revaluedagainst all world currencies.revenue /�revənju�/ noun 1. moneyreceived � revenue from advertising oradvertising revenue � Oil revenueshave risen with the rise in the dollar. 2.money received by a government in taxrevenue account /�revənju� ə-�kaυnt/ noun an accounting systemwhich records the revenue and expendi-ture incurred by a company during itsnormal businessrevenue accounts /�revənju� ə-�kaυnts/ plural noun accounts of a busi-ness which record money received assales, commission, etc.revenue expenditure /�revə�nju�k�spendtʃə/ noun expenditure on pur-chasing stock (but not on capital items)which is then sold during the current ac-counting periodrevenue officer /�revənju� �ɒfsə/noun a person working in the govern-ment tax officesrevenue reserves /�revənju� r-�z%�vs/ plural noun retained earningswhich are shown in the company’s bal-ance sheet as part of the shareholders’funds. Also called company reservesreversal /r�v%�s(ə)l/ noun 1. a changefrom being profitable to unprofitable �The company suffered a reversal in theFar East. 2. a sudden change in a shareprice (either a rise or a fall) � In theevent of a market reversal buyers arerare.reverse /r�v%�s/ adjective opposite orin the opposite direction � verb tochange a decision to the opposite � The

retirement pension 304 reverse

committee reversed its decision on im-port quotas.

‘…the trade balance sank $17 billion, reversinglast fall’s brief improvement’ [Fortune]

reverse bid /r�v%�s �bd/ noun a bidmade by a company which is the targetof a takeover bid for the company whichis trying to take it overreverse mortgage /r�v%�s�mɔ��d$/ noun an arrangement wherethe owner of a property mortgages it toreceive a regular income from the mort-gage lender (and not vice versa), basedon the equity value of the propertyreverse takeover /r�v%�s�tekəυvə/ noun a takeover where thecompany which has been taken overends up owning the company which hastaken it over. The acquiring company’sshareholders give up their shares in ex-change for shares in the target company.reversing entry /r�v%�sŋ �entri/noun an entry in a set of accounts whichreverses an entry in the precedingaccountsreversion /r�v%�ʃ(ə)n/ noun a returnof property to an original owner � hehas the reversion of the estate he willreceive the estate when the present leaseendsreversionary /r�v%�ʃ(ə)n(ə)ri/ ad-jective referring to property whichpasses to another owner on the death ofthe present onereversionary annuity /r-�v%�ʃ(ə)n(ə)ri ə�nju�ti/ noun anannuity paid to someone on the death ofanother personreversionary bonus /r-�v%�ʃ(ə)n(ə)ri �bəυnəs/ noun an an-nual bonus on a life assurance policy,declared by the insurerreview /r�vju�/ noun a general exami-nation � to conduct a review of distribu-tors � she had a salary review lastApril her salary was examined (and in-creased) in April � The company hasdecided to review freelance payments inthe light of the rising cost of living. �verb to examine something generally �to review salaries to look at all salariesin a company to decide on increases �His salary will be reviewed at the end ofthe year. � to review discounts to lookat discounts offered to decide whether tochange them

revise /r�vaz/ verb to change some-thing which has been calculated orplanned � Sales forecasts are revisedannually. � The chairman is revising hisspeech to the AGM.revocable /�revəkəb(ə)l/ adjectivewhich can be revokedrevocable trust /�revəkəb(ə)l�tr�st/ noun a trust which can bechanged or revokedrevocation /�revəυ�keʃ(ə)n/ nounan action of cancelling something whichhas previously been agreed � the revo-cation of the bank’s licence by the cen-tral bankrevoke /r�vəυk/ verb to cancel some-thing � to revoke a decision or a clausein an agreement � The quota on luxuryitems has been revoked.revolving credit /r�vɒlvŋ �kredt/noun a system where someone can bor-row money at any time up to an agreedamount, and continue to borrow whilestill paying off the original loan. Alsocalled open-ended creditrial /ri�ɑ�l/ noun a unit of currency usedin Iran and other Middle Eastern coun-tries, such as Oman and North Yemen. �riyal-rich /rtʃ/ suffix meaning ‘which con-tains or has a large amount ofsomething’rider /�radə/ noun an additional clause� to add a rider to a contractRIE abbreviation recognised invest-ment exchangeriel /�riəl/ noun a unit of currency usedin Cambodiarig /r�/ verb to arrange illegally or dis-honestly for a result to be changed �They tried to rig the election of officers.� to rig the market to make shareprices go up or down so as to make aprofitright /rat/ adjective not left � Thecredits are on the right side of the page.� noun a legal entitlement to something� There is no automatic right of re-newal to this contract. � She has a rightto the property. � He has no right to thepatent. � The staff have a right to knowhow the company is doing.rightful claimant /�ratf(ə)l�klemənt/ noun a person who has a le-gal claim to something (NOTE: this term

reverse bid 305 rightful claimant

has now replaced plaintiff. The otherside in a case is the defendant)right-hand /�rat �h�nd/ adjectivebelonging to the right side � The creditside is the right-hand column in the ac-counts. � He keeps the address list inthe right-hand drawer of his desk.right-hand man /�rat h�nd �m�n/noun a man who is the main assistant tosomeoneright of way /�rat əv �we/ noun alegal title to go across someone’spropertyrights issue /�rats �ʃu�/ noun anarrangement which gives shareholdersthe right to buy more shares at a lowerprice (NOTE: The US term is rights of-fering.)right to strike /�rat tə �strak/ nouna legal right of workers to stop workingif they have a good reason for itring /rŋ/ noun 1. a group of peoplewho try to fix prices so as not to com-pete with each other and still make alarge profit 2. a trading floor on a com-modity exchangering binder /�rŋ �bandə/ noun a filewith a stiff cover with rings in it whichfit into special holes made in sheets ofpaperring fence /�rŋ fens/ verb 1. toseparate valuable assets or profitablebusinesses from others in a groupwhich are unprofitable and may makethe whole group collapse 2. to identifymoney from certain sources and onlyuse it in certain areas � The grant hasbeen ring-fenced for use in local author-ity education projects only. �hypothecationringgit /�rŋ�t/ noun a unit of cur-rency used in Malaysia (also called the‘Malaysian dollar’)rise /raz/ noun 1. an increase � A risein the price of raw materials. � Oilprice rises brought about a recession inworld trade. � There has been a rise insales of 10% or Sales show a rise of10%. � Salaries are increasing to keepup with the rises in the cost of living. �The recent rise in interest rates hasmade mortgages dearer. 2. an increasein pay � She asked her boss for a rise. �He had a 6% rise in January. (NOTE:The US term is raise.) � verb to moveupwards or to become higher � Prices

or Salaries are rising faster than infla-tion. � Interest rates have risen to 15%.� Salaries are rising faster than infla-tion. (NOTE: rising – rose – risen)

‘…the index of industrial production sank 0.2per cent for the latest month after rising 0.3 percent in March’ [Financial Times]‘…the stock rose to over $20 a share, higherthan the $18 bid’ [Fortune]‘…customers’ deposit and current accounts alsorose to $655.31 million at the end of December’[Hongkong Standard]‘…the government reported that production inthe nation’s factories and mines rose 0.2% inSeptember’ [Sunday Times]

rising screen /�razŋ �skri�n/ nouna panel which moves upwards to protecta cashier in a bank against robbersrisk /rsk/ noun 1. possible harm or achance of danger � to run a risk to belikely to suffer harm � to take a risk todo something which may make you losemoney or suffer harm 2. � at owner’srisk a situation where goods shipped orstored are insured by the owner, not bythe transport company or the storagecompany � Goods left here are atowner’s risk. � The shipment was sentat owner’s risk. 3. loss or damageagainst which you are insured 4. � he isa good or bad risk it is not likely or it isvery likely that the insurance companywill have to pay out against claimswhere he is concerned

‘…remember, risk isn’t volatility. Risk is thechance that a company’s earnings power willerode – either because of a change in theindustry or a change in the business that willmake the company significantly less profitablein the long term’ [Fortune]

risk-adjusted /rsk ə�d$�std/ ad-jective calculated after taking risk intoaccountrisk arbitrage /�rsk �ɑ�btrɑ�$/noun the business of buying shares incompanies which are likely to be takenover and so rise in pricerisk arbitrageur /rsk �ɑ�btrɑ��$%�/noun a person whose business is riskarbitragerisk asset ratio /�rsk ��set�reʃiəυ/ noun a proportion of a bank’scapital which is in risk assetsrisk assets /rsk ��sets/ plural nounassets of a bank which are in securitiesor bonds which may fall in valuerisk-averse /�rsk ə�v%�s/ adjectivenot wanting to take risks

right-hand 306 risk-averse

risk-based /�rsk best/ adjectivecalculated against a riskrisk-based capital /�rsk best�k�pt(ə)l/ noun an internationally ap-proved system of calculating a bank’scapital value by assessing the risk at-tached to its assets (cash deposits andgold, for example, have no risk, whileloans to Third World countries have ahigh risk)risk capital /�rsk �k�pt(ə)l/ nounsame as venture capitalrisk-free /�rsk �fri�/, riskless/�rskləs/ adjective with no risk in-volved � a risk-free investment

‘…there is no risk-free way of taking regularincome from your money higher than the rate ofinflation and still preserving its value’[Guardian]‘…many small investors have also preferred toput their spare cash with risk-free investmentssuch as building societies rather than takechances on the stock market. The returns on ahost of risk-free investments have been well intodouble figures’ [Money Observer]

riskiness /�rskinəs/ noun the fact ofbeing riskyrisk management /�rsk�m�nd$mənt/ noun the work of man-aging a company’s exposure to riskfrom its credit terms or exposure to in-terest rate or exchange rate fluctuationsrisk premium /�rsk �pri�miəm/noun an extra payment (increased divi-dend or higher than usual profits) fortaking risksrisk-weighted assets /�rsk�wetd ��sets/ plural noun assetswhich include off-balance sheet itemsfor insurance purposesrisky /�rski/ adjective dangerous orwhich may cause harm � We lost all ourmoney in some risky ventures in SouthAmerica.

‘…while the bank has scaled back some of itsmore risky trading operations, it has retained itsstatus as a top-rate advisory house’ [Times]

rival /�rav(ə)l/ noun a person or com-pany that competes in the same market� a rival company � to undercut a rivalriyal /ri�ɑ�l/ noun a unit of currencyused in Saudi Arabia, Qatar and YemenROA abbreviation return on assetsrobber /�rɒbə/ noun a person who car-ries out a robbery

robbery /�rɒbəri/ noun the offence ofstealing something from someone usingforce, or threatening to use forcerobust /rəυ�b�st/ adjective strong,able to survive in difficultcircumstancesrobustness /rəυ�b�stnəs/ noun thefact of being strong � financial robust-ness the fact of being in a strong posi-tion financiallyROCE abbreviation return on capitalemployedrock /rɒk/ noun � the company is onthe rocks the company is in great finan-cial difficultiesrock bottom /rɒk �bɒtəm/ noun �sales have reached rock bottom saleshave reached the lowest point possible

‘…investment companies took the view thatsecondhand prices had reached rock bottom andthat levels could only go up’ [Lloyd’s List]

rocket /�rɒkt/ verb to rise fast � In-vestors are rushing to cash in on rocket-ing share prices. � Prices have rocketedon the commodity markets.ROE abbreviation return on equityROI abbreviation return on investmentroll /rəυl/ noun something which hasbeen turned over and over to wrap rounditself � The desk calculator uses a rollof paper. � We need to order some morerolls of fax paper. � verb to make some-thing go forward by turning it over orpushing it on wheels � They rolled thecomputer into position.rolled-up coupons /�rəυld �p�ku�pɒnz/ plural noun interest couponson securities, which are not paid out, butadded to the capital value of the securityrolling account /�rəυlŋ ə�kaυnt/noun a system where there are no fixedaccount days, but stock exchange trans-actions are paid at a fixed period aftereach transaction has taken place (as op-posed to the British system, where anaccount day is fixed each month)rolling budget /�rəυlŋ �b�d$t/noun a budget which moves forward ona regular basis (such as a budget cover-ing a twelve-month period, whichmoves forward each month or quarter)rolling plan /�rəυlŋ �pl�n/ noun aplan which runs for a period of time andis updated regularly for the same period

risk-based 307 rolling plan

rolling settlement /�rəυlŋ�set(ə)lmənt/ noun US same as rollingaccountroll over /�rəυl �əυvə/ verb � to rollover a credit to make credit availableover a continuing period � to roll over adebt to allow a debt to stand after the re-payment date

‘…at the IMF in Washington, officials areworried that Japanese and US banks mightdecline to roll over the principal of loans madein the 1980s to Southeast Asian and otherdeveloping countries’ [Far Eastern EconomicReview]

rollover /�rəυləυvə/ noun an exten-sion of credit or of the period of a loan,though not necessarily on the sameterms as previouslyrollover credit /�rəυləυvə �kredt/noun credit in the form of a me-dium-term loan, covered by a series ofshort-term loansrollover mortgage /�rəυləυvə�mɔ��d$/ noun a short-term mortgagewhich is renegotiated with differentterms every five years or soroll up /�rəυl ��p/ verb to extend aloan, by adding the interest due to bepaid to the capitalRomalpa clause noun a clause in acontract, whereby the seller providesthat title to the goods does not pass tothe buyer until the buyer has paid forthem

COMMENT: Called after the case of Alu-minium Industrie Vaassen BV v RomalpaLtd.

rotation /rəυ�teʃ(ə)n/ noun the act oftaking turns � to fill the post of chair-man by rotation to let each member ofthe group act as chairman for a periodthen give the post to another member �two directors retire by rotation twodirectors retire because they have beendirectors longer than any others, but canoffer themselves for re-electionRoth account /�rɒθ ə�kaυnt/, RothIRA /�rɒθ �arə/ noun an individual re-tirement account in which earnings canbe withdrawn tax free at age 59½ pro-vided that they have been invested in theaccount for more than five yearsrouble /�ru�b(ə)l/ noun a unit of cur-rency used in Russia and Belarus (NOTE:The US spelling is ruble.)

rough /r�f/ adjective approximate, notvery accuraterough calculation /�r�f �k�lkjυ-�leʃ(ə)n/ noun a way of working out amathematical problem approximately,or the approximate result arrived at � Imade some rough calculations on theback of an envelope.rough draft /r�f �drɑ�ft/ noun a planof a document which may have changesmade to it before it is completerough estimate /r�f �estmət/ nouna very approximate calculationrough out /�r�f �aυt/ verb to make adraft or a general design of something,which may be changed later � The fi-nance director roughed out a plan ofinvestment.round /raυnd/ adjective � in roundfigures not totally accurate, but correctto the nearest 10 or 100 � verb to makea fractional figure a full figure, by in-creasing or decreasing it � Some figureshave been rounded to the nearest cent.round down /�raυnd �daυn/ verb todecrease a fractional figure to the near-est full figureround-tripping /�raυnd �trpŋ/noun 1. the practice of borrowing at onerate of interest and lending the samemoney short-term at a higher rate (usedto borrow on overdraft, when short-termdeposit rates are higher) 2. US the prac-tice of buying securities and then sellingthem quicklyround up /�raυnd ��p/ verb to in-crease a fractional figure to the nearestfull figure � to round up the figures tothe nearest pound

‘…each cheque can be made out for the localequivalent of œ100 rounded up to a convenientfigure’ [Sunday Times]

routing /�ru�tŋ/ � check routingsymbolroyalty /�rɔəlti/ noun money paid toan inventor, writer or the owner of landfor the right to use their property, usu-ally a specific percentage of sales, or aspecific amount per sale � The countrywill benefit from rising oil royalties. �He is still receiving substantial royaltiesfrom his invention.RPB abbreviation recognised profes-sional bodyRPI abbreviation retail price index

rolling settlement 308 RPI

RPM abbreviation resale pricemaintenanceRRP abbreviation recommended retailpriceRSP abbreviation retail serviceproviderRTGS abbreviation real-time grosssettlementrubber check /�r�bə �tʃek/ noun USa cheque which cannot be cashed be-cause the person writing it does not haveenough money in the account to pay it(NOTE: The UK term is bouncingcheque.)

rubber stamp /�r�bə �st�mp/ nouna stamp with rubber letters or figures onit to put the date or a note on a document� He stamped the invoice with the rub-ber stamp ‘Paid’. � verb to agree tosomething without discussing it � Theboard simply rubber stamped theagreement.rule /ru�l/ noun a statement that di-rects how people should behave � Itis a company rule that smoking isnot allowed in the offices. � The rules ofthe organisation are explained duringthe induction sessions. � as a rule usu-ally � As a rule, we do not give dis-counts over 20%. � verb 1. to give anofficial decision � The commission ofinquiry ruled that the company was inbreach of contract. � The judge ruledthat the documents had to be depositedwith the court. 2. to be in force or to becurrent � Prices which are ruling at themoment. � The current ruling agree-ment is being redrafted.rulebook /�ru�lbυk/ noun a bookwhich lists the rules by which the mem-bers of a union or self-regulatory or-ganisation must operaterule of 72 /�ru�l əv �sev(ə)nti �tu�/noun a calculation that an investmentwill double in value at compound inter-est after a period shown as 72 dividedby the interest percentage (so interest at10% compound will double the capitalinvested in 7.2 years)ruling /�ru�lŋ/ adjective in operationat the moment, current � We will in-voice at ruling prices. � noun a decision� The inquiry gave a ruling on the case.� According to the ruling of the court,the contract was illegal.

run noun /r�n/ 1. a period of time dur-ing which a machine is working � acheque run a series of cheques pro-cessed through a computer 2. a rush tobuy something � The Post Office re-ported a run on the new stamps. � a runon the bank a rush by customers to takedeposits out of a bank which they thinkmay close down � a run on the pounda rush to sell pounds and buy other cur-rencies � verb /r�n/ to manage or to or-ganise something � She runs amail-order business from home. � Theyrun a staff sports club. � He is runninga multimillion-pound company. � 1. tobe in a particular state or to be takingplace in a particular way � The meetingwas running late. 2. to continue or tolast � The lease runs for twenty years. �The lease has only six months to run.(NOTE: running – ran – has run)

‘…applications for mortgages are running at ahigh level’ [Times]‘…with interest rates running well aboveinflation, investors want something that offers areturn for their money’ [Business Week]

runaway inflation /�r�nəwe n-�fleʃ(ə)n/ noun very rapid inflation,which is almost impossible to reducerun down /�r�n �daυn/ verb 1. to re-duce a quantity gradually � We decidedto run down stocks or to let stocks rundown at the end of the financial year. 2.to slow down the business activities of acompany before it is going to be closed� The company is being run down.run into /�r�n �ntυ/ verb 1. � to runinto debt to start to have debts 2. toamount to � Costs have run into thou-sands of pounds. � he has an incomerunning into five figures he earns morethan £10,000running costs /�r�nŋ kɒsts/ pluralnoun money spent on the day-to-daycost of keeping a business goingrunning total /�r�nŋ �təυt(ə)l/ nounthe total carried from one column of fig-ures to the nextrunning yield /�r�nŋ ji�ld/ noun ayield on fixed interest securities, wherethe interest is shown as a percentage ofthe price paidrun to settlement /�r�n tə�set(ə)lmənt/ noun a futures sale whichruns until the actual commodity isdelivered

RPM 309 run to settlement

run up /�r�n ��p/ verb to make debtsor costs go up quickly � He quickly ranup a bill for £250.rupee /ru��pi�/ noun a unit of currencyused in India, Mauritius, Nepal, Paki-stan and Sri Lanka (NOTE: Written Rsbefore the figure: Rs. 250)rupiah /ru��piə/ noun a unit of cur-rency used in Indonesia

Russell index /�r�s(ə)l �ndeks/noun any of various indices publishedby the Russell Company in Tacoma,Washington

COMMENT: The Russell 3000 Index liststhe 3000 largest companies (almost allthe companies whose shares are tradedin the USA); this index is subdivided intotwo, the Russell 1000 Index lists the 1000largest companies in the 3000 Index, andthe Russell 2000 Index lists the remain-der. There are other indices.

run up 310 Russell index

S

SA abbreviation société anonyme orsociedad anónimas.a.e. abbreviation a stamped ad-dressed envelope � Send your applica-tion form to the personnel officer, withan s.a.e. for reply.safe /sef/ noun a heavy metal boxwhich cannot be opened easily, in whichvaluable documents and money can bekept � Put the documents in the safe. �We keep the petty cash in the safe. � ad-jective out of danger � keep the docu-ments in a safe place in a place wherethey cannot be stolen or destroyedsafe deposit /�sef d�pɒzt/ noun abank safe where you can leave jewelleryor documentssafe deposit box /sef d�pɒztbɒks/ noun a small box which you canrent to keep jewellery or documents in abank’s safesafeguard /�sef�ɑ�d/ verb to protectsomething or someone � The duty of thedirectors is to safeguard the interests ofthe shareholders. � noun somethingthat provides protectionsafe investment /sef n�vestmənt/noun something, e.g. a share, which isnot likely to fall in valuesafe keeping /sef �ki�pŋ/ noun thefact of being looked after carefully �We put the documents into the bank forsafe keeping.safety /�sefti/ noun 1. the fact of be-ing free from danger or risk � to takesafety precautions or safety measuresto act to make sure something is safe 2.� for safety to make something safe, tobe safe � to take a copy of the disk forsafety � Put the documents in the cup-board for safety.safety margin /�sefti �mɑ�d$n/noun a time or space allowed to makesure that something can be done safely

safety regulations /�sefti re�jυ-�leʃ(ə)nz/ plural noun rules to make aplace of work safe for the employeesSAIF abbreviation savings associationinsurance fundsalami fraud /sə�lɑ�mi frɔ�d/ noun afraud where a very small amount ofmoney is removed from each transac-tion and put into a suspense account (theamounts – 1p or 1c per transaction – areso small that no one notices them, butover a period of time they build up tolarge sums of money)salaried /�s�lərid/ adjective earning asalary � The company has 250 salariedstaff.salaried partner /�s�lərid �pɑ�tnə/noun a partner, often a junior one, whoreceives a regular salary in accordancewith the partnership agreementsalary /�s�ləri/ noun 1. a regular pay-ment for work done, made to an em-ployee usually as a cheque at the end ofeach month � The company froze allsalaries for a six-month period. � If Iget promoted, my salary will go up. �The salary may be low, but the fringebenefits attached to the job are good. �She got a salary increase in June. �scale of salaries or salary scale a list ofsalaries showing different levels of payin different jobs in the same company 2.an amount paid to an employee, shownas a monthly, quarterly or yearly total(NOTE: The plural is salaries.)salary cheque /�s�ləri tʃek/ noun amonthly cheque by which an employeeis paidsalary cut /�s�ləri k�t/ noun a sud-den reduction in salarysalary deductions /�s�ləri d-�d�kʃənz/ plural noun money which acompany removes from salaries to payto the government as tax, National In-surance contributions, etc.

salary package /�s�ləri �p�kd$/noun same as pay package

salary reduction /�s�ləri r-�d�kʃ(ə)n/ noun the act of removingmoney from an employee’s salary to putinto a pension plansalary review /�s�ləri r�vju�/ nounsame as pay review � She had a salaryreview last April or Her salary was re-viewed last April.salary scale /�s�ləri skel/ nounsame as pay scale � He was appointedat the top end of the salary scale.salary structure /�s�ləri �str�ktʃə/noun the organisation of salaries in acompany with different rates of pay fordifferent types of job

‘…the union of hotel and personal serviceworkers has demanded a new salary structureand uniform conditions of service for workers inthe hotel and catering industry’[Business Times (Lagos)]

sale /sel/ noun 1. an act of giving anitem or doing a service in exchange formoney, or for the promise that moneywill be paid � for sale ready to be sold �to offer something for sale or to putsomething up for sale to announce thatsomething is ready to be sold � They putthe factory up for sale. � His shop is forsale. � These items are not for sale tothe general public. � on sale ready to besold in a shop � These items are on salein most chemists. 2. an act of sellinggoods at specially low prices � Theshop is having a sale to clear old stock.� The sale price is 50% of the normalprice.

‘…the latest car sales for April show a 1.8per cent dip from last year’s total’[Investors Chronicle]

sale and lease-back /�sel ən �li�sb�k/ noun the sale of an asset, usually abuilding, to somebody else who thenleases it back to the original ownersales /selz/ plural noun 1. money re-ceived for selling something � Saleshave risen over the first quarter. 2.items sold, or the number of items soldsales analysis /�selz ə�n�ləss/noun an examination of the reports ofsales to see why items have or have notsold wellsales book /�selz bυk/ noun a re-cord of sales

sales budget /�selz �b�d$t/ noun aplan of probable salessales chart /�selz tʃɑ�t/ noun a dia-gram showing how sales vary frommonth to monthsales curve /�selz k%�v/ noun agraph showing how sales increase ordecreasesales department /�selz d-�pɑ�tmənt/ noun the section of a com-pany which deals with selling the com-pany’s products or servicessales drive /�selz drav/ noun a vig-orous effort to increase salessales executive /�selz ��zekjυtv/noun a person in a company or depart-ment in charge of salessales figures /�selz �f�əz/ pluralnoun total salessales force /�selz fɔ�s/ noun a groupof sales staffsales forecast /�selz �fɔ�kɑ�st/noun an estimate of future salessales invoice /�selz �nvɔs/ nounan invoice relating to a salesales journal /�selz �d$%�n(ə)l/noun the book in which non-cash salesare recorded with details of customer,invoice, amount and date (these detailsare later posted to each customer’s ac-count in the sales ledger)sales ledger /�selz �led$ə/ noun abook in which sales to each customerare enteredsales ledger clerk /�selz led$ə�klɑ�k/ noun an office worker who dealswith the sales ledgersales literature /�selz �lt(ə)rətʃə/noun printed information which helpssales, e.g. leaflets or prospectusessalesman /�selzmən/ noun a manwho sells an organisation’s products orservices to customers, especially to re-tail shops � He is the head salesman inthe carpet department. � His only expe-rience is as a used-car salesman. �Salesmen are paid a basic salary pluscommission. � We have six salesmencalling on accounts in central London.sales manager /�selz �m�nd$ə/noun a person in charge of a salesdepartment

salary package 312 sales manager

sales mix /�selz mks/ noun the salesand profitability of a wide range ofproducts sold by a single companysales mix profit variance /�selsmks �prɒft �veəriəns/ noun the dif-fering profitability of different productswithin a product rangesalesperson /�selz�p%�s(ə)n/ noun aperson who sells products or services toretail shops on behalf of a company(NOTE: The plural is salespeople.)sales representative /�selz repr-�zentətv/, sales rep /�selz rep/ nounsame as salesperson � We have sixsales representatives in Europe. � Theyhave vacancies for sales representativesto call on accounts in the north of thecountry.sales return /�selz r�t%�n/ noun areport of sales made each day or weekor quartersales returns /�selz r�t%�nz/ pluralnoun items sold which are returned bythe purchasersales returns book /sels r�t%�nzbυk/ noun a ledger giving details ofgoods returned by purchasers, includinginvoice number, credit notes, quantities,etc. Abbreviation SRBsales revenue /�selz �revənju�/noun US the income from sales ofgoods or services (NOTE: The UK termis turnover.)sales slip /�selz slp/ noun a papershowing that an article was bought at acertain shop � Goods can be exchangedonly on production of a sales slip.sales target /�selz �tɑ��t/ noun theamount of sales a sales representative isexpected to achievesales tax /�selz t�ks/ noun a taxwhich is paid on each item sold (and iscollected when the purchase is made).Also called turnover taxsales value /�selz �v�lju�/ noun theamount of money which would be re-ceived if something is soldsales volume /�selz �vɒlju�m/ nounthe number of units sold (NOTE: The UKterm is turnover.)sales volume profit variance/selz �vɒlju�m �prɒft �veəriəns/noun the difference between the profiton the number of units actually sold andthe forecast figure

saleswoman /�selzwυmən/ noun awoman who sells an organisation’sproducts or services to customerssalvage /�s�lvd$/ noun 1. the workof saving a ship or a cargo from beingdestroyed 2. goods saved from awrecked ship, from a fire or from someother accident � a sale of flood salvageitems (NOTE: no plural) � verb 1. to savegoods or a ship from being destroyed �We are selling off a warehouse full ofsalvaged goods. 2. to save somethingfrom loss � The company is trying tosalvage its reputation after the manag-ing director was sent to prison for fraud.� The receiver managed to salvagesomething from the collapse of thecompany.salvage money /�s�lvd$ �m�ni/noun payment made by the owner of aship or a cargo to the person who hassaved itsalvage vessel /�s�lvd$ �ves(ə)l/noun a ship which specialises in savingother ships and their cargoessame /sem/ adjective being or look-ing exactly alike

‘…previously, only orders received by 11 a.m.via the Internet could be delivered the same day,and then only for a limited range of items. Withfast packaging and inspection, same-daydelivery is now possible anywhere in Tokyo’[Nikkei Weekly]

same-day funds /�sem de �f�ndz/plural noun money which can be with-drawn from an account the same day asit is depositedsame-store sales /�sem stɔ� �selz/noun sales for the same stores over anearlier period

‘…it led the nation’s department stores over thecrucial Christmas season with an 11.7% increasein same-store sales’ [Fortune]‘…its consistent double-digit same-store salesgrowth also proves that it is not just addingrevenue by adding new locations’ [Fortune]

sample /�sɑ�mpəl/ noun 1. a smallpart of an item which is used to showwhat the whole item is like � Can youprovide us with a sample of the cloth ora cloth sample? 2. a small group whichis studied in order to show what a largergroup is like � We interviewed a sampleof potential customers. � verb 1. to testor to try something by taking a smallamount of it � to sample a product be-fore buying it 2. to ask a representativegroup of people questions to find out

sales mix 313 sample

what the reactions of a much largergroup would be � They sampled 2,000people at random to test the new drink.sampling /�sɑ�mplŋ/ noun 1. thetesting of a product by taking a smallamount � a sampling of European Un-ion produce 2. the testing of the reac-tions of a small group of people to findout the reactions of a larger group ofconsumerssamurai bond /�s�mυra bɒnd/noun an international bond in yenlaunched on the Japanese market by anon-Japanese corporation. Comparebulldog bond, shogun bond, YankeebondS&L abbreviation savings and loan(association)S&P abbreviation Standard and Poor’sSARL abbreviation société anonyme àresponsabilité limitéesave /sev/ verb to keep (money), notto spend (money) � He is trying to savemoney by walking to work. � She is sav-ing to buy a house.save-as-you-earn /�sev əz ju��%�n/ noun GB a scheme where employ-ees can save money regularly by havingit deducted automatically from theirwages and invested in National Savings.Abbreviation SAYEsaver /�sevə/ noun a person whosaves moneysave up /�sev ��p/ verb to put moneyaside for a special purpose � They aresaving up for a holiday in the USA.savings /�sevŋz/ plural noun moneysaved (i.e. money which is not spent) �He put all his savings into a depositaccount.savings account /�sevŋz ə�kaυnt/noun an account where you put moneyin regularly and which pays interest, of-ten at a higher rate than a depositaccountsavings and loan /�sevŋz ən�ləυn/, savings and loan association/�sevŋz ən �ləυn ə�səυsieʃ(ə)n/noun US a financial association whichaccepts and pays interest on depositsfrom investors and lends money to peo-ple who are buying property. The loansare in the form of mortgages on the se-curity of the property being bought.S&Ls are regulated by the Office of

Thrift Supervision and are protected bythe Savings Association InsuranceFund. Abbreviation S&L. Also calledthrift (NOTE: The UK term is buildingsociety.)

COMMENT: Because of deregulation ofinterest rates in 1980, many S&Ls foundthat they were forced to raise interest ondeposits to current market rates in orderto secure funds, while at the same timethey still were charging low fixed-interestrates on the mortgages granted to bor-rowers. This created considerable prob-lems and many S&Ls had to be rescuedby the Federal government.

Savings Association InsuranceFund /�sevŋz ə�səυsieʃ(ə)n n-�ʃυərəns f�nd/ noun an insurance fundset up in 1989 to provide insurance tosavings and loan associations. Abbrevi-ation SAIFsavings bank /�sevŋz b�ŋk/ nouna bank where you can deposit moneyand receive interest on itsavings bond /�sevŋs bɒnd/ nounin the USA, a document showing thatmoney has been invested in a govern-ment savings scheme. Interest on USsavings bonds is tax exempt. (NOTE: TheUK term is savings certificate.)savings certificate /�sevŋz sə-�tfkət/ noun a document showing thatyou have invested money in a govern-ment savings scheme (NOTE: The USterm is savings bond.)savings-related share optionscheme /�sevŋz r�letd ʃeə�ɒpʃən ski�m/ noun a scheme which al-lows employees of a company to buyshares with money which they havecontributed to a savings schemeSAYE abbreviation save-as-you-earnSBA abbreviation small businessadministrationSBF abbreviation Société des BoursesFrançaisesscale /skel/ noun 1. a system which isgraded into various levels � scale ofcharges or scale of prices a list show-ing various prices � scale of salaries alist of salaries showing different levelsof pay in different jobs in the same com-pany 2. � to start in business on asmall scale to start in business with asmall staff, few products or little capital

sampling 314 scale

scale down /�skel �daυn/ verb tolower something in proportion

COMMENT: If a share issue is oversub-scribed, applications may be scaleddown; by doing this, the small investor isprotected. So, in a typical case, all appli-cations for 1,000 shares may receive 300;all applications for 2,000 shares may re-ceive 500; applications for 5,000 sharesreceive 1,000, and applications for morethan 5,000 shares will go into a ballot.

scale up /�skel ��p/ verb to increasesomething in proportionscalp /sk�lp/ verb US to buy or sell tomake a quick profitscalper /�sk�lpə/ noun 1. US a per-son who buys and sells something tomake a large rapid profit (e.g. by buyingand reselling tickets for a popular sport-ing event) 2. a trader who buys and sellsthe same futures on the same dayscam /sk�m/ noun a fraud, an illegalor dishonest scheme (informal.) � Manyfinancial scams only come to light byaccident.scarce currency /skeəs �k�rənsi/noun same as hard currencyscarcity value /�skeəsti �v�lju�/noun the value something has because itis rare and there is a large demand for itscatter diagram /�sk�tə�daə�r�m/ noun a chart where pointsare plotted according to two sets of vari-ables to see if a pattern existsscenario /s�nɑ�riəυ/ noun the way inwhich a situation may develop, or a de-scription or forecast of possible futuredevelopments

‘…on the upside scenario, the outlook isreasonably optimistic, bankers say, the worstscenario being that a scheme of arrangementcannot be achieved, resulting in liquidation’[Irish Times]

schedule /�ʃedju�l/ noun 1. a timeta-ble, a plan of how time should be spent,drawn up in advance � The managingdirector has a busy schedule of appoint-ments. � Her secretary tried to fit meinto her schedule. � on schedule at thetime or stage set down in the schedule �The launch took place on schedule. � tobe ahead of schedule to be early � Thebuilding was completed ahead of sched-ule. � to be on schedule to be on time �The project is on schedule. � We are onschedule to complete the project at the

end of May. � to be behind schedule tobe late � I am sorry to say that we arethree months behind schedule. 2. a list,especially a list forming an additionaldocument attached to a contract � theschedule of territories to which a con-tract applies � Please find enclosed ourschedule of charges. � See the attachedschedule or as per the attached sched-ule. 3. a list of interest rates 4. a form re-lating to a particular kind of incomeliable for UK income taxSchedule A /�ʃedju�l �e/ noun aschedule under which tax is charged onincome from land or buildingsSchedule B /�ʃedju�l �bi�/ noun aschedule under which tax was formerlycharged on income from woodlandsSchedule C /�ʃedju�l �si�/ noun aschedule under which tax is charged onprofits from government stockscheduled /�ʃed$u�ld/ adjectivelisted in a separate scheduleSchedule D /�ʃedju�l �di�/ noun aschedule under which tax is charged onincome from trades or professions, in-terest and other earnings not derivedfrom being employedSchedule E /�ʃedju�l �i�/ noun aschedule under which tax is charged onincome from salaries, wages or pensionsSchedule F /�ʃedju�l �ef/ noun aschedule under which tax is charged onincome from dividendsscheme /ski�m/ noun a plan, arrange-ment or way of working � Under thebonus scheme all employees get 10% oftheir annual pay as a Christmas bonus.� He has joined the company pensionscheme. � We operate a profit-sharingscheme for managers. � The new pay-ment scheme is based on reward for in-dividual effort.scheme of arrangement /�ski�məv ə�rend$mənt/ noun a schemedrawn up by an individual or companyto offer ways of paying debts, so as toavoid bankruptcy proceedings. Alsocalled voluntary arrangementschilling /�ʃlŋ/ noun a unit of cur-rency used before the euro in Austriascorched earth policy /�skɔ�tʃt�%�θ �pɒlsi/ noun a way of combating atakeover bid, where the target company

scale down 315 scorched earth policy

sells valuable assets or purchases unat-tractive assets. � poison pill

scout /skaυt/ noun a person whosearches for something, especiallysomeone who looks for promising newmembers of staffscrap /skr�p/ noun 1. material leftover after an industrial process, andwhich still has some value (as opposedto waste, which has no value) � to sell aship for scrap 2. pieces of metal to bemelted down to make new metal ingotsscrap value /skr�p �v�lju�/ nounthe value of an asset if sold for scrap �Its scrap value is £2,500.screen /skri�n/ noun 1. a glass surfaceon which computer information or TVpictures can be shown � She brought upthe information on the screen. � I’ll justcall up details of your account on thescreen. 2. a flat panel which acts as aform of protection � verb 1. to examinesomething carefully to evaluate or as-sess it 2. to consider a range of items orpeople and only select some � to screenout to consider things and remove somescreening /�skri�nŋ/ noun the act ofevaluating or assessing new productideas � Representatives from each de-partment concerned will take part in thescreening process. � Screening showedthe product idea to be unrealistic forour production capacity.screen trading /�skri�n �tredŋ/noun trading using a monitor, as op-posed to the old open outcry systemscrip /skrp/ noun a security (a share,bond, or the certificate issued to showthat someone has been allotted a shareor bond)

‘…under the rule, brokers who fail to deliverstock within four days of a transaction are to befined 1% of the transaction value for each day ofmissing scrip’ [Far Eastern Economic Review]

scrip issue /�skrp �ʃu�/ noun anissue of shares whereby a companytransfers money from reserves to sharecapital and issues free extra shares to theshareholders (the value of the companyremains the same, and the total marketvalue of shareholders’ shares remainsthe same, the market price being ad-justed to account for the new shares).Also called free issue, capitalisationissue

scripophily /skr�pɒfli/ noun thepractice of collecting old share certifi-cates and bond certificates as a hobbyand investmentSDB abbreviation sales day bookSdn abbreviation SendirianSdn berhad abbreviation Sendirianberhad, a Malay term for a private lim-ited companySDRs abbreviation special drawingrightssea freight /�si� fret/ noun the trans-portation of goods in ships, or goodssent by seaseal /si�l/ noun 1. a special symbol, of-ten one stamped on a piece of wax,which is used to show that a documentis officially approved by the organisa-tion that uses the symbol � contract un-der seal a contract which has beenlegally approved with the seal of thecompany 2. a piece of paper, metal orwax attached to close something, so thatit can be opened only if the paper, metalor wax is removed or broken � verb 1.to close something tightly � The com-puter disks were sent in a sealed con-tainer. 2. to attach a seal, to stampsomething with a seal � Customs sealedthe shipment.SEAQ noun a computerised informa-tion system giving details of currentshare prices and stock market transac-tions on the London Stock Exchange.Dealers list their offer and bid prices onSEAQ, and transactions are carried outon the basis of the information shownon the screen and are also recorded onthe SEAQ database in case of futuredisputes. Full form Stock ExchangeAutomated Quotations systemsearch /s%�tʃ/ noun an examination ofrecords by the lawyer acting for some-one who wants to buy a property, tomake sure that the vendor has the rightto sell itseason /�si�z(ə)n/ noun a period oftime when some activity usually takesplace � the selling seasonseasonal /�si�z(ə)n(ə)l/ adjectivewhich lasts for a season or which onlyhappens during a particular season �seasonal variations in sales patterns �The demand for this item is veryseasonal.

scout 316 seasonal

seasonal demand /�si�z(ə)n(ə)l d-�mɑ�nd/ noun demand which existsonly during the high seasonseasonal unemployment/�si�z(ə)nəl ��nm�plɔmənt/ noun un-employment which rises and falls ac-cording to the seasonseasoned /�si�z(ə)nd/ adjective USreferring to securities which are reputa-ble or a loan which is safe for the longtermseat /si�t/ noun membership of a stockexchangeSEC abbreviation Securities and Ex-change Commissionsecond noun, adjective /�sekənd/(the thing) which comes after thefirst � verb 1. /�sekənd/ � to second amotion to be the first person to supporta proposal put forward by someone else� Mrs Smith seconded the motion orThe motion was seconded by Mrs Smith.2. /s�kɒnd/ to lend a member of staffto another company, organisation or de-partment for a fixed period of time � Hewas seconded to the Department ofTrade for two years.secondary /�sekənd(ə)ri/ adjectivesecond in importancesecondary auditor /�sekənd(ə)ri�ɔ�dtə/ noun an auditor for a subsidiarycompany who has no connection withthe primary auditor who audits the ac-counts of the main companysecondary bank /�sekənd(ə)rib�ŋk/ noun a finance company whichprovides money for hire-purchase dealssecondary industry /�sekənd(ə)ri�ndəstri/ noun an industry which usesbasic raw materials to produce manufac-tured goodssecondary market /�sekənd(ə)ri�mɑ�kt/ noun a market where existingsecurities are bought and sold again andagain, as opposed to a primary market,where new issues are launchedsecondary mortgage market/�sekənd(ə)ri �mɔ��d$ �mɑ�kt/ nounUS a nationwide system organised byvarious federal mortgage associationsfor polling mortgages and selling themto investorssecondary products /�sekənd(ə)ri�prɒd�kts/ plural noun products which

have been processed from raw materials(as opposed to primary products)secondary properties/ �sekənd(ə)ri �prɒpətiz/ plural nouncommercial properties which are not inprime sites and therefore are not asvaluablesecond-class /�sekənd �klɑ�s/ ad-jective, adverb referring to a less expen-sive or less comfortable way oftravelling � The group will travel sec-ond-class to Holland. � The price of asecond-class ticket is half that of a firstclass.second-class mail /�sekənd klɑ�s�mel/ noun a less expensive, slowermail service � The letter took three daysto arrive because he sent itsecond-class.second earner /�sekənd �%�nə/ nouna second person in a household, usuallya spouse, who also earns a salaryseconder /�sekəndə/ noun a personwho seconds a proposal � There was noseconder for the motion so it was not putto the vote.second half /�sekənd �hɑ�f/ noun aperiod of six months from 1st July to31st December � The figures for thesecond half are up on those for the firstpart of the year.second half-year /�sekənd �hɑ�fjə/ noun the six-month period fromJuly to the end of Decembersecondment /s�kɒndmənt/ nounthe fact or period of being seconded toanother job for a period � He is on threeyears’ secondment to an Australiancollege.second mortgage /�sekənd�mɔ��d$/ noun a further mortgage on aproperty which is already mortgagedsecond quarter /�sekənd �kwɔ�tə/noun a period of three months fromApril to the end of Junesecond-ranker /�sekənd �r�ŋkə/noun a company which occupies thesecond rank, i.e. not one of the topcompaniessecond round /�sekənd �raυnd/noun a new tranche of venture capitalraised for a new project after the start-upfinancesecond-tier /�sekənd �tə/ adjectivenot in the first and most important group

seasonal demand 317 second-tier

second-tier bank /�sekənd tə�b�ŋk/ noun a bank which is not aslarge as the main banks in a countrysecond-tier market /�sekənd tə�mɑ�kt/ noun a secondary market, suchas the AIM, where securities which arenot listed on the main Stock Exchangecan be tradedsecret /�si�krət/ adjective which is de-liberately kept hidden from people, orwhich is not known about by many peo-ple � The MD kept the contract secretfrom the rest of the board. � The man-agement signed a secret deal with a for-eign supplier. � noun something whichis kept hidden or which is not knownabout by many people � to keep a secretsecretariat /�sekr�teəriət/ noun animportant office and the officials whowork in it � the United Nationssecretariat

‘…a debate has been going on over theestablishment of a general secretariat for the G7.Proponents argue that this would give the G7 asense of direction and continuity’ [Times]

secretary /�sekrət(ə)ri/ noun 1. anofficial of a company or society whosejob is to keep records and write letters 2.a member of the government in chargeof a department � the Trade Secretary �the Foreign Secretary � the EducationSecretarySecretary of State /�sekrət(ə)ri əv�stet/ noun 1. a member of thegovernment in charge of a department �the Secretary of State for Trade and In-dustry 2. US a senior member of thegovernment in charge of foreign affairs(NOTE: The UK term is Foreign Secre-tary.)

Secretary of the Treasury/�sekrət(ə)ri əv ðə �tre$əri/ noun US asenior member of the government incharge of financial affairssecret ballot /�si�krət �b�lət/ nounan election where the voters vote insecretsecret reserves /�si�krət r�z%�vz/plural noun reserves which are illegallykept hidden in a company’s balancesheet, as opposed to ‘hidden reserves’which are simply not easy to identifysection /�sekʃən/ noun 1. a part ofsomething � You should read the lastsection of the report – it is very interest-

ing. 2. one of the parts of an Act ofParliamentsector /�sektə/ noun 1. a part of theeconomy or the business organisation ofa country � All sectors of the economysuffered from the fall in the exchangerate. � Technology is a booming sectorof the economy. 2. a section of a stockmarket, listing shares in one type of in-dustry (such as the banking sector)

‘…government services form a large part of thetertiary or service sector’ [Sydney MorningHerald]

‘…in the dry cargo sector, a total of 956 drycargo vessels are laid up – 3% of world drycargo tonnage’ [Lloyd’s List]

sector fund /�sektə f�nd/ noun afund which is invested in only one sec-tor of the stock marketsecure /s�kjυə/ adjective safe, whichcannot change � secure job a job fromwhich you are not likely to be made re-dundant � secure investment an invest-ment where you are not likely to losemoney � verb 1. � to secure a loan topledge an asset as a security for a loan 2.to get something safely into your control� He is visiting several banks in an at-tempts to secure funds for his project. �He secured the backing of an Australiangroup.secured creditor /s�kjυəd�kredtə/ noun a person who is owedmoney by someone, and can legallyclaim the same amount of the bor-rower’s property if the borrower fails topay back the money owedsecured debt /s�kjυəd det/ noun adebt which is guaranteed by assetswhich have been pledgedsecured loan /s�kjυəd ləυn/ noun aloan which is guaranteed by the bor-rower giving assets as securitysecure sockets layer /s�kjυə�sɒkts �leə/ noun full form of SSLsecure website /s�kjυə �websat/noun a website on the Internet that en-crypts the messages between the visitorand the site to ensure that no hacker oreavesdropper can intercept theinformationsecurities /s�kjυərtiz/ plural noun1. investments in stocks and shares 2.certificates to show that someone ownsstocks or shares

second-tier bank 318 securities

Securities and Exchange Com-mission /s�kjυərtiz ən ks�tʃend$kə�mʃ(ə)n/ noun the official bodywhich regulates the securities markets inthe USA. Abbreviation SECSecurities and FuturesAuthority /s�kjυərətiz ən �fju�tʃəzɔ��θɒrəti/ noun in the UK, aself-regulatory organisation which su-pervises the trading in shares andfutures, now part of the FSA. Abbrevia-tion SFASecurities and InvestmentsBoard /s�kjυərtiz ən n�vestməntsbɔ�d/ noun formerly, the name of theregulatory body which supervised thesecurities markets in the UK (now theFSA). Abbreviation SIBsecurities broker /s�kjυərətiz�brəυkə/ noun same as securitiestradersecurities house /s�kjυərtizhaυs/ noun a firm which buys and sellssecurities for clientssecurities market /s�kjυərtiz�mɑ�kt/ noun a Stock Exchange, aplace where stocks and shares can bebought or soldsecurities trader /s�kjυərtiz�tredə/ noun a person whose businessis buying and selling stocks and sharessecuritisation /s�kjυərta-�zeʃ(ə)n/, securitization noun theprocess of making a loan or mortgageinto a tradeable security by issuing a billof exchange or other negotiable paper inplace of itsecuritise /s�kjυrətaz/, securitizeverb to make a loan into a securitywhich can be traded (e.g. by issuing anIOU for a loan)security /s�kjυərti/ noun 1. the factof being protected against attack � of-fice security the act of protecting an of-fice against theft 2. the fact of beingkept secret � security in this office isnil nothing can be kept secret in this of-fice 3. a guarantee that someone will re-pay money borrowed � to givesomething as security for a debt � to usea house as security for a loan � Thebank lent him £20,000 without security.� to stand security for someone toguarantee that if the person does not re-pay a loan, you will repay it for him 4. astock or share

security guard /s�kjυərti �ɑ�d/noun a person who protects an office orfactory against burglarssecurity of employment /s-�kjυərti əv m�plɔmənt/ noun a feel-ing by an employee that he or she willbe able to stay in the same job untilretirementsecurity of tenure /s�kjυərti əv�tenjə/ noun a right to keep a job orrented accommodation provided certainconditions are metsecurity printer /s�kjυərti �prntə/noun a printer who prints material thathas to be kept secure, such as papermoney, share prospectuses or secretgovernment documentsseedcorn /�si�dkɔ�n/, seed money/�si�d �m�ni/ noun venture capital in-vested when a new project is starting up(and therefore more risky than second-ary finance or mezzanine finance) �They had their ranch house to operateout of, a used printer and seed moneyfrom friends.segment noun /�se�mənt/ a sectionof a market defined by certain criteria �verb /se��ment/ to divide a potentialmarket into different segmentssegmentation /�se�mən�teʃ(ə)n/noun the division of the market or con-sumers into categories according to theirbuying habitsselected personal information/s�lektd �p%�s(ə)nəl nfə�meʃ(ə)n/noun information, such as the post codeof your home or the maiden name ofyour mother, used for identificationpurposesself- /self/ prefix referring to yourselfself-employed /�self m�plɔd/ ad-jective working for yourself or not onthe payroll of a company � aself-employed engineer � He worked fora bank for ten years but is nowself-employed. � plural noun � theself-employed people who work forthemselvesself-financed /�self fa�n�nst/ ad-jective � the project is completelyself-financed the project pays its devel-opment costs out of its own revenue,with no subsidiesself-financing /�self fa�n�nsŋ/noun the financing of development

securities 319 self-financing

costs, the purchase of capital assets, etc.by a company from its own resources �adjective � the company is completelyself-financing the company finances itsdevelopment costs, capital assets, etc.from its own resourcesself-insurance /self n�ʃυərəns/noun insuring against a probable futureloss by putting money aside regularly,rather than by taking out an insurancepolicyself-made man /�self med �m�n/noun a man who is rich and successfulbecause of his own work, not because heinherited money or positionself-regulating organisation /self�re�juletŋ �ɔ��əna�zeʃ(ə)n/ nounsame as self-regulatory organisationself-regulation /self �re�jυ�leʃ(ə)n/noun the regulation of an industry by it-self, through a committee which issues arulebook and makes sure that membersof the industry follow the rules (NOTE:For example, the Stock Exchange isregulated by the Stock ExchangeCouncil.)self-regulatory /self �re�jυ-�let(ə)ri/ adjective referring to an or-ganisation which regulates itselfself-regulatory organisation /self�re�jυlət(ə)ri �ɔ��əna�zeʃ(ə)n/ nounan organisation, such as the Securitiesand Futures Authority, which regulatesthe way in which its own members carryon their business. Abbreviation SROself-select PEP /self s�lekt/ noun �Personal Equity Planself-service banking /self �s%�vs�b�ŋkŋ/ noun a situation where abank’s customers arrange transactionsby themselves, without involving bankstaff, e.g. by using ATMs for cashwithdrawalsself-supporting /self sə�pɔ�tŋ/ ad-jective which finances itself from itsown resources, with no subsidiessell /sel/ verb 1. to give goods in ex-change for money � to sell somethingon credit � The shop sells washing ma-chines and refrigerators. � They tried tosell their house for £100,000. � Theirproducts are easy to sell. 2. to be sold �These items sell well in thepre-Christmas period. � Those packssell for £25 a dozen. � hard sell (NOTE:selling – sold)

sell-by date /�sel ba det/ noun adate on a food packet which is the lastdate on which the food is guaranteed tobe goodseller /�selə/ noun a person who sells� There were few sellers in the market,so prices remained high.seller’s market /�seləz �mɑ�kt/noun a market where the seller can askhigh prices because there is a large de-mand for the product (NOTE: The oppo-site is a buyer’s market.)sell forward /�sel �fɔ�wəd/ verb tosell foreign currency, commodities, etc.for delivery at a later dateselling costs /�selŋ kɒsts/, sellingoverhead /�selŋ �əυvəhed/ pluralnoun the amount of money to be paidfor the advertising, reps’ commissionsand other expenses involved in sellingsomethingselling price /�selŋ pras/ noun theprice at which someone is willing to sellsomethingselling price variance /�selŋ pras�veəriəns/ noun the difference betweenthe actual selling price and the budgetedselling pricesell off /�sel �ɒf/ verb to sell goodsquickly to get rid of themsell out /�sel �aυt/ verb to sell yourbusiness � They sold out and retired tothe seaside.sellout /�selaυt/ noun � this item hasbeen a sellout all the stock of the itemhas been soldsell up /�sel ��p/ verb to sell a businessand all the stock � He sold up andbought a farm.semi- /semi/ prefix half or partsemiannual /�semi��njuəl/ adjectivereferring to interest paid every sixmonthssemi-fixed cost /�semi fkst �kɒst/noun same as semi-variable costsemi-variable cost /�semi�veəriəb(ə)l �kɒst/ noun money paid toproduce a product which increases,though less than proportionally, with thequantity of the product made � Steppingup production will mean an increase insemi-variable costs. Also calledsemi-fixed cost

self-insurance 320 semi-variable cost

Sendirian noun a Malay term mean-ing ‘limited’Sendirian berhad noun a Malayterm meaning ‘private limited company’senior /�si�niə/ adjective 1. referringto an employee who is more important2. referring to an employee who is olderor who has been employed longer thananother 3. referring to a sum which isrepayable before otherssenior capital /�si�niə �k�pt(ə)l/noun capital in the form of securedloans to a company (it is repaid beforejunior capital, such as shareholders’ eq-uity, in the event of liquidation)senior debt /�si�niə det/ noun a debtwhich must be repaid in preference toother debts (such as a first mortgageover a second mortgage)seniority /�si�ni�ɒrti/ noun 1. the factof being more important � in order ofseniority 2. the fact of being older orhaving been an employee of the com-pany longersenior manager /�si�niə �m�nd$ə/,senior executive /�si�niər �-�zekjυtv/ noun a manager or directorwho has a higher rank than otherssenior partner /�si�niə �pɑ�tnə/noun the most important partner in afirm of solicitors or accountantssensitive /�senstv/ adjective able tofeel something sharply � The market isvery sensitive to the result of the elec-tions. � price-sensitivesensitivity analysis /�sensə�tvətiə�n�ləss/ noun the analysis of the ef-fect of a small change in a certain calcu-lation on the final resultseparable /�sep(ə)rəb(ə)l/ adjectivewhich can be separatedseparable net assets/�sep(ə)rəb(ə)l net ��sets/ plural nounassets which can be separated from therest of the assets of a business and soldoffseparate /�sep(ə)rət/ adjective notconnected with somethingseparate estate /�sep(ə)rət �stet/noun the property of one of the partnersin a partnership, as opposed to the prop-erty belonging to the partnership itselfseparation /�sepə�reʃ(ə)n/ noun USthe act of leaving a job (resigning, retir-ing or being fired or made redundant) �

The interviewer asked the candidatewhether the separation mentioned in hisCV was due to resignation, redundancyor dismissal. � The exit interviews at-tempted to find out what employees re-ally felt about separation.sequester /s�kwestə/, sequestrate/�si�kwstret, s�kwestret/ verb totake and keep a bank account or prop-erty because a court has ordered it � Theunion was fined for contempt of courtand its funds have been sequestrated.sequestration /�si�kwe�streʃ(ə)n/noun the act of taking and keeping prop-erty on the order of a court, especially ofseizing property from someone who isin contempt of courtsequestrator /�si�kwstretə, s-�kwestretə/ noun a person who takesand keeps property on the order of acourtseries /�səri�z/ noun a group of bondsor savings certificates, issued over a pe-riod of time but all bearing the sameinterestSerious Fraud Office /�sərəs�frɔ�d �ɒfs/ noun a British governmentdepartment in charge of investigatingmajor fraud in companies. AbbreviationSFOserve /s%�v/ verb � to serve someonewith a writ or to serve a writ on some-one to give someone a writ officially, sothat they have to receive itservice /�s%�vs/ noun 1. a piece ofwork done to help someone as a duty ora favour � After a lifetime’s service tothe company he was rewarded with agenerous golden handshake. 2. a formof business (e.g. insurance, banking, ortransport) that provides help in someform when it is needed, as opposed tomaking or selling goods 3. the fact ofworking for an employer, or the periodof time during which an employee hasworked for an employer � retiring aftertwenty years service to the company �The amount of your pension dependspartly on the number of your years ofservice. 4. the work of dealing with cus-tomers � The service in that restaurantis extremely slow 5. payment for helpgiven to the customer � to add on 10%for service � the bill includes servicethe bill includes a charge added for thework involved � The service in that res-

Sendirian 321 service

taurant is extremely slow. � verb � toservice a debt to pay interest on a debt� The company is having problems inservicing its debts.service bureau /�s%�vs �bjυərəυ/noun an office which specialises inhelping other officesservice charge /�s%�vs tʃɑ�d$/noun 1. a charge added to the bill in arestaurant to pay for service 2. anamount paid by tenants in a block offlats or offices for general maintenance,insurance and cleaning 3. US a chargewhich a bank makes for carrying outwork for a customer (NOTE: The UKterm is bank charge.)

service contract /�s%�vs�kɒntr�kt/ noun a contract between acompany and a director showing allconditions of work � He worked unoffi-cially with no service contract.service cost centre /�s%�vs �kɒst�sentə/, service centre /�s%�vs�sentə/ noun a section of a companyconsidered as a cost centre, which pro-vides a service to other parts of thecompanyservice department /�s%�vs d-�pɑ�tmənt/ noun 1. the section ofa company which keeps customers’machines in good working order 2. adepartment of a company which doesnot deal with production or sales (e.g.accounts or human resources)service industry /�s%�vs �ndəstri/noun an industry which does not pro-duce raw materials or manufactureproducts but offers a service (such asbanking, retailing or accountancy)services /�s%�vsz/ plural noun bene-fits which are sold to customers or cli-ents, e.g. transport or education � Wegive advice to companies on the market-ing of services. � We must improve theexports of both goods and services.service sector /�s%�vs �sektə/ nounthe part of an economy that consists ofservice industriessession /�seʃ(ə)n/ noun a period oftime spent on a specific activity, espe-cially as part of a larger event � Themorning session or the afternoon ses-sion will be held in the conference room.

‘…statistics from the stock exchange show thatcustomer interest in the equity market has

averaged just under £700m in recent tradingsessions’ [Financial Times]

set /set/ adjective fixed or which can-not be changed � There is a set fee forall our consultants. � verb to fix or toarrange something � We have to set aprice for the new computer. � The priceof the calculator has been set low, so asto achieve maximum unit sales. (NOTE:setting – set) � the auction set a re-cord for high prices the prices at theauction were the highest ever reachedset against /�set ə��enst/ verb to bal-ance one group of figures against an-other group to try to make them canceleach other out � to set the costs againstthe sales revenue � Can you set the ex-penses against tax?set aside /�set ə�sad/ verb to decidenot to apply a decision � The arbitra-tor’s award was set aside on appeal.setback /�setb�k/ noun somethingthat stops progress � The company hassuffered a series of setbacks over thepast two years. � The shares had a set-back on the Stock Exchange.

‘…a sharp setback in foreign trade accountedfor most of the winter slowdown’ [Fortune]

SET Index /set �ndeks/ noun an in-dex of share prices on the BangkokStock Exchangeset off /�set �ɒf/ verb to use a debtowed by one party to reduce a debtowed to themSets abbreviation Stock ExchangeElectronic Trading Systemsettle /�set(ə)l/ verb 1. � to settle anaccount to pay what is owed 2. to placea property in trustsettled account /�set(ə)ld ə�kaυnt/noun an arrangement between two par-ties who agree the accounts betweenthemsettled property /�set(ə)ld �prɒpəti/noun property which is held in trustsettlement /�set(ə)lmənt/ noun 1.the payment of an account � we of-fer an extra 5% discount for rapidsettlement we take a further 5% offthe price if the customer paysquickly � settlement in cash or cashsettlement payment of an invoice incash, not by cheque 2. an agreementafter an argument or negotiations � awage settlement � to effect a settlement

service bureau 322 settlement

between two parties to bring two par-ties together to make them agree

‘…he emphasised that prompt settlement of allforms of industrial disputes would guaranteeindustrial peace in the country and ensureincreased productivity’ [Business Times(Lagos)]

settlement date /�set(ə)lmənt det/noun a date when a payment has to bemadesettlement day /�set(ə)lmənt de/noun 1. the day on which shares whichhave been bought must be paid for (onthe London Stock Exchange the accountperiod is three business days from theday of trade) 2. in the USA, the day onwhich securities bought actually be-come the property of the purchasersettle on /�set(ə)l ɒn/ verb to leaveproperty to someone when you die � Hesettled his property on his children.settlor /�set(ə)lə/ noun a person whosettles property on someoneset up /�set ��p/ verb to begin some-thing, or to organise something new � toset up an inquiry or a working party � toset up a company to start a company le-gally � to set up in business to start anew business � She set up in business asan insurance broker. � He set himselfup as a freelance representative.

‘…the concern announced that it had acquired athird large tanker since being set up’[Lloyd’s List]

seven-day money /�sev(ə)n de�m�ni/ noun an investment in financialinstruments which mature in sevendays’ timeseverally /�sev(ə)rəli/ adverb sepa-rately, not jointly � they are jointlyand severally liable they are liable bothas a group and as individuals for the to-tal amountseverance pay /�sev(ə)rəns pe/noun money paid as compensation to anemployee whose job is no longer neededSFA abbreviation Securities and Fu-tures AuthoritySFO abbreviation Serious Fraud Officeshadow director /�ʃ�dəυ da-�rektə/ noun a person who is not a di-rector of a company, but who tells thedirectors of the company how to actshady /�ʃedi/ adjective not honest �The newspapers reported that he hadbeen involved in several shady deals.

shake /ʃek/ verb to move somethingquickly from side to side � to shakehands to hold someone’s hand whenmeeting to show you are pleased to meetthem or to show that an agreement hasbeen reached � The two negotiatingteams shook hands and sat down at theconference table. � to shake hands ona deal to shake hands to show that adeal has been agreedshakeout /�ʃekaυt/ noun 1. a reor-ganisation in a company, where somepeople are left, but others go � ashakeout in the top management 2. theprocess of revising prices on a stockmarket, usually at the end of a sharp riseor fallshakeup /�ʃek�p/ noun a total reor-ganisation � The managing director or-dered a shakeup of the salesdepartments.shaky /�ʃeki/ adjective not very sureor not very reliable � He only has theshakiest idea of what he should be do-ing. � The new issue got off to a shakystart on the market.share /ʃeə/ noun 1. a part of some-thing that has been divided up amongseveral people or groups � to have ashare in to take part in or to contributeto � to have a share in management de-cisions 2. one of many equal parts intowhich a company’s capital is divided �He bought a block of shares in Marksand Spencer. � Shares fell on the Lon-don market. � The company offered1.8m shares on the market. � to allotshares to give a certain number ofshares to people who have applied tobuy them

‘…falling profitability means falling shareprices’ [Investors Chronicle]

‘…the share of blue-collar occupations declinedfrom 48 per cent to 43 per cent’[Sydney Morning Herald]

share account /�ʃeə ə�kaυnt/ nounan account with a credit union whichpays dividends instead of interestshare at par /�ʃeə ət �pɑ�/ noun ashare whose value on the stock marketis the same as its face valueshare buyback /�ʃeə �bab�k/ nounan arrangement where a company buysits own shares on the stock market

settlement date 323 share buyback

share capital /�ʃeə �k�pt(ə)l/ nounthe value of the assets of a companyheld as sharesshare certificate /�ʃeə sə�tfkət/noun a document proving that you ownsharesshareholder /�ʃeəhəυldə/ noun aperson who owns shares in a company �to call a shareholders’ meeting (NOTE:The US term is stockholder.)

‘…as of last night the bank’s shareholders nolonger hold any rights to the bank’s shares’[South China Morning Post]‘…the company said that its recent issue of10.5% convertible preference shares at A$8.50has been oversubscribed, boosting shareholders’funds to A$700 million plus’ [Financial Times]

shareholders’ equity /�ʃeəhəυldəz�ekwti/ noun 1. the value of a com-pany which is the property of its ordi-nary shareholders (the company’s assetsless its liabilities) 2. a company’s capitalwhich is invested by shareholders, whothus become owners of the companyshareholders’ funds /�ʃeəhəυldəz�f�ndz/ noun the capital and reserves ofa companyshareholding /�ʃeəhəυldŋ/ noun agroup of shares in a company owned byone ownershare incentive scheme /�ʃeər n-�sentv ski�m/ noun same as share op-tion schemeshare index /�ʃeər �ndeks/ noun anindex figure based on the current marketprice of certain shares on a stockexchangeshare issue /�ʃeər �ʃu�/ noun an actof selling new shares in a company tothe publicshare option /�ʃeər �ɒpʃən/ noun aright to buy or sell shares at a certainprice at a time in the futureshare option scheme /�ʃeər�ɒpʃən ski�m/ noun a scheme that givescompany employees the right to buyshares in the company which employsthem, often at a special priceshareout /�ʃeəraυt/ noun an act of di-viding something among many people �a shareout of the profitsshare premium /�ʃeə �pri�miəm/noun an amount to be paid above thenominal value of a share in order to buyit

share premium account /�ʃeə�pri�miəm ə�kaυnt/ noun a part ofshareholders’ funds in a company,formed of the premium paid for newshares sold above par (the par value ofthe shares is the nominal capital of thecompany)share register /�ʃeə �red$stə/ nouna list of shareholders in a company withtheir addressesshare split /�ʃeə splt/ noun the actof dividing shares into smallerdenominationsshare warrant /�ʃeə �wɒrənt/ noun adocument which says that someone hasthe right to a number of shares in acompanysharing /�ʃeərŋ/ noun the act of di-viding upshark repellent /�ʃɑ�k r�pelənt/noun an action taken by a company tomake itself less attractive to takeoverbidderssharp /ʃɑ�p/ adjective sudden � Therewas a sharp rally on the stock market. �Last week’s sharp drop in prices hasbeen reversed.sharply /�ʃɑ�pli/ adverb suddenly �Shares dipped sharply in yesterday’strading.sharp practice /ʃɑ�p �pr�kts/ nouna way of doing business which is nothonest, but is not illegalshekel /�ʃek(ə)l/ noun a unit of cur-rency used in Israelshelf /ʃelf/ noun a horizontal flat sur-face attached to a wall or in a cupboardon which items for sale are displayed �The shelves in the supermarket were fullof items before the Christmas rush.shelf registration /�ʃelf�red$streʃ(ə)n/ noun a registration ofa corporation with the SEC some time(up to two years is allowed) before it isoffered for sale to the publicshell company /�ʃel �k�mp(ə)ni/noun a company which does not trade,but exists only as a name with a quota-tion of the Stock Exchange (NOTE: TheUS term is shell corporation.)

‘…shell companies, which can be used to hideinvestors’ cash, figure largely throughout thetwentieth century’ [Times]

share capital 324 shell company

shelter /�ʃeltə/ noun a protected place� verb to give someone or somethingprotectionsheriff’s sale /�ʃerfs sel/ noun USa public sale of the goods of a personwhose property has been seized by thecourts because he has defaulted onpaymentsshilling /�ʃlŋ/ noun a unit of cur-rency used in Kenya, Somalia, Tanzaniaand Ugandashipment /�ʃpmənt/ noun an act ofsending goods � We make two ship-ments a week to France.shipping company /�ʃpŋ�k�mp(ə)ni/ noun a company whosebusiness is in transporting goods or pas-sengers in shipsshogun bond /�ʃəυ��n bɒnd/ nouna bond issued in Japan by anon-Japanese company in a currencywhich is not the yen. Compare samuraibondshoot up /�ʃu�t ��p/ verb to go up fast� Prices have shot up during the strike.(NOTE: shooting – shot)shop /ʃɒp/ noun 1. a retail outletwhere goods of a certain type are sold �a computer shop � an electrical goodsshop � All the shops in the centre oftown close on Sundays. � She opened awomen’s clothes shop. 2. a workshop,the place in a factory where goods aremade � verb to go to shops to make pur-chases (NOTE: shopping – shopped)shop around /�ʃɒp ə�raυnd/ verb togo to various shops or suppliers andcompare prices before making a pur-chase or before placing an order � Youshould shop around before getting yourcar serviced. � He’s shopping aroundfor a new computer. � It pays to shoparound when you are planning to get amortgage.shopper /�ʃɒpə/ noun a person whobuys goods in a shop � The store staysopen to midnight to cater for late-nightshoppers.shoppers’ charter /�ʃɒpəz �tʃɑ�tə/noun a law which protects the rights ofshoppers against shopkeepers who arenot honest or against manufacturers ofdefective goodsshopping /�ʃɒpŋ/ noun 1. goodsbought in a shop � a basket of shopping

2. the act of going to shops to buy things� to do your shopping in the localsupermarketshopping basket /�ʃɒpŋ �bɑ�skt/noun a basket used for carrying shop-ping (NOTE: Its imaginary contents areused to calculate a consumer price in-dex.)shopping cart /�ʃɒpŋ kɑ�t/ noun asoftware package that records the itemsthat an online buyer selects for purchasetogether with associated data, e.g. theprice of the item and the number ofitems requiredshop price /�ʃɒp pras/ noun same asretail priceshort /ʃɔ�t/ adjective, adverb 1. for asmall period of time � in the short termin the near future or quite soon � to bor-row short to borrow for a short period2. not as much as should be � The ship-ment was three items short. � Mychange was £2 short. � when wecashed up we were £10 short we had£10 less than we should have had � togive short weight to sell somethingwhich is lighter than it should be � to beshort of a stock not to have shareswhich you will need in the future (as op-posed to being ‘long’ of a stock) � tosell short, to go short to agree to sell ata future date something (such as shares)which you do not possess, but whichyou think you will be able to buy forless before the time comes when youhave to sell them � verb to sell short �He shorted the stock at $35 and contin-ued to short it as the price moved up.short bill /�ʃɔ�t bl/ noun a bill of ex-change payable at short noticeshort-change /�ʃɔ�t �tʃend$/ verbto give a customer less change than isright, either by mistake or in the hopethat it will not be noticedshort credit /ʃɔ�t �kredt/ nounterms which allow the customer only alittle time to payshort-dated bill /ʃɔ�t �detd �bl/noun a bill which is payable within afew daysshort-dated gilts /ʃɔ�t �detd��lts/ plural noun same as shortsshort-dated securities /ʃɔ�t�detd s�kjυərtiz/ plural noun sameas shorts

shelter 325 short-dated securities

shorten /�ʃɔ�t(ə)n/ verb to makeshorter � to shorten credit termsshortfall /�ʃɔ�tfɔ�l/ noun an amountwhich is missing which would make thetotal expected sum � We had to borrowmoney to cover the shortfall between ex-penditure and revenue.short lease /ʃɔ�t �li�s/ noun a leasewhich runs for up to two or three years� We have a short lease on our currentpremises.short position /ʃɔ�t pə�zʃ(ə)n/noun a situation where an investor sellsshort (i.e. sells forward shares which heor she does not own). Compare longpositionshort-range forecast /�ʃɔ�t rend$�fɔ�kɑ�st/ noun a forecast which coversa period of a few monthsshorts /ʃɔ�ts/ plural noun governmentstocks which mature in less than fiveyears’ timeshort sale /ʃɔ�t �sel/, short selling/ʃɔ�t �selŋ/ noun arranging to sellsomething in the future which you thinkyou can buy for less than the agreedselling priceshort sellers /ʃɔ�t �seləz/ pluralnoun people who contract to sell a sharein the future, expecting the price to fallso that they can it buy more cheaply be-fore they have to close the saleshort-term /�ʃɔ�t �t%�m/ adjective 1.for a period of weeks or months � toplace money on short-term deposit �She is employed on a short-term con-tract. � on a short-term basis for ashort period 2. for a short period in thefuture � We need to recruit at once tocover our short-term manpowerrequirements.short-term forecast /�ʃɔ�t t%�m�fɔ�kɑ�st/ noun a forecast which coversa period of a few monthsshort-termism /ʃɔ�t �t%�mz(ə)m/noun the fact of taking a short-termview of the market, i.e. not planning fora long-term investmentshort-term loan /�ʃɔ�t t%�m �ləυn/noun a loan which has to be repaidwithin a few weeks or some yearsshort-term paper /�ʃɔ�t t%�m�pepə/ noun a promissory note, draft,etc. payable at less than nine months

short-term security /�ʃɔ�t t%�m s-�kjυərti/ noun a security which ma-tures in less than 5 yearsshort-term support /�ʃɔ�t t%�m sə-�pɔ�t/ noun support for a currency in theinternational market, where the centralbank can borrow funds from other cen-tral banks for a short periodshow of hands /�ʃəυ əv �h�ndz/noun a vote where people show howthey vote by raising their hands � Themotion was carried on a show of hands.

COMMENT: If it is difficult to decide whichside has won in a show of hands, a ballotmay be taken.

shrink /ʃrŋk/ verb to get smaller �The market has shrunk by 20%. � Thecompany is having difficulty selling intoa shrinking market. (NOTE: shrinking –shrank – has shrunk)shrinkage /�ʃrŋkd$/ noun 1. theamount by which something getssmaller � to allow for shrinkage 2.losses of stock through theft, especiallyby the shop’s own staff (informal.)shroff /ʃrɒf/ noun (in the Far East) anaccountantSIB abbreviation Securities and Invest-ments BoardSICAV abbreviation sociétéd’investissement à capital variableside /sad/ noun a part of somethingnear the edgesideline /�sadlan/ noun a businesswhich is extra to your normal work �He runs a profitable sideline sellingpostcards to tourists.sight /sat/ noun the act of seeing �bill payable at sight a bill which mustbe paid when it is presented � to buysomething sight unseen to buy some-thing without having inspected it

‘…if your company needed a piece ofequipment priced at about $50,000, would youbuy it sight unseen from a supplier you hadnever met?’ [Nation’s Business]

sight bill /�sat bl/ noun a bill of ex-change which is payable at sightsight deposit /�sat d�pɒzt/ noun abank deposit which can be withdrawnon demandsight draft /�sat drɑ�ft/ noun a billof exchange which is payable when it ispresented

shorten 326 sight draft

sight letter of credit /sat �letə əv�kredt/ noun a letter of credit which ispaid when the necessary documentshave been presentedsight note /�sat nəυt/ noun a de-mand note, a promissory note whichmust be paid when it is presentedsign /san/ verb to write your name ina special way on a document to showthat you have written it or approved it �The letter is signed by the managingdirector. � Our company cheques arenot valid if they have not been signed bythe finance director. � The new recruitwas asked to sign the contract ofemployment.signal /�s�n(ə)l/ noun a warning mes-sage � The Bank of England’s movesent signals to the currency markets. �verb to send warning messages aboutsomething � The resolutions tabled forthe AGM signalled the shareholders’lack of confidence in the management ofthe company.signatory /�s�nət(ə)ri/ noun a per-son who signs a contract, etc. � Youhave to get the permission of all the sig-natories to the agreement if you want tochange the terms.signature /�s�ntʃə/ noun a person’sname written by themselves on acheque, document or letter � He found apile of cheques on his desk waiting forsignature. � All our company’s chequesneed two signatures. � The contract ofemployment had the personnel direc-tor’s signature at the bottom.signature guarantee /�s�nətʃə���rən�ti�/ noun a guarantee, such as acompany stamp, that someone’s signa-ture is authorised as correctsilent partner /�salənt �pɑ�tnə/noun a partner who has a share of thebusiness but does not work in itsilver /�slvə/ noun a precious metaltraded on commodity markets such asthe London Metal Exchangesimple average /�smp(ə)l��v(ə)rd$/ noun same as averagesimple interest /�smpəl �ntrəst/noun interest calculated on the capitalinvested only, and not added to itsingle /�sŋ�(ə)l/ adjective 1. onealone 2. � in single figures less than ten� Sales are down to single figures. � In-

flation is now in single figures. � noun aperson who is not marriedsingle-company PEP /�sŋ�(ə)l�k�mp(ə)ni �pep/ noun a PEP whichholds shares in one single company (upto £3,000 can be invested in the sharesof just one company and protected fromtax in this way)single-entry bookkeeping/�sŋ�(ə)l �entri �bυkki�pŋ/ noun amethod of bookkeeping where pay-ments or sales are noted with only oneentry per transaction (usually in the cashbook)single European market /�sŋ�(ə)l�jυərəpi�ən �mɑ�kt/, single market/�sŋ�(ə)l �mɑ�kt/ noun the EU consid-ered as one single market, with no tariffbarriers between its member statessingle-figure inflation /�sŋ�(ə)l�f�ə n�fleʃ(ə)n/ noun inflation risingat less than 10% per annumsingle filer /�sŋ�(ə)l �falə/ noun USan unmarried individual who files an in-come tax returnsingle-life annuity /�sŋ�(ə)l laf ə-�nju�ti/ noun an annuity which is paidonly to one beneficiary, and stops whenhe or she dies (as opposed to a ‘joint-lifeannuity’)single premium policy /�sŋ�(ə)l�pri�miəm/ noun an insurance policywhere only one premium is paid ratherthan regular annual premiumssink /sŋk/ verb 1. to go down sud-denly � Prices sank at the news of theclosure of the factory. 2. to investmoney (into something) � He sank allhis savings into a car-hire business.(NOTE: sinking – sank – sunk)

sinking fund /�sŋkŋ f�nd/ noun afund built up out of amounts of moneyput aside regularly to meet a futureneed, such as the repayment of a loansister company /�sstə �k�mp(ə)ni/noun another company which is part ofthe same groupsitting tenant /�stŋ �tenənt/ noun atenant who is occupying a buildingwhen the freehold or lease is sold � Theblock of flats is for sale with four flatsvacant and two with sitting tenants.SKA Index noun an index of prices onthe Zurich Stock Exchange

sight letter of credit 327 SKA Index

slam /sl�m/ verb US to switch (un-lawfully) a customer’s telephone servicewithout his or her consent � We sud-denly realised we’d been slammed.slash /sl�ʃ/ verb to reduce somethingsharply � We have been forced to slashcredit terms. � Prices have been slashedin all departments. � The banks haveslashed interest rates.sleeper /�sli�pə/ noun a share whichhas not risen in value for some time, butwhich may suddenly do so in the futuresleeping partner /�sli�pŋ �pɑ�tnə/noun a partner who has a share in thebusiness but does not work in itslide /slad/ verb to move downsteadily � Prices slid after the companyreported a loss. (NOTE: sliding – slid)sliding /�sladŋ/ adjective which risesin stepssliding scale /�sladŋ �skel/ noun alist of charges which rises gradually ac-cording to value, quantity, time, etc.slight /slat/ adjective not very large,not very important � There was a slightimprovement in the balance of trade. �We saw a slight increase in sales inFebruary.slightly /�slatli/ adverb not verymuch � Sales fell slightly in the secondquarter. � The Swiss bank is offeringslightly better terms.slip /slp/ noun a small piece of paper� verb to go down and back � Profitsslipped to £1.5m. � Shares slipped backat the close. (NOTE: slipping – slipped)

‘…with long-term fundamentals reasonablysound, the question for brokers is when doescheap become cheap enough? The Bangkok andTaipei exchanges offer lower p/e ratios thanJakarta, but if Jakarta p/e ratios slip to the 16–18range, foreign investors would pay moreattention to it’ [Far Eastern Economic Review]

slip-up /�slp �p/ noun a mistake �There has been a slip-up in the customsdocumentation. (NOTE: The plural isslip-ups.)slow /sləυ/ adjective not going fast �The sales got off to a slow start, butpicked up later. � Business is alwaysslow after Christmas. � They were slowto reply or slow in replying to the cus-tomer’s complaints. � The board is slowto come to a decision. � There was aslow improvement in sales in the firsthalf of the year. � verb to go less fast

‘…cash paid for stock: overstocked lines,factory seconds, slow sellers’ [AustralianFinancial Review]

‘…a general price freeze succeeded in slowingthe growth in consumer prices’ [FinancialTimes]

‘…the fall in short-term rates suggests a slowingeconomy’ [Financial Times]

slow down /�sləυ �daυn/ verb to stoprising, moving or falling, or to makesomething go more slowly � Inflation isslowing down. � The fall in the ex-change rate is slowing down. � Themanagement decided to slow downproduction.slowdown /�sləυdaυn/ noun a reduc-tion in business activity � a slowdownin the company’s expansionslow payer /sləυ �peə/ noun a per-son or company that does not pay debtson time � The company is well knownas a slow payer.slump /sl�mp/ noun 1. a rapid fall �the slump in the value of the pound �We experienced a slump in sales or aslump in profits. � The pound’s slumpon the foreign exchange markets. 2. aperiod of economic collapse with highunemployment and loss of trade � Weare experiencing slump conditions. �verb to fall fast � Profits have slumped.� The pound slumped on the foreign ex-change markets.slush fund /�sl�ʃ f�nd/ noun moneykept to one side to give to people to per-suade them to do what you want � Thegovernment was brought down by thescandal over the slush funds. � Theparty was accused of keeping a slushfund to pay foreign businessmen.small /smɔ�l/ adjective not largesmall ads /�smɔ�l �dz/ plural nounshort private advertisements in a news-paper (e.g. selling small items or askingfor jobs)small business /smɔ�l �bzns/noun a little company with low turnoverand few employeesSmall Business Administration/�smɔ�l �bzns əd�mnstreʃ(ə)n/noun US a federal agency which pro-vides finance and advice to small busi-nesses. Abbreviation SBAsmall business incubator /smɔ�l�bzns ŋkjυ�betə/ noun a centre

slam 328 small business incubator

which provides support for new busi-nesses before they become really viablesmall businessman /smɔ�l�bznsm�n/ noun a man who owns asmall businesssmall-cap /�smɔ�l k�p/ noun a sharein a company with small capitalisation. �cap, mega-cap, micro-cap, mid-capsmall change /smɔ�l �tʃend$/ nouncoinssmall claim /smɔ�l �klem/ noun aclaim for less than £5000 in the CountyCourtsmall claims court /smɔ�l �klemzkɔ�t/ noun GB a court which deals withdisputes over small amounts of moneysmall companies /smɔ�l�k�mp(ə)niz/ plural noun companieswhich are quoted on the Stock Ex-change, but which have a smallcapitalisationsmall company /smɔ�l �k�mp(ə)ni/noun a company with at least two of thefollowing characteristics: a turnover ofless than £2.0m; fewer than 50 staff; netassets of less than £975,000small investor /smɔ�l n�vestə/noun a person with a small sum ofmoney to investsmall-scale /�smɔ�l skel/ adjectiveworking in a small way, with few staffand not much moneysmall shopkeeper /smɔ�l�ʃɒpki�pə/ noun an owner of a smallshopsmart card /�smɑ�t kɑ�d/ noun acredit card with a microchip, used forwithdrawing money from ATMs, or forpurchases at EFTPOS terminalsSMI abbreviation the stock market in-dex of the Zurich stock exchange inSwitzerlandsmokestack industries/�sməυkst�k �ndəstriz/ plural nounheavy industries, such as steel-makingsmurf /sm%�f/ noun US a person wholaunders money (informal.)snake /snek/ noun formerly, thegroup of currencies within the EuropeanExchange Rate Mechanism whose ex-change rates were allowed to fluctuateagainst each other within certain bandsor limits (informal.)

snap up /�sn�p ��p/ verb to buysomething quickly � to snap up a bar-gain � She snapped up 15% of the com-pany’s shares. (NOTE: snapping –snapped)snip /snp/ noun a bargain (informal.)� These printers are a snip at £50.soar /sɔ�/ verb to go up rapidly �Share prices soared on the news of thetakeover bid or the news of the takeoverbid sent share prices soaring. � Thenews of the takeover bid sent shareprices soaring. � Food prices soaredduring the cold weather.social /�səυʃ(ə)l/ adjective referring tosociety in generalsocial costs /�səυʃ(ə)l kɒsts/ pluralnoun the ways in which something willaffect peoplesocial investing /�səυʃ(ə)l �n-�vestŋ/ noun the practice of investingin companies which follow certainmoral standardssocially responsible fund/�səυʃ(ə)li r�spɒnsəb(ə)l �f�nd/ nounUS a fund which only invests in compa-nies that have a good environmental oremployment or social recordsocial security /�səυʃ(ə)l s-�kjυərti/, social insurance /�səυʃ(ə)ln�ʃυərəns/ noun a government schemewhere employers, employees and theself-employed make regular contribu-tions to a fund which provides unem-ployment pay, sickness pay andretirement pensions � He gets weeklysocial security payments. � She neverworked but lived on social security foryears.social system /�səυʃ(ə)l �sstəm/noun the way society is organisedsociedad anónima noun the Span-ish word for a public limited company.Abbreviation SAsocietà per azioni noun the Italianword for a public limited company. Ab-breviation SpAsociété noun the French word forcompanysociété anonyme noun the Frenchword for a public limited company. Ab-breviation SAsociété anonyme àresponsabilité limitée noun the

small businessman 329 société

French word for a private limited com-pany. Abbreviation SARL

Société des Bourses Françaisesnoun a company which operates theFrench stock exchanges and derivativesexchanges. Abbreviation SBFsociété d’investissement à capi-tal variable noun the French word fora unit trust. Abbreviation SICAVsociety /sə�saəti/ noun 1. the way inwhich the people in a country are organ-ised 2. a club for a group of people withthe same interests � We have joined acomputer society.Society for Worldwide InterbankTelecommunications /sə�saəti fə�w%�ldwad �ntəb�ŋk �telikəmju�n-�keʃ(ə)nz/ noun an internationalorganisation which makes the rapidexchange of payments between banksand stockbrokers possible on a world-wide scale. Abbreviation SWIFTsocio-economic /�səυʃiəυ i�kə-�nɒmk/ adjective referring to socialand economic conditions, socialclasses and income groups � thesocio-economic system in capitalistcountries � We have commissioned athorough socio-economic analysis ofour potential market.socio-economic groups /�səυʃiəυi�kə�nɒmk ��ru�ps/ plural noungroups in society divided according toincome and position

COMMENT: The British socio-economicgroups are: A: upper middle class: se-nior managers, administrators, civil ser-vants and professional people; B: middleclass: middle-ranking managers, admin-istrators, civil servants and professionalpeople; C1: lower middle class: juniormanagers and clerical staff; C2: skilledworkers: workers with special skills andqualifications; D: working class: un-skilled workers and manual workers; E:subsistence level: pensioners, the un-employed and casual manual workers.

soft /sɒft/ adjective not hard � to takethe soft option to decide to do some-thing which involves least risk, effort orproblemssoft commodities /sɒft kə-�mɒdtiz/ plural noun foodstuffs whichare traded as commodities (such as rice,coffee, etc.)

soft currency /sɒft �k�rənsi/ nounthe currency of a country with a weakeconomy, which is cheap to buy and dif-ficult to exchange for other currencies(NOTE: The opposite is hard cur-rency.)soft dollars /sɒft �dɒləz/ plural nounrebates given by brokers to money man-agement firms in return for funds’ trans-action businesssoft landing /sɒft �l�ndŋ/ noun achange in economic strategy to counter-act inflation, which does not cause un-employment or a fall in the standard ofliving, and has only minor effects on thebulk of the populationsoft loan /sɒft �ləυn/ noun a loan(from a company to an employee orfrom one government to another) at avery low rate of interest or with no inter-est payable at allsoft market /sɒft �mɑ�kt/ noun amarket where there is not enough de-mand, and where prices fallsoft sell /sɒft �sel/ noun the processof persuading people to buy, by encour-aging and not forcing them to do sosol /sɒl/ noun a unit of currency usedin Perusole /səυl/ adjective onlysole agency /səυl �ed$ənsi/ nounan agreement to be the only person torepresent a company or to sell a productin a particular area � He has the soleagency for Ford cars.sole agent /səυl �ed$ənt/ noun aperson who has the sole agency for acompany in an area � She is the soleagent for Ford cars in the locality.sole distributor /səυl d�strbjυtə/noun a retailer who is the only one in anarea who is allowed to sell a productsole owner /səυl �əυnə/ noun a per-son who owns a business on their own,with no partners, and has not formed acompanysole proprietor /səυl prə�praətə/,sole trader /səυl �tredə/ noun a per-son who runs a business, usually bythemselves, but has not registered it as acompanysolvency /�sɒlv(ə)nsi/ noun the stateof being able to pay all debts on duedate (NOTE: The opposite is insol-vency.)

société 330 solvency

solvent /�sɒlv(ə)nt/ adjective havingassets which are more than yourliabilitiessom /sɒm/ noun a unit of currencyused in Kyrgystansorter/reader /�sɔ�rtə �ri�də/ noun amachine in a bank which reads chequesand sorts them automaticallysource /sɔ�s/ noun the place wheresomething comes from � What is thesource of her income? � You must de-clare income from all sources to the taxoffice. � income which is taxed atsource income where the tax is removedand paid to the government by the em-ployer before the income is paid to theemployeesource and application of fundsstatement /sɔ�s ən ��plkeʃ(ə)n əv�f�ndz �stetmənt/, sources anduses of funds statement /�sɔ�sz ən�ju�zz əv �f�ndz �stetmənt/ noun astatement in a company’s annual ac-counts, showing where new funds camefrom during the year, and how they wereusedsovereign /�sɒvrn/ noun a Britishgold coin, with a face value of £1 � ad-jective referring to an independentcountrysovereign bond /�sɒvrn bɒnd/noun a bond issued by a governmentsovereign risk /�sɒvrn �rsk/ nouna risk that a government may default onits debts (a government cannot be suedif it defaults)sovereign state /�sɒvrn �stet/noun an independent state which gov-erns itselfSpA abbreviation società per azionispare /speə/ adjective extra, not beingused � He has invested his spare capitalin a computer shop. � to use up sparecapacity to make use of time or spacewhich has not been fully usedSparkasse noun the German wordfor a savings bankspec /spek/ noun same as specifica-tion � to buy something on spec to buysomething without being sure of itsvaluespecial /�speʃ(ə)l/ adjective 1. betterthan usual � He offered us specialterms. � The car is being offered at a

special price. 2. referring to one particu-lar thing

‘…airlines offer special stopover rates and hotelpackages to attract customers to certain routes’[Business Traveller]

Special Commissioner /�speʃ(ə)lkə�mʃ(ə)nə/ noun an official ap-pointed by the Treasury to hear caseswhere a taxpayer is appealing against anincome tax assessmentspecial deposits /�speʃ(ə)l d-�pɒzts/ plural noun large sums ofmoney which commercial banks have todeposit with the Bank of Englandspecial drawing rights /�speʃ(ə)l�drɔ�ŋ rats/ plural noun units ofaccount used by the InternationalMonetary Fund, allocated to eachmember country for use in loans andother international operations. Theirvalue is calculated daily on the weightedvalues of a group of currencies shown indollars. Abbreviation SDRsspecialist /�speʃəlst/ noun 1. aperson or company that deals with oneparticular type of product or one subject� You should go to a specialist in com-puters or to a computer specialist foradvice. � We need a manager who cangrasp the overall picture rather than anarrow specialist. 2. a trader on theNYSE who deals in certain stocks forhis own account, selling to or buyingfrom brokersspecial mention assets /�speʃ(ə)l�menʃ(ə)n ��sets/ plural noun loansmade by a bank without the correctdocumentationspecial notice /�speʃ(ə)l �nəυts/noun notice of a proposal to be put be-fore a meeting of the shareholders of acompany which is made less than 28days before the meetingspecial offer /�speʃ(ə)l �ɒfə/ noun asituation where goods are put on sale ata specially low price � We have a rangeof men’s shirts on special offer.special resolution /�speʃ(ə)l �rezə-�lu�ʃ(ə)n/ noun a resolution concerningan important matter, such as a change tothe company’s articles of associationwhich is only valid if it is approved by75% of the votes cast at a meeting

COMMENT: 21 days’ notice must be givenfor a special resolution to be put to ameeting, as opposed to an ‘extraordinary

solvent 331 special resolution

resolution’ for which notice must begiven, but no minimum period is speci-fied by law. An extraordinary resolu-tion could be a proposal to wind up acompany voluntarily, but changes tothe articles of association, such as achange of name, or of the objects of thecompany, or a reduction in share capi-tal, need a special resolution.

specie /�spi�ʃi�/ noun money in theform of coinsspecification /�spesf�keʃ(ə)n/noun detailed information about what orwho is needed or about a product to besupplied � to detail the specifications ofa computer system � to work to stan-dard specifications to work to specifi-cations which are acceptable anywherein an industry � the work is not up tospecification or does not meet ourspecifications the product is not madein the way which was detailedspecify /�spesfa/ verb to stateclearly what is needed � to specify fulldetails of the goods ordered � Do notinclude VAT on the invoice unless speci-fied. � Candidates are asked to specifywhich of the three posts they are apply-ing for. (NOTE: specifies – specifying– specified)specimen /�spesmn/ noun some-thing which is given as a sample � togive specimen signatures on a bankmandate to write the signatures of allthe people who can sign cheques for anaccount so that the bank can recognisethemspeculate /�spekjυlet/ verb to take arisk in business which you hope willbring you profits � to speculate on theStock Exchange to buy shares whichyou hope will rise in valuespeculation /�spekjυ�leʃ(ə)n/ nouna risky deal which may produce ashort-term profit � He bought the com-pany as a speculation. � She lost all hermoney in Stock Exchange speculations.speculative share /�spekjυlətvʃeə/ noun 1. a share which may gosharply up or down in value 2. a bondwith a low credit ratingspeculator /�spekjυletə/ noun aperson who buys goods, shares or for-eign currency in the hope that they willrise in value � a property speculator �a currency speculator � a speculator on

the Stock Exchange or a Stock Exchangespeculatorspend verb /spend/ to pay money �They spent all their savings on buyingthe shop. � The company spends thou-sands of pounds on research. � noun anamount of money spent � What’s theannual spend on marketing?spending /�spendŋ/ noun the act ofpaying money for goods and services �Both cash spending and credit cardspending increase at Christmas.spending money /�spendŋ �m�ni/noun money for ordinary personalexpensesspending power /�spendŋ �paυə/noun 1. the fact of having money tospend on goods � the spending power ofthe student market 2. the amount ofgoods which can be bought for a sum ofmoney � The spending power of thepound has fallen over the last ten years.spin /spn/ noun a special meaninggiven to somethingspin control /�spn kən�trəυl/ nounthe ability to give a special meaning toinformationspin doctor /�spn �dɒktə/ noun aperson who explains news in a way thatmakes it flattering to the person or or-ganisation employing him or her (infor-mal.) � Government spin doctors havebeen having some difficulty in dealingwith the news items about the rise inunemployment.spin off /�spn �ɒf/ verb � to spin offa subsidiary company to split off partof a large company to form a smallersubsidiary, giving shares in this to theexisting shareholdersspinoff /�spnɒf/ noun 1. a usefulproduct developed as a secondary prod-uct from a main item � One of the spin-offs of the research programme hasbeen the development of the electric car.2. a corporate reorganisation in which asubsidiary becomes an independentcompanyspiral /�sparəl/ noun somethingwhich twists round and round gettinghigher all the time � verb to twist roundand round, getting higher all the time �a period of spiralling prices � spiral-ling inflation inflation where price risesmake employees ask for higher wageswhich then increase prices again

specie 332 spiral

split /splt/ noun 1. an act of dividingup � the company is proposing a fivefor one split the company is proposingthat each existing share should be di-vided into five smaller shares 2. a lackof agreement � a split in the familyshareholders � verb � to split shares todivide shares into smaller denomina-tions � the shares were split five forone five new shares were given for eachexisting share held � adjective which isdivided into parts

COMMENT: A company may decide tosplit its shares if the share price becomestoo ‘heavy’ (i.e. each share is priced atsuch a high level that small investors maybe put off, and trading in the share is re-stricted). In the UK, a share price of£10.00 is considered ‘heavy’, though suchprices are common on other stockmarkets.

split-capital trust /�splt �k�pt(ə)l�tr�st/ noun same as split-level in-vestment trustsplit commission /splt kə-�mʃ(ə)n/ noun a commission which isdivided between brokers or agentssplit-level investment trust /�splt�lev(ə)l n�vestmənt tr�st/ noun an in-vestment trust with two categories ofshares: income shares which receive in-come from the investments, but do notbenefit from the rise in their capitalvalue; and capital shares, which increasein value as the value of the investmentsrises, but do not receive any income.Also called split trust, split-capitaltrustsplit payment /splt �pemənt/ nouna payment which is divided into smallunitssplit trust /splt �tr�st/ noun same assplit-level investment trustsponsor /�spɒnsə/ noun 1. a com-pany which pays part of the cost of mak-ing a TV programme by takingadvertising time on the programme 2. aperson or company which pays moneyto help research or to pay for a businessventure 3. a company which pays tohelp a sport, in return for advertisingrights 4. an organisation, such as a mer-chant bank, which backs a new share is-sue � verb 1. to act as a sponsor forsomething � a government-sponsoredtrade exhibition � The company hassponsored the football match. � Six of

the management trainees have beensponsored by their companies. 2. US toplay an active part in something, such asa pension plan for employees � Ifyou’re single and not covered by an em-ployer-sponsored retirement plan.sponsorship /�spɒnsəʃp/ noun theact of sponsoring � the sponsorship of aseason of concerts � The trainingcourse could not be run without thesponsorship of several majorcompanies.spot noun /spɒt/ 1. a place 2. a placefor an advertisement on a TV or radioshow 3. the buying of something for im-mediate delivery � adjective doneimmediatelyspot cash /spɒt �k�ʃ/ noun cash paidfor something bought immediatelyspot market /�spɒt �mɑ�kt/ nounthe market for buying oil for immediatedelivery

‘…with most of the world’s oil now traded onspot markets, Opec’s official prices are muchless significant than they once were’[Economist]

spot price /�spɒt pras/, spot rate/�spɒt ret/ noun a current price or ratefor something which is delivered imme-diately (also called ‘cash price’)

‘…the average spot price of Nigerian light crudeoil for the month of July was 27.21 dollars perbarrel’ [Business Times (Lagos)]

spousal /�spaυz(ə)l/ adjective US re-ferring to a spousespousal IRA /�spaυz(ə)l �arə/ nounUS an IRA set up in the name of aspouse. Full form spousal IndividualRetirement Accountspouse /spaυs/ noun a husband orwife � All employees and their spousesare invited to the staff party.spread /spred/ noun 1. same as range2. the difference between buying andselling prices (i.e. between the bid andoffer prices) � verb to space somethingout over a period of time � to spreadpayments over several months � tospread a risk to make the risk of insur-ance less great by asking other compa-nies to help cover it

‘…dealers said markets were thin, with gapsbetween trades and wide spreads between bidand ask prices on the currencies’[Wall Street Journal]‘…to ensure an average return you should hold aspread of different shares covering a wide

split 333 spread

cross-section of the market’ [InvestorsChronicle]

spreadsheet /�spredʃi�t/ noun acomputer printout showing a series ofcolumns of figuressquare /skweə/ verb to balance yourposition by selling futures to balancepurchasesSquare Mile /skweə �mal/ noun theCity (of London), the British financialcentresqueeze /skwi�z/ noun governmentcontrol carried out by reducing theavailability of something � verb tocrush or to press; to make smaller � tosqueeze margins or profits or credit

‘…the real estate boom of the past three yearshas been based on the availability of easycredit. Today, money is tighter, so propertyshould bear the brunt of the credit squeeze’[Money Observer]

SRB abbreviation sales returns bookSRO abbreviation self-regulatoryorganisationSSAPs abbreviation Statements ofStandard Accounting PracticeSSI abbreviation standing settlementinstructionsSSL abbreviation a method of provid-ing a safe channel over the Internet toallow a user’s credit card or personal de-tails to be safely transmitted � I onlypurchase goods from a web site that hasSSL security installed. � The little keylogo on my web browser appears when Iam connected to a secure site with SSL.Full form secure sockets layerstabilisation /�stebla�zeʃ(ə)n/,stabilization noun the process ofmaking something stable, e.g. pre-venting sudden changes in prices �stabilisation of the economy keepingthe economy stable by preventing in-flation from rising, cutting high interestrates and excess money supplystabilise /�stebəlaz/, stabilize verbto become steady, or to make somethingsteady � prices have stabilised priceshave stopped moving up or down � tohave a stabilising effect on the econ-omy to make the economy more stablestability /stə�blti/ noun the state ofbeing steady or not moving up or down� price stability � a period of economicstability � the stability of the currencymarkets

stable /�steb(ə)l/ adjective steady ornot moving up or down � stable prices� a stable exchange rate � a stable cur-rency � a stable economystaff appraisal /stɑ�f ə�prez(ə)l/,staff assessment /stɑ�f ə�sesmənt/noun a report on how well a member ofstaff is workingstaffer /�stɑ�fə/ noun US a member ofthe permanent staffstaff incentives /stɑ�f n�sentvz/plural noun higher pay and better condi-tions offered to employees to makethem work betterstaff training /stɑ�f �trenŋ/ nounthe process of teaching staff better andmore profitable ways of workingstag /st��/ noun 1. a person who buysnew issues of shares and sells them im-mediately to make a profit 2. US adealer in stocks who is not a member ofa Stock Exchange � verb � to stag anissue to buy a new issue of shares not asan investment, but to sell immediately ata profitstage /sted$/ noun a period, one ofseveral points in a process of develop-ment � the different stages of the pro-duction process � the contract is still inthe drafting stage the contract is stillbeing drafted � in stages in differentsteps � The company has agreed to re-pay the loan in stages.staged payments /sted$d�peməntz/ plural noun payments madein stagesstagflation /st���fleʃ(ə)n/ noun in-flation and stagnation happening at thesame time in an economystagger /�st��ə/ verb to arrange holi-days or working hours so that they donot all begin and end at the same time �Staggered holidays help the tourist in-dustry. � We have to stagger the lunchhour so that there is always someone onthe switchboard. � We asked our sup-plier to stagger deliveries so that thewarehouse can cope.stagnant /�st��nənt/ adjective notactive, not increasing � Turnover wasstagnant for the first half of the year. �A stagnant economy is not a good sign.stagnate /st���net/ verb not to in-crease, not to make progress � The

spreadsheet 334 stagnate

economy is stagnating. � After six hoursthe talks were stagnating.stagnation /st���neʃ(ə)n/ noun thestate of not making any progress, espe-cially in economic matters � The coun-try entered a period of stagnation.stake /stek/ noun an amount ofmoney invested � to have a stake in abusiness to have money invested in abusiness � to acquire a stake in a busi-ness to buy shares in a business � Heacquired a 25% stake in the company. �verb � to stake money on something torisk money on something

‘…her stake, which she bought at $1.45 pershare, is now worth nearly $10 million’ [Times]

‘…other investments include a large stake in aChicago-based insurance company, as well asinterests in tobacco products and hotels’[Lloyd’s List]

stale /stel/ adjective referring to acheque which is so old, that the bankwill not clear it unless it has been con-firmed as correct by the payerstale bull /stel �bυl/ noun an investorwho bought shares hoping that theywould rise, and now finds that they havenot risen and wants to sell themstamp /st�mp/ noun a device formaking marks on documents; a markmade in this way � The invoice has thestamp ‘Received with thanks’ on it. �The customs officer looked at the stampsin his passport. � verb 1. to mark a doc-ument with a stamp � to stamp an in-voice ‘Paid’ � The documents werestamped by the customs officials. 2. toput a postage stamp on an envelope orparcelstamp duty /�st�mp �dju�ti/ noun atax on legal documents such as thoseused e.g. for the sale or purchase ofshares or the conveyance of a propertyto a new ownerstamp pad /�st�mp p�d/ noun a softpad of cloth with ink on which a stampis pressed, before marking the paperstandard /�st�ndəd/ noun the normalquality or normal conditions whichother things are judged against � adjec-tive normal or usual � a standard modelcar � We have a standard charge of £25for a thirty-minute session.standard agreement /�st�ndəd ə-��ri�mənt/, standard contract

/�st�ndəd �kɒntr�kt/ noun a normalprinted contract formStandard & Poor’s /�st�ndəd ən�pυəz/ noun an American corporationwhich rates bonds according to thecredit-worthiness of the organisationsissuing them. Abbreviation S&P

COMMENT: Standard and Poor’s also is-sues several stock market indices: theStandard and Poor’s Composite Index (orS&P 500 or Standard & Poor’s 500-stockIndex ) is an index of 500 popular Ameri-can stocks; other indices are the S&PSmallCap and S&P MidCap.

standard cost /�st�ndəd �kɒst/noun a future cost which is calculated inadvance and against which estimates aremeasuredstandard deviation /�st�ndəddi�vi�eʃ(ə)n/ noun the way in whichthe results of a sample deviate from themean or averagestandard direct labour cost/�st�ndəd d�rekt �lebə kɒst/ nounthe cost of labour calculated to producea product according to specification(used to measure estimates)standard letter /�st�ndəd �letə/noun a letter which is sent withoutchange to various correspondentsstandard of living /�st�ndəd əv�lvŋ/ noun the quality of personalhome life (such as amount of food orclothes bought, size of family car, etc.)standard rate /�st�ndəd ret/ nouna basic rate of income tax which is paidby most taxpayersstandard risk /�st�ndəd �rsk/ nouna normal risk on a loan which is likely tobe repaid on timestandby arrangements /�st�ndbaə�rend$mənts/ plural noun plans forwhat should be done if an emergencyhappens, especially money held in re-serve in the International MonetaryFund for use by a country in financialdifficultiesstandby credit /�st�ndba �kredt/noun 1. credit which is available if acompany needs it, especially creditguaranteed by a euronote 2. creditwhich is available and which can bedrawn on if a country needs it, espe-cially credit guaranteed by a lender (agroup of banks or the IMF in the case ofa member country) usually in dollars

stagnation 335 standby credit

standby loan /�st�ndba ləυn/ nouna loan which is available if neededstanding /�st�ndŋ/ noun a good rep-utation � The financial standing of acompany. � company of good standingvery reputable companystanding order /�st�ndŋ �ɔ�də/noun an order written by a customerasking a bank to pay money regularly toan account � I pay my subscription bystanding order.standing settlement instruc-tions /�st�ndŋ �set(ə)lmənt n-�str�kʃ(ə)nz/ plural noun instructionsgiven by one bank to other banks as tothe procedure to be followed when mak-ing payments to it. Abbreviation SSIsstandstill agreement /�st�ndstlə��ri�mənt/ noun an agreement be-tween a borrower and a lender that it isbetter to rengotiate the terms of the loanthan for the lender to foreclose on theproperty used as securitystaple commodity /�step(ə)l kə-�mɒdti/ noun a basic food or rawmaterialstart /stɑ�t/ noun the beginning � verbto begin to do something � to start abusiness from cold or from scratch tobegin a new business, with no previousturnover to base it onstarting /�stɑ�tŋ/ noun the act ofbeginningstarting date /�stɑ�tŋ det/ noun adate on which something startsstarting salary /�stɑ�tŋ �s�ləri/noun a salary for an employee when heor she starts work with a companystart-up /�stɑ�t �p/ noun 1. the begin-ning of a new company or new product� We went into the red for the first timebecause of the start-up costs of the newsubsidiary in the USA. 2. a new, usuallysmall business that is just beginning itsoperations, especially a new businesssupported by venture capital and in asector where new technologies are usedstart-up financing /�stɑ�t �p�fan�nsŋ/ noun the first stage in fi-nancing a new project, which is fol-lowed by several rounds of investmentcapital as the project gets under way(NOTE: The plural is start-ups.)state /stet/ noun 1. an independentcountry 2. a semi-independent section

of a federal country (such as the USA)3. the government of a country � verbto say clearly � The document statesthat all revenue has to be declared tothe tax office.

‘…the unions had argued that public sector payrates had slipped behind rates applying in stateand local government areas’ [AustralianFinancial Review]

state bank /stet �b�ŋk/ noun in theUSA, a commercial bank licensed bythe authorities of a state, and not neces-sarily a member of the Federal Reservesystem (as opposed to a national bank)state-controlled /�stet kən�trəυld/adjective run by the state �state-controlled televisionstate enterprise /�stet �entəpraz/noun a company run by the statestatement /�stetmənt/ noun 1.something said or written which de-scribes or explains something clearly �to make a false statement to givewrong details � statement of expensesa detailed list of money spent 2. � state-ment (of account) a list of invoices andcredits and debits sent by a supplier to acustomer at the end of each month �monthly or quarterly statement astatement which is sent every month orevery quarter by the bank � statementbalance, balance per statement a bal-ance in an account on a given date asshown in a bank statementstatement of affairs /�stetmənt əvə�feəz/ noun a financial statementdrawn up when a person is insolventStatements of Standard Ac-counting Practice /�stetmənts əv�st�ndəd ə�kaυntŋ �pr�kts/ pluralnoun rules laid down by the AccountingStandards Board for the preparation offinancial statements. AbbreviationSSAPsstatement stuffer /�stetmənt�st�fə/ noun an advertising leaflet en-closed with the monthly bank statementstate monopoly /stet mə�nɒpəli/noun a situation where the state is theonly supplier of a product or servicestate of indebtedness /�stet əvn�detdnəs/ noun the fact of being indebt, owing moneystate-owned /�stet əυnd/ adjectiveowned by the state or by a state

standby loan 336 state-owned

‘…state-owned banks cut their prime rates apercentage point to 11%’ [Wall Street Journal]

state-owned industry /�stet əυnd�ndəstri/ noun an industry which isnationalisedstate ownership /stet �əυnəʃp/noun a situation in which an industry isnationalisedstatistical /stə�tstk(ə)l/ adjectivebased on statistics � statistical informa-tion � They took two weeks to providethe statistical analysis of the opin-ion-poll data.statistical discrepancy /stə-�tstk(ə)l d�skrepənsi/ noun theamount by which sets of figures differstatistician /�st�t�stʃ(ə)n/ noun aperson who analyses statisticsstatistics /stə�tstks/ plural noun1. facts or information in theform of figures � to examine the salesstatistics for the previous six months �Government trade statistics show anincrease in imports. � The statisticson unemployment did not takeschool-leavers into account. (NOTE:takes a plural verb) 2. the study offacts in the form of figures (NOTE: takesa singular verb)

status /�stetəs/ noun 1. the impor-tance of someone or something relativeto others, especially someone’s positionin society � the chairman’s car is astatus symbol the size of the car showshow important the chairman is � loss ofstatus the act of becoming less impor-tant in a group 2. � legal status legalpositionstatus inquiry /�stetəs n�kwaəri/noun an act of checking on a customer’scredit ratingstatus quo /�stetəs �kwəυ/ noun thestate of things as they are now � Thecontract does not alter the status quo. �The union tried to alter the status quo byforcing the management to change itspolicies.statute /�st�tʃu�t/ noun an estab-lished written law, especially an Act ofParliamentstatute-barred /�st�tʃu�t �bɑ�d/ ad-jective referring to legal action whichcannot be pursued because the timelimit for it has expired

statute book /�st�tʃu�t bυk/ nounall laws passed by Parliament which arestill in forcestatute law /�st�tʃu�t lɔ�/ noun sameas statutestatute of limitations /�st�tʃu�t əv�lm�teʃ(ə)nz/ noun a law whichallows only a certain amount of time(usually six years) for someone to startlegal proceedings to claim property orcompensation for damagestatutory /�st�tʃυt(ə)ri/ adjectivefixed by law � There is a statutory pe-riod of probation of thirteen weeks. �Are all the employees aware of theirstatutory rights?statutory holiday /�st�tʃυt(ə)ri�hɒlde/ noun a holiday which is fixedby law � The office is closed for thestatutory Christmas holiday.statutory regulations/�st�tʃυt(ə)ri �re�jυ�leʃ(ə)nz/ pluralnoun regulations covering financialdealings which are based on Acts ofParliament, such as the Financial Ser-vices Act (as opposed to the rules ofself-regulatory organisations which arenon-statutory)stay of execution /�ste əv eks-�kju�ʃ(ə)n/ noun the temporary stop-ping of a legal order � The courtgranted the company a two-week stay ofexecution.steadily /�stedli/ adverb in a regularor continuous way � Output increasedsteadily over the last two quarters. �The company has steadily increased itsmarket share.steadiness /�stednəs/ noun the factof being firm, not fluctuating � Thesteadiness of the markets is due to thegovernment’s intervention.steady /�stedi/ adjective continuing ina regular way � The company can pointto a steady increase in profits. � Themarket stayed steady in spite of the col-lapse of the bank. � There is a steadydemand for computers. � He has asteady job in the supermarket. � verb tobecome firm, to stop fluctuating � Themarkets steadied after last week’s fluc-tuations. � Prices steadied on the com-modity markets. � The government’sfigures had a steadying influence on theexchange rate.

state-owned industry 337 steady

steep /sti�p/ adjective referring to anincrease which is very great and usuallysudden or a price which is very high � asteep increase in interest charges � asteep decline in overseas salesstep /step/ noun a movement forward� Becoming assistant to the MD is astep up the promotion ladder. � in stepwith moving at the same rate as � Thepound rose in step with the dollar. � outof step with not moving at the same rateas � The pound was out of step withother European currencies. � Wagesare out of step with the cost of living.sterling /�st%�lŋ/ noun a standard cur-rency used in the United Kingdom � toquote prices in sterling or to quote ster-ling prices

‘…it is doubtful that British goods will pricethemselves back into world markets as long assterling labour costs continue to rise faster thanin competitor countries’ [Sunday Times]

sterling area /�st%�lŋ �eəriə/ nounformerly, an area of the world where thepound sterling was the main tradingcurrencysterling balances /�st%�lŋ�b�lənsz/ plural noun a country’strade balances expressed in poundssterlingsterling crisis /�st%�lŋ �krass/noun a fall in the exchange rate of thepound sterlingsterling index /�st%�lŋ �ndeks/noun an index which shows the currentvalue of sterling against a basket ofcurrenciessterling silver /�st%�lŋ �slvə/ nounan official quality of silver for use in ar-ticles made and sold (it is 92.5% puresilver)stimulate /�stmjυlet/ verb to makesomething or someone become more ac-tive � What can the government do tostimulate the economy? � The aim ofthe subsidies is to stimulate trade withthe Middle East.stimulus /�stmjυləs/ noun a thingwhich encourages activity (NOTE: Theplural is stimuli.)stipulate /�stpjυlet/ verb to statesomething specifically as a binding con-dition in a contract � to stipulate thatthe contract should run for five years �They found it difficult to pay the stipu-lated charges. � The company failed to

pay on the date stipulated in the con-tract. � The contract stipulates that theseller pays the buyer’s legal costs.stipulation /�stpjυ�leʃ(ə)n/ noun acondition in a contract � The contracthas a stipulation that the new managerhas to serve a three-month probationaryperiod.stock /stɒk/ noun 1. the quantity ofgoods for sale in a warehouse or retailoutlet � to buy a shop with stock atvaluation when buying a shop, to pay aprice for the stock which is the same asits value as estimated by the valuer � topurchase stock at valuation to pay theprice that stock has been valued at � totake stock to count the items in a ware-house 2. shares in a company

‘US crude oil stocks fell last week by nearly2.5m barrels’ [Financial Times]‘…the stock rose to over $20 a share, higherthan the $18 bid’ [Fortune]

stockbroker /�stɒkbrəυkə/ noun aperson who buys or sells shares forclientsstockbroker’s commission /stɒk-�brəυkəz kə�mʃ(ə)n/ noun the pay-ment to a broker for a deal carried outon behalf of a clientstockbroking /�stɒkbrəυkŋ/ nounthe business of dealing in shares for cli-ents � a stockbroking firmstock certificate /�stɒk sə�tfkət/noun a document proving that someoneowns stock in a companystock code /�stɒk kəυd/ noun a setof numbers and letters which refer to anitem of stockstock control /�stɒk kən�trəυl/ nounthe process of making sure that the cor-rect level of stock is maintained, to beable to meet demand while keeping thecosts of holding stock to a minimum(NOTE: The US term is inventory con-trol.)stock controller /�stɒk kən�trəυlə/noun a person who notes movements ofstockstock depreciation /�stɒk dpri�ʃi-�eʃ(ə)n/ noun a reduction in value ofstock which is held in a warehouse forsome timestock dividend /�stɒk �dvdend/noun US a dividend in the form of stock(i.e. a bonus issue of shares)

steep 338 stock dividend

Stock Exchange /�stɒk ks-�tʃend$/ noun a place where stocksand shares are bought and sold � Heworks on the Stock Exchange. � Sharesin the company are traded on the StockExchange.

‘…the news was favourably received on theSydney Stock Exchange, where the sharesgained 40 cents to A$9.80’ [Financial Times]

Stock Exchange AutomatedQuotations System /stɒk ks-�tʃend$ �ɔ�təmetd kwəυ�teʃ(ə)nz�sstəm/ noun full form of SEAQ

Stock Exchange Council /�stɒkks�tʃend$ �kaυnsəl/ noun a commit-tee which runs the London InternationalStock Exchange and regulates the wayin which its members workStock Exchange ElectronicTrading System /stɒk ks�tʃend$�elektrɒnk �tredŋ �sstəm/ noun theLondon Stock Exchange’s electronicshare trading system in major shares.Buyers and sellers are automaticallymatched by computer. AbbreviationSets

Stock Exchange listing /�stɒk ks-�tʃend$ �lstŋ/ noun the fact of beingon the official list of shares which canbe bought or sold on the Stock Ex-change � The company is planning toobtain a Stock Exchange listing.Stock Exchange operation /�stɒkks�tʃend$ ɒpə�reʃ(ə)n/ noun buyingor selling of shares on the StockExchangestock figures /�stɒk �f�əz/ pluralnoun details of how many goods are inthe warehouse or storestockholder /�stɒkhəυldə/ noun aperson who holds shares in a companystockholding /�stɒkhəυldŋ/ nounthe shares in a company held bysomeonestock-in-trade /�stɒk n �tred/ noungoods held by a business for salestock jobber /�stɒkd$ɒbə/ noun for-merly, a person who bought and soldshares from other traders on the StockExchangestock jobbing /�stɒkd$ɒbŋ/ nounformerly, the business of buying andselling shares from other traders on theStock Exchange

stock level /�stɒk �lev(ə)l/ noun thequantity of goods kept in stock � We tryto keep stock levels low during thesummer.stock market /�stɒk �mɑ�kt/ noun aplace where shares are bought and sold(i.e. a stock exchange) � stock marketprice or price on the stock marketstock market launch /�stɒk�mɑ�kt lɔ�ntʃ/ noun the occasion whenshares in a new company are first soldon the Stock Exchangestock market manipulation /stɒk�mɑ�kt mə�npjυ�leʃ(ə)n/ noun thepractice of trying to influence the priceof shares by buying or selling in order togive the impression that the shares arewidely tradedstock market manipulator /�stɒk�mɑ�kt mə�npjυletə/ noun a personwho tries to influence the price of sharesin his or her own favourstockmarket rating /�stɒkmɑ�kt�retŋ/ noun the price of a share on thestock market, which shows how inves-tors and financial advisers generallyconsider the value of the companystock market valuation /stɒk�mɑ�kt �v�lju�eʃ(ə)n/ noun a valueof a company based on the current mar-ket price of its sharesstock mutual funds /stɒk�mju�tʃuəl f�ndz/ plural noun mutualfunds where the money is invested incorporate stocks as opposed to bonds orgovernment securitiesstock option /�stɒk �ɒpʃən/ noun aright to buy shares at a cheap pricegiven by a company to its employeesstockout /�stɒkəυt/ noun a situationwhere an item is out of stockstock picker /�stɒk �pkə/ noun aperson whose job is to choose whichshares to buystockpicking /�stɒkpkŋ/ noun thetask of making a choice as to whichshares to buy (NOTE: The counterpart,deciding how much money to spend onshares, is called asset allocation.)

stock-purchasing loans /�stɒk�p%�tʃsŋ ləυnz/ plural noun loansfrom a company to members of staff toallow them to buy shares in thecompany

Stock Exchange 339 stock-purchasing loans

stock quote /�stɒk kwəυt/ noun acurrent price of a share on a stockexchangestocks and shares /�stɒks ən�ʃeəz/ plural noun shares in ordinarycompaniesstocktaking /�stɒktekŋ/,stocktake /�stɒktek/ noun the count-ing of goods in stock at the end of an ac-counting period � The warehouse isclosed for the annual stocktaking.stocktaking sale /�stɒktekŋ sel/noun a sale of goods cheaply to clear awarehouse before stocktakingstock transfer form /�stɒk�tr�nsf%� fɔ�m/ noun a form to besigned by the person transferring sharesstock turn /stɒk �t%�n/, stockturnround /stɒk �t%�nraυnd/, stockturnover /�stɒk �t%�nəυvə/ noun thetotal value of stock sold in a year di-vided by the average value of goods instockstock valuation /�stɒl v�lju-�eʃ(ə)n/ noun an estimation of thevalue of stock at the end of an account-ing periodstop /stɒp/ noun a situation wheresomeone is not supplying or not payingsomething � account on stop an ac-count which is not supplied because ithas not paid its latest invoices � We puttheir account on stop and sued them forthe money they owed. � to put a stop ona cheque to tell the bank not to pay acheque which you have written � verb� to stop an account not to supply anaccount any more on credit because billshave not been paid � to stop paymentsnot to make any further paymentsstop-go /stɒp ��əυ/ noun an eco-nomic policy leading to short periods ofexpansion followed by short periods ofsqueezestop-loss order /stɒp �lɒs �ɔ�də/noun an instruction to a stockbroker tosell a share if the price falls to a certainlevel (NOTE: The US term is stop or-der.)stoppage /�stɒpd$/ noun a sum ofmoney taken regularly from an em-ployee’s wages for insurance, tax, etc.storage capacity /�stɔ�rd$ kə-�p�sti/ noun the space available forstorage

store card /�stɔ� kɑ�d/ noun a creditcard issued by a large department store,which can only be used for purchases inthat storestraddle /�str�d(ə)l/ noun 1. aspread, the difference between bid andoffer price 2. the act of buying a put op-tion and a call option at the same timestraight bonds /�stret bɒndz/ plu-ral noun normal fixed-interest bondswhich can be redeemed at a certain datestraight line depreciation /�stretlan d�priʃi�eʃ(ə)n/ noun depreciationcalculated by dividing the cost of an as-set, less its remaining value, by thenumber of years it is likely to be usedstraight paper /stret �pepə/ nounsame as straight bondsstraights /strets/ plural noun sameas straight bondsStraits Times index /strets �tamz�ndeks/ an index of prices on the Sin-gapore Stock Exchangestrapped /str�pt/ adjective �strapped for cash short of moneystreet /stri�t/ noun a road in a town �Their new address is 25 Broad Street. �the Street US Wall Street (informal.)street directory /�stri�t da-�rekt(ə)ri/ noun a list of people living ina street; a map of a town which lists allthe streets in alphabetical order in anindexstreet name /�stri�t nem/ noun anominee name for holding securitiesstreet price /�stri�t pras/ noun sameas retail pricestrength /streŋθ/ noun the fact of be-ing strong, or being at a high level � theunderlying strength of the market � Thecompany took advantage of the strengthof the demand for mobile phones. � Thestrength of the pound increases the pos-sibility of high interest rates. (NOTE:The opposite is weakness.)strike /strak/ verb � to strike a bar-gain with someone to come to an agree-ment � a deal was struck at £25 a unitwe agreed the price of £25 a unitstrike price /�strak pras/, strikingprice /�strakŋ pras/ noun 1. a priceat which a new issue of shares is offeredfor sale 2. the lowest selling price whenselling a new issue of shares by tender(applicants who tendered at a higher

stock quote 340 strike price

price will get shares; those who ten-dered at a lower price will not)strip /strp/ noun 1. a band of a colour.� magnetic strip 2. US an action ofseparating coupons from a bondstrong /strɒŋ/ adjective with a lot offorce or strength � This Christmas sawa strong demand for mobile phones. �The company needs a strong chairman.

‘…everybody blames the strong dollar for UStrade problems’ [Duns Business Month]‘…in a world of floating exchange rates thedollar is strong because of capital inflows ratherthan weak because of the nation’s trade deficit’[Duns Business Month]

strongbox /�strɒŋbɒks/ noun aheavy metal box which cannot beopened easily, in which valuable docu-ments and money can be keptstrong currency /strɒŋ �k�rənsi/noun a currency which has a high valueagainst other currenciesstrong market /strɒŋ �mɑ�kt/ nouna market where prices are moving upstrong pound /strɒŋ �paυnd/ noun apound which is high against othercurrenciesstrongroom /�strɒŋru�m/ noun aspecial room (in a bank) where valuabledocuments, money and gold can be keptstructural /�str�ktʃ(ə)rəl/ adjectivereferring to a structure � to make struc-tural changes in a companystructural unemployment/�str�ktʃ(ə)rəl ��nm�plɔmənt/ noununemployment caused by the changingstructure of an industry or the economystructure /�str�ktʃə/ noun the way inwhich something is organised � theprice structure in the small car market� the career structure within a corpora-tion � The paper gives a diagram of thecompany’s organisational structure. �The company is reorganising its dis-count structure. � capital structure ofa company way in which a company’scapital is set upstub /st�b/ noun a slip of paper left af-ter writing a cheque, an invoice or a re-ceipt, as a record of the deal which hastaken placestudent loan /�stju�d(ə)nt �ləυn/noun a loan made to a student to helphim or her through university (the loanis repayable later from earnings)

stuffer /�st�fə/ noun advertising mate-rial that is put in an envelope for mailingstyle /stal/ noun a way of doing ormaking something � a new style ofproduct � old-style management tech-niques � Managers are expected to stickto a specific style of investing.sub /s�b/ noun 1. wages paid in ad-vance 2. same as subscription

sub- /s�b/ prefix under or lessimportantsub-account /�s�b ə�kaυnt/ nounone of several separate investment ac-counts on which a variable annuity isbased. � annuity

sub-agency /�s�b �ed$əns/ noun asmall agency which is part of a largeagencysub-agent /�s�b �ed$ənt/ noun aperson who is in charge of a sub-agencysubcontract noun /s�b�kɒntr�kt/a contract between the main contractorfor a whole project and another firmwho will do part of the work � Theyhave been awarded the subcontract forall the electrical work in the new build-ing. � We will put the electrical workout to subcontract. � verb /�s�bkən-�tr�kt/ (of a main contractor.) to agreewith a company that they will do part ofthe work for a project � The electricalwork has been subcontracted to SmithLtd.subcontractor /�s�bkən�tr�ktə/noun a company which has a contract todo work for a main contractorsubject to /�s�bd$kt tu�/ adjective1. depending on � the contract is sub-ject to government approval the con-tract will be valid only if it is approvedby the government � offer subject toavailability the offer is valid only if thegoods are available 2. � these articlesare subject to import tax import taxhas to be paid on these articlessublease noun /�s�bli�s/ a lease froma tenant to another tenant � They signeda sublease for the property. � verb/s�b�li�s/ to lease a leased property fromanother tenant � They subleased a smalloffice in the centre of town.sublessee /s�ble�si�/ noun a personor company that takes a property on asublease

strip 341 sublessee

sublessor /s�ble�sɔ�/ noun a tenantwho leases a leased property to anothertenantsublet /s�b�let/ verb to let a leasedproperty to another tenant � We havesublet part of our office to a financialconsultancy. (NOTE: subletting –sublet)subordinated loan /sə�bɔ�dnətd�ləυn/ noun a loan which ranks after allother borrowings as regards payment ofinterest or repayment of capitalsubscribe /səb�skrab/ verb � tosubscribe for shares, to subscribe to ashare issue to apply for shares in a newcompanysubscriber /səb�skrabə/ noun �subscriber to a share issue a personwho has applied for shares in a newcompanysubscription /səb�skrpʃən/ noun 1.money paid in advance for a series of is-sues of a magazine, for membership of asociety or for access to information on awebsite � Did you remember to pay thesubscription to the computer magazine?� She forgot to renew her club subscrip-tion. 2. � subscription to a new shareissue application to buy shares in a newcompanysubscription list /səb�skrpʃən lst/noun a list of subscribers to a new shareissuesubscription price /səb�skrpʃənpras/ noun a price at which new sharesin an existing company are offered forsalesubsidiary /səb�sdiəri/ adjectivewhich is less important � They agreedto most of the conditions in the contractbut queried one or two subsidiary items.� noun same as subsidiary company� Most of the group profit was contrib-uted by the subsidiaries in the Far East.subsidiary company /səb�sdiəri�k�mp(ə)ni/ noun a company which ismore than 50% owned by a holdingcompany, and where the holding com-pany controls the board of directorssubsidise /�s�bsdaz/, subsidizeverb to help by giving money � Thegovernment has refused to subsidise thecar industry.subsidised accommodation/�s�bsdazd ə�kɒmə�deʃ(ə)n/ noun

cheap accommodation which is partlypaid for by an employer or a localauthoritysubsidy /�s�bsdi/ noun 1. moneygiven to help something which is notprofitable � The industry exists on gov-ernment subsidies. � The governmenthas increased its subsidy to the car in-dustry. 2. money given by a governmentto make something cheaper � the sub-sidy on rail transport (NOTE: The pluralis subsidies.)

substantial /səb�st�nʃəl/ adjectivelarge or importantsubtenancy /s�b�tenənsi/ noun anagreement to sublet a propertysubtenant /s�b�tenənt/ noun a per-son or company to which a property hasbeen subletsubtotal /�s�b�təυt(ə)l/ noun the totalof one section of a complete set of fig-ures � He added all the subtotals tomake a grand total.subtract /səb�tr�kt/ verb to takeaway something from a total � Thecredit note should be subtracted fromthe figure for total sales. � If the profitsfrom the Far Eastern operations aresubtracted, you will see that the grouphas not been profitable in the Europeanmarket.sub-underwriter /�s�b ��ndəratə/noun a company which underwrites anissue, taking shares from the mainunderwriterssubvention /səb�venʃən/ noun sameas subsidy

succeed /sək�si�d/ verb 1. to do well,to be profitable � The company has suc-ceeded best in the overseas markets. �His business has succeeded more thanhe had expected. 2. to do what wasplanned � She succeeded in passing hercomputing test. � They succeeded inputting their rivals out of business.success /sək�ses/ noun 1. an act ofdoing something well � The launch ofthe new model was a great success. �The company has had great success inthe Japanese market. 2. an act of doingwhat was intended � We had no successin trying to sell the lease. � He has beenlooking for a job for six months, but withno success.

sublessor 342 success

suitor /�su�tə/ noun a person or com-pany that wants to buy anothersum1 /s�m/ noun 1. a quantity ofmoney � A sum of money was stolenfrom the human resources office. � Helost large sums on the Stock Exchange.� She received the sum of £5000 incompensation. � the sum insured thelargest amount which an insurer willpay under the terms of an insurance 2.the total of a series of figures added to-gether � The sum of the various subto-tals is £18,752.sum2 /s�m/ noun a unit of currencyused in Uzbekistansums chargeable to the reserve/s�mz �tʃɑ�d$əb(ə)l tə ðə r�z%�v/ plu-ral noun sums which can be debited to acompany’s reservesSunday closing /�s�nde �kləυzŋ/noun the practice of not opening a shopon Sundayssundries /�s�ndriz/ plural noun vari-ous small additional items, often of littlevalue, that are not included under any ofthe main headings in accountssundry /�s�ndri/ adjective varioussunrise industries /�s�nraz�ndəstriz/ plural noun companies inthe fields of electronics and otherhigh-tech areassunset industries /�s�nset�ndəstriz/ plural noun old-style indus-tries which are being replaced by newtechnologysuperannuation /�su�pər�nju-�eʃ(ə)n/ noun a pension paid to some-one who is too old or ill to work anymoresupplementary benefit /�s�pl-�ment(ə)ri �benft/ noun formerly,payments from the government to peo-ple with very low incomes. It was re-placed by Income Support.supplier /sə�plaə/ noun a personor company that supplies or sellsgoods or services � We use the sameoffice equipment supplier for all ourstationery purchases. � They are majorsuppliers of spare parts to the carindustry. Also called producersupply /sə�pla/ noun the act of pro-viding something which is neededsupply and demand /sə�pla ən d-�mɑ�nd/ noun the amount of a product

which is available and the amountwhich is wanted by customersSupply Bill /sə�pla bl/ noun a billfor providing money for governmentrequirementssupply estimates /sə�pla�estməts/ plural noun British govern-ment expenditure which is voted byParliamentsupply price /sə�pla pras/ noun theprice at which something is providedsupply shock /sə�pla ʃɒk/ noun asudden rise in productivity which giveshigher output and profits withoutinflationsupply-side economics /sə�plasad i�kə�nɒmks/ plural noun aneconomic theory that governmentsshould encourage producers and sup-pliers of goods by cutting taxes,rather than encourage demand bymaking more money available in theeconomy (NOTE: takes a singular verb)support /sə�pɔ�t/ noun 1. actions ormoney intended to help someone orsomething � The government has pro-vided support to the car industry. � Wehave no financial support from thebanks. 2. agreement or encouragement� The chairman has the support of thecommittee. � verb 1. to give money tohelp someone or something � The gov-ernment is supporting the car industryto the tune of $2m per annum. � Wehope the banks will support us duringthe expansion period. � to support ashare price to buy shares in order tohelp the price remain at the current levelor even rise 2. to encourage someone, orto agree with someone � She hopes theother members of the committee willsupport her. � The market will not sup-port another price increase.support level /sə�pɔ�t �lev(ə)l/ nouna level below which a share, a commod-ity or the stock market will not fall, be-cause of general support from investorssupport manager /sə�pɔ�t�m�nd$ə/ noun a manager of the backoffice of a securities firmsupport point /sə�pɔ�t pɔnt/ nounsame as support levelsupport price /sə�pɔ�t pras/ noun aprice (in the EU) at which a governmentwill buy agricultural produce to stop theprice falling

suitor 343 support price

surcharge /�s%�tʃɑ�d$/ noun an extrachargesurety /�ʃυərəti/ noun 1. a person whoguarantees that someone will do some-thing � to stand surety for someone 2.deeds, share certificates, etc., depositedas security for a loansurplus /�s%�pləs/ noun 1. more ofsomething than is needed 2. an amountof money remaining after all liabilitieshave been met � to absorb a surplus totake a surplus into a larger amount �adjective more than is needed � Profitfigures are lower than planned becauseof surplus labour. � Some of the ma-chines may have to be sold off as thereis surplus production capacity. � Weare proposing to put our surplus staff onshort time.

‘Both imports and exports reached record levelsin the latest year. This generated a $371 milliontrade surplus in June, the seventh consecutivemonthly surplus and close to marketexpectations’[Dominion (Wellington, New Zealand)]

surrender /sə�rendə/ noun the act ofgiving up of an insurance policy beforethe contracted date for maturity � verb� to surrender a policy to give up aninsurance policy before the date onwhich it maturessurrender charge /sə�rendətʃɑ�d$/, surrender fee /sə�rendə fi�/noun a charge levied when someonewithdraws money invested before thedate allowed (this is to deter earlywithdrawals)surrender value /sə�rendə �v�lju�/noun the money which an insurer willpay if an insurance policy is given upsurtax /�s%�t�ks/ noun an extra tax onhigh incomesurveillance /sə�veləns/ noun acareful watch over people or buildingssurveillance camera /sə�veləns�k�m(ə)rə/ noun a camera which takesphotographs of people in a banksushi bond /�su�ʃi bɒnd/ noun abond issued in a foreign currency by aJapanese corporation. � samurai bond,shogun bondsuspend /sə�spend/ verb to stop do-ing something for a time � We have sus-pended payments while we are waitingfor news from our agent. � Sailingshave been suspended until the weather

gets better. � Work on the constructionproject has been suspended. � The man-agement decided to suspendnegotiations.suspense account /sə�spens ə-�kaυnt/ noun an account into whichpayments are put temporarily when theaccountant cannot be sure where theyshould be enteredsuspension /sə�spenʃən/ noun anact of stopping something for a time �There has been a temporary suspensionof payments. � We are trying to avoid asuspension of deliveries during thestrike.swap /swɒp/ noun an exchange of onething for another � verb to exchangeone thing for another � He swapped hisold car for a new motorcycle.swap arrangement /�swɒp ə-�rend$mənt/ noun an arrangement be-tween central banks to allow each othercredit in their respective currencies so asto make currency transactions easierswaption /�swɒpʃən/ noun an optionto arrange an interest rate swap at sometime in the futuresweetener /�swi�t(ə)nə/ noun an in-centive offered to help persuade some-body to take a particular course ofaction, a bribe (informal.)SWIFT abbreviation Society forWorldwide Interbank FinancialTelecommunicationsSwiss franc /sws �fr�ŋk/ noun aunit of currency used in Switzerland andLiechtenstein (normally considered avery stable currency)switch /swtʃ/ verb to change, espe-cially to change investment money fromone type of investment to anotherSwitch card /�swtʃ kɑ�d/ noun acard linked to the UK Switch networkbut, unlike a credit card, when you payfor goods and services with a Switchcard, the money leaves your accountimmediatelysyndicate noun /�sndkət/ a groupof people or companies working to-gether to make money � a Germanfinance syndicate � verb /�sndket/ toarrange for a large loan to be underwrit-ten by several international banks

‘…over the past few weeks, companies raisingnew loans from international banks have beenforced to pay more, and an unusually high

surcharge 344 syndicate

number of attempts to syndicate loans amongbanks has failed’ [Financial Times]

synergy /�snəd$i/ noun the processof producing greater effects by joiningforces than by acting separately � Thereis considerable synergy between the twocompanies.system /�sstəm/ noun an arrange-ment or organisation of things whichwork together � Our accounting systemhas worked well in spite of the largeincrease in orders. � What system isbeing used for filing data on personnel?

� to operate a quota system to regulatesupplies by fixing quantities which areallowed � We arrange our distributionusing a quota system – each agent isallowed only a specific number of units.systems analysis /�sstəmz ə-�n�ləss/ noun the process of using acomputer to suggest how a company canwork more efficiently by analysing theway in which it works at presentsystems analyst /�sstəmz��nəlst/ noun a person who specialisesin systems analysis

synergy 345 systems analyst

T

tab /t�b/ noun same as tabulator (in-formal.)

table /�teb(ə)l/ noun 1. a diagram orchart 2. a list of figures or facts set outin columns � verb to put items of infor-mation on the table before a meeting �The report of the finance committee wastabled.Table A /�teb(ə)l �e/ noun the modelarticles of association of a limited com-pany set out in the Companies Act, 1985Table B /�teb(ə)l �bi�/ noun themodel memorandum of association of alimited company set out in the Com-panies Act, 1985Table C /�teb(ə)l �si�/ noun the modelmemorandum and articles of associationset out in the Companies Act, 1985 for acompany limited by guarantee, havingno share capitalTable D /�teb(ə)l �di�/ noun themodel memorandum and articles of as-sociation of a public company withshare capital limited by guarantee, setout in the Companies Act, 1985Table E /�teb(ə)l �i�/ noun the modelmemorandum and articles of associationof an unlimited company with sharecapital, set out in the Companies Act,1985table of contents /�teb(ə)l əv�kɒntents/ noun a list of contents in abooktabular /�t�bjυlə/ adjective � in tab-ular form arranged in a tabletabulate /�t�bjυlet/ verb to setsomething out in a tabletabulation /�t�bjυ�leʃ(ə)n/ noun thearrangement of figures in a tabletabulator /�t�bjυletə/ noun a part ofa typewriter or computer which setswords or figures automatically incolumns

tael /tal/ noun a measurement of theweight of gold, used in the Far East (=1.20oz/38g)tail noun US 1. a spread between thebid price and the lowest acceptable priceon US Treasury bills 2. the figureswhich come after the decimal point (inthe quoted price of a bond)taka /�tɑ�kə/ noun a unit of currencyused in Bangladeshtake /tek/ noun 1. the money receivedin a shop � Our weekly take is over£5,000. 2. a profit from any sale � verb1. to receive or to get � the shop takes£2,000 a week the shop receives £2,000a week in cash sales � she takes home£250 a week her salary, after deductionsfor tax etc. is £250 a week 2. to do a cer-tain action � to take action to do some-thing � You must take immediate actionif you want to stop thefts. � to take acall to answer the telephone � to takethe chair to be chairman of a meeting �In the absence of the chairman his dep-uty took the chair. � to take stock tocount the items in a warehouse � to takestock of a situation to examine the stateof things before deciding what to do 3.to need a time or a quantity � It took thefactory six weeks or The factory took sixweeks to clear the backlog of orders. �It will take her all morning to do my let-ters. � It took six men and a crane to getthe computer into the building. (NOTE:taking – took – has taken)take away /�tek ə�we/ verb to re-move one figure from a total � If youtake away the home sales, the total turn-over is down.take down /�tek �daυn/ verb US toreceive a share allotmenttake-home pay /�tek həυm �pe/noun pay received, after tax, etc., hasbeen deducted � After all the deduc-

tions, his take-home pay is only £300 aweek.take off /�tek �ɒf/ verb 1. to removeor to deduct something � He took £25off the price. 2. to start to rise fast �Sales took off after the TV commercials.take out /�tek �aυt/ verb 1. to removesomething � She’s taken all the moneyout of her account. 2. � to take out apatent for an invention to apply forand receive a patent � to take out in-surance against theft to pay a premiumto an insurance company, so that if atheft takes place the company will paycompensation

‘…capital gains are not taxed, but money takenout in profits and dividends is taxed’[Toronto Star]

take-out /�tek aυt/ noun the act of re-moving capital which you had originallyinvested in a new company by sellingyour sharestake over /�tek �əυvə/ verb 1. to startto do something in place of someoneelse � Miss Black took over from MrJones on May 1st. � The buyer takesover the company’s liabilities. 2. � totake over a company to buy a businessby offering to buy most of its shares �The company was taken over by a largemultinational.takeover /�tekəυvə/ noun 1. an actof buying a controlling interest in abusiness by buying more than 50% of itsshares. Compare acquisition 2. the actof starting to do something in place ofsomeone else � the take-over period isalways difficult there are always prob-lems during the period when one personis taking over work from another

‘…many takeovers result in the newmanagers/owners rationalizing the capital of thecompany through better asset management’[Duns Business Month]

takeover bid /�tekəυvə bd/ nounan offer to buy all or a majority of theshares in a company so as to control it �They made a takeover bid for the com-pany. � He had to withdraw his take-over bid when he failed to find anybackers. � Share prices rose sharply onthe disclosure of the takeover bid. � tomake a takeover bid for a company tooffer to buy most of the shares in a com-pany � to withdraw a takeover bid tosay that you no longer offer to buy theshares in a company � the company re-

jected the takeover bid the directorsrecommended that the shareholdersshould not accept the offer � Shareprices rose sharply on the disclosure ofthe takeover bid.takeover target /�tekəυvə �tɑ��t/noun a company which is the object of atakeover bidtakeover timetable /�tekəυvə�tamteb(ə)l/ noun a timetable of thevarious events during a takeover bid

COMMENT: The timetable for a takeoverbid is regulated by the London Stock Ex-change: the formal documents are sentout by the bidding company some daysafter it has announced that it is makingthe bid. From the date of sending out theformal documents, the Stock Exchangeallows the company 60 days in which totry and persuade as many shareholdersas possible to accept the offer. If less than50% accept, then the bidder can extendthe offer, or increase of the offer, or sim-ply let the offer lapse. If another companynow makes a rival offer, it too has 60 daysto try to gain enough acceptances.

take-private /tek �pravət/ noun USan arrangement by which a quoted com-pany leaves the Stock Exchange and be-comes a privately owned investment �The law firm was figuring in six of theseven take-privates last year. � pub-lic-to-private dealtaker /�tekə/ noun a person whowants to buy something � There werevery few takers for the special offer.take up /�tek ��p/ verb � to take upan option to accept an option which hasbeen offered and put into actiontake up rate /�tek �p ret/ noun thepercentage of acceptances for a rightsissuetakings /�tekŋz/ plural noun themoney received in a shop or a business� The week’s takings were stolen fromthe cash desk.tala /�tɑ�lə/ noun a unit of currencyused in Samoatally /�t�li/ noun a note of thingscounted or recorded � to keep a tally ofstock movements or of expenses � verbto agree, to be the same � The invoicesdo not tally. � The accounts departmenttried to make the figures tally.tally clerk /�t�li klɑ�k/ noun a personwhose job is to note quantities of cargo

take off 347 tally clerk

tally sheet /�t�li ʃi�t/ noun a sheet onwhich quantities are notedtangible assets /�t�nd$b(ə)l��sets/, tangible fixed assets/�t�nd$b(ə)l fkst ��sets/, tangibleproperty /�t�nd$b(ə)l �prɒpəti/plural noun assets which have a valueand actually exist (such as buildings,machines, vehicles and fittings)tangible asset value /�t�nd$b(ə)l��set �v�lju�/, tangible net worth/�t�nd$b(ə)l net �w%�θ/ noun thevalue of all the assets of a company lessits intangible assets (goodwill, patents,etc.). It is shown as a value per share.TAO abbreviation taxpayer assistanceordertap /t�p/ noun same as tap stock �verb to get finance by borrowing frominvestors, lenders, etc.taper /�tepə/, tapering relief/�tepərŋ r�li�f/ noun a new system ofreducing capital gains tax payable whenshares are sold, according to the lengthof time the shares have been heldtap stock /�t�p stɒk/ noun a govern-ment stock issued direct to the Bank ofEngland for sale to investors

COMMENT: Government stocks are nor-mally issued in tranches for sale by ten-der, but small amounts are kept as ‘tapstock’ for direct sale to investors; the termis applied to any government stocks soldin this way.

target /�tɑ��t/ noun something to aimfor � performance targets � to be ontarget to be heading towards the targetthat has been set � to set targets to fixamounts or quantities which employeeshave to produce or reach � to meet atarget to produce the quantity of goodsor sales which are expected � to miss atarget not to produce the amount ofgoods or sales which are expected �They missed the target figure of £2mturnover. � verb to aim something atsomeone, or to take someone or some-thing as a target � a campaign that tar-gets the over-50s

‘…he believes that increased competition couldkeep inflation below the 2.5 per cent target’[Investors Chronicle]‘…the minister is persuading the oil, gas,electricity and coal industries to target theiradvertising towards energy efficiency’ [Times]

Target /�tɑ��t/, TARGET noun a sys-tem set up by the European Central

Bank to deal with cross-border pay-ments between member states of theEU. Full form trans-european auto-mated real-time gross settlementexpress transfertarget company /�tɑ��t�k�mp(ə)ni/ noun same as takeovertarget

‘…in a normal leveraged buyout the acquirerraises money by borrowing against the assets ofthe target company’ [Fortune]

target market /�tɑ��t �mɑ�kt/ nounthe market in which a company is plan-ning to sell its goodstarget price /�tɑ��t pras/ noun awholesale price within the EU for cer-tain products, such as wheat, whichmarket management is intended toachieve; it is linked to the interventionprice

COMMENT: Target prices are set in termsof fixed agricultural units of account,which are converted into different nationalcurrencies using adjusted exchange ratesknown as ‘green rates’ (in the UK, the‘green pound’ ). A system of levies onnon-EU agricultural imports is used toprotect target prices when they are setabove the general level of world prices. Inaddition, the EU has established an inter-nal price support system based on a setof intervention prices set slightly belowthe target price. If the level of supply is inexcess of what is needed to clear themarket at the target price, the excess sup-ply is bought by the Community at the in-tervention price, thereby preventingoverproduction from depressing the com-mon price level as would normally happenin a free market.

tariff /�t�rf/ noun a rate of chargingfor something such as electricity, hotelrooms or train ticketstariff barrier /�t�rf �b�riə/ noun thecustoms duty intended to make importsmore difficult � to impose tariff barri-ers on or to lift tariff barriers from aproducttask /tɑ�sk/ verb to give someone atask to dotax /t�ks/ noun an amount of moneycharged by government as part of a per-son’s income or on goods bought � ba-sic tax income tax paid at the normalrate � to lift a tax to remove a tax � Thetax on fuel charges has been lifted. �The tax on company profits has been

tally sheet 348 tax

lifted. � tax deducted at source taxwhich is removed from a salary or inter-est before the money is paid out � verbto make someone pay a tax, to impose atax on something � Businesses aretaxed at 40%. � Income is taxed at 35%.� Luxury items are heavily taxed. � Thegovernment is proposing to tax busi-nesses at 50%.tax abatement /�t�ks ə�betmənt/noun a reduction of taxtaxable /�t�ksəb(ə)l/ adjective whichcan be taxedtaxable income /�t�ksəb(ə)l�nk�m/ noun income on which a per-son has to pay taxtaxable items /�t�ksəb(ə)l �atəmz/plural noun items on which a tax has tobe paidtaxable supply /�t�ksəb(ə)l sə�pla/noun a supply of goods which are sub-ject to VATtax adjustments /�t�ks ə-�d$�stmənts/ plural noun changesmade to taxtax adviser /�t�ks əd�vazə/, taxconsultant /�t�ks kən�s�ltənt/ noun aperson who gives advice on taxproblemstax allowance /�t�ks ə�laυəns/ nouna part of the income which a person isallowed to earn and not pay tax ontax assessment /�t�ks ə�sesmənt/noun a calculation by a tax inspector ofthe amount of tax a person owestaxation /t�k�seʃ(ə)n/ noun the actof taxingtax avoidance /�t�ks ə�vɔd(ə)ns/noun the practice of legally trying topay as little tax as possibletax bill /�t�ks bl/ noun an amount oftax (to be) paidtax bracket /�t�ks �br�kt/ noun asection of people paying a particularlevel of income taxtax break /�t�ks brek/ noun an al-lowance which can be set off against taxtax code /�t�ks kəυd/ noun a numbergiven to indicate the amount of tax al-lowance a person hastax concession /�t�ks kən�seʃ(ə)n/noun an act of allowing less tax to bepaid

tax court /�t�ks kɔ�t/ noun US acourt which deals with disputes betweentaxpayers and the Internal RevenueServicetax credit /�t�ks �kredt/ noun 1. asum of money which can be offsetagainst tax 2. the part of a dividend onwhich the company has already paid tax,so that the shareholder is not taxed on ittax-deductible /�t�ks d�d�ktb(ə)l/adjective which can be deducted froman income before tax is calculated �these expenses are not tax-deductibletax has to be paid on these expensestax deductions /�t�ks d�d�kʃənz/plural noun US 1. money removed froma salary to pay tax 2. business expenseswhich can be claimed against taxtax-deferred /t�ks d�f%�d/ adjectiveUS where the payment of federal in-come tax is put back to a later datetax-deferred retirement plan/t�ks d�f%�d r�taəmənt pl�n/,tax-deferred savings plan /t�ks d-�f%�d �sevŋz pl�n/ noun US a savingsplan into which a person can regularlyput a certain proportion of income, withtax only being payable on retirementtax deposit certificate /t�ks d-�pɒzt sə�tfkət/ noun a certificateshowing that a taxpayer has depositedmoney in advance of a tax payment (themoney earns interest while on deposit)tax-efficient /t�ks �fʃ(ə)nt/ adjec-tive referring to an investment whichhelps avoid taxtax evasion /�t�ks �ve$(ə)n/ nounthe practice of illegally trying not to paytaxtax-exempt /t�ks ��zempt/ adjec-tive 1. referring to a person or organisa-tion not required to pay tax 2. which arenot subject to taxtax exemption /�t�ks ��zempʃən/noun US 1. the fact of being free frompayment of tax 2. the part of incomewhich a person is allowed to earn andnot pay tax ontax-exempt special savings ac-count /t�ks ��zempt �speʃ(ə)l�sevŋz ə�kaυnt/ noun formerly, anaccount into which money can be placedto earn interest free of tax, provided it isleft untouched for five years. Abbrevia-tion TESSA

tax abatement 349 tax-exempt special savings

tax-favoured investment /�t�ks�fevəd n�vestmənt/ noun an invest-ment which offers tax-reducingincentivestax-filing program /�t�ks �falŋ�prəυ�r�m/ noun computer software tohelp draw up your income tax returntax form /�t�ks fɔ�m/ noun a blankform to be filled in with details of in-come and allowances and sent to the taxoffice each yeartax-free /t�ks �fri�/ adjective with notax having to be paid � tax-free goodstax haven /�t�ks �hev(ə)n/ noun acountry or area where taxes are low, en-couraging companies to set up theirmain offices theretax holiday /�t�ks �hɒlde/ noun aperiod when a new business is exemptedfrom paying taxtax inspector /�t�ks n�spektə/noun an official of the Inland Revenuewho examines tax returns and decideshow much tax someone should paytax loophole /�t�ks �lu�phəυl/ nouna legal means of not paying taxtaxpayer /�t�kspeə/ noun a personor company that has to pay tax � basictaxpayer or taxpayer at the basic rate �Corporate taxpayers are being targetedby the government.taxpayer advocate /�t�kspeə��dvəkət/ noun a government officialwhose duty is to adjudicate in caseswhere ordinary taxpayers complain oftreatment by the tax authoritiesTaxpayer Assistance Order/�t�kspeə ə�sst(ə)ns �ɔ�də/ noun acourt order allowing a company torecover debts from a taxpayer’s salarybefore tax is paid � basic taxpayer ortaxpayer at the basic rate AbbreviationTAOtax planning /�t�ks �pl�nŋ/ nounplanning how to avoid paying too muchtax, by investing in, e.g., tax-exemptsavings schemes or offshore truststax relief /�t�ks r�li�f/ noun anallowance to pay less tax on certainparts of someone’s incometax schedules /�t�ks �ʃedju�lz/plural noun a six types of income asclassified for taxtax shelter /�t�ks �ʃeltə/ noun a fi-nancial arrangement (such as a pension

scheme) where investments can bemade without taxtax threshold /�t�ks �θreʃhəυld/noun a point at which another percent-age of tax is payable � The governmenthas raised the minimum tax thresholdfrom £4,000 to £4,500.tax year /�t�ks �jə/ noun a twelvemonth period on which taxes are calcu-lated (in the UK, 6th April to 5th Aprilof the following year)T-bill /�ti� bl/ US same as Treasurybill (informal.)teaser /�ti�zə/, teaser ad /�ti�zər �d/noun an advertisement that gives a littleinformation about a product in order toattract customers by making them curi-ous to know moreteaser rate /�ti�zə ret/ noun a spe-cially good interest rate on a new prod-uct, used to encourage savers to switchfunds to that product. It is replaced by anormal rate when enough subscribershave invested in it.technical /�teknk(ə)l/ adjective 1.referring to a particular machine or pro-cess � The document gives all the tech-nical details on the new computer. 2.referring to influences inside a market(e.g. volumes traded and forecasts basedon market analysis), as opposed to ex-ternal factors, such as oil-price rises,wars, etc.

‘…market analysts described the falls in thesecond half of last week as a technicalcorrection’ [Australian Financial Review]‘…at the end of the day, it was clear the Fed hadnot loosened the monetary reins, and Fed Fundsforged ahead on the back of technical demand’[Financial Times]

technical analysis /�teknk(ə)l ə-�n�ləss/ noun a study of the pricemovements and volumes traded on astock exchangetechnical correction /�teknk(ə)lkə�rekʃ(ə)n/ noun STOCK EXCHANGE asituation where a share price or a cur-rency moves up or down because it waspreviously too low or too hightechnical decline /�teknk(ə)l d-�klan/ noun a fall in share prices be-cause of technical analysistechnology stocks /tek�nɒləd$istɒks/, tech stocks /�tek stɒks/ pluralnoun shares in companies specialisingin electronics, communications, etc.

tax-favoured investment 350 technology stocks

telebanking /�teli�b�ŋkŋ/ nounsame as telephone banking

telegraphic transfer /�tel�r�fk�trɑ�nsfə/ noun a transfer of moneyfrom one account to another bytelegraphtelephone banking /�telfəυn�b�ŋkŋ/ noun a service by which abank customer can carry out transac-tions over the phone using a password.It may involve direct contact with abank representative or may be auto-mated used the phone dial.telephone order /�telfəυn �ɔ�də/noun an order received by telephone �Since we mailed the catalogue we havereceived a large number of telephoneorders.teller /�telə/ noun a person who takescash from or pays cash to customers at abanktem /tem/ � pro tem

tenancy /�tenənsi/ noun an agreementby which a tenant can occupy a propertytenant /�tenənt/ noun a person orcompany which rents a house, flat or of-fice to live or work in � The tenant is li-able for repairs.tender /�tendə/ noun an offer to dosomething for a specific price � a suc-cessful tender � an unsuccessful tender� to put a project out to tender, to askfor or invite tenders for a project toask contractors to give written estimatesfor a job � to put in or submit a tenderto make an estimate for a job � to sellshares by tender to ask people to offerin writing a price for shares � verb � totender for a contract to put forward anestimate of cost for work to be carriedout under contract � to tender for theconstruction of a hospitaltenderer /�tendərə/ noun a person orcompany that tenders for work � Thecompany was the successful tenderer forthe project.tendering /�tendərŋ/ noun the act ofputting forward an estimate of cost � Tobe successful, you must follow the ten-dering procedure as laid out in thedocuments.tender offer /�tendə �ɒfə/ noun amethod of selling new securities orbonds by asking investors to make of-

fers for them, and accepting the highestofferstenge /�teŋ�e/ noun a unit of cur-rency used in Kazakhstantenor /�tenə/ noun a time before a fi-nancial instrument matures or before abill is payableterm /t%�m/ noun 1. a period of timewhen something is legally valid � dur-ing his term of office as chairman � theterm of a lease � We have renewed hercontract for a term of six months. � Theterm of the loan is fifteen years. 2. partof a legal or university yearterm account /�t%�m ə�kaυnt/ nounsame as term depositterm assurance /�t%�m ə�ʃυərəns/noun a life assurance which covers aperson’s life for a period of time (at theend of the period, if the person is stillalive he receives nothing from the insur-ance) � He took out a ten-year terminsurance.term CD /�t%�m si� �di�/ noun a certifi-cate of deposit which matures in morethan twelve monthsterm deposit /�t%�m d�pɒzt/ nounmoney invested for a fixed period at ahigher rate of interestterminal bonus /�t%�mn(ə)l�bəυnəs/ noun a bonus received whenan insurance comes to an endtermination clause /�t%�m-�neʃ(ə)n klɔ�z/ noun a clause whichexplains how and when a contract canbe terminatedterm insurance /�t%�m n�ʃυərəns/noun same as term assuranceterm loan /�t%�m ləυn/ noun a loanfor a fixed period of timeterms /t%�mz/ plural noun the condi-tions or duties which have to be carriedout as part of a contract, or the arrange-ments which have to be agreed before acontract is valid � to negotiate for betterterms � He refused to agree to some ofthe terms of the contract. � By or Underthe terms of the contract, the company isresponsible for all damage to theproperty.

‘…companies have been improvingcommunications, often as part of deals to cutdown demarcation and to give everybody thesame terms of employment’ [Economist]‘…the Federal Reserve Board has eased interestrates in the past year, but they are still at

telebanking 351 terms

historically high levels in real terms’[Sunday Times]

term shares /�t%�m ʃeəz/ plural nouna type of building society deposit for afixed period of time at a higher rate ofinterestterms of payment /�t%�mz əv�pemənt/ plural noun the conditionsfor paying somethingterms of reference /�t%�mz əv�ref(ə)rəns / plural noun areas whicha committee or an inspector can dealwith � Under the terms of reference ofthe committee, it cannot investigatecomplaints from the public. � The com-mittee’s terms of reference do not coverexports.terms of sale /�t%�mz əv �sel/ pluralnoun the conditions attached to a saleterms of trade /�t%�mz əv �tred/plural noun the ratio of a country’s im-port prices to export pricestertiary industry /�t%�ʃəri �ndəstri/noun an industry which does not pro-duce raw materials or manufactureproducts but offers a service such asbanking, retailing or accountancyTESSA abbreviation tax-exempt spe-cial savings accounttest run /�test r�n/ noun a trial madeon a machinethin market /θn �mɑ�kt/ noun amarket where there are not many sharesavailable for sale, so the price is dis-torted (NOTE: The opposite is a liquidmarket.)thin trading /θn �tredŋ/ noun aday’s trading where not many shares areoffered for sale, so few bargains aremade (NOTE: The opposite is a liquidmarket.)third /θ%�d/ noun one part of some-thing which is divided into three � tosell everything at one third off to selleverything at a discount of 33% � thecompany has two thirds of the totalmarket the company has 66% of the to-tal marketThird Market /θ%�d �mɑ�kt/ nounsame as over-the-counter marketthird party /�θ%�d �pɑ�ti/ noun a per-son other than the two main parties in-volved in a contract (i.e. in an insurancecontract, anyone who is not the insur-ance company nor the person who is in-

sured) � the case is in the hands of athird party the case is being dealt withby someone who is not one of the maininterested partiesthird party insurance /�θ%�d pɑ�tin�ʃυərəns/ noun insurance to coverdamage to any person who is not one ofthe people named in the insurance con-tract (that is, not the insured person northe insurance company)third quarter /θ%�d �kwɔ�tə/ noun aperiod of three months from July toSeptemberThird World /�θ%�d �w%�ld/ noun thecountries of Africa, Asia and SouthAmerica which do not all have highlydeveloped industries (dated.) � We selltractors into the Third World or to ThirdWorld countries. � Third World loansare causing problems to banks in themain developed countries.Threadneedle Street /�θredni�d(ə)lstri�t/ noun a street in the City ofLondon where the Bank of England issituated. � Old Lady of ThreadneedleStreet3i abbreviation Investors in Industrythree quarters /θri� �kwɔ�təz/ noun75% � Three quarters of the staff areless than thirty years old.threshold /�θreʃhəυld/ noun thepoint at which something changesthreshold agreement /�θreʃhəυldə��ri�mənt/ noun a contract which saysthat if the cost of living goes up by morethan a certain amount, pay will go up tomatch itthreshold price /�θreʃhəυld pras/noun in the EU, the lowest price atwhich farm produce imported into theEU can be soldthrift /θrft/ noun 1. a careful attitudetowards money, shown by saving itspending wisely 2. US a private localbank, savings and loan association orcredit union, which accepts and pays in-terest on deposits from small investors

‘…the thrift, which had grown from $4.7million in assets in 1980 to 1.5 billion this year,has ended in liquidation’ [Barrons]‘…some thrifts came to grief on speculativeproperty deals, some in the high-risk junk bondmarket, others simply by lending too much totoo many people’ [Times]

thrifty /�θrfti/ adjective careful not tospend too much money

term shares 352 thrifty

tick /tk/ noun 1. credit (informal.) �All the furniture in the house is boughton tick. 2. a mark on paper to show thatsomething is correct or that something isapproved � Put a tick in the box marked‘R’. 3. one step (up or down) in the priceof a government bond or of financial fu-tures � verb to mark with a sign to showthat something is correct � Tick the boxmarked ‘R’ if you require a receipt.(NOTE: The US term is check in thismeaning.)ticker /�tkə/ noun US a machine(operated by telegraph) which printsdetails of share prices and transactionsrapidly (formerly printed on paper tapecalled ‘ticker tape’, but is now shownonline on computer terminals)ticker symbol /�tkə �smb(ə)l/ nounUS a letter used to identify a stock onthe ticker tape system

COMMENT: All securities listed on the USstock exchanges are identified by lettersymbols on ticker tape. So shares inHilton are referred to as HLT, Texaco asTX, Xerox as XRX, etc.

tie /ta/ verb to attach or to link some-thing to something � The interest rate istied to the RPI.tied loan /tad �ləυn/ noun a loanwhich involves a guarantee by the bor-rower to buy supplies from the lendertie in /�ta �n/ verb to link an insurancepolicy to a mortgagetier /tə/ noun a level

COMMENT: The British stock market issaid to have two tiers: the first is the Lon-don Stock Exchange, with its listed securi-ties. The second tier (which is linked tothe first) is the Alternative InvestmentMarket (AIM) which has less strict criteriafor admitting securities, and is often usedas a first stage in obtaining a main StockExchange quotation.

Tier One /�tə �w�n/ noun a first levelof core capital which banks have (cover-ing basic equity capital and disclosed re-serves) to conform to the guidelines ofthe Basle AgreementTier Two /�tə �tu�/ noun a secondlevel of capital which banks have (thisapplies to undisclosed debts, and provi-sions against bad debts) to conform withthe guidelines of the Basle Agreementtie up /�ta ��p/ verb 1. to attach or tofasten something tightly � The parcel is

tied up with string. � The ship was tiedup to the quay. 2. to invest money in oneway, so that it cannot be used for otherinvestments � He has £100,000 tied upin long-dated gilts. � The company has£250,000 tied up in stock which no onewants to buy.

‘…a lot of speculator money is said to be tied upin sterling because of the interest-ratedifferential between US and British rates’[Australian Financial Review]

tie-up /�ta �p/ noun a link or connec-tion � The company has a tie-up with aGerman distributor. (NOTE: The pluralis tie-ups.)tight /tat/ adjective which is con-trolled, which does not allow any move-ment � The manager has a very tightschedule today – he cannot fit in anymore appointments. � Expenses arekept under tight control.

‘…mortgage money is becoming tighter’[Times]‘…a tight monetary policy by the central bankhas pushed up interest rates and drawndiscretionary funds into bank deposits’[Far Eastern Economic Review]‘…the UK economy is at the uncomfortablestage in the cycle where the two years of tightmoney are having the desired effect on demand’[Sunday Times]

tighten /�tat(ə)n/ verb to make some-thing tight, to control something � Theaccounts department is tightening itscontrol over departmental budgets.

‘…the decision by the government to tightenmonetary policy will push the annual inflationrate above the previous high’ [Financial Times]

tighten up on /�tat(ə)n ��p ɒn/ verbto control something more strictly � Thegovernment is tightening up on tax eva-sion. � We must tighten up on the reps’expenses.tight market /tat �mɑ�kt/ noun amarket where there is only a smallspread between bid and offer pricestight money /tat �m�ni/ noun sameas dear moneytight money policy /tat �m�ni�pɒlsi/ noun a government policy to re-strict money supplytill /tl/ noun a drawer for keeping cashin a shoptill float /�tl fləυt/ noun cash put intothe cash box at the beginning of the dayto allow business to start

tick 353 till float

till money /�tl �m�ni/ noun cash heldby bankstime /tam/ noun 1. a period duringwhich something takes place, e.g. onehour, two days or fifty minutes 2. thenumber of hours worked 3. a period be-fore something happens � to keepwithin the time limits or within thetime schedule to complete work by thetime statedtime and a half /�tam ənd ə �hɑ�f/noun the normal rate of pay plus 50%extratime and method study /�tam ən�meθəd �st�di/ noun a process of exam-ining the way in which something isdone to see if a cheaper or quicker waycan be foundtime and motion expert /�tam ən�məυʃ(ə)n �eksp%�t/ noun a personwho analyses time and motion studiesand suggests changes in the way work isdonetime and motion study /�tam ən�məυʃ(ə)n �st�di/ noun a study in anoffice or factory of the time taken to docertain jobs and the movements employ-ees have to make to do themtime bill /�tam bl/ noun a bill of ex-change which is payable at a specifictime after acceptancetime deposit /�tam d�pɒzt/ noun adeposit of money for a fixed period, dur-ing which it cannot be withdrawntime limit /�tam �lmt/ noun themaximum time which can be taken to dosomething � to set a time limit for ac-ceptance of the offer � The work wasfinished within the time limit allowed. �The time limit on applications to the in-dustrial tribunal is three months.time limitation /�tam lm�teʃ(ə)n/noun the restriction of the amount oftime availabletime of peak demand /�tam əvpi�k d�mɑ�nd/ noun the time whensomething is being used mosttime rate /�tam ret/ noun a rate forwork which is calculated as money perhour or per week, and not money forwork completedtimes /tamz/ preposition indicatingthe number of times something is multi-plied by another � shares selling at 10

times earnings shares selling at a P or Eratio of 10timescale /�tamskel/ noun thetime which will be taken to completework � Our timescale is that all workshould be completed by the end ofAugust. � He is working to a stricttimescale.time share /�tam ʃeə/ noun a systemwhere several people each own part of aproperty (such as a holiday flat), eachbeing able to use it for a certain periodeach yeartime-sharing /�tam �ʃeərŋ/ noun 1.same as time share 2. an arrangementfor sharing a computer system, with dif-ferent users using different terminalstimetable /�tamteb(ə)l/ noun a listof appointments or events � The man-ager has a very full timetable, so I doubtif he will be able to see you today. �takeover timetabletin /tn/ noun a valuable metal, for-merly traded on commodity markets atan artificially high international pricemanaged by the International Tin Coun-cil to protect tin producers from swingsin the pricetip /tp/ noun 1. money given to some-one who has helped you � The staff arenot allowed to accept tips. 2. a piece ofadvice on buying or doing somethingwhich could be profitable � The news-paper gave several stock market tips. �She gave me a tip about a share whichwas likely to rise because of a takeoverbid. � verb 1. to give money to some-one who has helped you � He tipped thereceptionist £5. 2. to say that somethingis likely to happen or that somethingmight be profitable � He is tipped to be-come the next chairman. � Two shareswere tipped in the business section ofthe paper. (NOTE: [all verb senses] tip-ping – tipped)

tip sheet /�tp ʃi�t/ noun a newspaperwhich gives information about shareswhich should be bought or soldtitle /�tat(ə)l/ noun a right to own aproperty � She has no title to the prop-erty. � He has a good title to theproperty.title deeds /�tat(ə)l di�dz/ pluralnoun a document showing who is theowner of a property

till money 354 title deeds

TOISA noun an ISA into which thecapital from a matured TESSA can beput. Full form TESSA-only ISAtoken /�təυkən/ noun somethingwhich acts as a sign or symboltoken charge /�təυkən tʃɑ�d$/ nouna small charge which does not cover thereal costs � A token charge is made forheating.token payment /�təυkən �pemənt/noun a small payment to show that apayment is being madetoken rent /�təυkən rent/ noun avery low rent payment to show thatsome rent is being askedtolar /�təυlɑ�/ noun a unit of currencyused in Sloveniatoll /təυl/ noun a payment for using aservice (usually a bridge or a road) �We had to cross a toll bridge to get tothe island. � You have to pay a toll tocross the bridge.toll call /�təυl kɔ�l/ noun US along-distance telephone calltoll free /�təυl �fri�/ adverb, adjectiveUS without having to pay a charge for along-distance telephone call � to callsomeone toll free � a toll-free number

COMMENT: Toll-free numbers usuallystart with the digits 800.

tombstone /�tu�mstəυn/ noun an of-ficial announcement in a newspapershowing that a major loan or a bond is-sue has been subscribed, giving detailsof the banks which have underwritten it(informal.)top /tɒp/ noun the highest point ormost important place � She rose to thetop of her profession. � adjective high-est or most important � to give some-thing top priority to make somethingthe most important item, so that it isdone very fast

‘…the base lending rate, or prime rate, is therate at which banks lend to their top corporateborrowers’ [Wall Street Journal]‘…gross wool receipts for the selling seasonappear likely to top $2 billion’ [AustralianFinancial Review]

top-flight /�tɒp �flat/, top-ranking/�tɒp �r�ŋkŋ/ adjective in the mostimportant position � Top-flight man-agers can earn very high salaries. � Heis the top-ranking official in thedelegation.

top-hat pension /�tɒp h�t �penʃən/noun a special extra pension for seniormanagerstop management /tɒp�m�nd$mənt/ noun the main directorsof a companytop official /tɒp ə�fʃ(ə)l/ noun avery important person in a governmentdepartmenttop-ranking /�tɒp �r�ŋkŋ/ adjectivesame as top-flighttop-slicing /�tɒp �slasŋ/ noun thepractice of selling part of a holding in ashare which is equivalent to the originalcost of the investment, leaving anotherpart still held which represents the gainmadetop up /�tɒp ��p/ verb to add to some-thing to make it more complete � Hetopped up his pension contributions tomake sure he received the maximum al-lowable pension when he retired.tort /tɔ�t/ noun harm done to a personor property which can be the basis of acivil lawsuittotal /�təυt(ə)l/ adjective complete orwith everything added together � Thetotal amount owed is now £1000. � Thecompany has total assets of over £1bn.� The total cost was much more thanexpected. � Total expenditure on pub-licity is twice that of last year. � Our to-tal income from exports rose last year. �the cargo was written off as a totalloss the cargo was so badly damagedthat the insurers said it had no value �total income all income from allsources � noun an amount which iscomplete, with everything added up �The total of the charges comes to morethan £1,000. � verb to add up to � coststotalling more than £25,000 (NOTE: UKEnglish is totalling – totalled, but theUS spelling is totaling – totaled.)Total Index /�təυt(ə)l �ndeks/ nounan index of share prices on the OsloStock Exchangetotal invoice value /�təυt(ə)l�nvɔs �v�lju�/ noun the total amounton an invoice, including transport, VAT,etc.total return /�təυt(ə)l r�t%�n/ nounthe total capital growth and reinvestedincome on an investment at the end ofany given period

TOISA 355 total return

touch /t�tʃ/ noun the narrowestspread between the buy and sell pricesof a sharetour /tυə/ noun a (holiday) journey tovarious places, coming back in the endto the place the journey started from �The group went on a tour of Italy. � Theminister went on a fact-finding tour ofthe region. � to carry out a tour of in-spection to visit various places, such asoffices or factories, to inspect themtout /taυt/ noun a person who sellstickets (to games or shows) for morethan the price printed on them � verb �to tout for custom to try to attractcustomerstrack /tr�k/ verb to follow someone orsomething; to follow how something de-velops, such as one of the stock marketindices � This fund tracks the FootsieIndex.

‘…tracking the stock market is a good way ofproviding for the long term, if you’re preparedto ride the ups and downs’ [Investors Chronicle]

tracker fund /�tr�kə f�nd/ noun afund which tracks (i.e. follows closely)one of the stock market indices, such asthe Footsietracker PEP /�tr�kə pep/ noun aPEP invested in funds which track astock market indextracking /�tr�kŋ/ noun the process offollowing a stock market closelytracking unit trust /�tr�kŋ �ju�nttr�st/ noun a trust which followsclosely one of the stock market indicestrack record /�tr�k �rekɔ�d/ nounthe success or failure of a company orsalesperson in the past � He has a goodtrack record as a secondhand car sales-man. � The company has no track re-cord in the computer market. � We arelooking for someone with a track recordin the computer market.trade /tred/ noun 1. the business ofbuying and selling � adverse balanceof trade situation when a country im-ports more than it exports � The countryhad an adverse balance of trade for thesecond month running. � to do a goodtrade in a range of products to sell alarge number of a range of products 2. aparticular type of business, or people orcompanies dealing in the same type ofproduct � He’s in the secondhand cartrade. � She’s very well known in the

clothing trade. � to ask a company tosupply trade references to ask a com-pany to give names of traders who canreport on the company’s financial situa-tion and reputation � verb to buy andsell, to carry on a business � We tradewith all the countries of the EU. � Hetrades on the Stock Exchange. � Thecompany has stopped trading. � Thecompany trades under the name‘Eeziphitt’.

‘…a sharp setback in foreign trade accountedfor most of the winter slowdown. The tradebalance sank $17 billion’ [Fortune]‘…at its last traded price, the bank wascapitalized around $1.05 billion’ [SouthChina Morning Post]‘…with most of the world’s oil now traded onspot markets, Opec’s official prices are muchless significant than they once were’[Economist]‘…the London Stock Exchange said that thevalue of domestic UK equities traded during theyear was £1.4066 trillion, more than thecapitalization of the entire London market andan increase of 36 per cent compared withprevious year’s total of £1.037 trillion’ [Times]‘…trade between Britain and other countrieswhich comprise the Economic Community hasrisen steadily from 33% of exports to 50% lastyear’ [Sales & Marketing Management]

trade agreement /�tred ə-��ri�mənt/ noun an international agree-ment between countries over generalterms of tradetrade association /�tred əsəυsi-�eʃ(ə)n/ noun a group which links to-gether companies in the same tradetrade barrier /�tred �b�riə/ noun alimitation imposed by a government onthe free exchange of goods betweencountries. Also called import restric-tion (NOTE: NTBs, safety standardsand tariffs are typical trade barriers.)trade bill /�tred bl/ noun a bill of ex-change between two companies who aretrading partners (it is issued by onecompany and endorsed by the other)trade bureau /�tred �bjυərəυ/ nounan office which specialises in commer-cial inquiriestrade commission /�tred kə-�mʃ(ə)n/ noun same as broker’scommissiontrade counter /�tred �kaυntə/ nouna shop in a factory or warehouse wheregoods are sold to retailers

touch 356 trade counter

trade credit /�tred �kredt/ noun acredit offered by one company whentrading with anothertrade creditors /�tred �kredtəz/plural noun companies which are owedmoney by a company (the amount owedto trade creditors is shown in the annualaccounts)trade cycle /�tred �sak(ə)l/ noun aperiod during which trade expands, thenslows down, then expands againtrade deficit /�tred �defst/ nounthe difference in value between a coun-try’s low exports and higher imports.Also called balance of payments def-icit, trade gaptrade description /tred d-�skrpʃən/ noun a description of a prod-uct to attract customersTrade Descriptions Act /�tred d-�skrpʃənz �kt/ noun an act which lim-its the way in which products can be de-scribed so as to protect customers fromwrong descriptions made bymanufacturerstrade directory /�tred da�rekt(ə)ri/noun a book which lists all the busi-nesses and business people in a towntrade discount /tred �dskaυnt/noun a reduction in price given to a cus-tomer in the same tradetraded options /�tredd �ɒpʃənz/plural noun options to buy or sell sharesat a certain price at a certain date in thefuture, which themselves can be boughtor soldtrade fair /�tred feə/ noun a large ex-hibition and meeting for advertising andselling a specific type of product �There are two trade fairs running inLondon at the same time – the carpetmanufacturers’ and the mobiletelephones.trade gap /�tred ��p/ noun same astrade deficittrade in /�tred �n/ verb to give in anold item as part of the payment for anew one � The chairman traded in hisold Rolls Royce for a new model.trade-in /�tred n/ noun an old item,e.g. a car or washing machine, given aspart of the payment for a new one � Shebought a new car and gave her old oneas a trade-in.

trademark /�tredmɑ�k/, trade name/�tred nem/ noun a particular name,design design or symbol which has beenregistered by the manufacturer andwhich cannot be used by other manufac-turers. It is an intangible asset. � Youcan’t call your beds ‘Softn’kumfi’ – it isa registered trademark. � verb to regis-ter something as a trademark � Theytrademarked the name after the familydispute. � You should trademark thedesign.trade mission /�tred �mʃ(ə)n/noun a visit by a group ofbusinesspeople to discuss trade � He leda trade mission to China.trade-off /�tred ɒf/ noun an act of ex-changing one thing for another as part ofa business deal (NOTE: The plural istrade-offs.)trade price /�tred pras/ noun a spe-cial wholesale price paid by a retailer tothe manufacturer or wholesalertrader /�tredə/ noun 1. a person whodoes business 2. a person who buys orsells stocks, shares and optionstrade surplus /tred �s%�pləs/ nounthe difference in value between a coun-try’s high exports and lower imports

‘Brazil’s trade surplus is vulnerable both to aslowdown in the American economy and apick-up in its own’ [Economist]

trade terms /�tred t%�mz/ pluralnoun a special discount for people in thesame tradetrade-weighted index /tred�wetd �ndeks/ noun an index of thevalue of a currency calculated against abasket of currenciestrading /�tredŋ/ noun 1. the businessof buying and selling � adverse tradingconditions bad conditions for trade 2.an area of a broking house where deal-ing in securities is carried out by phone,using monitors to display current pricesand stock exchange transactionstrading account /�tredŋ ə�kaυnt/noun an account of a company’s grossprofittrading area /�tredŋ �eəriə/ noun agroup of countries which trade witheach othertrading company /�tredŋ�k�mp(ə)ni/ noun a company whichspecialises in buying and selling goods

trade credit 357 trading company

trading estate /�tredŋ �stet/noun an area of land near a town spe-cially for building factories andwarehousestrading firm /�tredŋ f%�m/ noun astockbroking housetrading floor /�tredŋ flɔ�/ nounsame as dealing floortrading for the account /�tredŋfə ði� ə�kaυnt/ noun same as accounttradingtrading limit /�tredŋ �lmt/ nounthe maximum amount of somethingwhich can be traded by a single tradertrading loss /�tredŋ lɒs/ noun a sit-uation where a company’s receipts areless than its expendituretrading partner /�tredŋ �pɑ�tnə/noun a company or country whichtrades with anothertrading pattern /�tredŋ �p�t(ə)n/noun a general way in which trade iscarried on � The company’s tradingpattern shows high export sales in thefirst quarter and high home sales in thethird quarter.trading post /�tredŋ pəυst/ noun aposition on the trading floor of the NewYork Stock Exchange, where specialisttraders operatetrading profit /�tredŋ �prɒft/ nouna result where the company’ receipts arehigher than its expendituretrading range /�tredŋ rend$/noun same as historical trading rangetrading screens /�tredŋ skri�nz/plural noun computer monitors listingstock market pricestrading session /�tredŋ �seʃ(ə)n/noun one period (usually a day) duringwhich trading takes place on a stockexchangetrading stamp /�tredŋ st�mp/noun a special stamp given away by ashop, which the customer can collectand exchange later for free goodstrailing spouse /�trelŋ �spaυs/noun US a successful working spouseof someone who works abroad (one ofthe two has to commute at weekends)trainee /tre�ni�/ noun a person who islearning how to do something � We takefive graduates as trainees each year. �Office staff with leadership potential are

selected for courses as trainee manag-ers. � We employ an additional traineeaccountant at peak periods.traineeship /tre�ni�ʃp/ noun a postas a traineetraining /�trenŋ/ noun the process ofbeing taught how to do something �There is a ten-week training period fornew staff. � The shop is closed for stafftraining. � After six months’ training hethought of himself as a professionalsalesman.training levy /�trenŋ �levi/ noun atax to be paid by companies to fund thegovernment’s training schemestraining officer /�trenŋ �ɒfsə/noun a person who deals with the train-ing of staff in a companytraining unit /�trenŋ �ju�nt/ nouna special group of teachers who organisetraining for companiestranche /trɑ�nʃ/ noun one of a seriesof instalments (used when referring toloans to companies, government securi-ties which are issued over a period oftime, or money withdrawn by a countryfrom the IMF) � The second tranche ofinterest on the loan is now due forpayment.tranchette /trɑ�n�ʃet/ noun a smallamount of government stock put ontothe market for sale to investorstransact /tr�n�z�kt/ verb � to trans-act business to carry out a piece ofbusinesstransaction /tr�n�z�kʃən/ noun � atransaction on the Stock Exchange apurchase or sale of shares on the StockExchange � The paper publishes a dailylist of Stock Exchange transactions. �fraudulent transaction a transactionwhich aims to cheat someone

‘…the Japan Financial Intelligence Office willreceive reports on suspected criminaltransactions from financial institutions,determine where a probe should be launchedand provide information to investigators’[Nikkei Weekly]

transfer noun /�tr�nsf%�/ an act ofmoving an employee to another job inthe same organisation � She applied fora transfer to our branch in Scotland. �verb /tr�ns�f%�/ to move someone orsomething to a different place, or tomove someone to another job in thesame organisation � The accountant

trading estate 358 transfer

was transferred to our Scottish branch.� He transferred his shares to a familytrust. � She transferred her money to adeposit account.transferable adjective /tr�ns-�f%�rəb(ə)l/ which can be passed tosomeone else � noun a document suchas a bearer bond which can be passed tosomeone elsetransfer of property /�tr�nsf%� əv�prɒpəti/, transfer of shares/�tr�nsf%� əv �ʃeəz/ noun the act ofmoving the ownership of property orshares from one person to anothertransferred charge call /tr�ns-�f%�d �tʃɑ�d$ kɔ�l/ noun a phone callwhere the person receiving the callagrees to pay for ittransfer value /�tr�nsf%� �v�lju�/noun the value of a pension when it ismoved from one scheme to anothertransit /�tr�nst/ noun the movementof passengers or goods on the way to adestination � Some of the goods weredamaged in transit.transit letter /�tr�nst �letə/ noun aletter sent with cheques or drafts, listingwhat is being senttranslate /tr�ns�let/ verb to changesomething into another formtransnational /tr�nz�n�ʃ(ə)nəl/noun same as multinational

transparency /tr�ns�p�rənsi/ nounthe fact of being clear about making de-cisions and being open to the publicabout how decisions are reachedtraveller’s cheques /�tr�v(ə)ləztʃeks/ plural noun cheques bought by atraveller which can be cashed in a for-eign countrytravelling expenses /�tr�v(ə)lŋek�spensz/ plural noun money spenton travelling and hotels for businesspurposestravel organisation /�tr�v(ə)lɔ��əna�zeʃ(ə)n/ noun a body repre-senting companies in the travel businesstreasurer /�tre$ərə/ noun 1. a personwho looks after the money or financesof a club or society, etc. 2. US the mainfinancial officer of a company 3. (inAustralia) the finance minister in thegovernment

treasurer’s account /�tre$ərəz ə-�kaυnt/ noun an account of a club or so-ciety with a bankTreasuries /�tre$əriz/ plural nounUS treasury bonds and bills (informal.)

Treasury /�tre$əri/ noun 1. a govern-ment department which deals with thecountry’s finance (NOTE: The term isused in both the UK and the US; inmost other countries this department iscalled the Ministry of Finance.) 2. USsame as Treasury billTreasury bill /�tre$əri bl/ noun ashort-term financial instrument whichdoes not give any interest and is sold bythe government at a discount throughthe central bank (in the UK, their termvaries from three to six months; in theUSA, they are for 91 or 182 days, or for52 weeks) (NOTE: In the USA, they arealso called Treasuries or T-bills.)

Treasury bond /�tre$əri bɒnd/ nouna long-term bond issued by the Britishor US governmentTreasury note /�tre$əri nəυt/ nouna medium-term bond issued by the USgovernmentTreasury Secretary /�tre$əri�sekrət(ə)ri/ noun US the member ofthe US government in charge of finance(NOTE: The equivalent of the FinanceMinister in most countries, or of theChancellor of the Exchequer in theUK.)

Treasury stocks /�tre$əri stɒkz/plural noun stocks issued by the Britishgovernment. Also called Exchequerstockstreble /�treb(ə)l/ verb to increase threetimes, or to make something three timeslarger � The company’s borrowingshave trebled. � The acquisition of thechain of stores has trebled the group’sturnover. � adverb three times � Ourborrowings are treble what they werelast year.trend /trend/ noun a general way inwhich things are developing � a down-ward trend in investment � There is atrend away from old-established foodstores. � The report points to inflation-ary trends in the economy. � We noticea general trend towards selling to thestudent market. � We have noticed anupward trend in sales.

transferable 359 trend

‘…the quality of building design and ease ofaccessibility will become increasinglyimportant, adding to the trend towardsout-of-town office development’ [Lloyd’s List]

trend line /�trend lan/ noun a line ona graph or chart which shows whichway a trend is goingtrial /�traəl/ noun 1. a court case tojudge a person accused of a crime � Heis on trial or is standing trial for embez-zlement. 2. a test to see if something isgood � verb to test a product to see howgood it is (NOTE: trialling – trialled)trial balance /�traəl �b�ləns/ nounthe draft calculation of debits and cred-its to see if they balancetribunal /tra�bju�n(ə)l/ noun an offi-cial court which examines special prob-lems and makes judgementstrigger /�tr�ə/ noun a thing whichstarts a process � verb to start a process

‘…the recovery is led by significant declines inshort-term interest rates, which are forecast to beroughly 250 basis points below their previouspeak. This should trigger a rebound in thehousing markets and consumer spending ondurables’ [Toronto Globe & Mail]

trigger point /�tr�ə pɔnt/ noun apoint in acquiring shares in a companywhere the purchaser has to declare aninterest or to take certain action

COMMENT: If an individual or a companybuys 5% of a company’s shares, thisshareholding must be declared to thecompany. If 15% is acquired it is assumedthat a takeover bid will be made, and nomore shares can be acquired for sevendays to give the target company time torespond. There is no obligation to make abid at this stage, but if the holding is in-creased to 30%, then a takeover bid mustbe made for the remaining 70%. If 90% ofshares are owned, then the owner canpurchase all outstanding shares compul-sorily. These trigger points are often notcrossed, and it is common to see that acompany has acquired 14.9% or 29.9% ofanother company’s shares.

trillion /�trljən/ noun one million mil-lions (NOTE: In the UK, trillion now hasthe same meaning as in the USA; for-merly in UK English it meant one mil-lion million millions, and it is stillsometimes used with this meaning;see also the note at billion.)

‘…if land is assessed at roughly half its currentmarket value, the new tax could yield up to ¥10

trillion annually’ [Far Eastern EconomicReview]‘…behind the decline was a 6.1% fall in exportsto ¥47.55 trillion, the second year of falls.Automobiles and steel were among categoriesshowing particularly conspicuous drops’[Nikkei Weekly]‘…the London Stock Exchange said that thevalue of domestic UK equities traded during theyear was £1.4066 trillion, more than thecapitalization of the entire London market andan increase of 36 per cent compared withprevious year’s total of £1.037 trillion’ [Times]

triple /�trp(ə)l/ verb to become threetimes larger, or to multiply somethingthree times � The company’s debts tri-pled in twelve months. � The acquisitionof the chain of stores has tripled thegroup’s turnover. � adjective threetimes as much � The cost ofairfreighting the goods is triple theirmanufacturing cost.triple A rated /�trp(ə)l �e �retd/adjective referring to a bond or corpora-tion which has the highest credit ratingaccording to Standard & Poor’s orMoody’s (so called, because the ratingis ‘AAA’)triple witching hour /�trp(ə)l�wtʃŋ aυə/ noun a day when threemajor types of futures contract fall dueat the same time

COMMENT: In the USA, this is the lasthour of trading on the third Friday of themonths of March, June, September andDecember, when futures contracts on theStock Exchange Index, options on thesefutures contracts, and ordinary stock op-tion contracts all fall due; in the UK, it is aday when euro-options, Footsie optionsand Footsie futures contracts all expire atthe same time. It is normally a day whenstock market prices show greater volatilitythan usual.

triplicate /�trplkət/ noun � in tripli-cate with an original and two copies �The invoices are printed in triplicate. �The application form should be com-pleted in triplicate. � invoicing in trip-licate the preparing of three copies ofinvoicestrophy hunter /�trəυfi �h�ntə/ nounan investor who looks for cheap sharestroubled /�tr�b(ə)ld/ adjective in adifficult financial positiontroubleshooter /�tr�b(ə)lʃu�tə/noun a person whose job is to solveproblems in a company � They brought

trend line 360 troubleshooter

in a troubleshooter to try to sort out themanagement problems.trough /trɒf/ noun a low point in theeconomic cycletroy ounce /trɔ �aυns/ noun a mea-surement of weight (= 31.10 grammes)(NOTE: In writing, often shortened totroy oz. after figures: 25.2 troy oz.)troy weight /trɔ �wet/ noun a sys-tem of measurement of weight used forgold and other metals, such as silver andplatinum

COMMENT: Troy weight is divided intograins, pennyweights (24 grains = 1 pen-nyweight), ounces (20 pennyweights = 1ounce) and pounds (12 troy ounces = 1pound). Troy weights are slightly less thantheir avoirdupois equivalents; the troypound equals 0.37kg or 0.82lb avoirdu-pois; see also avoirdupoids.

true /tru�/ adjective correct or accuratetrue and fair view /�tru� ən feə�vju�/ noun a correct statement of acompany’s financial position as shownin its accounts and confirmed by theauditorstrue copy /tru� �kɒpi/ noun an exactcopy � I certify that this is a true copy.� It is certified as a true copy.truncate /tr�ŋ�ket/ verb to operate asimplified banking system by not re-turning physical cheques to the payingbanktruncation /tr�ŋ�keʃ(ə)n/ noun asimplified banking system, where actualcheques are not sent to the paying bank,but held in the receiving bank which no-tifies the paying bank by computer ofthe details of cheques receivedtrust /tr�st/ noun 1. the fact of beingconfident that something is correct orwill work � we took his statement ontrust we accepted his statement withoutexamining it to see if it was correct 2. alegal arrangement to pass goods, moneyor valuables to someone who will lookafter them well � He left his property intrust for his grandchildren. 3. the man-agement of money or property for some-one � They set up a family trust for theirgrandchildren. 4. US a small group ofcompanies which control the supply of aproduct � verb � to trust someonewith something to give something tosomeone to look after � Can he betrusted with all that cash?

trustbusting /�tr�stb�stŋ/ noun USthe breaking up of monopolies to en-courage competitiontrust company /�tr�st �k�mp(ə)ni/noun US an organisation which super-vises the financial affairs of privatetrusts, executes wills, and acts as a bankto a limited number of customerstrust deed /�tr�st di�d/ noun a docu-ment which sets out the details of a pri-vate trusttrustee /tr��sti�/ noun a person whohas charge of money in trust � the trust-ees of the pension fundtrust fund /�tr�st f�nd/ noun assets(money, securities, property) held intrust for someoneTruth in Lending Act /�tru�θ n�lendŋ �kt/ noun a US Act of 1969,which forces lenders to state the fullterms of their interest rates to borrowerstugrik /�tu��rk/ noun a unit of cur-rency used in the Mongolian Republictune /tju�n/ noun � the bank is back-ing him to the tune of £10,000 the bankis helping him with a loan of £10,000turkey /�t%�ki/ noun a bad investment,an investment which has turned out tobe worthless (informal.)turn /t%�n/ noun 1. a movement in acircle, or a change of direction 2. aprofit or commission � He makes a turnon everything he sells.turnaround /�t%�nəraυnd/ noun es-pecially US same as turnroundturn down /�t%�n �daυn/ verb to re-fuse something � The board turneddown the proposal. � The bank turneddown their request for a loan. � The ap-plication for a licence was turned down.� He turned down the job he wasoffered.turnkey operation /�t%�nki� ɒpə-�reʃ(ə)n/ noun a deal where a companytakes all responsibility for constructing,fitting and staffing a building (such as aschool, hospital or factory) so that it iscompletely ready for the purchaser totake overturn over /�t%�n �əυvə/ verb 1. tohave a specific amount of sales � Weturn over £2,000 a week. 2. US to passsomething to someone � She turnedover the documents to the lawyer.

trough 361 turn over

(NOTE: In this meaning, the usual UKterm is hand over.)

‘…a 100,000 square foot warehouse can turn itsinventory over 18 times a year, more than triplea discounter’s turnover’ [Duns Business Month]‘…he is turning over his CEO title to one of histeammates, but will remain chairman for a year’[Duns Business Month]

turnover /�t%�nəυvə/ noun 1. theamount of sales of goods or services bya company � The company’s turnoverhas increased by 235%. � We based ourcalculations on the forecast turnover.(NOTE: The US term is sales volume.)2. the number of times something isused or sold in a period, usually oneyear, expressed as a percentage of a totalturnover of shares /�t%�nəυvə əv�ʃeəz/ noun the total value of sharesbought and sold on the Stock Exchangeduring the yearturnover tax /�t%�nəυvə t�ks/ nounsame as sales taxturn round /�t%�n �raυnd/ verb tomake a company change from making aloss to become profitable � they turnedthe company round in less than a yearthey made the company profitable inless than a yearturnround /�t%�nraυnd/ noun 1. thevalue of goods sold during a year di-vided by the average value of goodsheld in stock 2. the action of emptying aship, plane, etc., and getting it ready foranother commercial journey 3. the act ofmaking a company profitable again(NOTE: [all senses] The US term isturnaround.)

‘…the US now accounts for more than half ourworld-wide sales; it has made a huge

contribution to our earnings turnround’[Duns Business Month]

twenty-four-hour trading /�twentifɔ� aυə �tredŋ/ noun trading in bonds,currencies or securities that can takeplace at any time of day or night (NOTE:Twenty-four-hour trading does not in-volve one trading floor being open allthe time, but instead refers to the pos-sibility of conducting operations at dif-ferent locations in different timezones.)24-hour banking /�twentifɔ�r aυə�b�ŋkiŋ/ noun a banking service pro-vided during the whole day (e.g. by cashdispensers in the street and onlineservices)24-hour service /�twenti fɔ�r aυə�s%�vs/ noun help which is availablefor the whole day24-hour trading /�twenti fɔ�r aυə�tredŋ/ trading in bonds, securitiesand currencies during the whole day

COMMENT: 24-hour trading is now possi-ble because of instant communication toStock Exchanges in different time zones;the Tokyo Stock Exchange closes abouttwo hours before the London Stock Ex-change opens; the New York Stock Ex-change opens at the same time as theLondon one closes.

two-tier market /�tu� tə �mɑ�kt/noun an exchange market where tworates apply (usually one for tourists anda commercial rate for businesses)two-way market /�tu� we �mɑ�kt/noun a market where there is activebuying and sellingtycoon /ta�ku�n/ noun an importantbusinessman

turnover 362 tycoon

U

UBR abbreviation uniform businessrateultimatum /��lt�metəm/ noun astatement to someone that unlessthey do something within a period oftime, action will be taken againstthem � The union officials arguedamong themselves over the best wayto deal with the ultimatum from themanagement. � The banks issued anultimatum to their largest borrowers.(NOTE: The plural is ultimatums orultimata.)

umbrella organisation /�m�brelə�ɔ��ənazeʃ(ə)n/ noun a large organi-sation which includes several smalleronesunacceptable /��nək�septəb(ə)l/adjective which cannot be accepted �The terms of the contract are quiteunacceptable.unaccounted for /��nə�kaυntd fɔ�/adjective lost without any explanation� Several thousand units are unac-counted for in the stocktaking.unanimous /ju��n�nməs/ adjectivewhere everyone agrees or votes inthe same way � There was aunanimous vote against the proposal.� They reached unanimous agreement.unanimously /ju��n�mməsli/ ad-verb with everyone agreeing � The pro-posals were adopted unanimously.unaudited /�n�ɔ�dtd/ adjectivewhich has not been audited � unauditedaccountsunauthorised /�n�ɔ�θərazd/,unauthorized adjective not permitted� unauthorised access to the company’srecords � unauthorised expenditure� No unauthorised persons are allowedinto the laboratory. � The bankcharges 26.8% interest on unauthorisedoverdrafts.

unauthorised unit trust /�n-�ɔ�θərazd �ju�nt tr�st/ noun a privateunit trust operated by a stockbrokingfirm for its clientsunbalanced /�n�b�lənst/ adjectivereferring to a budget which does not bal-ance or which is in deficitunbanked /�n�b�ŋkt/ adjective 1.referring to a person who does not havea bank account 2. referring to a chequewhich has not been deposited in a bankaccountunbundling /�n�b�nd(ə)lŋ/ noun 1.the process of separating companiesfrom a conglomerate (the companieswere independent in the past, and havebeen acquired by the conglomerate overa period of time) 2. US the practice ofcharging separately for each differentservice provideduncalled /�n�kɔ�ld/ adjective refer-ring to capital which a company isauthorised to raise and has been issuedbut for which payment has not yet beenrequesteduncashed /�n�k�ʃt/ adjective whichhas not been cashed � uncashedchequesunchanged /�n�tʃend$d/ adjectivewhich has not changed

‘…the dividend is unchanged at L90 perordinary share’ [Financial Times]

unchecked /�n�tʃekt/ adjectivewhich has not been checked � un-checked figuresuncollected /��nkə�lektd/ adjectivewhich has not been collected � uncol-lected subscriptions � uncollected taxesuncollected funds /��nkəlektd�f�ndz/ plural noun deposits whichhave not yet cleared through the clear-ing system and so cannot be drawn onunconditional /��nkən�dʃ(ə)nəl/adjective with no conditions or provi-

sions attached � unconditional accep-tance of the offer by the board � Afterthe interview he got an unconditionaloffer of a job. � the offer went uncon-ditional last Thursday the takeover bidwas accepted by the majority of theshareholders and therefore the condi-tions attached to it no longer apply

COMMENT: A takeover bid will becomeunconditional if more than 50% of share-holders accept it.

unconditionally /��nkən-�dʃ(ə)n(ə)li/ adverb without imposingany conditions � The offer was acceptedunconditionally by the trade union.uncontrollable /��nkən�trəυləb(ə)l/adjective which cannot be controlled �uncontrollable inflationuncovered bear /��nk�vəd �beə/noun a person who sells stock which hedoes not hold, hoping to be able to buystock later at a lower price when heneeds to settleuncrossed cheque /��nkrɒst�tʃek/ noun a cheque which does nothave two lines across it, and can becashed anywhere (NOTE: They are nolonger used in the UK, but are stillfound in other countries.)undated /�n�detd/ adjective with nodate indicated or written � He tried tocash an undated cheque.

COMMENT: The only British governmentstocks which are undated are the WarLoan.

undated bond /�n�detd �bɒnd/noun a bond with no maturity dateunder /��ndə/ preposition 1. lowerthan or less than � The interest rate isunder 10%. � Under half of the share-holders accepted the offer. 2. controlledby, according to � Under the terms ofthe agreement, the goods should be de-livered in October. � He is acting underrule 23 of the union constitution.under- /�ndə/ prefix less importantthan or lower thanunderbid /��ndə�bd/ verb to bid lessthan someone (NOTE: underbidding –underbid)underbidder /��ndəbdə/ noun a per-son who bids less than the person whobuys at an auctionundercapitalised /��ndə-�k�ptəlazd/, undercapitalized ad-

jective without enough capital � Thecompany is severely undercapitalised.undercharge /��ndə�tʃɑ�d$/ verb toask someone for too little money � Sheundercharged us by £25.undercut /��ndə�k�t/ verb to offersomething at a lower price than some-one else � They increased their marketshare by undercutting their competitors.(NOTE: undercutting- undercut)underemployed /��ndərm�plɔd/adjective with not enough work � Thestaff is underemployed because of thecutback in production.underemployed capital/��ndərmplɔd �k�pt(ə)l/ noun capi-tal which is not producing enoughinterestunderestimate noun /��ndər-�estmət/ an estimate which is less thanthe actual figure � The figure of £50,000in turnover was a considerable underes-timate. � verb /��ndər�estmet/ tothink that something is smaller or not asbad as it really is � They underestimatedthe effects of the strike on their sales. �He underestimated the amount of timeneeded to finish the work.underlease /��ndəli�s/ noun a leasefrom a tenant to another tenantunderlying inflation rate/��ndəlaŋ n�fleʃ(ə)n ret/ noun thebasic inflation rate calculated on a seriesof prices of consumer items, petrol, gasand electricity and interest rates. Com-pare headline inflation rateunderlying value /��ndəlaŋ�v�lju�/ noun the basic value of a com-pany, including its assets, goodwill, etc.undermentioned /��ndə-�menʃ(ə)nd/ adjective mentioned lowerdown in a document � See the under-mentioned list of countries to whichthese terms apply.underperform /��ndəpə�fɔ�m/ verb� to underperform the market to per-form worse than the rest of the market �The hotel group has underperformed thesector this year.underperformance /��ndəpə-�fɔ�məns/ noun the fact of performingworse than others � Theunderperformance of the shares hasworried investors.

‘Australia has been declining again. Because ithas had such a long period of underperfomance,

unconditionally 364 underperformance

it is now not as vulnerable as other markets’[Money Observer]

underrate /��ndə�ret/ verb to valuesomeone or something less highly thanthey should be � Do not underrate thestrength of the competition in the Euro-pean market. � The power of the yen isunderrated.underreact /��ndəri��kt/ verb not toreact strongly enough to a situation �The markets underreacted to the oilcrisis.undersell /��ndə�sel/ verb to sellmore cheaply than someone � to under-sell a competitor � the company isnever undersold no other companysells goods as cheaply as this oneundersigned /��ndə�sand/ noun aperson who has signed a letter � we, theundersigned we, the people who havesigned belowunderspend /��ndə�spend/ verb tospend less than you should have spent orwere allowed to spend � he hasunderspent his budget he has spentless than was allowed in the budgetunderstanding /��ndə�st�ndŋ/noun a private agreement � to come toan understanding about the divisions ofthe marketunderstate /��ndə�stet/ verb tomake something seem less than it reallyis � The company accounts understatethe real profit.undersubscribed /��ndəs�b-�skrabd/ adjective referring to a shareissue where applications are not madefor all the shares on offer, and part of theissue remains with the underwritersundertake /��ndə�tek/ verb to agreeto do something � They are undertaki �We asked the research unit to undertakean investigation of the market. � Theyhave undertaken not to sell into our ter-ritory. � The union has undertaken notto call a strike without further negotia-tion with the management. (NOTE: un-dertaking – undertook –undertaken)undertaking /��ndə�tekŋ/ noun 1.a business � He is the MD of a largecommercial undertaking. 2. a promise,especially a legally binding one � Theyhave given us a written undertaking notto sell their products in competition withours.

undervaluation /��ndəv�ljυ-�eʃ(ə)n/ noun the state of being valued,or the act of valuing something, at lessthan the true worthundervalued /��ndə�v�lju�d/adjective not valued highly enough �The dollar is undervalued on the for-eign exchanges. � The properties areundervalued on the company’s balancesheet.

‘…in terms of purchasing power, the dollar isconsiderably undervalued, while the US tradedeficit is declining month by month’[Financial Weekly]

underwater /��ndə�wɔ�tə/ adjectivewhich has lost valueunderwater loan /��ndə�wɔ�tələυn/ noun a loan which is worth lessthan its book value, as when an itembought with a loan loses its value on themarketunderwater option /��ndə�wɔ�tə�ɒpʃən/ noun an option which has novalueunderweight /��ndə�wet/ adjectivenot heavy enough � the pack is twentygrams underweight the pack weighstwenty grams less than it shouldunderwrite /��ndə�rat/ verb 1. to ac-cept responsibility for something � tounderwrite a share issue to guaranteethat a share issue will be sold by agree-ing to buy all shares which are not sub-scribed � The issue was underwritten bythree underwriting companies. 2. to in-sure, to cover a risk � to underwrite aninsurance policy 3. to agree to pay forcosts � The government has underwrit-ten the development costs of the project.(NOTE: underwriting – underwrote –has underwritten)

‘…under the new program, mortgage brokersare allowed to underwrite mortgages and get amuch higher fee’ [Forbes Magazine]

underwriter /��ndəratə/ noun a per-son or company that underwrites a shareissue or an insurance

COMMENT: When a major company flota-tion or share issue or loan is prepared, agroup of companies (such as merchantbanks) will form a syndicate to underwritethe flotation: the syndicate will be orga-nized by the ‘lead underwriter’, togetherwith a group of main underwriters; thesein turn will ask others (‘sub-underwriters’)to share in the underwriting.

underrate 365 underwriter

underwriting /��ndəratŋ/ noun theaction of guaranteeing to purchaseshares in a new issue if no one pur-chases themunderwriting fee /��ndəratŋ fi�/noun a fee paid by a company to the un-derwriters for guaranteeing the purchaseof new shares in that companyunderwriting syndicate/��ndəratŋ �sndkət/ noun a groupof underwriters who insure a large riskundischarged bankrupt/��ndstʃɑ�d$d �b�ŋkr�pt/ noun aperson who has been declared bankruptand has not been released from that stateundistributed profit/��ndstrbju�td �prɒft/ noun a profitwhich has not been distributed as divi-dends to shareholdersunearned income /��n%�nd �nk�m/noun same as investment incomeuneconomic /��ni�kə�nɒmk/adjective which does not make a com-mercial profit � it is an uneconomicproposition it will not be commerciallyprofitableuneconomic rent /��ni�kənɒmk�rent/ noun a rent which is not enoughto cover costsunemployed /��nm�plɔd/ adjectivenot having any paid work � noun � theunemployed the people without anyjobsunemployment /��nm�plɔmənt/noun the state of not having any work

‘…tax advantages directed toward smallbusinesses will help create jobs and reduce theunemployment rate’ [Toronto Star]

unemployment benefit /��nm-�plɔmənt �benft/ noun a paymentfrom the government made to someonewho is unemployed (NOTE: The USterm is unemployment compensa-tion.)

unemployment pay /��nm-�plɔmənt pe/ noun money given bythe government to someone who isunemployedunemployment rate /��nm-�plɔmənt ret/ noun the number ofpeople out of work, shown as a percent-age of the total number of people avail-able for work. Also called rate ofunemployment

unencumbered /��nn�k�mbəd/ ad-jective referring to property which is notmortgagedunfair competition /��nfeə�kɒmpə�tʃ(ə)n/ noun the practiceof trying to do better than anothercompany by using techniques such asimporting foreign goods at very lowprices or by wrongly criticising a com-petitor’s productsunfavourable /�n�fev(ə)rəb(ə)l/adjective not favourable (NOTE: The USspelling is unfavorable.) � unfavour-able balance of trade a situation wherea country imports more than it exports �unfavourable exchange rate an ex-change rate which gives an amount offoreign currency for the home currencywhich is not good for trade � The unfa-vourable exchange rate hit the country’sexports.unfulfilled orders /��nfυlfld�ɔ�dəz/ plural noun orders received inthe past and not yet suppliedungeared /�n��əd/ adjective with noborrowingsuniform business rate /�ju�nfɔ�m�bzns ret/ noun a tax levied on busi-ness property which is the same percent-age for the whole country. AbbreviationUBRunincorporated /��nn�kɔ�pəretd/adjective referring to a business whichhas not been made into a company (i.e.which is operating as a partnership or asole trader)unissued capital /�n�ʃu�d �k�ptl/noun capital which a company isauthorised to issue but has not issued assharesunit /�ju�nt/ noun 1. a single productfor sale 2. a single share in a unit trustunitary regulator /�ju�nt(ə)ri�re�jυletə/ noun a single regulator,where before there were severalUnitas index an index of prices onthe Helsinki Stock Exchangeunit cost /�ju�nt kɒst/ noun the costof one item, i.e. the total product costsdivided by the number of units producedUnited Nations /ju��natd�neʃ(ə)nz/ noun an organisation whichlinks almost all the countries of theworld to promote good relations be-tween them

underwriting 366 United Nations

unitise /�ju�ntaz/, unitize verb toform investments into units which aresold to the publicunit-linked insurance /�ju�ntlŋkd n�ʃυərəns/ noun an insurancepolicy which is linked to the security ofunits in a unit trust or fundunit of account /�ju�nt əv ə�kaυnt/noun a standard unit used in financialtransactions among members of a group,such as SDRs in the IMFunit price /�ju�nt pras/ noun theprice of one itemunit trust /�ju�nt tr�st/ noun an or-ganisation which takes money fromsmall investors and invests it in stocksand shares for them under a trust deed,the investment being in the form ofshares (or units) in the trust (NOTE: TheUS term is mutual fund.)

COMMENT: Unit trusts have to be author-ised by the Department of Trade and In-dustry before they can offer units for saleto the public, although unauthorised pri-vate unit trusts exist.

unlawful /�n�lɔ�f(ə)l/ adjectiveagainst the law, not legalunlimited /�n�lmtd/ adjective withno limits � The bank offered him unlim-ited credit.unlimited liability /�n�lmtd �laə-�blti/ noun a situation where a soletrader or each partner is responsible forall a firm’s debts with no limit on theamount each may have to payunlisted company /�n�lstd�k�mp(ə)ni/ noun a company whoseshares are not listed on the stockexchangeunlisted securities /�n�lstd s-�kjυərtiz/ plural noun shares which arenot listed on the Stock ExchangeUnlisted Securities Market /�n-�lstd s�kjυərtiz �mɑ�kt/ nounformerly, the market for buying andselling shares which were not listed onthe main Stock Exchange, now replacedby the Alternative Investment Market(AIM). Abbreviation USMunload /�n�ləυd/ verb 1. to take goodsoff a ship, lorry etc. � The ship is un-loading at Hamburg. � We need afork-lift truck to unload the lorry. � Weunloaded the spare parts at Lagos. �There are no unloading facilities for

container ships. 2. to sell shares whichdo not seem attractive � We tried to un-load our shareholding as soon as thecompany published its accounts.unlock /�n�lɒk/ verb � to unlockvalue to sell undervalued assets and soincrease the value of a company to itsshareholdersunpaid /�n�ped/ adjective not paidunpaid balance /�n�ped �b�ləns/noun a balance of a loan or invoicewhich still has to be paid after a partpayment or instalment payment hasbeen madeunpaid cheque /�n�ped �tʃek/noun a cheque which has been depos-ited but which is bounced by the bankon which it is written, so the account ofthe person who should receive is notcreditedunpaid invoices /�n�ped �nvɔsz/plural noun invoices which have notbeen paidunprofitable /�n�prɒftəb(ə)l/ ad-jective not profitable

‘…the airline has already eliminated a numberof unprofitable flights’ [Duns Business Month]

unquoted shares /��nkwəυtd�ʃeəz/ plural noun shares which have noStock Exchange quotationunrealised /�n�rəlazd/, unrealizedadjective not sold to make a profitunrealised capital gain /�n-�rəlazd �k�pt(ə)l ��en/ noun aninvestment which is showing a profitbut has not been soldunrealised profit /�n�rəlazd�prɒft/ noun same as paper profitunredeemed pledge /��nrdi�md�pled$/ noun a pledge which the bor-rower has not claimed back because hehas not paid back his loanunregistered /�n�red$stəd/ adjec-tive referring to a company which hasnot been registeredunsecured creditor /��nskjυəd�kredtə/ noun a creditor who is owedmoney, but has no security from thedebtor for the debtunsecured debt /��nskjυəd �det/noun a debt which is not guaranteed bya charge on assets or by any collateralunsecured loan /��nskjυəd �ləυn/noun a loan made with no security

unitise 367 unsecured loan

unseen /�n�si�n/ adverb not seen � tobuy something sight unseen to buysomething without having inspected itunsettled /�n�set(ə)ld/ adjectivewhich changes often or which is upsetunstable /�n�steb(ə)l/ adjective notstable, changing frequently � unstableexchange ratesunsubsidised /�n�s�bsdazd/,unsubsidized adjective with nosubsidyunsuccessful /��nsək�sesf(ə)l/ ad-jective not successful � an unsuccessfulbusinessman � The project was expen-sive and unsuccessful. � He made sixunsuccessful job applications before hefinally got a job.unsuccessfully /��nsək�sesf(ə)li/adverb with no success � The companyunsuccessfully tried to break into theSouth American market. � He unsuc-cessfully applied for the job of market-ing manager.unweighted /�n�wetd/ adjectivewithout giving any extra value to a cer-tain factorup /�p/ adverb, preposition in or to ahigher position � The inflation rate isgoing up steadily. � Shares were upslightly at the end of the day. � Sheworked her way up to become salesdirector.upcoming /��pk�mŋ/ adjectivewhich will come in the near future �The company is banking on its upcom-ing new drug to treat strokes.update /�p�det/ verb to revise some-thing so that it is always up to date �The figures are updated annually.up front /�p �fr�nt/ adverb inadvanceuplift /��plft/ noun an increase � Thecontract provides for an annual uplift ofcharges.up market /��p �mɑ�kt/ noun a stockmarket which is rising or is at its highestlevel � How your emerging growth fundperforms in a down market is just as im-portant as in an up market.upmarket /��p �mɑ�kt/ adverb, ad-jective more expensive or appealing to awealthy section of the population � thecompany has decided to moveupmarket the company has decided tostart to produce more luxury items

upscale /��pskel/ adjective aimed atcustomers at the top end of thesocio-economic ladder, who arewell-educated and have higher incomesupset price /��pset pras/ noun thelowest price which the seller will acceptat an auctionupside potential /��psad pə-�tenʃəl/ noun the possibility for a shareto increase in value (NOTE: The oppo-site is downside risk.)upstream /��p�stri�m/ adjective re-ferring to the operations of a company atthe beginning of a process (as drillingfor oil as an operation of a petroleumcompany). Compare downstreamupswing /��pswŋ/ noun an upwardmovement of share prices (NOTE: Theopposite is downswing.)uptick /��ptk/ noun US a price of ashare sold, which is higher than the pre-vious priceup to /��p tu�/ preposition as far as, ashigh as � We will buy at prices up to£25.upturn /��pt%�n/ noun a movement to-wards higher sales or profits � an up-turn in the economy � an upturn in themarketupward /��pwəd/ adjective towards ahigher position � an upward movementupwards /��pwədz/ adverb towards ahigher position � The market moved up-wards after the news of the budget.(NOTE: In the USA, upward is used asboth adjective and adverb.)US, USA abbreviation United States(of America)use noun /ju�s/ a way in which some-thing can be used � directions for useinstructions on how to run a machine �to make use of something to use some-thing � in use being worked � The com-puter is in use twenty-four hours a day.� items for personal use items which aperson will use for himself, not on be-half of the company � he has the use ofa company car he has a company carwhich he uses privately � verb /ju�z/ totake something, e.g. a machine, a com-pany or a process, and work with it �We use airmail for all our overseas cor-respondence. � The photocopier is be-ing used all the time. � They usefreelancers for most of their work.

unseen 368 use

user /�ju�zə/ noun a person who usessomethinguser-friendly /�ju�zə �frendli/ adjec-tive which a user finds easy to work �These programs are reallyuser-friendly.user’s guide /�ju�zəz �ad/, user’shandbook /�ju�zəz �h�ndbυk/, user’smanual /�ju�zəz �m�njυəl/ noun abook showing someone how to usesomethingUSM abbreviation Unlisted SecuritiesMarketUS Treasury bonds /�ju� es�tre$əri bɒndz/ plural noun bonds is-sued by the US Treasuryusual /�ju�$υəl/ adjective normal orordinary � Our usual terms or usualconditions are thirty days’ credit. � Theusual practice is to have the contract

signed by the MD. � The usual hours ofwork are from 9.30 to 5.30.usurious /ju�zjυəriəs/ adjective re-ferring to usury � a usurious rate ofinterestusury /�ju�$əri/ noun lending moneyat high interestutilisation /�ju�tla�zeʃ(ə)n/, utili-zation noun the act of making use ofsomething

‘…control permits the manufacturer to react tochanging conditions on the plant floor and tokeep people and machines at a high level ofutilization’ [Duns Business Month]

utilise /�ju�tlaz/, utilize verb to usesomethingutility /ju��tlti/ noun a public servicecompany, such as one that supplies wa-ter, gas or electricity or runs publictransport � Shares in utility companiesor utilities offer good dividends.

user 369 utility

V

vacant possession /�vekənt pə-�zeʃ(ə)n/ noun being able to occupy aproperty immediately after buying it be-cause it is empty � The property is to besold with vacant possession.valorem /və�lɔ�rəm/ noun � ad valo-rem dutyvaluable /�v�ljυəb(ə)l/ adjectivewhich is worth a lot of moneyvaluation /�v�lju�eʃ(ə)n/ noun anestimate of how much something isworth � to ask for a valuation of a prop-erty before making an offer for it � tobuy a shop with stock at valuationwhen buying a shop, to pay a price forthe stock which is equal to the value asestimated by the valuer � to purchasestock at valuation to pay the price forstock which it is valued atvalue /�v�lju�/ noun the amount ofmoney which something is worth � thefall in the value of sterling � He im-ported goods to the value of £2500. �The valuer put the value of the stock at£25,000. � good value (for money) abargain, something which is worth theprice paid for it � That restaurant givesvalue for money. � Buy that computernow – it is very good value. � Holidaysin Italy are good value because of theexchange rate. � to rise or fall in valueto be worth more or less � verb to esti-mate how much money something isworth � He valued the stock at £25,000.� We are having the jewellery valuedfor insurance.value added /�v�lju� ��dd/ nounthe amount added to the value of a prod-uct or service, being the difference be-tween its cost and the amount receivedwhen it is sold. Also called net outputValue Added Tax /�v�lju� �dd�t�ks/ noun full form of VATvalue investing /�v�lju� n�vestŋ/noun basing investment strategy on the

value of a company rather than simplyon its share pricevalue investor /�v�lju� n�vestə/noun a person who buys shares for thevalue of the companyvalue-priced goods /�v�lju� prast��υdz/ noun goods which are goodvalue for moneyvaluer /�v�ljυə/ noun a person whoestimates how much money somethingis worthvalue stocks /�v�lju� stɒks/ pluralnoun shares which provide a good re-turn on investmentvanilla /və�nlə/ noun � plain vanillaswapvariable /�veəriəb(ə)l/ adjectivewhich changes � noun somethingwhich variesvariable annuity /�veəriəb(ə)l ə-�nju�əti/ noun an annuity based onfunds invested in common stock, whichvaries with the value of the stock, as op-posed to a fixed annuityvariable costs /�veəriəb(ə)l �kɒsts/plural noun production costs which in-crease with the quantity of the productmade, e.g. wages or raw materialsvariable rate /�veəriəb(ə)l �ret/noun a rate of interest on a loan which isnot fixed, but can change with the cur-rent bank interest rates. Also calledfloating ratevariable redemption bond/�veəriəb(ə)l r�dempʃən bɒnd/ noun abond where the money to be repaid islinked to a variable, such as the price ofgold at the time of paymentvariance /�veəriəns/ noun the differ-ence between what was expected andthe actual results � at variance with notin agreement with � The actual salesare at variance with the sales reportedby the reps.

variation /�veəri�eʃ(ə)n/ noun theamount by which something changes �seasonal variations variations whichtake place at different times of the year� seasonal variations in buying patterns� There are marked seasonal variationsin unemployment in the hotel industry.VAT /�vi� e �ti�, v�t/ noun a tax ongoods and services, added as a percent-age to the invoiced sales price � The in-voice includes VAT at 17.5%. � Thegovernment is proposing to increaseVAT to 22%. � Some items (such asbooks) are zero-rated for VAT. � Hedoes not charge VAT because he asksfor payment in cash. Full form ValueAdded Tax

‘…the directive means that the services ofstockbrokers and managers of authorized unittrusts are now exempt from VAT; previouslythey were liable to VAT at the standard rate.Zero-rating for stockbrokers’ services is stillavailable as before, but only where the recipientof the service belongs outside the EC’[Accountancy]

COMMENT: In the UK, VAT is organisedby the Customs and Excise Department,and not by the Treasury. It is applied ateach stage in the process of making orselling a product or service. Company ‘A’charges VAT for their work, which isbought by Company ‘B’, and pays theVAT collected from ‘B’ to the Customsand Excise; Company ‘B’ can reclaim theVAT element in Company ‘A’’s invoicefrom the Customs and Excise, but willcharge VAT on their work in their invoiceto Company ‘C’. Each company along theline charges VAT and pays it to the Cus-toms and Excise, but claims back anyVAT charged to them. The final consumerpays a price which includes VAT, andwhich is the final VAT revenue paid to theCustoms and Excise. Any company or in-dividual should register for VAT if their an-nual turnover or income is above a certainlevel.

VAT declaration /�v�t deklə-�reʃ(ə)n/ noun a statement declaringVAT income to the VAT officeVAT inspection /�v�t n�spekʃ(ə)n/noun a visit by officials of the Customsand Excise Department to see if a com-pany is correctly reporting its VATVAT inspector /�v�t n�spektə/noun a government official who exam-ines VAT returns and checks that VATis being paid

VAT invoice /�v�t �nvɔs/ noun aninvoice which includes VATVAT invoicing /�v�t �nvɔsŋ/noun the sending of an invoice includ-ing VATVATman /�v�tm�n/, vatman noun aVAT inspectorVAT office /�v�t �ɒfs/ noun the gov-ernment office dealing with the collec-tion of VAT in an areavault /vɔ�lt/ noun a strongroom in abank, usually underground, where valu-ables can be depositedvault cash /�vɔ�lt k�ʃ/ noun cashheld by a bank in its vaults, used forday-to-day needsVC abbreviation venture capitalistVCT abbreviation venture capital trustvelocity of money /və�lɒsti əv�m�ni/ noun the rate at which moneycirculates in the economy, usually cal-culated as the GNP shown as a percent-age of the stock of money supplyvending /�vendŋ/ noun sellingvendor /�vendə/ noun 1. a person whosells something, especially a property �the solicitor acting on behalf of the ven-dor 2. a company selling its shares on astock market for the first timevendor placing /�vendə �plesŋ/noun the act of arranging for an issue ofnew shares to be bought by institutions,as a means of financing the purchase ofanother companyventure /�ventʃə/ noun a commercialdeal which involves a risk � They lostmoney on several import ventures. �She’s started a new venture – a com-puter shop. � verb to risk moneyventure capital /�ventʃə �k�pt(ə)l/noun capital for investment which mayeasily be lost in risky projects, but canalso provide high returns. Also calledrisk capitalventure capital fund /�ventʃə�k�pt(ə)l f�nd/ noun a fund which in-vests in finances houses providing ven-ture capital

‘…the Securities and Exchange Board of Indiaallowed new companies to enter the primarymarket provided venture capital funds took up10 per cent of the equity. At present, newcompanies are allowed to make initial publicofferings provided their projects have beenappraised by banks or financial institutions

variation 371 venture capital fund

which take up 10 per cent of the equity’[The Hindu]

venture capitalist /�ventʃə�k�pt(ə)lst/ noun a finance house orprivate individual specialising in pro-viding venture capital. Abbreviation VC

‘…along with the stock market boom of the1980s, the venture capitalists piled more andmore funds into the buyout business, backingbigger and bigger deals with ever moreextravagant financing structures’ [Guardian]

venture capital trust /�ventʃə�k�pt(ə)l tr�st/ noun a trust which in-vests in smaller firms which need capi-tal to grow. Abbreviation VCTverification /�verf�keʃ(ə)n/ nounthe process of checking if something iscorrect � The shipment was allowedinto the country after verification of thedocuments by customs.verify /�verfa/ verb to check to see ifsomething is correctvertical /�v%�tk(ə)l/ adjective upright,straight up or downvertical communication/�v%�tk(ə)l kəmju�n�keʃ(ə)n/ nouncommunication between senior manag-ers via the middle management to theworkforcevertical integration /�v%�tk(ə)l�nt��reʃ(ə)n/ noun same as back-ward integrationvested interest /�vestd �ntrəst/noun a special interest in keeping an ex-isting state of affairs � she has a vestedinterest in keeping the business work-ing she wants to keep the businessworking because she will make moremoney if it doesvesting day /�vestŋ de/ noun a daywhen a formerly nationalised industrybecomes owned by its new shareholdersvet /vet/ verb to examine somethingcarefully � All candidates have to bevetted by the managing director. � Thecontract has been sent to the legal de-partment for vetting. (NOTE: vetting –vetted)viability /vaə�blti/ noun the fact ofbeing viable or being able to make aprofitviable /�vaəb(ə)l/ adjective which canwork in practice � not commerciallyviable not likely to make a profitvideoconference /�vdiəυ-�kɒnf(ə)rəns/ noun a system linking

video, audio and computer signals fromdifferent locations so that distant peoplecan talk and see each other, as if in thesame conference roomview /vju�/ noun a way of thinkingabout something � We asked the salesmanager for his views on the reorgani-sation of the reps’ territories. � Thechairman takes the view that creditshould never be longer than thirty days.� to take the long view to plan for along period before your current invest-ment will become profitable � in viewof because of � In view of the falling ex-change rate, we have redrafted oursales forecasts.viewdata /�vju�detə/ noun a serviceon TV which gives share prices. Someservices also allow trading over thephone.virement /�vaəmənt/ noun a transferof money from one account to anotheror from one section of a budget toanothervirtual credit card /�v%�tʃυəl�kredt kɑ�d/ noun a technology thatallows a user to set up a new creditaccount with a bank on the Internetand then use this account number topurchase goods, also on the Internetvirtual tokens /�v%�tʃυəl �təυkənz/plural noun banking technology that al-lows a user to transfer money from theirnormal bank to an Internet bank andthen use this credit to purchase goods onthe InternetVISA /�vi�zə/ trademark a trademarkfor an international credit card systemvisible /�vzb(ə)l/ adjective referringto real products which are imported orexportedvisible exports /�vzəb(ə)l�ekspɔ�ts/ plural noun real productswhich are imported or exported, as op-posed to servicesvisible trade /�vzəb(ə)l �tred/ nountrade involving visible imports andexportsvivos � inter vivosvoicemail /�vɔsmel/ noun an elec-tronic communications system whichstores digitised recordings of telephonemessages for later playbackvoid /vɔd/ adjective not legally valid� the contract was declared null and

venture capitalist 372 void

void the contract was said to be no lon-ger valid � verb � to void a contract tomake a contract invalidvoidable /�vɔdəb(ə)l/ adjective refer-ring to a contract which can be annulledvolatile /�vɒlətal/ adjective referringto a market or price which is not stable,but which rises and falls sharply � Theshare has been very volatile since it waslaunched.

‘…blue chip stocks are the least volatile whilesmaller stocks are the most volatile’ [The Times]

‘…the investment markets appear to havebecome ever more volatile, with interest ratesmoving at times to extreme levels, and the stockmarket veering wildly from boom to slump andback again’ [Financial Times Review]

‘…the FTSE 100 Index ended another volatilesession a net 96.3 easier at 6027’[Financial Times]

volatility /�vɒlə�tlti/ noun the fact ofbeing volatile � Investors are recom-mended to keep their money in buildingsociety accounts because the increasingvolatility of the stock market.

‘…while the technology sector has certainlycaptured the imagination of private investors,the enthusiasm it has aroused among them islikely to cause extreme share price volatility inthe short term’ [Financial Times]

volatility rating / �vɒlə�tlti �retŋ/noun a calculation of how volatile ashare is, by calculating how much itsperformance is different from the nor-mal patternvolume /�vɒlju�m/ noun 1. a quantityof items 2. the quantity of shares tradedon a stock market � average daily vol-ume: 130,000 sharesvolume discount /�vɒlju�m�dskaυnt/ noun the discount given to acustomer who buys a large quantity ofgoodsvolume of business /�vɒlju�m əv�bzns/ noun the number of items sold,or the number of shares sold on theStock Exchange during a day’s trading� The company has maintained thesame volume of business in spite of therecession.volume of sales /�vɒlju�m əv�selz/ noun 1. the number of items sold� low or high volume of sales a smallor large number of items sold 2. US anamount of money produced by sales(NOTE: The UK term is turnover.)

volume of trade /�vɒlju�m əv�tred/ noun same as volume ofbusinessvolume-weighted prices/�vɒlju�m �wetd �prasz/ plural nounprices which are calculated according tothe volume of turnovervoluntarily /�vɒlənt(ə)rəl/ adverbwithout being forced or paidvoluntary /�vɒlənt(ə)ri/ adjective 1.done freely without anyone forcing youto act 2. done without being paidvoluntary liquidation /�vɒlənt(ə)ri�lkw�deʃ(ə)n/ noun a situation wherea company itself decides it must closeand sell its assetsvoluntary organisation/�vɒlənt(ə)ri ɔ��əna�zeʃ(ə)n/ nounan organisation which has no paid staffvoluntary redundancy/�vɒlənt(ə)ri r�d�ndənsi/ noun a sit-uation where the employee asks to bemade redundant, usually in return for alarge paymentvostro account /�vɒstrəυ ə�kaυnt/noun an account held by a correspon-dent bank for a foreign bank. � nostroaccountvote /vəυt/ noun the act of markinga paper or holding up your hand,to show your opinion or to showwho you want to be elected � totake a vote on a proposal, to put aproposal to the vote to ask peoplepresent at a meeting to say if theydo or do not agree with the pro-posal � verb to show an opinion bymarking a paper or by holding upyour hand at a meeting � The meet-ing voted to close the factory. �52% of the members voted for MrSmith as chairman. � Most of thestaff voted for a strike. � to vote foror against a proposal to say thatyou agree or do not agree with aproposal � two directors were votedoff the board at the AGM theAGM voted to dismiss two directors� she was voted on to the commit-tee she was elected a member of thecommitteevoter /�vəυtə/ noun a person whovotesvoting /�vəυtŋ/ noun the act of mak-ing a vote

voidable 373 voting

voting paper /�vəυtŋ �pepə/ nouna paper on which the voter puts a crossto show for whom he wants to votevoting rights /�vəυtŋ rats/ pluralnoun the rights of shareholders to voteat company meetings

voting shares /�vəυtŋ ʃeəz/ pluralnoun shares which give the holder theright to vote at company meetingsvoucher /�vaυtʃə/ noun 1. a piece ofpaper which is given instead of money2. a written document from an auditor toshow that the accounts are correct orthat money has really been paid

voting paper 374 voucher

W

wage /wed$/ noun the money paid toan employee in return for work done, es-pecially when it is paid weekly and incash � She is earning a good wage orgood wages for a young person. (NOTE:The plural wages is more usual whenreferring to the money earned, butwage is used before other nouns.)

‘European economies are being held back byrigid labor markets and wage structures’[Duns Business Month]‘…real wages have been held downdramatically: they have risen at an annual rate ofonly 1% in the last two years’ [Sunday Times]

COMMENT: The term ‘wages’ refers toweekly or hourly pay for workers, usuallypaid in cash. For employees paid by amonthly cheque, the term used is ‘salary’.

wage adjustments /�wed$ ə-�d$�stmənts/ plural noun changesmade to wageswage claim /�wed$ klem/ noun anact of asking for an increase in wageswage differentials /�wed$ dfə-�renʃəlz/ plural noun same as paydifferentialswage drift /�wed$ drft/ noun sameas earnings driftwage-earner /�wed$ �%�nə/ noun aperson who earns a wagewage-earning /�wed$ �%�nŋ/ adjec-tive � the wage-earning populationpeople who have jobs and earn moneywage indexation /�wed$�ndekseʃ(ə)n/ noun the linking of in-creases to the percentage rise in the costof livingwage negotiations /�wed$n�əυʃi�eʃ(ə)nz/ plural noun same aspay negotiationswage packet /�wed$ �p�kt/ nounsame as pay packetwage-price spiral /�wed$ �pras�spaərəl/ noun a situation where price

rises encourage higher wage demandswhich in turn make prices risewage restraint /�wed$ r�strent/noun the act of keeping increases inwages under controlwages and prices freeze/�wed$z ən �prasz fri�z/ noun aperiod when wages and prices are notallowed to be increasedwage scale /�wed$ skel/ nounsame as pay scalewages clerk /�wed$z klɑ�k/ nounsame as payroll clerkwages drift /wed$s drft/ nounsame as earnings driftwages policy /�wed$z �pɒlsi/noun a government policy on what per-centage increases should be paid toworkerswaive /wev/ verb to give up a right �He waived his claim to the estate. � towaive a payment to say that payment isnot necessarywaiver /�wevə/ noun an act of givingup a right or removing the conditions ofa rule � If you want to work without apermit, you will have to apply for awaiver.waiver clause /�wevə klɔ�z/ noun aclause in a contract giving the condi-tions under which the rights in the con-tract can be given upwalk-in /�wɔ�k n/ noun a person whoapproaches an organisation for a job,without knowing if any jobs are avail-able (NOTE: The plural is walk-ins.)wall of money /�wɔ�l əv �m�ni/noun a large amount of money ready tobe invested on the stock market (espe-cially, money from new investmentfunds, or foreign investors) (NOTE: Simi-lar to the weight of money.)wallpaper /�wɔ�lpepə/ noun sharesissued in large numbers during a take-

over bid where the purchasing companyoffers them in exchange for the shares inthe company being boughtwall safe /�wɔ�l sef/ noun a safe in-stalled in a wallWall Street /�wɔ�l stri�t/ noun 1. astreet in New York where the Stock Ex-change is situated 2. the US financialcentre � Wall Street analysts predict arise in interest rates. � She writes theWall Street column in the newspaper.warehouse /�weəhaυs/ noun a largebuilding where goods are storedwarehouse capacity /�weəhaυskə�p�sti/ noun the space available in awarehousewarehousing /�weəhaυzŋ/ noun 1.the act of storing goods in a warehouse� Warehousing costs are rising rapidly.2. an illegal act where someone buysshares in a company on behalf of an-other company and holds them in readi-ness to be surrendered when the secondcompany makes a takeover bidWar Loan /�wɔ� ləυn/ noun a govern-ment loan issued in time of warwarning /�wɔ�nŋ/ noun a notice ofpossible danger � Warning notices wereput up around the construction site.warrant /�wɒrənt/ noun an officialdocument which allows someone to dosomething

‘…the rights issue will grant shareholders freewarrants to subscribe for further new shares’[Financial Times]

warrantee /�wɒrən�ti�/ noun a personwho is given a warrantywarrant holder /�wɒrənt �həυldə/noun a person who holds a warrant forshareswarrantor /�wɒrən�tɔ�/ noun a personwho gives a warrantywarrant premium /�wɒrənt�pri�miəm/ noun a premium paid to buyshare warrants, above the price of theshares it entitles you towarranty /�wɒrənti/ noun 1. a legaldocument which promises that a ma-chine will work properly or that an itemis of good quality � The car is sold witha twelve-month warranty. � The war-ranty covers spare parts but not labourcosts. 2. a promise in a contract 3. astatement made by an insured person

which declares that the facts stated byhim are truewashing /�wɒʃŋ/ noun US the prac-tice of selling and buying back the samesecurity, so as to reduce tax liability, orto increase trading volume. �bond-washingwash sale /�wɒʃ sel/ noun US thesale and then repurchase of a block ofshares (similar to the British‘bed-and-breakfast deal’, though in theUS it may also be used as a means ofcreating fictitious trading volume)waste /west/ noun material left overfrom a production process which is ofno value and is thrown away � verb touse more than is needed � to wastemoney or paper or electricity or time �The MD does not like people wasting histime with minor details. � We turned offall the heating so as not to waste energy.

COMMENT: Industrial waste has no value,as opposed to scrap which may be sold toa scrap dealer.

wasting asset /�westŋ ��st/ nounan asset which becomes gradually lessvaluable as time goes by (e.g. a shortlease on a property)watchdog /�wɒtʃdɒ�/ noun a personor group that examines public spendingor financial deals, etc. � the Citywatchdog the Financial Services Au-thority (FSA), which supervises the fi-nancial institutionswater down /�wɔ�tə �daυn/ verb tomake something less strong � The fam-ily’s holdings have been watered downby the creation of the new shares.weak /wi�k/ adjective not strong, notactive � share prices remained weakshare prices did not riseweak currency /wi�k �k�rənsi/ nouna currency which is trading at a lowlevel against other currenciesweaken /�wi�kən/ verb to becomeweak � the market weakened shareprices fell

‘…the Fed started to ease monetary policymonths ago as the first stories appeared aboutweakening demand in manufacturing industry’[Sunday Times]

weak market /wi�k �mɑ�kt/ noun ashare market where prices tend to fallbecause there are no buyersweakness /�wi�knəs/ noun the fact ofbeing weak

wall safe 376 weakness

‘…indications of weakness in the US economywere contained in figures from the Fed onindustrial production’ [Financial Times]

wealth tax /�welθ t�ks/ noun a taxon money, property or investmentsowned by a personweb /web/ noun same as World WideWeb

webpage /�webped$/ noun a singlefile of text and graphics, forming part ofa websitewebsite /�websat/ noun a position onthe web, which is created by a company,organisation or individual, and whichanyone can visit � How many hits didwe have on our website last week?Wechsel noun the German word forforeign exchangeweight /wet/ noun a measurement ofhow heavy something is � to sell fruitby weight the price is per pound or perkilo of the fruit � to give short weightto give less than you should � verb togive an extra value to a certain factorweighted average /�wetd��v(ə)rd$/ noun an average which iscalculated taking several factors into ac-count, giving some more value thanothersweighted index /�wetd �ndeks/noun an index where some importantitems are given more value than less im-portant onesweighting /�wetŋ/ noun additionalsalary or wages paid to compensate forliving in an expensive part of the coun-try � The salary is £15,000 plus Londonweighting.weight of money /�wet əv �m�ni/noun a large amount of money ready tobe invested on the stock market (espe-cially cash available in pension funds)wheeler-dealer /�wi�lə �di�lə/ noun aperson who lives on money from a se-ries of profitable business dealswhisper number /�wspə �n�mbə/noun a figure which is mentioned as arumourwhistleblower /�ws(ə)l�bləυə/ nouna person who reveals dishonest practices(informal.)

white-collar /�wat �kɒlə/ adjectivereferring to office workers

‘…the share of white-collar occupations in totalemployment rose from 44 per cent to 49 percent’ [Sydney Morning Herald]

white-collar crime /�wat �kɒlə�kram/ noun crimes committed bybusiness people or office workers (suchas embezzlement, computer fraud or in-sider dealing)white-collar job /wat �kɒlə d$ɒb/noun a job in an officewhite-collar union /wat �kɒlə�ju�nj�ən/ noun a trade union formed ofwhite-collar workerswhite-collar worker /wat �kɒlə�w%�kə/ noun a worker in an office, notin a factorywhite knight /wat �nat/ noun a per-son or company which rescues a firm infinancial difficulties, especially onewhich saves a firm from being takenover by an unacceptable purchaserWhite Paper /wat �pepə/ noun a re-port issued by the UK government as astatement of government policy on aparticular problem. Compare GreenPaperwhizz-kid /�wz kd/ noun a brilliantyoung person who quickly becomessuccessful in business � She was awhizz-kid who reached head of depart-ment in five years.whole-life insurance /�həυl �lafn�ʃυərəns/, whole-life policy /�həυl�laf �pɒlsi/ noun an insurance policywhere the insured person pays a fixedpremium each year and the insurancecompany pays a sum when he or shedies (also called ‘whole-of-lifeassurance’)wholesale /�həυlsel/ adjective, ad-verb referring to the business of buy-ing goods from manufacturers andselling them in large quantities totraders who then sell in smallerquantities to the general public � Ipersuaded him to give us a wholesalediscount. � he buys wholesale and sellsretail he buys goods in bulk at a whole-sale discount and then sells in smallquantities to the publicwholesale banking /�həυlsel�b�ŋkŋ/ noun banking services be-tween merchant banks and other finan-cial institutions (as opposed to retailbanking)

wealth tax 377 wholesale banking

wholesale dealer /�həυlsel �di�lə/noun a person who buys in bulk frommanufacturers and sells to retailerswholesale market /�həυlsel�mɑ�kt/ noun an interbank moneymarket, where banks and other financialinstitutions deal with each otherwholesale price /�həυlsel pras/noun the price charged to customerswho buy goods in large quantities inorder to resell them in smaller quantitiesto otherswholesale price index /�həυlsel�pras �ndeks/ noun an index showingthe rises and falls of prices of manufac-tured goods as they leave the factorywholesaler /�həυlselə/ noun a per-son who buys goods in bulk from manu-facturers and sells them to retailerswholly-owned subsidiary /�həυlliəυnd səb�sdjəri/ noun a subsidiarywhich belongs completely to the parentcompanywill /wl/ noun a legal document wheresomeone says what should happen to hisor her property when he or she dies �He wrote his will in 1984. � Accordingto her will, all her property is left to herchildren.

COMMENT: A will should best be drawnup by a solicitor; it can also be written ona form which can be bought from a statio-nery shop. To be valid, a will must bedated and witnessed by a third party (i.e.by someone who is not mentioned in thewill).

windfall /�wndfɔ�l/ noun a suddenwinning of money or a sudden profitwhich is not expectedwindfall profit /�wndfɔ�l �prɒft/noun a sudden profit which is notexpectedwindfall profits tax /�wndfɔ�l�prɒfts t�ks/, windfall tax /�wndfɔ�lt�ks/ noun a special tax on unexpectedprofitswindfall wealth /�wndfɔ�l welθ/noun wealth which comes from awindfallwinding up /�wandŋ ��p/ noun liq-uidation, the act of closing a companyand selling its assets � a compulsorywinding up order an order from a courtsaying that a company must be woundup

windmill /�wndml/ noun same asaccommodation bill (informal.)window /�wndəυ/ noun a short pe-riod when something is available orpossiblewindow dressing /�wndəυ �dresŋ/noun 1. the practice of putting goods ondisplay in a shop window, so that theyattract customers 2. the practice of putt-ing on a display to make a businessseem better or more profitable or moreefficient than it really iswindow of opportunity /�wndəυəv ɒpə�tju�nti/ noun a short periodwhich allows an action to take placewindow shopping /�wndəυ�ʃɒpŋ/ noun the practice of looking atgoods in shop windows, without buyinganythingwind up /�wand ��p/ verb 1. to end ameeting � He wound up the meetingwith a vote of thanks to the committee.2. � to wind up a company to put acompany into liquidation � The courtordered the company to be wound up.WIP abbreviation work in progresswipe off /�wap �ɒf/ verb to removesomething completelywire transfer /�waə �tr�nsf%�/ nouna transfer of money from one account toanother by telegraphwitching hour /�wtʃŋ aυə/ noun acritical moment on a stock exchange,where several options expire at the sametimewithdraw /wð�drɔ�/ verb 1. to takemoney out of an account � to withdrawmoney from the bank or from your ac-count � You can withdraw up to £50from any cash machine by using yourcard. 2. to take back an offer � When hefound out more about the candidate, theHR manager withdrew the offer of a job.� When the workers went on strike, thecompany withdrew its revised pay offer.(NOTE: withdrawing – withdrew) �one of the company’s backers haswithdrawn he or she stopped support-ing the company financially � We ex-pect they will withdraw their takeoverbid. � The chairman asked him to with-draw the remarks he has made about thefinance director.withdrawal /wð�drɔ�əl/ noun the actof removing money from an account �

wholesale dealer 378 withdrawal

to give seven days’ notice of withdrawal� Withdrawals from bank accountsreached a peak in the week beforeChristmas. � withdrawal without pen-alty at seven days’ notice money canbe taken out of a deposit account, with-out losing any interest, provided thatseven days’ notice has been givenwithholding tax /wð�həυldŋ�t�ks/ noun US a tax which removesmoney from interest or dividends beforethey are paid to the investor (usually ap-plied to non-resident investors)with-profit bond /wð �prɒft bɒnd/noun a bond which guarantees a capitalreturn plus the profits which have accu-mulated during its lifetimewith profits /wθ �prɒfts/ adverbreferring to an insurance policy whichguarantees the policyholder a share inthe profits of the fund in which thepremiums are investedwon /w�n/ noun a unit of currencyused in North and South Koreawork /w%�k/ noun 1. things done usingthe hands or brain 2. a job, somethingdone to earn money � It is not the workitself that the employees are complain-ing about � He goes to work by bus. �She never gets home from work before 8p.m. � His work involves a lot of travel-ling. � He is still looking for work. �She has been out of work for six months.

‘…the quality of the work environmentdemanded by employers and employees alike’[Lloyd’s List]

worker /�w%�kə/ noun a person who isemployed � worker representation onthe board the fact of having a represen-tative of the workers as a director of thecompanyworker director /�w%�kə da�rektə/noun a director of a company who is arepresentative of the workforceworkforce /�w%�kfɔ�s/ noun the totalnumber of employees in an organisa-tion, industry or countryworking /�w%�kŋ/ adjective 1. refer-ring to work 2. � working control of acompany having enough shares in acompany to be able to control all its ac-tions (usually, this means 51% ofshares)working capital /�w%�kŋ�k�pt(ə)l/ noun capital in the form ofcash, stocks and debtors (less creditors)

used by a company in its day-to-dayoperations. Also called circulatingcapital, floating capital, net currentassetsworking conditions /�w%�kŋ kən-�dʃ(ə)nz/ plural noun the general stateof the place where people work (e.g.whether it is hot, noisy, dark ordangerous)working partner /�w%�kŋ �pɑ�tnə/noun a partner who works in apartnershipworking-time directive /�w%�kŋ�tam da�rektv/ noun a directive con-cerning the maximum number of hoursan employee can work in the EUworking underwriter /�w%�kŋ��ndəratə/ noun a member of aLloyd’s syndicate who actively gener-ates business (as opposed to the ‘names’who put up the security)working week /�w%�kŋ �wi�k/ nounthe usual number of hours worked perweek � Even though he is a freelance,he works a normal working week.work in progress /�w%�k n�prəυ�res/ noun the value of goods be-ing manufactured which are not com-plete at the end of an accounting period� Our current assets are made up ofstock, goodwill and work-in-progress.Abbreviation WIP (NOTE: The US termis work in process.)

‘…the control of materials from purchased partsthrough work in progress to finished goodsprovides manufacturers with an opportunity toreduce the amount of money tied up inmaterials’ [Duns Business Month]

workload /�w%�kləυd/ noun theamount of work which a person has todo � He has difficulty in coping with hisheavy workload.work out /�w%�k �aυt/ verb to calcu-late � He worked out the costs on theback of an envelope. � He worked outthe discount at 15%. � She worked outthe discount on her calculator.work permit /�w%�k �p%�mt/ noun anofficial document which allows some-one who is not a citizen to work in acountryworks /w%�ks/ noun a factory � Thereis a small engineering works in the samestreet as our office. � The steel works isexpanding. (NOTE: takes a singular orplural verb)

withholding tax 379 works

works committee /�w%�ks kə�mti/,works council /�w%�ks �kaυnsəl/ nouna committee of employees and manage-ment which discusses the organisationof work in a factorywork-sharing /�w%�k �ʃeərŋ/ nouna system that allows two or morepart-timers to share one job, each doingpart of the work for part of the payworks manager /�w%�ks �m�nd$ə/noun a person in charge of a worksworkspace /�w%�kspes/ noun thememory or space available on a com-puter for temporary workworkstation /�w%�k�steʃ(ə)n/ nouna desk with a computer terminal, printer,telephone, etc., at which an employee inan office worksworld /w%�ld/ noun 1. the Earth � theworld market for steel the possiblesales of steel throughout the world 2. thepeople in a specific business or peoplewith a special interest � the world of bigbusiness � the world of lawyers or thelegal world

‘…the EU pays farmers 27 cents a pound forsugar and sells it on the world market for 5cents’ [Duns Business Month]‘…manufactures and services were the fastestgrowing sectors of world trade’[Australian Financial Review]

World Bank /w%�ld �b�ŋk/ noun acentral bank, controlled by the UnitedNations, whose funds come from themember states of the UN and whichlends money to member statesworld rights /w%�ld �rats/ pluralnoun the right to sell the product any-where in the worldWorld Trade Organization /w%�ld�tred ɔ��əna�zeʃ(ə)n/ noun an inter-national organisation set up with the aimof reducing restrictions in trade betweencountries. Abbreviation WTOworldwide /�w%�ldwad/ adjective,adverb everywhere in the world � Thecompany has a worldwide network ofdistributors. � Worldwide sales or Salesworldwide have topped two millionunits. � This make of computer is avail-able worldwide.World Wide Web /�w%�ld �wad�web/ noun an information system onthe Internet that allows documents to belinked to one another by hypertext links

and accommodates websites and makesthem accessible. Also called webworth /w%�θ/ adjective having a valueor a price � Don’t get it repaired – it’sworth only £25. � The car is worth£6,000 on the secondhand market. � heis worth £10m he owns property, in-vestments, etc., which would sell for£10m � what are ten pounds worth indollars? what is the equivalent of £10 indollars? � noun a value � give me tenpounds’ worth of petrol give me asmuch petrol as £10 will buyworthless /�w%�θləs/ adjective hav-ing no value � The cheque is worthlessif it is not signed.wraparound mortgage/�r�pəraυnd �mɔ��d$/ noun US a typeof second mortgage where the borrowerpays interest only to the second lender(who then pays the interest payments onthe first mortgage to the first lender)wreck /rek/ noun 1. a ship which hassunk, which has been badly damagedand cannot float � They saved the cargofrom the wreck. � Oil poured out of thewreck of the tanker. 2. the fact of col-lapsing, or a company which has col-lapsed � He managed to save some ofhis investment from the wreck of thecompany. � Investors lost thousands ofpounds in the wreck of the investmenttrust. � verb to damage somethingbadly or to ruin it � They are trying tosalvage the wrecked tanker. � The ne-gotiations were wrecked by the unions.writ /rt/, writ of summons /�rt əv�s�mənz/ noun a legal document whichbegins an action in the High Court �The court issued a writ to prevent thetrade union from going on strike. � Thecompany obtained a writ to prevent thetrade union from going on strike. � toserve someone with a writ, to serve awrit on someone to give someone awrit officially, so that he or she has todefend itwrite down /�rat �daυn/ verb to notean asset at a lower value than previously� written down value � The car is writ-ten down in the company’s books.writedown /�ratdaυn/ noun the actof noting of an asset at a lower value

‘…the holding company has seen its earningssuffer from big writedowns in conjunctionwith its $1 billion loan portfolio’ [DunsBusiness Month]

works committee 380 writedown

write-down allowance /�rat daυnə�laυəns/ noun an allowance for the de-preciation of an asset over a period ofyearswrite off /�rat �ɒf/ verb to cancel adebt, or to remove an asset from the ac-counts as having no value � We had towrite off £20,000 in bad debts. � twocars were written off after the acci-dent the insurance company consideredthat both cars were a total loss � thecargo was written off as a total lossthe cargo was so badly damaged that theinsurers said it had no value

‘$30 million from usual company borrowingswill either be amortized or written off in onesum’ [Australian Financial Review]

write-off /�rat ɒf/ noun 1. the totalloss or cancellation of a bad debt, or theremoval of an asset’s value from a com-pany’s accounts � to allow forwrite-offs in the yearly accounts 2.

something which is so badly damagedthat it cannot be repaired (informal.) �The car was a write-off.write out /�rat �aυt/ verb to writesomething in full � She wrote out theminutes of the meeting from her notes. �to write out a cheque to write thewords and figures on a cheque and thensign itwriter /�ratə/ noun a person whowrites a cheque � writer of an optionperson who sells an optionwriting /�ratŋ/ noun somethingwhich has been written � to put theagreement in writing � He had difficultyin reading the candidate’s writing.written-down value /�rt(ə)n daυn�v�lju�/ noun a value of an asset in acompany’s accounts after it has beenwritten downWTO abbreviation World TradeOrganization

write-down allowance 381 WTO

X Y Z

xa abbreviation ex-allxc abbreviation ex-capitalisationxd abbreviation ex dividendxr abbreviation ex-rightsYankee bank /�j�ŋki b�ŋk/ noun aforeign bank trading in the USYankee bond /�j�ŋki bɒnd/ noun adollar bond issued in the American mar-ket by a non-US company. Comparebulldog bond, samurai bondyear /jə/ noun a period of twelvemonthsyearbook /�jəbυk/ noun a referencebook which is published each year withupdated or new informationyear end /jə �end/ noun the end ofthe financial year, when a company’saccounts are prepared � The accountsdepartment has started work on theyear-end accounts.yearling bond /�jəlŋ bɒnd/ noun alocal authority bond which matures in12 monthsyearly /�jəli/ adjective happeningonce a year � We make a yearly pay-ment of £1000. � His yearly insurancepremium has risen to £250. � For thepast few years he has had a yearly payrise of 10%.Yellow Book /�jeləυ bυk/ nouna publication by the London StockExchange which gives details of theregulations covering the listing of com-panies on the exchangeyen /jen/ noun a unit of currency usedin Japan (NOTE: It is usually written as ¥before a figure: ¥2,700 (say two thou-sand seven hundred yen).)yield /ji�ld/ noun the money producedas a return on an investment, shown as apercentage of the money invested �verb to produce an amount or percent-age as interest or dividend, � govern-

ment stocks which yield a small interest� shares which yield 10%

‘…if you wish to cut your risks you should gofor shares with yields higher than average’[Investors Chronicle]

COMMENT: To work out the yield on aninvestment, take the gross dividend perannum, multiply it by 100 and divide bythe price you paid for it (in pence): an in-vestment paying a dividend of 20p pershare and costing £3.00, is yielding6.66%.

yield curve /�ji�ld k%�v/ noun a graphshowing the yields on different types ofinvestmentyield to maturity /�ji�ld tə mə-�tjυərti/ noun a calculation of theyield on a fixed-interest investment,assuming it is bought at a certainprice and held to maturityyuan /ju�ɑ�n/ noun a unit of currencyused in ChinaZDPS abbreviation zero dividend pref-erence shareszero /�zərəυ/ noun 1. nought, thenumber 0 � The code for internationalcalls is zero zero (00). 2. same as zerodividend preference sharezero-coupon bond /�zərəυ�ku�pɒn bɒnd/ noun a bond whichcarries no interest, but which isissued at a discount and so providesa capital gain when it is redeemed atface valuezero dividend preference share/�zərəυ �dvdend �pref(ə)rənsʃeəz/ noun a bond which pays nodividend, but has a fixed termand a fixed redemption price, whichis a little higher than the redemptionprice on similar gilts though the re-demption price is not in fact guaran-teed. Abbreviation ZDPS. Also calledzero

zero inflation /�zərəυ n�fleʃ(ə)n/noun inflation at 0%zero-rated /�zərəυ �retd/ adjectivereferring to an item which has a VATrate of 0%zero-rated bond /�zərəυ �retdbɒnd/ noun same as zero-couponbond

zero-rating /�zərəυ �retŋ/ noun therating of an item at 0% VATzinc /zŋk/ noun a metal which istraded on commodity markets, such asthe London Metal Exchange

ZIP code /�zp kəυd/ noun US num-bers in an address that indicate a postaldelivery area (NOTE: The UK term ispostcode.)zloty /�zlɒti/ noun a unit of currencyused in Polandzone /zəυn/ noun an area of a town orcountry for administrative purposes �verb to divide a town into different ar-eas for planning and development pur-poses � land zoned for light industrialuse land where planning permission hasbeen given to build small factories forlight industry

zero inflation 383 zone

SUPPLEMENTS

Central BanksPrincipal Stock ExchangesWorld Commodity Markets

International Currencies

Central BanksAfghanistan da Afghanistan Bank, KabulAlbania Bank of Albania, TiranaAlgeria Banque d’Algérie, AlgiersAngola Banco Nacional de Angola, LuandaArgentina Banco Central de la República Argentina, Buenos AiresArmenia Central Bank of Armenia, YerevanAustralia Reserve Bank of Australia, SydneyAustria Oesterreichische Nationalbank, ViennaAzerbaijan National Bank of Azerbaijan, BakuBahamas Central Bank of the Bahamas, NassauBahrain Bahrain Monetary Agency, ManamaBangladesh Bangladesh Bank, DhakaBarbados Central Bank of Barbados, BridgetownBelarus National Bank of the Republic of Belarus, MinskBelgium Banque Nationale de Belgique, BrusselsBermuda Bermuda Monetary Authority, HamiltonBhutan Royal Monetary Authority, ThimphuBolivia Banco Central de Bolivia, La PazBosnia & Herzegovina Centralna Banka Bosne i Hercegovine, SarajevoBotswana Bank of Botswana, GaboroneBrazil Banco Central do Brasil, BrasiliaBrunei Brunei Currency BoardBulgaria Bulgarska Narodna Banka, SofiaBurundi Banque de la République du Burundi, BujumburaCambodia National Bank of Cambodia, Phnom PenhCameroon Banque des Etats de l’Afrique Centrale, YaoundéCanada Bank of Canada, OttawaCentral African Republic Banque des Etats de l’Afrique Centrale, BanguiChad Banque des Etats de l’Afrique Centrale, N’DjamenaChile Banco Central de Chile, SantiagoChina People’s Bank of China, BeijingColombia Banco de la República de Colombia, BogotáCongo (Republic of) Banque des Etats de l’Afrique Centrale, BrazzavilleCongo (Democratic Republic of) Banque Centrale du Congo, KinshasaCosta Rica Banco Central de Costa Rica, San JoséCôte d’Ivoire Banque Centrale des Etats de l’Afrique de l’Ouest, AbidjanCroatia Hrvatska Narodna Banka, ZagrebCuba Banco Central de Cuba, HavanaCyprus Kentrike Trapeza tes Kyprou, NicosiaCzech Republic Ceská Národní Banka, PragueDenmark Danmarks Nationalbank, CopenhagenDominican Republic Banco Central de la República Dominicana, Santo DomingoEcuador Banco Central del Ecuador, QuitoEgypt Central Bank of Egypt, CairoEl Salvador Banco Central de Reserva de El Salvador, San SalvadorEstonia Eesti Pank, TallinnEthiopia National Bank of Ethiopia, Addis AbabaEuropean Union European Central Bank, FrankfurtFinland Suomen Pankki, HelsinkiFrance Banque de France, ParisGabon Banque des Etats de l’Afrique Centrale, LibrevilleThe Gambia Central Bank of the Gambia, BanjulGeorgia National Bank of Georgia, TbilisiGermany Deutsche Bundesbank, FrankfurtGhana Bank of Ghana, AccraGreece Trapeza tes Ellados, AthensGuatemala Banco de Guatemala, Guatemala CityGuinea Banque Centrale de la République de Guinée, ConakryGuinea-Bissau Banque Centrale des Etats de l’Afrique de l’Ouest, Bissau

Central Banks continuedGuyana Bank of Guyana, GeorgetownHaiti Banque de la République d’Haïti, Port-au-PrinceHonduras Banco Central de Honduras, TegucigalpaHungary Magyar Nemzeti Bank, BudapestIceland Sedlabanki Islands, ReykjavikIndia Reserve Bank of India, MumbaiIndonesia Bank Indonesia, JakartaIran Bank Markazi Jomhouri Islami Iran, TeheranIraq Central Bank of Iraq, BaghdadIreland Bank Ceannais na hÉireann, DublinIsrael Bank of Israel, JerusalemItaly Banca d’Italia, RomeJamaica Bank of Jamaica, KingstonJapan Nippon Ginko (Bank of Japan), TokyoJordan Central Bank of Jordan, AmmanKazakhstan National Bank of Kazakhstan, AlmatyKenya Central Bank of Kenya, NairobiKorea (North) Central Bank of the Democratic People’s Republic of

Korea, PyongyangKorea (South) Bank of Korea, SeoulKuwait Central Bank of Kuwait, Kuwait CityKyrgyzstan National Bank of the Kyrgyz Republic, BishkekLaos Bank of the Lao People’s Democratic Republic, VientianeLatvia Latvijas Banka, RigaLebanon Banque du Liban, BeirutLesotho Central Bank of Lesotho, MaseruLiberia National Bank of Liberia, MonroviaLibya Central Bank of Libya, TripoliLiechtenstein Liechtensteinische LandesbankLithuania Lietuvos Bankas, VilniusLuxembourg Banque Centrale du LuxembourgMacedonia Narodna Banka na Republika Makedonja, SkopjeMadagascar Banque Centrale du Madagascar, AntananarivoMalawi Reserve Bank of Malawi, LilongweMalaysia Bank Negara Malaysia, Kuala LumpurMali Banque Centrale des Etats de l’Afrique de l’Ouest, BamakoMalta Central Bank of Malta, VallettaMauritania Banque Centrale de Mauritanie, NouakchottMauritius Bank of Mauritius, Port LouisMexico Banco de Mexico, MexicoMoldova National Bank of Moldova, ChisinauMongolia Bank of Mongolia, UlaanbaatarMontenegro Central Bank of Montenegro, PodgoricaMorocco Banque al-Maghrib, RabatMozambique Banco de Moçambique, MaputoMyanmar Central Bank of Myanmar, YangonNamibia Bank of Namibia, WindhoekNepal Nepal Rastra Bank, KathmanduNetherlands de Nederlandsche Bank, AmsterdamNew Zealand Reserve Bank of New Zealand, WellingtonNicaragua Banco Central de Nicaragua, ManaguaNiger Banque Centrale des Etats de l’Afrique de l’Ouest, NiameyNigeria Central Bank of Nigeria, LagosNorway Norges Bank, Oslo

Central Banks continuedOman Central Bank of Oman, MuscatPakistan State Bank of Pakistan, KarachiPanama Banco Nacional de Panamá, PanamaPapua New Guinea Bank of Papua New Guinea, Port MoresbyParaguay Banco Central de Paraguay, AsuncionPeru Banco Central de Reserva del Perú, LimaPhilippines Bangko Sentral ng Pilipinas, ManilaPoland Narodowy Bank Polski, WarsawPortugal Banco de Portugal, LisbonQatar Qatar Central BankRomania National Bank of Romania, BucharestRussia Central Bank of the Russian Federation, MoscowRwanda Banque Nationale du Rwanda, KigaliSaudi Arabia Saudi Arabian Monetary Agency, RiyadhSenegal Banque Centrale des Etats de l’Afrique de l’Ouest, DakarSerbia National Bank of Serbia, BelgradeSeychelles Central Bank of the Seychelles, VictoriaSierra Leone Bank of Sierra Leone, FreetownSingapore Monetary Authority of SingaporeSlovakia Národná Banka Slovenska, BratislavaSlovenia Banka Slovenije, LjubljanaSomalia Baanka Somaliland, MogadishuSouth Africa South African Reserve Bank, PretoriaSpain Banco de España, MadridSri Lanka Central Bank of Sri Lanka, ColomboSudan Bank of Sudan, KhartoumSweden Sveriges Riksbank, StockholmSwitzerland Schweizerische Nationalbank, Banque Centrale Suisse, BerneSyria Central Bank of Syria, DamascusTaiwan Central Bank of China, TaipeiTanzania Bank of Tanzania, Dar es SalaamThailand Bank of Thailand, BangkokTogo Banque Centrale des Etats de l’Afrique de l’Ouest, LoméTonga Bank of Tonga, Nuku’alofaTrinidad and Tobago Central Bank of Trinidad and Tobago, Port of SpainTunisia Banque Centrale de Tunisie, TunisTurkey Türkiye Cumhuriyet Merkez Bankasi, AnkaraUganda Bank of Uganda, KampalaUkraine National Bank of Ukraine, KievUnited Arab Emirates Central Bank of the United Arab Emirates, Abu DhabiUnited Kingdom Bank of England, LondonUnited States of America Federal Reserve System, WashingtonUruguay Banco Central del Uruguay, MontevideoUzbekistan Central Bank of the Republic of Uzbekistan, TashkentVenezuela Banco Central de Venezuela, CaracasVietnam State Bank of Vietnam, HanoiYemen Central Bank of Yemen, Sana’aZambia Bank of Zambia, LusakaZimbabwe Reserve Bank of Zimbabwe, Harare

Principal Stock ExchangesArgentina Bolsa de Comercio de Buenos AiresAustralia Australian Stock ExchangeAustria Wiener Börse AG, ViennaBangladesh Dhaka Stock ExchangeBarbados Barbados Securities Exchange, BridgetownBelgium Euronext BrusselsBermuda Bermuda Stock ExchangeBotswana Botswana Stock ExchangeBrazil Bolsa de Valores do Rio de Janeiro

Bolsa de Valores de São PauloBulgaria Bulgarian Stock Exchange, SofiaCanada Alberta Stock Exchange, Calgary

Montreal Stock ExchangeToronto Stock ExchangeVancouver Stock ExchangeWinnipeg Stock Exchange

Chile Bolsa de Comercio de SantiagoColombia Bolsa de Valores de ColombiaCosta Rica Bolsa Nacional de Valores, San JoséCroatia Zagreb Stock ExchangeCyprus Cyprus Stock ExchangeCzech Republic Prague Stock ExchangeDenmark Københavns FondsbørsEcuador Bolsa de Valores de QuitoEgypt Cairo Stock Exchange

Alexandria Stock ExchangeEl Salvador Bolsa de Valores de El SalvadorFinland Helsinki Stock ExchangeFrance Euronext ParisGermany Deutsche Börse

Börse Berlin-BremerBörse DüsseldorfBÖAG Börse AG, Hamburg/HanoverBörse-Stuttgart

Greece Athens Stock ExchangeHong Kong Hong Kong Exchange and ClearingHungary Budapest Stock ExchangeIndia National Stock Exchange of India

The Stock Exchange, MumbaiCalcutta Stock ExchangeDelhi Stock ExchangeMadras Stock Exchange

Indonesia Jakarta Stock ExchangeIran Teheran Stock ExchangeIreland Dublin Stock ExchangeIsrael Tel Aviv Stock ExchangeItaly Borsa ItalianaJamaica Jamaica Stock ExchangeJapan Fukuoka Stock Exchange

Hiroshima Stock ExchangeNagoya Stock ExchangeOsaka Stock ExchangeSapporo Stock ExchangeTokyo Stock Exchange

Principal Stock Exchanges continuedJordan Amman Stock ExchangeKenya Nairobi Stock ExchangeKuwait Kuwait Stock ExchangeLebanon Beirut Stock ExchangeLithuania National Stock Exchange of LithuniaLuxembourg Bourse de LuxembourgMacedonia Macedonian Stock ExchangeMalaysia Kuala Lumpur Stock ExchangeMexico Bolsa Mexicana de ValoresMorocco Bourse de CasablancaNepal Nepal Stock ExchangeNetherlands Euronext AmsterdamNew Zealand New Zealand Stock ExchangeNigeria Nigerian Stock Exchange, LagosNorway Oslo BørsPakistan Karachi Stock Exchange

Lahore Stock ExchangePanama Bolsa de Valores de PanamáPeru Bolsa de Valores de LimaPhilippines Philippine Stock ExchangePoland Warsaw Stock ExchangePortugal Euronext LisbonRomania Bucharest Stock ExchangeRussia Russian ExchangeSingapore Singapore ExchangeSlovakia Burza cenných papierov v BratislaveSlovenia Ljubljana Stock ExchangeSouth Africa Johannesburg Stock ExchangeSpain Bolsa de Bilbao

Bolsa de MadridBolsa de BarcelonaBolsa de Valencia

Sri Lanka Colombo Stock ExchangeSweden StockholmbörsenSwitzerland Swiss ExchangeTaiwan Taiwan Stock ExchangeThailand Stock Exchange of ThailandTrinidad and Tobago Trinidad and Tobago Stock Exchange, Port of SpainTurkey Istanbul Menkul Kiymetler BorsasiUnited Kingdom London Stock ExchangeUnited States American Stock Exchange, New York

NASDAQBoston Stock ExchangeChicago Stock ExchangeNew York Stock ExchangePacific Exchange, Los Angeles and New YorkPhiladelphia Stock Exchange

Uruguay Bolsa de Valores de MontevideoVenezuela Bolsa de Valores de CaracasZimbabwe Zimbabwe Stock Exchange, Harare

World Commodity Markets

Argentina Bolsa de Cereales, Buenos Aires grainsAustralia Sydney Futures Exchange wool, cattle, electricityAustria Wiener Börse raw skins and hides, leather,

driving belts, technicalleather products, timber

Brazil Bolsa de Mercadorias & Futuros gold, coffee, alcohol, sugar,cotton, cattle, soybean, corn

Canada Winnipeg Commodity Exchange canola, canola meal, flaxseed,feed wheat, feed barley

China Shanghai Gold Exchange goldShanghai Futures Exchange copper cathode, aluminium ingot

France MATIF (Marché a Terme European rapeseed futures,International de France) milling wheat futures, corn

futures, sunflower seedsGerman Südwestdeutscher Warenbörsen grain, fodder, oilseed,

(Mannheimer Produktenbörse, eggs, roughage, potatoes,Stuttgarter Waren- und fuel oilProduktenbörse, FrankfurterGetreide- und Produktenbörse,Wormser Getreide- undProduktenbörse)

Warenterminbörse, Hanover potatoes, hogs, wheat, rapeseed,heating oil, recyclable paper

Bremer Baumwollbörse cottonHong Kong Chinese Gold and Silver Exchange gold, silverHungary Budapest Commodity Exchange grain, livestock, financialsIndia Tobacco Board, Andhra Pradesh tobacco

Coffee Board, Bangalore coffeeCentral Silk Board, Mumbai silkTea Board of India, Calcutta teaCardamom Board, Cochin cardamomsCoir Board, Cochin coirRubber Board, Kerala rubber

Italy Borsa Merci Telematicade bergamot orange, essentialMediterraneo oil of bergamot, tangerine,

orange, lemon, citron,mandarin, grapefruit, oil, wine

Japan Central Japan Commodity gasoline, kerosene, eggs,Exchange azuki beans, soybeans

Hokkaido Grain Exchange corn, soybean, soybean meal,azuki bean, arabica coffee,robusta coffee, raw sugar futures

Kanmon Commodity Exchange broiler, corn, soybean, redbean,refined sugar

Kansai Commodities Exchange frozen shrimp, coffee, corn,soybeans, azuki beans,raw sugar, raw silk

Osaka Mercantile Exchange aluminium, cotton, rubber

World Commodity Markets continued

Japan cont’d Tokyo Commodity Exchange aluminium, gold, silver,platinum, palladium, gasoline,kerosene, crude oil, rubber

Tokyo Grain Exchange corn, soybean, coffee,rawsugar, redbean

Tokohashi Dried Cocoon Exchange silk cocoonsKenya Coffee Board of Kenya coffee

East African Tea Trade Association teaKenya Tea Development Authority tea

Malaysia Malaysian Rubber Board rubberMalaysia Derivatives Exchange crude palm oil, interest rate

futures, government securitiesfutures

Netherlands Euronext, Amsterdam pigs, potatoesSingapore Singapore Commodities Exchange rubber, coffeeUnited Kingdom Liverpool Cotton Association raw cotton

Euronext LIFFE cocoa, coffee, sugar,(London International Financial wheat, barley, weather futuresFutures and Options Exchange)

London Metal Exchange aluminium, copperInternational Petroleum Exchange crude oil, gas oil, natural gas

United States Mid-American Commodity gold, silver, platinumExchange

Kansas City Board of Trade wheat, natural gas, stock indexesNew York Board of Trade cocoa, coffee, cotton, sugar(NYBOT, parent companyof Coffee, Sugar & CocoaExchange (CSCE), New YorkCotton Exchange (NYCE), New YorkFutures Exchange (NYFE))

New York Mercantile Exchange crude oil, gasoline, heating oil,(NYMEX) natural gas, coal, propane,

gold, silver, platinum, palladium,aluminium, copper

Chicago Board of Trade corn, oats, soya bean oil,wheat, soya beans, rough rice,gold, silver, Treasury bonds,Treasury notes, other interestrates, and stock indexes

Chicago Mercantile Exchange beef, dairy, forest,e-livestock, hogs, crude oil,natural gas, weather futures,chemical futures, foreigncurrencies

Minneapolis Grain Exchange spring wheatBrokerTec Futures Exchange government securitiesMerchants Exchange barge freight rates, energy

productsNASDAQ LIFFE securities futuresFutureCom cattle

International Currencies

In the following list, units of currency marked (*) usually have no plural: e.g. 1 kyat(one kyat), 200 kyat (two hundred kyat), etc.Country Currency Divided into AbbreviationAfghanistan Afghani* puli Af or AfsAlbania Lek* qindars LkAlgeria Algerian dinar centimes DAAndorra Euro cents €

Angola Kwanza* lwei KzrlAntigua East Caribbean dollar cents Ecar$ or EC$Argentina Argentinian peso australesAustralia Australian dollar cents A$Austria Euro cents €

Bahamas Bahamian dollar cents B$Bahrain Bahraini dinar fils BDBangladesh Taka* poisha TkBarbados Barbados dollar cents Bd$ or BD$Belarus Rouble kopeksBelgium Euro cents €

Belize Belize dollar cents BZ$Benin CFA franc centimes CFA FrBermuda Bermuda dollar cents Bda$Bhutan Ngultrum* chetrum NBolivia Boliviano or Bolivian peso centavos $bBosnia Marka paraBotswana Pula thebe PBrazil Real centavos R$Brunei Brunei dollar sen B$Bulgaria Lev* stotinki LvBurkina Faso CFA franc centimes CFA FrBurma (see Myanmar)Burundi Burundi franc centimes Bur Fr or FrBrCambodia Riel* sen RICameroon CFA franc centimes CFA FrCanada Canadian dollar cents Can$ or C$Cape Verde Islands Escudo Caboverdiano centavos CV escCayman Islands Cayman Island dollar cents CayI$Central African Republic CFA franc centimes CFA FrChad CFA franc centimes CFA FrChile Chilean peso centavos Ch$China Yuan* or renminbi* fen YColombia Colombian peso centavos Col$Comoros CFA franc centimes CFA FrCongo (Republic of)CFA franc centimes CFA FrCongo (DemocraticRepublic of) Congolese franc centimes

Costa Rica Colón* centimos CCroatia Kuna lipas

/

Cuba Cuban peso centavos Cub$Cyprus Cyprus pound cents £C or C£Czech Republic Koruna haleru K¢Denmark Krone öre DKr or DKK

International Currencies continuedCountry Currency Divided into AbbreviationDjibouti Djibouti franc centimes Dj FrDominica East Caribbean dollar cents EC$Dominican RepublicDominican peso centavos DR$Ecuador Sucre* centavos SuEgypt Egyptian pound piastres £E or E£Eire (see Irish Republic)El Salvador Colón* centavos ES¢Equatorial Guinea CFA franc centimes CFA FrEstonia Kroon sentsEthiopia Birr* or Ethiopian dollar cents EBFiji Fiji dollar cents $F or F$Finland Euro cents €

France Euro cents €

French Guiana Euro cents €

Gabon CFA franc centimes CFA FrGambia, The Dalasi* butut DiGermany Euro cents €

Ghana Cedi* pesewas ¢Georgia Lari tetriGreece Euro cents €

Grenada East Caribbean dollar cents Ecar$ or EC$Guatemala Quetzal centavos QGuinea Guinea franc centimesGuinea-Bissau CFA franc centimes CFA FrGuyana Guyana dollar cents G$ or Guy$Haiti Gourde* centimes GdeHolland (see Netherlands)Honduras Lempira* centavos LaHong Kong Hong Kong dollar cents HK$Hungary Forint filler FtIceland Króna aurar IkrIndia Rupee paisa R or Re or R$Indonesia Rupiah* sen representativeIran Rial* dinars RIIraq Iraqi dinar fils IDIrish Republic Euro cents €

Israel Shekel agora ISItaly Euro cents €

Ivory Coast CFA franc centimes CFA FrJamaica Jamaican dollar cents J$Japan Yen* sen Y or ¥Jordan Jordanian Dinar fils JDKazakhstan TengeKenya Kenya shilling cents KSh or ShKorea (North) North Korean won* chon NK WKorea (South) South Korean won* jeon SK WKuwait Kuwaiti dinar fils KDKyrgystan Som tyinLaos Kip* at K or Kp

International Currencies continued

Country Currency Divided into AbbreviationLatvia Lat santimsLebanon Lebanese pound piastres £Leb or L£Lesotho Loti* lisente LLiberia Liberian dollar cents L$Libya Libyan dinar dirhams LDLiechtenstein Swiss franc centimes SFr or FSLithuania LitaLuxembourg Euro cents €

Macedonia Dinar parasMacau Pataca* avos P or $Madeira Euro cents €

Malagasy Republic Malagasy franc centimes FMG or Mal FrMalawi Kwacha* tambala K or MKMalaysia Ringgit or Malaysian Dollar sen M$Maldives Rufiyaa laaris MvReMali CFA franc cents CFA FrMalta Maltese pound or lira cents £M or M£Mauritania Ouguiya* khoums UMauritius Mauritius rupee cents Mau Rs or RMexico Peso centavos Mex$Moldova LeuMonaco Euro cents €

Mongolian RepublicTugrik* möngös TugMontserrat East Caribbean dollar cents Ecar$ or EC$Morocco Dirham centimes DHMozambique Metical* centavos MMyanmar Kyat* pyas KtNamibia Namibian dollar centsNauru Australian dollar cents A$Nepal Nepalese rupee paise NR or NreNetherlands Euro cents €

New Hebrides (see Vanuatu)New Zealand New Zealand dollar cents NZ$Nicaragua Córdoba centavos C$ or CNiger CFA franc centimes CFA FrNigeria Naira* kobo N or NNorway Krone ore NKrOman Rial Omani baizas ROPakistan Pakistan rupee paise R or Pak RePanama Balboa centesimos BaPapua New Guinea Kina* toea Ka or KParaguay Guarani* centimos GPeru Sol cents SPhilippines Philippine peso centavos P or PPPoland Zloty groszy ZlPortugal Euro cents €

Puerto Rico US dollar cents $ or US$Qatar Qatar Riyal dirhams QRReunion CFA franc centimes CFA FrRomania Leu* bani L or lRwanda Rwanda franc centimes Rw Fr

International Currencies continued

Country Currency Divided into AbbreviationRussia Rouble kopeks RubSt Lucia East Caribbean dollar cents Ecar$ or EC$St Vincent East Caribbean dollar cents Ecar$ or EC$Samoa Tala seneSaudi Arabia Saudi riyal or rial halala SA RSenegal CFA franc centimes CFA FrSerbia & Montenegro Dinar paras DNSeychelles Seychelles rupee cents Sre or RSierra Leone Leone cents LeSingapore Singapore dollar cents S$ or Sing$Slovakia Koruna haliers SkSlovenia Tolar stotin SITSolomon Islands Solomon Island dollar cents SI$Somalia Somali shilling cents Som ShSouth Africa Rand* cents RSpain Euro cents €

Sri Lanka Sri Lankan rupee cents SC ReSudan Sudanese dinar pounds SDSuriname Suriname guilder cents S GldSwaziland Lilangeni* cents Li or ESweden Krona örer SKrSyria Syrian pound piastres S£Taiwan New Taiwan dollar cents T$ or NT$Tanzania Tanzanian shilling cents TShThailand Baht* satang BtTogo CFA franc centimes CFA FrTonga Pa’anga senitiTrinidad & Tobago Trinidad & Tobago dollar cents TT$Tunisia Tunisian dinar millimes TDTurkey Turkish lira kurus TLTurkmenistan Manat tenesiTuvalu Australian dollar cents $AUganda Uganda Shilling cents UshUkraine Hryvna kopiykasUnited Arab Emirates UAE dirham fils UAE Dh or UDUnited Kingdom Pound sterling pence £ or £StgUSA Dollar cents $ or US$Uruguay Uruguayan peso centesimos N$Uzbekistan Sum tiyinVanuatu Vatu centimesVenezuela Bolívar centimos BSVietnam Dong* xu DVirgin Islands US dollar cents US$Yemen Riyal fils YRZambia Kwacha* ngwee KZimbabwe Zimbabwe dollar cents Z$