Financial Vocabulary

#141

Hurdle rate

Example sentences

1. The company set a hurdle rate of 10%.
2. The project failed to meet the hurdle rate.
3. Managers use the hurdle rate to judge investments.

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#142

Capital structure

Example sentences

1. The company changed its capital structure by adding debt.
2. Capital structure includes debt and owners' money.
3. Investors studied the firm's capital structure.

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#143

Debt financing

Example sentences

1. The company used debt financing to buy new equipment.
2. Debt financing requires regular interest payments.
3. A bank loan is a common form of debt financing.

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#144

Equity financing

Example sentences

1. The startup raised money through equity financing.
2. Equity financing gives investors part ownership.
3. The company chose equity financing instead of another loan.

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#145

Financial leverage

Example sentences

1. The company used financial leverage to increase its investment.
2. High financial leverage can increase both gains and losses.
3. The lender worried about the firm's financial leverage.

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#146

Operating leverage

Example sentences

1. The factory has high operating leverage because of fixed costs.
2. High operating leverage can increase profit when sales rise.
3. The analyst studied the company's operating leverage.

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#147

Break-even point

Example sentences

1. The shop reached its break-even point after selling 500 units.
2. At the break-even point, revenue equals total costs.
3. The manager calculated the break-even point for the new product.

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#148

Sensitivity analysis

Example sentences

1. The team used sensitivity analysis to test different sales levels.
2. Sensitivity analysis showed how fuel prices affect profit.
3. The manager changed one input during the sensitivity analysis.

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#149

Scenario analysis

Example sentences

1. The company used scenario analysis for best and worst cases.
2. Scenario analysis helped the team prepare for lower sales.
3. The report includes three results from the scenario analysis.

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#150

Economic value added

Example sentences

1. The company created positive economic value added this year.
2. Economic value added shows profit after the cost of capital.
3. Managers use economic value added to measure real performance.

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#151

Stock

Example sentences

1. She bought stock in a technology company.
2. The stock price rose after strong sales news.
3. Owning stock gives an investor part of a company.

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#152

Share

Example sentences

1. He bought one share for $50.
2. Each share represents a small part of the company.
3. The company paid a dividend on every share.

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#153

Common stock

Example sentences

1. She owns common stock and can vote at meetings.
2. Common stock may pay dividends.
3. The company issued more common stock to investors.

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#154

Preferred stock

Example sentences

1. Preferred stock usually receives dividends before common stock.
2. He bought preferred stock for more stable income.
3. The company issued preferred stock to raise money.

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#155

Shareholder

Example sentences

1. Every shareholder received the annual report.
2. A shareholder can own one or many shares.
3. The shareholder voted for new board members.

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#156

Market capitalization

Example sentences

1. The company's market capitalization reached $2 billion.
2. Market capitalization equals share price times total shares.
3. Investors use market capitalization to compare company size.

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#157

Large-cap stock

Example sentences

1. She bought a large-cap stock from a well-known company.
2. A large-cap stock may be more stable than a small company stock.
3. The fund invests mainly in large-cap stock.

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#158

Mid-cap stock

Example sentences

1. The portfolio includes a mid-cap stock with strong growth.
2. A mid-cap stock comes from a medium-sized company.
3. He added a mid-cap stock to improve diversification.

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#159

Small-cap stock

Example sentences

1. The small-cap stock rose quickly after good news.
2. A small-cap stock may have higher risk.
3. She invests only a small amount in small-cap stock.

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#160

Growth stock

Example sentences

1. The growth stock increased as the company expanded.
2. A growth stock may not pay a large dividend.
3. Investors bought the growth stock because sales were rising fast.

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