Business dictionary

A brief and persuasive presentation used to attract investors or partners. It typically includes the problem, the proposed solution, business model, target market, and financial projections. A well-delivered pitch is essential for securing funding.

The collection of investments held by an individual, organization, or business. It typically includes various types of assets such as stocks, bonds, real estate, and other financial instruments, aimed at achieving diversification and reducing risk. In the financial context, a portfolio is used to manage and track the performance of investments.

A type of stock that gives their holders priority over common stockholders in terms of dividend payments and claims on assets in the event of company liquidation. Preferred shareholders typically receive a fixed dividend and may not have voting rights, depending on the company’s policies. The main benefit of holding preferred shares is the protection they offer to shareholders, especially in situations where the company faces financial difficulty.

A financial shortfall of a government or entity when its annual expenditures exceed its revenues, excluding payments made for servicing debt. In other words, it is the deficit before taking into account interest payments and other debt-related obligations. The primary deficit is an indicator of the fiscal health of a government and its ability to manage its financial needs without relying on borrowing to pay interest.

A financial market where new securities, such as stocks and bonds, are issued and sold to the public or investors directly by the issuing companies or government. The primary market enables companies to raise capital directly from investors, supporting growth and the execution of investment plans.

A fiscal surplus that occurs after deducting interest payments on public debt. In other words, it is the surplus from government revenues (such as taxes and other sources) after subtracting government expenditures, excluding the costs of servicing debt. The primary surplus is an important indicator of a country’s economic health, showing whether the government can finance its operations without relying on external borrowing.

The risk associated with the potential loss of the initial capital invested in a financial transaction or investment. It is the risk that the investor could lose the amount of their investment due to adverse market movements or poor asset performance. This risk is particularly significant for investments that do not provide guarantees or collateral.

A small-scale demonstration or test used to determine whether an idea, project, or product can be successfully executed in practice. It is a crucial step, especially in innovation and technology development, as it helps validate that a solution or concept can meet its intended objectives before full-scale development. POCs are typically created to assess technical feasibility, usability, or market interest, often used in fields like software development, engineering, and scientific research.

The process of replacing an existing loan or debt with a new one, usually under different terms. Borrowers typically choose refinancing to secure better conditions, such as lower interest rates, an extended repayment period, or improved payment terms, aiming to reduce debt servicing costs or facilitate repayment.

Energy from sources that are naturally replenished, such as solar, wind, and hydroelectric power.