Business dictionary

Funds or assets set aside by an organization or government for a specific purpose, often for future use or emergencies. In a financial context, reserves are typically accumulated profits or retained earnings that are not distributed to shareholders. They can also be used to absorb potential losses, as part of a company’s risk management strategy. In banking, reserves are also the portion of depositors’ funds that banks must hold in reserve and not lend out.

The capacity of an organization or system to withstand and recover from adverse conditions or disturbances.

The overall financial performance of a company during a specific fiscal period, as documented in its financial statements. This includes the revenue, expenses, and profits or losses generated from the company’s operations within that period. The results of operations reflect the net profitability or loss-making activities of the company and serve as a key indicator of its financial health. This term is often used in annual reports to assess how well a company has managed its resources to generate profit over the fiscal year.

A financial metric used to evaluate the effectiveness of an investment. It is calculated by dividing the profit from the investment by its cost and is usually expressed as a percentage.

The process of cancelling or correcting a previously recorded accounting entry or transaction that was made incorrectly or with erroneous data. It typically occurs when there is a need to adjust a record to match actual circumstances or to correct an error in a company’s financial records. A reversal involves creating new entries that reverse or correct previous ones.

Α type of loan where the borrower can borrow amounts up to a predetermined limit without specifying the exact amount beforehand or securing specific repayment terms. The borrower can reuse the available credit limit as they repay the loan, without requiring further approval. Examples of open loans include credit cards and open-ended bank loans.

An account held at a bank where a sum of money is deposited to earn interest over time. The primary feature of this account is that it allows for limited access to the deposited funds, and typically, the interest rates are low. Savings accounts are considered a safe place to store funds and are often used for long-term savings rather than day-to-day transactions. They provide security and liquidity, although there may be restrictions on the number of withdrawals or transfers that can be made.

The practice of optimizing a website to improve its visibility on search engines like Google. The goal of SEO is to increase organic (non-paid) traffic to a website by enhancing its ranking in search engine results pages (SERPs). This involves various strategies, including keyword research, content creation, on-page optimization (like improving title tags and meta descriptions), and building backlinks to establish authority and relevance in the eyes of search engines.

A financial instrument that represents ownership or a creditor relationship with an entity. Securities can be in the form of debt, equity, or derivative contracts. Common forms of securities include bonds, promissory notes, and other debt instruments issued by a corporation or government, which promise to repay the holder a certain amount of money at a later date. Securities are typically used to raise capital for investment purposes or to fund specific projects.

The first round of funding for startups with a proven development track record and readiness for scaling. It follows the seed funding phase and aims to raise capital between 2 and 15 million euros from venture capital firms, angel investors, and institutional investors. The main goal is to optimize the product and user experience, scale the business model, expand the team, and implement marketing strategies for growth and customer acquisition. Investors look for companies with a clear value proposition and a strong business plan. Successful, validated product-market fit and measurable adaptation are expected, indicating that the company is ready for growth.