| Accrual Basis | This is a method of recording accounting transactions for revenue earned and expenses incurred. |
| Annual Gross Turnover/Sales | This is the total sales made by a business within one financial year. This is different than profit, which is sales less all expenses within a financial year. |
| Anti-virus | This is a software designed to prevent, scan, detect and destroy viruses on your devices. |
| Artificial intelligence | This is the ability of a computer or a robot machine to perform tasks commonly associated with intelligent beings. It is the simulation of human intelligence processes. |
| Balance Sheets | A summary of financial balances that shows the financial position of a business at that period. |
| Bankruptcy | This is a legal proceeding in which an individual or a business is declared unable to repay their debts. The petition is filed by a debtor and all his assets are measured and revalued to repay a portion of the outstanding debt. It allows the debtor to be free from debts giving them a fresh start however, bankruptcy can stay on credit reports for years making it difficult to borrow. |
| Blockchain | This is a system in which a record of transactions made in bitcoin or another cryptocurrency are maintained across several computers that are linked in a peer to peer network. |
| Bootstrapping | Building a business from the ground up with nothing other than your personal savings and the income from your first sales. Here, the business owner obtained little or no external funding source. |
| Break-even point | This is the point at which the total cost is equal to the total revenue. This is the point at which the investor recoups their initial investment. |
| Budgeting | This is the process of creating a plan on how to utilize one’s assets to achieve set objectives. It helps to determine how much of a resource is needed and how to prioritize spending. It is also used to forecast future financial positions. |
| Buy the dips | This means purchasing an asset after it has dropped in price. |
| Capital Budget | A specific budget for expenses that increase the value of an entity or a person. It is a budget for the acquisition of fixed assets which may include land, buildings, etc. |
| Cash Flow | A summary of all cash inflow and all cash outflow in a business during a given period. |
| Cloud computing | This offers a range of computer services through the internet including data storage, servers, networks, processing, application, databases, and software all hosted on the internet. |
| Commercial Papers | Commercial papers are money market instruments issued usually by blue chip companies with great credit ratings due to its unsecured nature being an IOU essentially. |
| Commercial Papers issued at discount | This is when the face value on a Commercial Paper is received by the holder upon maturity, but a lesser amount is paid by the holder on purchase of the instrument. |
| Contingent liability | This is a liability that may occur depending on the outcome of an uncertain future event. |
| Contribution Room | The contribution room is the total amount consisting of the set limit for the current year as well as any unused contribution room from the previous years and any withdrawals made in the previous year. |
| Cost of production | This is the average cost per unit of goods and services. It includes all the costs such raw materials, labor cost, etc. |
| Credit Rating | A credit rating is a quantified assessment of the credit worthiness of a borrower in general terms or in relation to a particular financial obligation. |
| Credit Report | This is a detailed breakdown of an individual’s credit history by a credit bureau e.g. CRC in Nigeria. These credit bureaus prepare reports based on an individual’s financial information. Creditors and other organizations use this report to determine creditworthiness as well as the probability that an individual will repay their loans in a timely manner. |
| Credit Score | This is a number between 300 – 850 that shows an individual’s creditworthiness. The higher the score, the better. A credit score is based on credit history as well as other factors and can therefore, change over time. |
| Cryptocurrency | This is a digital currency in which transactions are verified and records are maintained by a decentralized system using blockchain technology rather than by a centralized authority e.g. a Central Bank |
| Cryptography | is a method of codification generated with the mathematical and engineering functions to protect information or communication. The prefix “crypt” is a Greek word meaning hidden. |
| Debt | This is an obligation, not necessarily money, owed by one part to another. |
| Debt Settlement | This is the process of debt repayment that involves offering your creditors a lump sum payment that is less than the total amount you owe in order to cancel the debt. |
| Debt Consolidation | This is the process of taking out a consolidation loan to pay off all outstanding debts and thereafter make payments towards the new loan under the terms and conditions of the new lender. The advantage is that it helps repay in a convenient and straight forward manner. |
| Devaluation | Devaluation of currency is the lowering of the value of a county’s currency in relation to other country’s currency. It can be a deliberate downward adjustment of the currency as a monetary policy tool. |
| Digital twin | This is a virtual mirror or software representation of a physical object or systems and process through simulations through out the lifespan of that physical object or systems and process using real-time data. |
| Dividend per share | This is the company’s declared dividend divided by the total number of shares |
| Double Entry | Double entry accounting is based on the premise that every entry to an account requires a corresponding and opposite entry to a different account. For instance: sale of goods worth $3; debit bank ($3), credit sales ($3). |
| Due diligence | Due diligence is a comprehensive appraisal of a business undertaken to evaluate its commercial potential. |
| Earnings per share | This is the company’s net profit divided by the total number of shares |
| Economic players | These are the key participants in the stimulation of economic activities. They are consumers (individuals/households), producers (companies) and the governments. |
| Encryption | This is the process of converting information or data into a secret code to hide the information so that only authorized individuals can have access to the information. |
| Fiat currency | This is a government issued currency that is not backed by a physical commodity but rather by the government that issued it. |
| Financial Planning | This involves determining the activities and resources required to achieve certain financial objectives within a set timeframe. It helps take control of income, expenditure, and investments to manage money and achieve set financial goals. |
| Financial Products | It is an instrument where a person can either make a financial investment or save money |
| Financial Reporting period | This is the time period covered by the financial statements. It is always stated on the financial statements. Financial statements usually cover a period of twelve months. However, for a newly commenced or a liquidating entity, the financial statements may cover a period below or exceeding the typical twelve (12) months. |
| Financial resources | A term to mean all financial funds and assets owned by a person or company. |
| Firewall | This is a network security device or software installed on a network designed to protect the system from unauthorized access by monitoring incoming and outgoing network traffic based on the predetermined security rules. |
| Future Value | This is what the value of an asset will be at a particular future date based on an estimated growth rate. |
| Growth stock | This is a share in a company that is anticipated to grow significantly over the average growth of the market. |
| High Interest Debt | Money borrowed by a person that comes with high interest rates |
| Indemnify | A term commonly associated with insurance, meaning to restore an insured to a position such that it will seem as though the loss never occurred. Indemnification is an agreement where your insurer helps cover loss, damage or liability incurred from a covered event. Indemnity is another way of saying your insurer pays for a loss, so you don’t have financial damages. |
| Income Statement | A business financial statement that shows the revenue and expenditure for a particular period. |
| Illiquid | Cannot be easily sold or converted to cash |
| Institutional investor | An individual or company that invests money on behalf of other people e.g. mutual funds, pensions, insurance companies. |
| Intrinsic value | This is the value something has in itself. |
| Investment grade | This refers to less-risk averse instruments i.e., the risk of default is low and the probability repayment is high. |
| Life Assurance | Life assurance policies offer insurance cover for the whole of your life, rather than a chosen policy length. A life assurance pay-out is tax-free, and provided the premiums have been paid, a claim can be made upon the death of the insured person. (Legal & General Plc, 2021) |
| Liquidity | It is the degree to which securities or assets can be quickly purchased or sold |
| Market Capitalization | This is the market value of a company’s outstanding shares. It is equal to the current share price multiplied by the number of outstanding shares. |
| Market correction | A market correction is a sustained decline in the value of a market index of the price of an asset. A correction is viewed to be a 10% to 20% fall in the value of an index or an individual asset following a recent peak. |
| Market Index | A market index is a hypothetical portfolio of investment holdings that represent a segment of the financial market. |
| Market Offering | This is the product or service your business offers the public. |
| Maturity Date | This is the date on which the final payment is due on a loan or other financial instruments. |
| Minimum investments | The smallest specified naira or dollar or unit required to invest in a particular. |
| Mortgage | Mortgage is a loan provided by an institution that enables an individual to purchase a home or property. |
| Multi-Level Marketing (MLM) | This refers to a sales strategy employed by business in reaching consumers with a more direct marketing approach. |
| Net Assets | This is the value of a company’s assets less its liabilities. It can also be referred to as the company’s net worth. |
| Net worth | Net worth is the value of the asset a person or a corporation owns, minus the liabilities they owe. It is a metric for measuring a person’s wealth. In finance, the net worth of a business is the shareholder’s equity. |
| Passive Income | This is the part of an individual income that does not significantly require time and effort to maintain. Unlike paid employment or business revenue, passive income requires little or no consistent input to earn e.g. rent received from property, interest on fixed deposits etc. |
| Payroll System | This is a system that helps business owners determine how much is owed to employees based on factors identified in the employees’ contract. It maintains employee records and taxes computation for the deduction of tax. |
| Pension Fund Administrator (PFA) | A Pension Fund Administrator (PFA) is a company licensed by the National Pension Commission to manage and invest the pension funds in the employee’s Retirement Savings Account (RSA). (PENCOM, n.d.) |
| Present Value | This is the current value of an asset at the now. |
| Permissionless transactions | These transactions allow any computer on the Ethereum network to confirm a transaction. |
| Permissioned transactions | These are transactions that are reviewed by only a select group of computers on the Ethereum network hence, their activities do not need to be exposed to all computers as long as it follows set protocols. |
| Phishing | This is a criminal activity of sending emails by impersonating reputable institutions to receive personal information such as passwords or financial information. |
| Portfolio | Portfolio is a range of investments held by a person or an organization. It is a collection of financial investments. |
| Premium | An insurance premium is the amount of money an individual or business must pay for an insurance policy. |
| Private Key | is the unique code generated to access the information protected by the public key i.e. to decrypt information. |
| Public Key | is used to encrypt information. The layer of security generated by cryptography. |
| Purchasing power | This expresses the value of currency in terms of the number of goods or services that one unit of the currency can buy. Inflation would decrease the number of goods and services one unit of currency can purchase. |
| Retained Earnings | This is the accumulated residual value of the entity after its existing assets have been used to settle its existing liabilities. This is the amount of money left to be distributed amongst the shareholders, after the external creditors have been settled, in the event of a liquidation of the entity. |
| Return on Investment | Return on investment is a profitability ratio that show how well your investment is performing. To find out your return on investment you divide your net revenue by the cost of your investment. |
| Risk Appetite | is the level of risk an individual or organization is willing to take. |
| Return on Investment | Return on Investment refers to the gains made by an investor over the seed investment or capital. It is typically measured in Percentages. |
| S&P 500 | This is a market index that tracks the average movement of 500 of the largest companies in the U.S Economy. |
| Scale of preference | It is a hierarchy of needs and wants in order of priority. It is a systematic way of prioritizing expenses chronologically per their importance. |
| Share Capital | This is the money a company raises by issuing shares to the market. For a small business, it is the value of the business owner’s investment in the company. The amount of share capital a company has can change over time when additional capital is raised. |
| Speculative grade | This refers to investments with high risk. The interest rates on these investments are usually higher than investment grade i.e., the higher the risk, the higher the reward. |
| Spyware | This is a software that allows unauthorized access to a person or an organization’s information. They attempt to infiltrate your device through installed applications, malicious websites, or attachments to steal your data and use directly or sell to other parties |
| Stable coin | This is a cryptocurrency whose price is backed by an underlying asset. It offers price stability while also maintaining the security and privacy of transactions. |
| Statement of Changes in Equity | This statement explains the changes in a business’s equity and retained earnings for a particular period. |
| Stockbroker | Stockbroker is a professional trader who buys and sells shares on behalf of clients. |
| Taxable income | This is the portion of the individual’s or company’s income that is used to calculate the tax to be paid to the government. |
| Tax liability | This is the amount of tax owed to the government. |
| Treasury Bills | These are debt instruments issued by the government to the public to finance government spending as an alternative to taxation. They are low interest-bearing debt. Treasury bills are risk free debts. |
| Unicorn Company | These are privately held startup companies that are valued above $1 billion. They are mostly high-tech companies and innovators i.e. they are usually seen as the first to do something unique and different in a specific sector. |
| Value stock | This is a security trading at a lower price than what the performance of a company indicates. A common characteristic of a value stock is a low price earning ratio. |
| Volatility Rate | is the degree of variation of the trading price of a currency over a period of time. |
| Whitepaper | A whitepaper is an informative document used by a company or a not-for-profit organisation to promote a solution or service. |
Broadstreet Financial Review 