Commonly used terms for banking and finance

1. Terms from A to B acquisition 1) the act of buying an asset 2) the asset that has been bought amortization

2. 1) the lessening of the value of intangible assets, like trademarks and licenses, from the time they were first used (equivalent to depreciation of fixed assets) 2) the lessening of a loan amount as it gets paid (called a loan amortization) book value the value left in an asset after depreciation/amortization buyout/takeover buying a company’s stocks in order to take over its operations

3. Terms from C to D capital gain the amount a person earns from selling an asset that is not part of a company’s inventory or merchandise stock. A building was acquired for $10 million and sold for $15 million, so the capital gain on the sale was $5 million.

4. collateral/pledged asset assets, such as real property (land, buildings) or valuables (cars, jewelry), that a borrower pledges as security for a loan. The lender has the legal right to take the pledged asset in case the borrower fails to pay the loan. consolidation/amalgamation the process of combining the resources of two companies into one entity under one company name (see merger)