50 Powerful Words to Boost Your Business IQ
- Antoine.C
- 3 days ago
- 3 min read
Having a high financial IQ does not depend solely on experience or academic degrees. It also relies on mastering a precise vocabulary, the very language that investors, entrepreneurs, and the wealthy use on a daily basis. Here is a list of 50 powerful words, with simple definitions, that will elevate your understanding of finance and business to the next level.
50 Powerful Words to Boost Your Business IQ
50 Powerful Words to Boost Your Business IQ
💰 Money & Basic Finance
Asset – Anything that puts money into your pocket (investment, business, real estate).
Liability – Anything that takes money out of your pocket (loan, expense, unproductive debt).
Cash Flow – The difference between money coming in and going out of a project or business.
Passive Income – Money earned regularly without requiring active involvement (rent, dividends).
ROI (Return on Investment) – The percentage that measures the profitability of an investment.
Capital – Accumulated wealth (money, goods, resources) used to generate more value.
Compound Interest – Exponential growth of reinvested earnings over the long term.
Diversification – Spreading investments to reduce risk.
Inflation – General increase in prices, which decreases the value of money.
Deflation – General decrease in prices, often a sign of economic crisis.
📈 Investment & Strategy
Stock Market – The marketplace where shares and bonds are traded.
Share (Stock) – A unit of ownership in a publicly traded company.
Bond – A debt security issued by a government or corporation.
Dividend – A portion of profits distributed to shareholders.
ETF (Exchange Traded Fund) – A fund that bundles multiple stocks, traded as a single unit.
Private Equity – Investment in companies not listed on the stock exchange.
Start-up – An innovative company in an early and rapid growth phase.
Scalability – The ability of a business to grow without proportionally increasing costs.
Venture Capital – Funding provided to high-potential start-ups.
Due Diligence – A thorough analysis of an investment before committing.
🏦 Banking & Financial Management
Liquidity – The ease with which an asset can be converted into cash.
Leverage – Using debt to amplify the returns of an investment.
Yield – A measure of the performance or return of an investment.
Interest Rate – The cost of borrowed money or the return on a deposit/investment.
Leasing – A financing method that allows the use of an asset through regular payments.
Credit Rating – An evaluation of the creditworthiness of a state or corporation.
Hedge Fund – A high-risk investment fund, generally reserved for experienced investors.
Sovereign Wealth Fund – An investment fund owned by a state.
Secondary Market – The market where previously issued securities are traded.
Wealth Management – Strategy for optimizing an individual’s financial assets.
🏠 Real Estate & Wealth
Real Estate Cash Flow – The difference between rental income and expenses/debts related to a property.
Appreciation – The increase in an asset’s value over time.
Mortgage – A loan secured by real estate, given as collateral to a bank.
Rental Yield – The percentage of income generated by a property.
Tangible Asset – A physical asset that holds value (house, land, gold).
Real Estate Investment Company (SCI) – A legal structure for managing real estate assets.
Property Dismemberment – The separation of ownership rights (bare ownership vs. usufruct).
Real Estate Leverage – Using credit to acquire multiple properties while limiting initial capital.
Occupancy Rate – The percentage of time a property is rented out.
Depreciation (Amortization) – Allocating the cost of an asset over several years to optimize taxation.
🌍 Entrepreneurship & Wealth
Financial Mindset – A way of thinking that shapes wealth management and creation.
Intangible Asset – A non-physical resource that creates value (brand, patent, reputation).
Monetization – Turning an idea, audience, or product into revenue.
Recurring Revenue – Stable income that flows in automatically each month.
Entrepreneurial Ecosystem – A network of partners, clients, and investors around a business.
Disruptive Innovation – A radical change that reshapes or replaces an existing market.
Exit Strategy – A plan to realize profits from an investment (business sale, IPO).
IPO (Initial Public Offering) – The first public listing of a company on the stock market.
Value Multiplier – A factor that multiplies the worth of an asset or company.
Financial Freedom – The state where passive income fully covers all living expenses.
Mastering this vocabulary already means thinking like an investor, an entrepreneur, or a strategist. These 50 powerful words are not just technical terms, they are keys to understanding that will allow you to elevate your financial IQ and make decisions worthy of the greatest.
