| Accident Insurance | Cover risks of accidents |
| Act of God | Events that happen outside human control such as natural disaster |
| Actuarial Science | Using mathematical and statistical methods to assess risk in insurance, finance and other industries and professions |
| Adam Smith | An influential thinker in economics. Considered as the ÒFather of modern economicsÓ |
| Agriculture | For farming use |
| Angel Investor | A person who provides capital for a new business or startup as a loan or ownership |
| Annuity | An insurance and savings plan with regular payout that may terminate upon reaching zero value or death |
| Apartment | One of many units in a building |
| Architect | In charge of plans, designs, and oversees the construction of buildings. |
| Asset Class | Investment grouping |
| Asset-Backed / Collateral | Loans backed or secured by recognised assets |
| Assignment | Transfer of policy rights |
| Banks | Where you can keep and borrow money. Common services include loans, deposits, remittance, credit cards and investments |
| Beneficiary | Person entitled to receive insurance benefits |
| Benefit insurance | What must be paid regardless |
| Bitcoin | A virtual currency or cryptocurrency. Created online in 2008 |
| Bond Market | Issuing, buying and selling, or related bond activities |
| Bonds | A loan with terms such as interest rate (%) and period (years) |
| Bps | Basis Points. |
| Bretton Woods Agreement | A global system for monetary and exchange rate management, pegging USD to Gold. Developed at the United Nations Monetary and Financial Conference held in Bretton Woods, New Hampshire, from July 1 to July 22, 1944. |
| Brokerage | Buy and sell financial securities on public stock exchange |
| Bungalow | A stand-alone house |
| Cable | Exchange rate between Pound and Dollar (GBP/USD) |
| Call Option | An option to buy at an agreed price ($) and date, only if the option buyer wants to buy |
| Capital Market | Money is gathered and arranged to be invested or allocated |
| Car Insurance | Cover risks of car accidents |
| Cash Value | Value of insurance policy upon immediate termination |
| Causa proxima / proximate cause | Cause of loss must be covered and the dominant cause must not be excluded |
| Caveat | A warning that action should not be taken without informing the person who gave the notice. |
| CDOs | Stands for Collateral Debt Obligations. Popularly known as sub-prime or credit-linked notes. CDOs is a package of loans |
| Central Banks | Government body that manages the countryÕs currency, money supply and interest rates |
| Civil Engineer | In charge of design, construction, and maintenance of building |
| Claims | Request for payments as per terms of insurance policy |
| Classical Economics | How markets and economies work. Freedom, laissez-faire and free competition promotes growth. Thinkers: Adam Smith, Jean-Baptiste Say, David Ricardo, Thomas Malthus and John Stuart Mill. |
| Co-insurance | Sharing risks or payments |
| Commercial | For business, office and shops use |
| Commodities | Goods or resources that can be traded |
| Commodity Market | Buying and selling of commodities |
| Condominium | Building with apartments, owned by individuals, with shared common areas. May have facilities like swimming pool, gym, fitness corner, bbq pits |
| Contractor | In charge of day-to-day oversight of a construction site, vendors and trades and sending information |
| Conveyancing | Transferring title deed to another |
| Credit | Borrowing or Lending |
| Credit Default Swaps | An exchange of cash against credit or loan default |
| Critical illness Insurance | Covers risks of getting stated critical illness |
| Currencies | Money in respective countries |
| Currencies | Money in respective countries |
| Dealing Room | Buy and sell global financial assets, usually only for financial institutions |
| Debentures | A legal document to describe bonds & debts |
| Debts | Same as bonds. Corporate / accounting term |
| Deflation | Value or price going down |
| Demand | What people want |
| Demand & Supply | What people want and what is being produced |
| Derivatives | Investment instrument that derives result from another |
| Derivatives market | Providing instruments for the management of financial risks |
| Developer | Building or renovation of land or existing building |
| Disability Insurance | Cover risks of not being able to work due to disability |
| E-commerce Payment Gateway | Making payment for online transactions. |
| Econometrics | Using complex math to explain economics |
| Economics | The study of how to work with given resources. |
| Endowment | An insurance and savings plan that pays a lump-sum upon maturity or upon death |
| Equilibrium | What people want and what is being produced match, at a certain price. |
| Equities | Same as shares. It originates from an accounting term (equities, liabilities, assets). Can be considered an asset class |
| Exchange | A public platform where people trade. It is centralised and is usually regulated |
| Exchange | A public platform where people trade. It is centralised and is regulated |
| Financial Advisor | Institution or person that provides financial advice. These activities are usually regulated or governed and requires the institution and person to be licensed |
| Financial Assets | Assets, instruments or investments that are recognised in the financial system, and can be easily bought and sold or priced |
| Financial Intermediaries | Medium or channel for money or financial assets pass through |
| Financial Market | Marketplace for buying and selling of any financial assets |
| Financial System | Placement or transfer of money |
| Fire Insurance | Protect risks of fire |
| Fiscal policy | Government tax and spending policies. |
| FisherÕs Equation | Where nominal interest interest rate = inflation rate and real interest rate. Named after Irving Fisher |
| Fixed Income | Investments that gives regular payout such as bonds and preferred shares |
| Foreclosure | Legal process of lender to recover the loan by selling the property |
| Foreign Exchange Market | Buying and selling of foreign exchange. |
| Foreign Exchange Rate | Exchange rate between two currencies |
| Forex | Where you change a currency into another currency. Stands for Foreign Exchange |
| Forward | A private contract to exchange goods at an agreed price ($) and date |
| Forward Market | Providing non-standard and private forward contracts for trading at future dates. |
| Freehold | Forever ownership to the right of land, building, property |
| Futures Market | Providing standard forward contracts for trading at future dates. |
| GDP | The total value of goods or services created. It stands for Gross Domestic Product. |
| General Insurance | Non-life insurance such as motor, travel and fire insurance |
| Grey Market | Before actual trading starts. The phase between primary and secondary market. |
| Health Insurance | Cover medical, hospital and surgical expenses |
| Hedge | An action taken to reduce or protect price movement of the investment |
| Hedge Funds | Investments that are unregulated where the funds to be invested anywhere, anyhow |
| Home Economics | The study of how housewives work with limited money in a small apartment, hungry husband, naughty kids, limited salt, eggs, oil and rice. |
| Indemnity | What will be excluded |
| Industrial | For production and manufacturing use |
| Inflation | Value or price going up |
| Instalment | Regular payment for loan |
| Insurable interest | Insured must directly suffer from the loss. |
| Insurance | Transferring or protecting risk, usually with a payment |
| Insurance Agent | A person who provides insurance advice and solutions |
| Insurance Coverage | The amount or value of risks to be covered |
| Insurance Market | Redistribute risks |
| Insurance Policy | An insurance contract |
| Insured | What the insurance covers or protect |
| Insurer | Company that provides insurance |
| Interior Designer | Design the inside of room or building |
| International Monetary Fund | Promote economic co-operation, trade, employment, stable exchange rate and financial assistance to help with balance of payments (trade deficit). Founded in 1945 by 29 countries |
| Investment Banks | Where businesses and companies can find capital in the form of equity or debt. Common services include underwriting for bonds and equities for IPOs, trading and investment activities. |
| Investment-linked Policy | An insurance policy with returns linked to investments |
| Keyman Insurance | Cover stated risks of important person. Example: Bruce Springsteen voice was LloydÕs for $6 million |
| Keynesian Economics | When demand and supply goes wrong, government should step in: Reduce interest rate and increase infrastructure spending. By John Maynard Keynes. |
| Lag | 100K |
| Landlord | The owner of the land or property |
| Leasehold | Temporary ownership to the right of land, building, property |
| Leverage | Number of times of borrowing against asset |
| Life Insurance | Cover the life of a person against death. |
| Liquidity | Being able to buy or sell an investment easily without affecting price movements |
| Loans | Your money in banks being loaned or lent |
| Long | Buy |
| Lucas Critic | Naive to predict how government macro-policies will impact economy by using past datas. |
| Lump Sum | One-time payment |
| M0 | Notes and Coins available |
| M1 | Notes and Coins available + Non-banks travellers check + fixed deposits + deposits with chequebook and savings |
| M2 | Notes and Coins available + Non-banks travellers check + fixed deposits + deposits with chequebooks + savings + time deposits < 100 K |
| M3 | Notes and Coins available + Non-banks travellers check + fixed deposits + deposits with chequebooks + savings + time deposits < 100 K + other liquid assets |
| Macroeconomics | When your mum gives you $200 a month or $2400 a year, you decide how to spend it. |
| Maritime Insurance is the earliest known insurance contract in 1347 Genoa, Italy. | |
| MB | Notes and Coins available and in bank vault + Reserves |
| Microeconomics | You spend $2 today. Count the cents and dollars to know what you have spend this month or this year. |
| Monetary Policy | Expansionary: Less tax and more spending = more money in use. Contractionary: More tax and less spending = less money in use. Neutral: In-between |
| Money Changer | Change money from one currency to another |
| Money Market | Short-term investment in deposits, bonds or loans that can be easily converted to cash and is typically less than 1 year |
| Money Markets | Short-term debt financing and investments |
| Money Supply | Amount of money in the system. M1 ~ Money that can be used very quickly |
| Mortgage | Pledging the property for a loan |
| Multiplier Effect | Multiplier Effect |
| Mutual Funds | A portfolio of investments managed by a company. Investors invest into the company |
| MZM | Notes and Coins available + Non-banks travellers check + money market funds |
| Neo-Classical Economics | How a person maximise profits or returns by understanding demand and supply. |
| Nominal | Current value or market value |
| Non-participating | Values of savings insurance policy is pre-determined and is not subject to profit of loss. |
| Option | Giving an option to buy or sell at an agreed price ($) and date, only if the buyer of the option exercise his rights. You can be either buyer or seller of an option |
| OTC | Stands for Over-the-counter. Any trade that is private between two parties by a dealer, without going through a regulated exchange |
| OTC | Stands for Over-the-counter. Any trades that is private between two parties by a dealer, without going through a regulated exchange |
| Participating | Sharing future profits or decreased in profits for the savings insurance policy |
| Philips Curve | Inventor of Philip Lightbulb |
| Pip | Percentage in Points |
| Policy Holder | Owner of the insurance |
| Preferred or Preference Stocks / Shares | Second in rank to the ownership of the company, behind common stockholders or shareholders. Owners typically receive a fixed or high dividend payout |
| Premium | The amount paid for the insurance |
| Primary Market | New or first allocation of investments before buying and selling activities start |
| Private Equity | Private investments into established businesses, companies, concepts or plans via equities or debts |
| Private Equity Ð Early Stage | Investments that can be exited / sold within 5 to 7 Years. Early refers to young |
| Private Equity Ð Late Stage | Investments that can be exited / sold within 1 to 3 Years |
| Private Equity Ð Mid Stage | Investments that can be exited / sold within 3 Ð 5 Years |
| Property Agent | A person who buy or sell properties for customers |
| Put Option | An option to sell at an agreed price ($) and date, only if the option buyer wants to sell |
| Real | Value adjusted for inflation |
| Real Estate | Land, properties and buildings |
| Real Estate | Land and properties. Common zoning includes residential, commercial, office, agricultural, industrial |
| Regular Premium | Regular Payment |
| Regulator | To ensure everyone follows the rule |
| Reinsurance | Transferring risk of company that provides insurance |
| Reinsurer | Company that provides reinsurance |
| Remittance Services | Transfer money from one account to another (can be to another country) |
| Rent | Temporary use of place |
| Rental | Amount to pay for renting the place |
| Residential | For living use |
| Riders | Additional insurance coverage added to a policy |
| Risk Management | Managing risks |
| Savings | Your money deposited into banks |
| Secondary Market | Buying and selling or trading after new or first allocation |
| Seed Funding | Earliest or first money invested into a new business. A common expression for startups |
| Semi-detached House | Two units with a wall in between |
| Shares / Stocks | Ownership of a company that can be determined by quantity. You can own 1,000 shares of HSBC Bank |
| Short | Sell |
| Silicon Valley | Nickname for the southern area of San Francisco Bay, Northern California in US. A base for many of the worldÕs largest tech companies and startups |
| Single Premium | One-time payment |
| SOHO | South of Houston or Small office / Home office. A unit where for work and living |
| Stock Market | Issuing, buying and selling, or related share activities |
| Stocks or Company Warrants | Same as option. Issued by company itself |
| Strata Title | Ownership of units and shared ownership of common area |
| Structured Notes | An investment structure with a derivative |
| Structured Warrants | Same as option. Structured and issued by banks or investment banks |
| Subrogation | Insurer has legal rights to recover damages to those who are liable for the insured, on behalf of the insured. |
| Supply | What is being produced |
| Swaps | A private contract to exchange future cashflow |
| Term Insurance | Life insurance coverage with a specified period |
| Terraced House | Units in a continuous row with shared walls and no space in between |
| TPD Insurance | Stands for Total Permanent Disability. Cover risks of person who becomes permanently disabled. Usually defined as: Loss of 2 eyes, 2 arms or 2 legs. |
| Trading Room | Buy and sell global financial assets, usually only for financial institutions. They may engage in holding positions, for hedging or speculative purposes |
| Travel Insurance | Cover risks of travel |
| Treasury | Managing liquidity, returns, risks of all money and financial instruments in country or company |
| Underwriting | assessing and deciding process for risks of an insurance policy |
| Unit Trust | A portfolio of investments divided into units. The portfolio is placed under a trust* (a legal term). Hence the term Unit Trust. Investors invest into the units |
| United Nations | Global organsiation to promote international co-operation |
| Universal Life | An insurance and savings plan with regularly adjusted interested rate. No maturity, flexibility of withdrawal, and can be terminated or upon death |
| Utmost good faith / Uberrima fides | Insured and insurer are bound by a good faith bond of honesty and fairness. Material facts must be disclosed. |
| Valuation | Process of estimating what the property is worth |
| Venture Capital | Investments into early-stage, high potential or startups where ideas or concepts may be new or risky |
| Whole-life | An insurance and savings plan with no maturity, and is payable upon withdrawal, termination or death. |
| World Bank | Provides loans to developing countries for infrastructure development. A subsidiary of United Nations. Founded in 1944 Bretton Woods Conference |
