Finanční Trhy / Financial Markets – Vítejte V Džungli … / Welcome To The Jungle … | Education On Line

Financial markets are complex and dynamic systems that involve various financial instruments, entities, and players. Understanding these markets is crucial for individuals, businesses, and governments to make informed decisions.

Términology in Financial Markets

• Financial instruments: stocks, bonds, options, futures, and derivatives. These are interchangeable terms that refer to different types of financial securities.
• Acid test ratio (ATR): a measure of the difference between current assets and non-current assets divided by current liabilities.
• Interest rate risk: a type of market risk that occurs when interest rates change, affecting the value of investments in different markets.
• Credit risk: the risk that borrowers may default on loans or other financial obligations.

The following terms are commonly used in financial markets:

Términology used by Financial Institutions

• Buyers and sellers: individuals who trade securities, commodities, or currencies with each other.
• Markets: a place where buyers and sellers meet to exchange financial instruments. Examples include the New York Stock Exchange (NYSE), NASDAQ, and London Stock Exchange (LSE).
• Pricing: the process of determining the value of financial instruments by taking into account supply and demand factors.
• Risk management: strategies used to minimize or manage the impact of potential losses in financial markets.

The following terms are commonly used by financial analysts:

Términology used by Financial Analysts

• Assets: resources owned or controlled, such as cash, bonds, and stocks.
• Liabilities: debts or obligations that must be paid, such as loans and taxes.
• Net worth: the difference between assets and liabilities.
• Return on investment (ROI): a measure of the profitability of an investment based on its expected return and risk.

The following terms are commonly used in financial education:

Términology used in Financial Education

• Basic concepts: understanding simple financial instruments, such as stocks and bonds.
• Financial ratios: metrics that help evaluate the performance of a company or investment.
• Time value of money: the idea that investments earn returns over time.

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