Plain-English definitions for the terms you'll encounter on your financial journey.
The net value of a company's total assets minus its total liabilities, as shown on its balance sheet.
A record of the net change of a nation's assets and liabilities during a year. It tracks the flow of investment capital into and out of a country.
A measure of a company's financial leverage calculated by dividing its total liabilities by its total shareholder equity.
Assets held by a nation's central bank in foreign currencies to back its liabilities and influence its own exchange rate.
Assets held on reserve by a central bank in foreign currencies to back liabilities and influence monetary policy.
Financial debts or obligations owed by an individual or business, such as loans and mortgages.
Net Asset Value: This is the total value of a fund's assets minus its liabilities, divided by the number of shares currently available. It is basically the 'price tag' for a single share of a mutual fund at the end of the business day.
The total value of all your assets minus the total value of all your liabilities.
The minimum amount of funds that a bank must hold in reserve against specified deposit liabilities.
The specific amount of funds that a bank must hold in reserve against specified deposit liabilities. These funds must be kept as vault cash or deposits with a central bank.
A derivative contract through which two parties exchange the cash flows or liabilities from different financial instruments.
The difference between a company's current assets and its current liabilities, indicating its short-term financial health.