Inflation

The increase in the prices of goods and services over time, and the process by which money loses its value.

The increase in the prices of goods and services over time, and the process by which money loses its value.

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Profit and Loss Statement (P&L)

A statement that summarises firm's expenses, costs, and revenues incurred during a time period. AKA income statement.
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Junk Bond

A form of debt investment that carries higher risk because of the likelihood that the issuer will default.
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Key Information Document (KID)

A document issued by an investment fund to help investors determine if it's the right fund for them.
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Retail Prices Index (RPI)

An index published each month by the Office for National Statistics, which measures the level of retail prices in the UK. Cash flows on all index-linked gilts are linked to the RPI.
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Money laundering

A method of moving money obtained illicitly through the financial system so it can be used legally.
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W-8BEN Form

Non-US individuals and businesses may have to file this form for the Internal Revenue Service (IRS), the US tax authority.
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Venture Capital

A type of financing that investors provide to startups, who sometimes announce getting said financing in TechCrunch, to big fanfare.
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Over-The-Counter (OTC)

A security that is sold outside of an exchange.
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Leverage

A method of trading using borrowed money that usually involves a very high level of risk.
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