Top 10 important words and phrases for Financial Analyst

Top 10 important words and phrases for Financial Analyst Introduction: The Language of Finance Hello, students! As you embark on your journey to become a financial analyst, it's crucial to master the language of finance. Today, we'll dive into the top 10 words and phrases that will shape your understanding of this field. 1. Liquidity: The Lifeblood of Business Liquidity refers to a company's ability to meet its short-term obligations. It's a measure of financial health and often determines a firm's survival during economic downturns. 2. ROI: Assessing Profitability Return on Investment (ROI) is a key metric in financial analysis. It measures the profitability of an investment by comparing the gain or loss relative to its cost. 3. Diversification: Spreading the Risk Diversification involves investing in a variety of assets to reduce risk. The famous saying 'Don't put all your eggs in one basket' perfectly captures this strategy. 4. Depreciation: Accounting for Asset Value