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1. Understanding Finance – Personal & Commercial

In episode 1, Paul discusses why finance is so important, what types of finance are available on the market and explores the notion of financial risk, getting you to think about personal finance in a very different way.

1. Understanding Finance – Personal & Commercial

In episode 1, Paul discusses why finance is so important, what types of finance are available on the market and explores the notion of financial risk, getting you to think about personal finance in a very different way.

Start up costs - start up costs are all the non-recurring costs involved in setting up your business - no matter how much of a success or failure your business is, you can't get these costs back.

Commerce - the activity of buying and selling, especially on a large scale.

Secured loan - money you borrow secured against an asset you own, usually your home.

Equity - the value that would be returned to a company's shareholders if all of the assets were liquidated and all of the company's debts were paid off.

There are no definitions specified in this episode 🙂

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Start up costs - start up costs are all the non-recurring costs involved in setting up your business - no matter how much of a success or failure your business is, you can't get these costs back.

Commerce - the activity of buying and selling, especially on a large scale.

Secured loan - money you borrow secured against an asset you own, usually your home.

Equity - the value that would be returned to a company's shareholders if all of the assets were liquidated and all of the company's debts were paid off.

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Broker - a person who buys and sells goods or assets for others.

Tangible - real and not imaginary; able to be shown, touched, or experienced.

Incremental -  an increase or addition, especially one of a series on a fixed scale.

Elon Musk - a business magnate and investor. He is the founder, CEO and chief engineer of SpaceX, and angel investor, CEO and product architect of Tesla, Inc.

Tesla - an American multinational automotive and clean energy company. Elon Musk is CEO.

Financial conduct authority - regulates the financial services industry in the UK. Its role includes protecting consumers, keeping the industry stable, and promoting healthy competition between financial service providers. 

 

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El Salvador - a country in Central America. It is bordered on the northeast by Honduras, on the northwest by Guatemala, and on the south by the Pacific Ocean.

Market cap - refers to the total value of all a company's shares of stock. 

Actuary - a person who compiles and analyses statistics and uses them to calculate insurance risks and premiums.

 

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Publicly listed company - a company that can be listed on a stock exchange (listed company), which facilitates the trade of shares.

Warren Buffet - an American business magnate, investor, and philanthropist. He is currently the chairman and CEO of Berkshire Hathaway and one of the most successful investors in the world. He has a net worth of over $100 billion as of November 2022, making him the world's sixth-wealthiest person to date.

Robinhood investors - retail investors using the trading platform Robinhood, a commission-free trading app that is geared toward millennial investors.

Pandemic - a disease prevalent over a whole country or the world.

Due diligence - a comprehensive appraisal of a business undertaken by a prospective buyer, especially to establish its assets and liabilities and evaluate its commercial potential.

Macro-economics - macroeconomics is a branch of economics dealing with performance, structure, behaviour, and decision-making of an economy as a whole.

 

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FAD - an intense and widely shared enthusiasm for something, especially one that is short-lived; a craze.