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Margin
the difference between the selling price of a good or service and the profit. Margin is generally shown as a gross margin percentage, which shows the proportion of profit for each sales dollar.
Margin call
When the value of a property or asset falls below a certain loan to value ratio (LVR). For higher risk loans such as margin loans, the lender will request further payment to bring the LVR back to the agreed percentage.
Mark down
A discount applied to a product during a promotion or sale for the purposes of attracting sales or for shifting surplus or discontinued products.
Mark up
The amount added to the cost price of goods, to help determine a selling price. Essentially it is the difference between the cost of the good/service and the selling price. It does not take into account what proportion of the amount is profit.
Maturity date
When a loan’s term ends and all outstanding principal and interest payments are due.
Initial public offering (IPO)
When a company first offers shares on the stock market to sell them to the general public. Also known as floating on the stock market.
Insolvent
A business or company is insolvent when they cannot pay their debts as and when they are due.
Intangible assets
Non-physical assets with no fixed value, such as goodwill and intellectual property rights.
Interest
The cost of borrowing money on a loan or earned on an interest-bearing account.
Interest rate
A percentage used to calculate the cost of borrowing money or the amount you will earn. Rates vary from product to product and generally the higher the risk of the loan, the higher the interest rate. Rates may be fixed or variable.
Inventory
A list of goods or materials a business is holding for sale.
Investment
The purchase of an asset for the purpose of earning money such as shares or property.
Invoice
A document to a customer to request payment for a good or service received.
Invoice finance
Finance based on the strength of a business’s accounts receivable.
This form of financing is similar to factoring, except that the invoices or accounts receivable remain with the business. – The Balance.
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