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5 fun and interesting Finance Terms

We have heard many finance terms in our daily lives but today I am going to share some fun and interesting terms which might get you thinking but trust me they are actually used.

So, let’s begin. But, before you read what the term means, I would want you to give it a guess and only then continue reading further… and don’t forget to keep a score.

1. Sweat Equity:

When a person contributes to the company in form of service or labor instead of money, he/she is rewarded in return in the form of Sweat Equity. In short, the person uses his/her skills and capabilities to boost the growth of the company instead of money.

5 fun and interesting Finance Terminology
Sweat Equity- where a person invests his skills and time and gets rewarded in the form on Sweat Equity shares.
2. Runway:

No this is not the fashion runway. In simple words, this means the amount of time a company must remain solvent and raise any new funds. For example, a startup may state that they have a cash runway of 1 year.

3. Dragon:

Yes, this is also a term used in finance. It implies to those rare start-up’s that are able to raises 1 billion dollars in one single funding.

4. Hockey stick:

Not related to sports, Hockey Stick means a pattern in a company line chart that shows a sudden and rapid growth after a long period of linear growth. Hence resembling a hockey stick.

5 fun and interesting Finance Terminology
                   A Hockey Stick Chart
5. Ramen Profitable:

The term basically implies to start up which make just enough money to survive and sustain and afford basic food like Ramen.

So now tell me in the comments below how many did you guess right. And how many of these 5 surprised you.

For such and much more interesting finance blog, stay glued to my blog.

And while you are at it, don’t miss my other finance articles on my blog. Read them here.

Till next time,

Stay Financially healthy

16 replies on “5 fun and interesting Finance Terms”

I honestly haven’t know about these terms. Thank you for sharing these with us and teaching us something unique.

last 4 were surprising and 1st one was aware of, as I read business newspaper so read many a times. I would love to read many of startup related terms, by thw way dragon was quite interesting and loved understanding. looking forward for more such finance terms

I am afraid I don’t know any of the terms you have shared. I do not know about.anything about finance.It is very complicated and i just cannot comprehend any of it.I regret this about me.

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