Absolute return fund

Funds that take the risk-free return as a starting point and seek to achieve a positive return regardless of the capital market environment.


A sudden external cause beyond the will that leads to an injury event (injury, illness, death, property damage).

Accident at work

An accident occurred during or in connection with work.

Accident insurance

A contract under which, in the event of an accident, the insurer provides a service to the insured or, in the event of the insured’s death, to the beneficiary.

Account number

The unique identifier of the given bank account, with the help of which credits and debits can be made.


An interest in a joint stock company or limited liability company to the extent that it allows control of the company.

Active asset management

Wealth management technique. In doing so, the trustee performs analyzes to achieve higher returns and compiles the portfolio accordingly. The compiled portfolio may change from time to time. The opposite of passive asset management.

Active banking

A transaction involving the bank’s assets, such as lending, leasing, guaranteeing or factoring.


With continuous risk-taking, the old insurance contract is terminated, and at the same time the new one starts.

Advice note

Notification Letter. Typically a notice of money transfer or a letter of dispatch of goods.


Surcharge or premium is the portion of the price of a currency or security above face value as a percentage of face value. The opposite of disagio.

All risks

A form of insurance typically used in the corporate sector. Exclusions are then typically formulated. Everything else is the responsibility of the insurer.


Cash flow of the same magnitude. Typically, this is the case of loan repayments, where the installment is the same every year (Within this, of course, the ratio of interest and principal paid differs)


Tangible asset or right introduced into joint ventures, representing property value.


Annual Percentage Rate. It shows how much a given loan costs with interest and all costs incurred.


Trading strategy. An investor typically buys an asset purchased in one location immediately at a higher price elsewhere.

Availability fee

Fee for an approved loan that can be drawn down at any time but has not yet been drawn down.

Availability time

The loan can be drawn down (ie disbursed) during this period, the conditions of which must be fulfilled within this period.


B2B (Business to business)

Communication between companies. This is when the company communicates with its business partners.

B2C (Business to consumer)

Business to consumer communication.

Banded interest rate

The interest rate depends on something. For example: the amount deposited in the account.

Bank branch

A business premises set up by a bank to receive and serve customers with a degree of autonomy and local decision-making power.

Bank charges

Fee for the services of the bank listed in the list of conditions.

Bank guarantee

The bank’s commitment to the customer that, if certain conditions are met, it will make a payment to the beneficiary up to a certain amount within a pre-determined deadline.

Banking supervision

State supervision of credit institutions, aimed at maintaining financial stability. In Hungary, it is performed by the central bank.

Base point (bp)

The smallest unit for specifying the exchange rate. 0.01% at the base interest rate announced by the central bank, bank interest rate, yield and bond price.

Base rate

The key interest rate of the central bank (the MNB in ​​Hungary), which also has an impact on market interest rates.


Reference yield, reference index. A portfolio that is close in structure to the portfolio under study, thus allowing it to serve as a benchmark. This benchmark return shows the performance of the portfolio we examined.


Debt security. The issuer pays interest for the use of the capital.


The customer’s agent, who helps the customer to choose the most suitable product for him.


Budapest Interbank Offered Rate. Interbank interest rate, the rate of which is determined by the Hungarian National Bank as the average of the loan interest rates offered by banks. For this purpose, forint-based loans are priced.

Business Investment

Acquisition or production of capital goods that are important for the production of other goods. In a broader sense, education as an intellectual investment is also included.


The official stock index of the Budapest Stock Exchange. The index is based on 1000 points on January 2, 1991 and has been officially published since January 1, 1995.

Buying rate

The exchange rate at which the bank or money changer receives currency / currency from the customer.


Capital guarantee

A guarantee that you will get back at least the invested capital at the maturity of the investment.

Cash flow

Shows the change in the stock of money over a period of time.

Central bank

One of its main task is to preserve the value of the currency.

Central bank base rate

A key interest rate through which the central bank can regulate the economy.

Compound interest

The method of investing is when the investor reinvestes the earned interest at the end of the interest period and continues to interest on the capital thus increased.

Consumer credit

Unsecured credit for the purchase of goods and services.

Continuous issuance

Continuous issuance of a debt security (eg a government bond) over a pre-determined period with the same maturity date.

Convertible bond

A bond that can be converted into ordinary shares and is issued by the General Meeting. The policyholder may choose to request ordinary shares (which are entitled to dividends) or to request the nominal value of the bond at maturity.

Corporate banking

Banking services for companies. An example is account management.

Corporate Finance

Financial services for businesses.

Coverage certificate

Document issued on the existence and extent of cover.


The transfer of cash (capital), typically for interest.

Credit card

A bank card with which the cardholder can buy or withdraw cash not only up to the amount in his/her account, but also use the credit line associated with the card.

Credit insurance

Insurance secured by a debt, in which the debtor is the insured and the beneficiary is the credit institution from the outset.

Credit rating

It expresses the creditworthiness of a company or state. The better the rating, the more stable its operation, thus guaranteeing the repayment of the loan.


The degree of creditworthiness based on the income situation and expenses (e.g. loans taken so far).

Current assets

Assets serving the business within 1 year. Such as e.g. inventories, receivables, short-term securities, cash.


Damage sharing

If the injured party is partly responsible for the damage, the injured party shall bear part of the damage in addition to whom caused the injury.


Intraday stock trading. The merchant bought in the morning e.g. the security is not held for long or sold within a day or at the latest at the end of the day.

Debit card

A debit card with which the cardholder can buy or withdraw cash up to the amount in his account.

Debt collection

Collection order. A payment method where the payee initiates a debit to the bank account based on an order.

Debtor rating

After submitting the loan application, the bank rates the customer according to how well the loan is secured based on the submitted documents. It bases this in part on whether it accepts the loan application.


The amount that the insured assumes from the amount of the damage. The insurer will only reimburse the above.

Default interest

Interest charged in the event of late repayment.


Decrease in general price level. In this case, the purchasing power of money increases. The opposite of inflation.

Deposit insurance

The National Deposit Insurance Fund (NDIF) pays registered deposits up to EUR 100,000 in the event of the insolvency of a financial institution.

Direct debit

In doing so, the account holder instructs the bank to automatically transfer the amount invoiced by the service provider (eg utilities) based on the service provider’s indication.

Disbursement fee

The fee charged for disbursing a loan, which is usually set as a percentage of the amount of the loan drawn down.

Discount interest rate

The interest rate at which money due in the future is converted to a date of our choice (typically today). This rate can be the expected return or the inflation rate.

Discount security

A debt security that is issued at par value. It does not necessarily pay interest, in which case the investor benefits from the difference between the face value and the value at issue.


Determining the present value of a future amount of money due.


One of the means of risk mitigation, the essence of which is that the available capital is divided between several investment opportunities.

Diversified portfolio 

An investment that combines assets with different returns, risks and maturities to mitigate risk.


The joint stock company distributes a part of its annual profit among its shareholders in proportion to their shareholdings. The money paid in this way is the dividend.

Duration Gap

The difference between the average duration of the assets and their sources of funding. An investment with a longer maturity is more sensitive to changes in interest rates, so we can also get an indicator of interest rate risk.



Operating profit. Earnings Before Interest and Taxes


EBIT + Depreciation and Amortization

Emergency reserve

The reserve that covers 3-6 month expenses in case of an emergency. This reserve is liquid and is generally not invested.

Employee share

A type of limited transferable stock that employees receive as a corporate benefit. With the death of the worker, they are inherited.


Exchange traded funds. They are traded under basically the same rules as separate securities.


The events specified in the insurance contract, in the occurrence of which the insurer does not pay indemnity.



Sale of receivables (for consideration invoiced but not yet due).

Final repayment

Payment of the full amount due under a loan or loan agreement before maturity.

Financial intermediaries

They combine supply and demand in the capital market. They can be banks, insurance companies, funds.

Firm signature

Signature as specified on the signature copy. This is the signature of the authorized manager (s) and their combined use with the official stamp of the company or the letter company name.

Fixed asset

Assets (cash, tangible assets, intangible assets) that remain the property of the company for more than 1 year and serve its operation.

Fixed interest rate

The interest rate on the loan or security is fixed at the beginning of the term, so the rate remains the same throughout.

Foreign source

Fundraising through the money market. This is usually a borrowing or leasing, but it can also be an issue of securities.

Freedom ratio

The total number of shares of shareholders with a holding not exceeding 5%. They are not considered a strategic investor.

Full loan fee

Includes fees related to the disbursement of the loan. In addition to this interest, e.g. handling fee and disbursement commission. However, it does not include costs incurred before or independently of the loan.

Fund management fee

The fund manager’s fee, therefore, performs fund management in return. It deducts this amount from the value of the fund.

Fund manager

An investment fund management company. In Hungary, their operation is subject to a HFSA permit, personal and material conditions.

Fund of funds

An investment fund that invests in the vast majority in other mutual funds.

Future value

The future value of the current amount of money. The value of the currently existing capital plus interest.


General government deficit

The combined absence of the central budget, state funds and individual subsystems (health insurance fund, pension insurance fund). This is usually expressed as a percentage of GDP.

Government bond

Debt securities issued by the state with a maturity of more than 1 year.

Government securities

Debt securities issued by the central bank of any state.

Grace period

Deferral of repayment of the loan, during which only interest is payable. This interest rate can also be 0 based on the loan agreement.

Gross exchange rate

Usually the exchange rate used for bonds, which includes accrued interest in addition to the value of the bond.

Garantált alapok Guaranteed funds

Either investment funds that guarantee a capital guarantee or some level of return.


Health insurance

A contract under which the insured provides services to maintain the health of the insured.


Income flexibility

In the case of a certain change in income (eg 1%), it shows how many% the demand for the product changes.

Indebtedness ratio

It shows how much credit the borrower has relative to their income.

Indexkövető alap Index tracking fund

An investment fund whose composition is the same as, or differs only slightly from, the composition of the market index it copies (e.g., S&P 500).

Indexálás Indexation

In advance, the value tracking method to be fixed in the contract. The degree of indexation can be predefined, customer-selected, or inflation-linked.


General price level increase. In this case, the purchasing power of money decreases. The opposite of deflation.

Inflation rate

The quotient of the rate of inflation.

Influential participation

Direct and indirect ownership in an enterprise (or a relationship between an enterprise and a person) in which a

  • the person owns at least 10% of the ownership (or voting rights) or
  • appoint or remove at least 20% of the decision-making, executive, board members or supervisory bodies of the undertaking, or
  • may exercise decisive influence over the operation of the undertaking by virtue of its statutes, instrument of incorporation or contract

Institutional investor

By law, this includes:

  • credit institution
  • investment firm
  • mutual fund
  • investment fund manager
  • insurance limited company
  • voluntary and private pension fund
  • National Health Insurance Fund
  • National Directorate – General for Pension Insurance.


A tool for risk mitigation. A contract in which the insurer undertakes to provide a service at the occurrence of the insured event in return for a premium paid by the insured. This service is typically much more valuable than the total amount of insurance premiums.

Insurance event

A future event, typically involving a loss event, which is fixed in advance by the parties in the contract and, when it occurs, is provided by the insurer. In addition to a loss event, in the case of life insurance, reaching a certain date can also be such an event.

Insurance fee

The cost of taking the risk of an insurance company.

Interbank market

A special part of the money market where trading takes place between banks. They usually place their unnecessary resources on each other for a short period of time.


Fee for the use of borrowed capital. This is typically expressed as a percentage of the amount borrowed to the extent of 1 year.

Interest rate

The value of interest expressed as a percentage.

Belső megtérülési ráta Internal rate of return (IRR)

Average return on investment. The interest rate available with that investment.


Investing money in an economy for profit.

Investment policy

An asset allocation framework governing the management of investors’ assets within a given fund, which describes how much risk a given fund takes, to what extent and what that fund may contain.

Investment unit

Securities issued by an investment fund manager entitling to a return and liquidation value.

IPO (Initial Public Offering)

Primary public offering. The process by which previously limited liability companies also make their shares publicly traded.







Long – term lease of an asset (usually a producer). At the end of the term, the leased object becomes the property of the lessee (after payment of the residual value). During a lease, the productive asset usually produces its own value on more favorable terms than in the case of a bank loan, and the lease payment can be accounted for as an expense in accordance with tax rules.


It shows the extent to which the investor relies on external sources. The greater the extent, the greater the risk.

Liability insurance

Insurance intended to compensate for damage caused by the insured to a third party.


London Interbank Offered Rate. London interbank borrowing offered rate is usually used to price foreign currency loans.


On this basis, receivables that can be determined in cash can be settled from the consideration given as collateral before any other receivables if the payer fails to perform.

Life insurance

In this type of contract, the insurer undertakes to pay the sum insured specified in the contract in the manner specified in the contract if the insured natural person dies or reaches a certain date.

Liquidation value

The value used in the forced sale of a property or asset offered as collateral upon termination of the bank loan agreement, at which the collateral can be sold within a short period of time.


Solvency. Ability to settle payment obligations.

Liquidity management

Reconciling revenues and expenditures over time and amounts to ensure continuous and smooth operation.

Liquidity plan

The cash flow budget of the company. Item-by-item juxtaposition of expenditures and revenues, time planning.

Liquidity risk

The type of risk in which the obligor can only meet the payment obligation at a later date.

Loan agreement

In relation to the loan to be disbursed, describe the obligations and rights of the parties and the main cornerstones.

Lombard loan

A loan secured by a security. This eliminates the need for the borrower to cash in on the security that is expected to provide a higher return than the borrowing rate.

Low risk

In the case of investments: the variance in the return is low, the result achieved so far is almost certain to be achieved in the future as well.
In the case of insurance: the occurrence of a loss event is unlikely.



Association of Hungarian Insurers. It was established on November 14, 1990, which, in addition to representing professional interests, also coordinates the performance of certain professional tasks.

Money laundering

Indication of illegally obtained money as coming from a legal source.

Money market funds

Funds with an average maturity of assets in their portfolio not exceeding 1 year. Accordingly, their composition can only be bonds maturing within one year, time deposits and money on bank account that can be use freely.

Money market instrument

Bonds maturing within one year and bank deposits maturing within one year.


Regular inspections. It is usually tied to loans. The bank monitors the use of the loan.


Entry in the land register. In the presence of this, the owner of the property gave his property as collateral for the loan, so he can only dispose of it to a limited extent.

Mortgage law

The lender’s right, if the borrower does not pay its debt, to repay the debt from a tangible asset (usually real estate) offered as collateral.

Mortgage loan

As collateral for the repayment of the loan, the borrower offers a high-value object, typically real estate, for which the mortgage is registered in favor of the bank.


Agent contracted with several financial institutions.

Mutual fund

Investing the money collected by investors in the economy through fund managers. The direction and level of risk of the investment is fixed in advance. According to their management, they can be actively managed and passively managed funds.


Net asset value

Total assets of the investment fund less costs.

Net present value

The difference between the present value of a future amount due and its present expenditure.


A natural person who does not have and cannot have an identity card issued by an authority in that state.


Open-end investment fund

An investment fund that sells units that can be redeemed at any time and whose operation is not limited in time.

Ordinary share

Securities embodying ownership rights, without additional rights. Only participation in votes and dividends confers rights.


A revolving, freely usable loan approved by the bank each year in proportion to the wages received.

Own resources

The part of the total cost of the investment not covered by credit.



Passive asset management

Wealth management technique. The trustee compiles a portfolio or defines an investment logic to follow and does not change this. The opposite of active asset management.


The beneficiary is usually provided with a monthly payment without any time limit. This can be a fixed amount or an increasing amount of annuity, the amount of which is determined by the available capital.

Personal insurance

Type of insurance provided in case of damage to human life or health (death, illness).

Pledgor / Mortgagor

A company or natural person who offers a tangible asset in his/her possession as security for the repayment of a loan.

Pledgee / Mortgagee / Lien holder)

In whose favor the lien was registered. Mortgage-based loans are typically provided by a bank, so the mortgage holder is the financial institution providing the loan.


The set of different types of investment assets (eg risk, maturity) held by the investor

Preference share

Contains a priority associated with an authorization. This can be voting priority, liquidation priority or even dividend priority.


An amount that the debtor wishes to repay to the credit institution in addition to the normal repayment. The debtor must notify the credit institution of this intention in advance. According to the contract, there may be a separate fee.

Price-wage spiral

Case 1.
Wage growth leads to declining output through declining labor use. This leads to a shortage in the market for that product, which leads to a rise in prices. Thus, the purchasing power of increased wages will hardly change.
Case 2.
From the increased wage, the worker can spend more, which leads to a rise in prices. Thus, the purchasing power of increased wages will hardly change.


Continuous decrease in the value of assets (vehicle, building, etc.) due to the passage of time and thus wear and tear.

Property insurance

Insurance to compensate for damage to property.


A resource may be formed for the items specified by the Accounting Act, which was formed in the current year, but is due for use only in the following year. The enterprise charges its pre-tax profit to cover payment obligations that are not yet due at the balance sheet date but will occur.

Public burden

Total taxes and contributions.

Public finances

The balance sheet of government revenue and expenditure and the system of regulations that apply to them.

Public investment fund

An investment fund that sells units available to anyone.



Economic downturn. They are usually reported when GDP declines for two consecutive quarters.

Redeemable share

For this type of share, the joint stock company has the right to purchase. Thus, the shareholder can only sell to them.

Reference index

An objective measure of investment strategy. It’s even called a benchmark.


One of the risk management methods used by insurance companies. Then another insurer (the reinsurer) agrees to reimburse the insurance company for a fee in the event of a loss.


A natural person who holds an identity card issued by an authority of that State. (In Hungary, issued by the Hungarian state.)

Residual value

At the end of the lease term or useful life, the asset (vehicle or machine) can still be sold.

Revolving loan

During the availability period, the already repaid part of the loan can be reused.


In the case of investments, the variance in the return, in the case of insurance, the probability of the occurrence of events with a negative effect.

Risk pool

An organized group of people at similar risk.

Risk profile

Description of risk appetite.




Rendszeres átutalás

Automatically recurring transfers of the same amount at regular intervals.



S & P 500

Standard & Poors 500’s abbreviated name. An index of the 500 largest U.S. companies listed on the NYSE and NASDAQ.


It is reserved for businesses to be able to deposit money even after branch closure.

Sales revenue

The amount that the entrepreneur receives after his products and services. The product of the price and quantity of products and services sold.

Secured loan

Behind the loan is a tangible asset offered as collateral (this is most often real estate). If the debtor does not pay his loan, this collateral can be sold by the bank.


A document embodying a right of ownership (share), a debt (bond) or a right in rem (public warehouse ticket). Depending on its appearance, it can be materialized (existing in physical form) or dematerialized (existing only electronically).

Securities account

The same account as a traditional bank account is only suitable for storing and transferring securities. A record of the dematerialized securities held by the account holder and the rights attaching thereto.

Selling rate

The exchange rate at which the bank or money changer sells currency to the customer against the domestic currency.


Ownership security. Different types are known, most often the owner is entitled to a dividend from the company’s profit based on his share of ownership.

Share capital

The amount of money or in-kind permanently made available to the business by the owners.

Sickness insurance

An insurance contract in which the insurer undertakes to provide in the event of a predetermined impairment of health.

Sight deposit

An account with money is available at any time. This typically pays very low interest rates.

Simple transfer

An order for a single movement of funds between bank accounts.

Stock market capitalization

The price of a company’s shares multiplied by the number of shares.

Strategic investor

An investor who does not invest in a given place for short-term gain but wants to be present in the industry in the long run and benefit from it.

Subsidized loan

A loan granted for a given purpose with preferential conditions compared to market loans. Such as: Interest-subsidized loan.


Target loan

A loan for a specific purpose that can only be used by the debtor to accomplish that purpose.

Taxation of insurance

With the exception of income replacement annuities paid on the basis of liability insurance, the services of the insurer do not qualify as income, so the amounts paid are not subject to PIT.


The period until which the full loan principal is paid together with interest (e.g. in the case of a loan and a bond). In the case of investments, the period during which the invested capital is invested.

Term Deposits

Money placed for a period of time that cannot be accessed before maturity without loss of interest.

Tied agent

An agent contracted with a single insurer or bank.

Total debt

Debt owed by the customer to the bank. This includes the principal debt not yet due, its interest and management costs, and the principal and interest portion of any overdue debt.


Money movement order between the account holder’s own bank accounts within the same bank.

Transfer orders

One of the most common ways to pay without cash. The account holder instructs the bank to transfer the indicated amount to another bank account from the balance freely used in the bank account.
It can be:

  • simple (one-time) transfer,
  • constant transfer order (the same amount is transferred by the bank for a given period),
  • direct debit (eg utility bills are collected this way).


Unified Deposit Index Rate (You find it in Hungarian banks as EBKM)

It is used for the comparability of bank deposits, it shows how much interest you have left after deducting costs.

Unsecured loan

There are no tangible assets (eg real estate) offered as collateral behind the loan, the bank only examines the encumbrance of income. In this case, the guarantee of repayment is only the loan agreement.

Unit linked life insurance

Unit – linked life insurance. The mode of life insurance products in which the insurer invests the excess of the premium covering life insurance of the premium paid by the customer in the asset funds specified by the customer. At the time of payment, the amount is determined on the basis of the result achieved by these asset funds.



Value day

Completion day. The day on which the settlement takes place.

Variable interest rate

The interest rate on a loan or lease changes at pre-determined intervals in line with changes in the reference interest rate.


One indicator of risk. Alternation of exchange rate movements (extent and speed). The more characteristic of a given exchange rate that it suddenly changes direction, the more volatile it is, the more risky it can be said to be.


Working capital

The difference between current assets and current liabilities in an enterprise.

Working capital loan

Loan to finance working capital. It typically has a term of 1 year, with the possibility of renewal at the end of the term.


Yield curve

Yield to maturity curve for assets with the same risk. For example, a representation of the yield on government securities with different maturities.

Yield guarantee

A guarantee of how much more you will get in addition to the capital at the end of the investment.