Finance Glossary: Unveiling Key French Terms

Navigating the world of finance can be complex, and that complexity is amplified when dealing with French financial terminology. This glossary aims to demystify some common French terms you might encounter in international finance, investment, or business dealings.

Action (Share): This directly translates to “share” and refers to a unit of ownership in a company. Understanding the concept of actions is fundamental to understanding stock markets and equity investment.

Obligation (Bond): An obligation in French finance represents a bond, which is a debt security issued by corporations or governments. Investors loan money to the issuer and receive interest payments in return.

Bourse (Stock Exchange): The term bourse designates a stock exchange, the marketplace where shares and other securities are traded. The most well-known French bourse is Euronext Paris.

Dividende (Dividend): A dividende is a payment made by a company to its shareholders, usually from profits. It’s a portion of the company’s earnings distributed per share.

Taux d’intérêt (Interest Rate): This phrase refers to the interest rate, the cost of borrowing money expressed as a percentage. It’s a crucial factor in loan agreements, mortgages, and bond yields.

Inflation (Inflation): The term for inflation is the same in both languages, inflation. It signifies the rate at which the general level of prices for goods and services is rising, eroding purchasing power.

Marché (Market): Marché means market. In finance, it refers to any place where buyers and sellers can trade assets, such as the marché boursier (stock market) or the marché obligataire (bond market).

Investissement (Investment): The word for investment is investissement. This term broadly refers to the allocation of capital with the expectation of generating future income or profits.

Crédit (Credit/Loan): Crédit can refer to both credit and loan. It’s an agreement in which a lender provides funds to a borrower, who promises to repay the amount with interest over a specific period.

Plus-value (Capital Gain): A plus-value is a capital gain, the profit realized from the sale of an asset (like a stock or real estate) exceeding its purchase price.

Moins-value (Capital Loss): Conversely, a moins-value represents a capital loss, occurring when an asset is sold for less than its purchase price.

Fiscalité (Taxation): Fiscalité refers to taxation, the system by which a government levies taxes on individuals and businesses.

Comptabilité (Accounting): Comptabilité is accounting, the process of recording, classifying, and summarizing financial transactions to provide information that is useful in making business decisions.

This glossary provides a starting point for understanding French financial terms. While some words are similar to their English counterparts, nuances in meaning and usage can exist. Always consult reliable resources and professional advice when dealing with financial matters.