Acquisition

It is a decision made by one business to acquire another. The acquiring company will accomplish this by acquiring all or majority of the target company ownership share.

Arbitrage

The act of purchasing and selling a commodity to profit from a price differential. Depending on how the price will arise the product will be sold in another market and in another format.

Auction Market

A setting that encourages competition between several people. In an auction market sellers will usually mention the lowest price for a product, while buyers list the highest amount they are ready to pay for this item.

Broker

An individual or organisation that plans and carries out financial transactions on behalf of other people. 

Dumping

Selling a product at a lower price in a foreign market that they would actually cost in your home country.

Dividend

The percentage of profit that a business decides to distribute to its shareholders.

Exchange rate

The rate at which a currency can be exchanged for another country’s money. 

Export licence 

A document given by the government that grants access to a bearer the permission to export specific products to specific destinations.

Export

Products and services produced in one nation and sold in another country.

Tariff

A charge placed on commodities that are imported or exported. 

Import

Bringing goods from other countries to sell in our own country.

Inventory

Stock of products or resources that a company has on hand for manufacturing or retail purposes.

Inflation

The rise in price on products and services, which lead to a decline in purchasing power. 

Margin

Difference between a product purchase and sale price.

Market demand 

The amount of products and services that buyers are able to purchase in a specific period of time at a specific price. 

Profit Margin

It is a percentage that separates an item or service’s cost from its selling price. 

Retail

It refers to the sales of goods and services in limited amounts, usually bought for personal use. 

Now that you know all the important terminology concerning trade, you can read blogs such as ‘Types of Trading’, just click on the link and you will reach your next read.