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Let’s talk about capital, the start,
The money base for every part.
Depreciation lowers value’s rate,
As assets age, it’s their fate.
Your expenses are costs you pay,
Control them well, save for the day.
Chorus:
Sing these terms, make them clear,
Financial words we hold dear.
Learn them now, keep them tight,
You’ll be a finance star tonight!
Verse 2:
A balance sheet tells what you own,
With debts and equity clearly shown.
A futures market plans ahead,
Helps fight price changes with steady tread.
On the commodities market, you’ll trade,
Oil, gold, and goods fairly weighed.
Verse 3:
A mutual fund pools money for all,
Together we rise, together we fall.
A credit rating shows your trust,
Pay on time, and it’s a must.
A mortgage helps to buy a home,
Pay it back, don’t let it roam.
Chorus:
Sing these terms, make them clear,
Financial words we hold dear.
Learn them now, keep them tight,
You’ll be a finance star tonight!
Verse 4:
The IPO is a company’s big day,
Going public to grow and play.
Hedge funds use bold, risky plans,
Seeking profits for their fans.
Accruals count things not paid yet,
Track them right, avoid debt.
Verse 5:
On the Forex market, currencies flow,
Exchange them wisely, profits will grow.
Risk management is a careful game,
Keeps your losses small and tame.
Volatility makes prices jump,
Stay calm, don’t hit a slump.
Chorus:
Sing these terms, make them clear,
Financial words we hold dear.
Learn them now, keep them tight,
You’ll be a finance star tonight!
Verse 6:
Profit margin shows what you keep,
When earnings are high and costs are cheap.
Assets grow, they bring you wealth,
With liquidity, maintain good health.
Dividends give a bonus share,
When profits grow, they’re always there.
Verse 7:
The cash flow statement shows in and out,
Is your money strong, or in doubt?
Your income statement tracks each cent,
Shows if your money was wisely spent.
Revenue streams keep funds alive,
Find them well, and you will thrive.
Chorus:
Sing these terms, make them clear,
Financial words we hold dear.
Learn them now, keep them tight,
You’ll be a finance star tonight!
Verse 8:
Liabilities are debts you owe,
Reduce them fast, watch your flow.
Leverage uses borrowed cash,
It’s risky, so don’t be rash.
Return on equity (ROE) is key,
It shows your gains so easily.
Final Chorus:
Sing these terms, make them clear,
Financial words we hold dear.
Learn them now, keep them tight,
You’ll be a finance star tonight!