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topic eight - Coggle Diagram
topic eight
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Assets
Things that a person or a business owns. For a person this might include property, jewellery or financial products such as company shares.
Bankruptcy
A situation in which a person cannot pay their debts and is the subject of a court order that shares out their assets between their creditors.
Corporate Social Responsibility (CSR)
Any action or project in which a company goes beyond the interests of its shareholders and senior management in order to benefit other stakeholder groups, normally with either a social or an environmental purpose. Also known as citizenship or sustainable responsible business.
Culture (Organisation)
An organisation's set of norms and shared values about behaviour and attitudes. It indicates what an organisation considers to be acceptable and unacceptable, and how it expects people to behave.
Economic Sustainability
Concerned with reducing the undesirable consequences of economic activity by maintaining consumption on a sustainable scale.
Environmental Sustainability
Concerned with reducing the negative human impact on the earth's ecosystems.
Ethical Investing
When someone chooses to save in a way that means the money will be used for what that individual considers to be good purposes.
Ethical Investment
An investment made in a company that takes into account the wider impact of its activities on society and the environment.
Ethical Investment Association (EIA)
An organisation that brings together and gives support to financial advisers who want to promote green (environmentally friendly) and ethical investment.
Ethics
The moral principles that govern a person's behaviour or the conducting of an activity. It is particularly important in the financial sector because money and finance depend on trust.
Financial Conduct Authority (FCA)
One of the two main regulators of financial services in the UK (the other is the Prudential Regulation Authority).
Independent Financial Adviser (IFA)
A professional who makes financial recommendations to clients, based on products offered by a wide range of providers.
Liabilities
Current financial obligations, eg an overdraft or an outstanding credit card balance.
Long-Term Bond
A bond that matures after more than 15 years, paying higher interest than a short-term bond but with greater risk.
Malpractice
Breaking professional rules to gain an advantage, usually at the expense of a customer.
Payment Protection Insurance (PPI)
An insurance product intended to ensure repayment of loans should a borrower face unexpected events that prevent them from repaying the debt.
Personal Loan
A product that allows someone to borrow a fixed amount over a fixed period at a fixed rate of interest.
Precipice Bond
An investment with a maturity of 3-5 years that offers high income but no protection against loss of the capital invested.
Prudential Regulation Authority
One of the two main regulators of financial services in the UK (the other is the Financial Conduct Authority).
Savings Bonds
A savings product held for a fixed period, eg two years. The holder can only make a limited number of withdrawals, or none at all, during that period without incurring a penalty.
Social Sustainability
Concerned with creating communities that foster well-being, peace, security and justice for the people who live in them.
Treating Customers Fairly (TCF)
A Financial Conduct Authority (FCA) initiative that requires providers to put the well-being of customers at the heart of their approach to business.
Unit Trust
A type of collective scheme, the most common form in the UK.
Principles For Responsible Investment (PRI)
An initiative that comes under the United Nations Environmental Programme. It is a set of aspirational and voluntary guidelines for investment firms that want to address social and environmental issues and corporate governance issues.
Islamic Banking
Banking based on the principle that a person should not enjoy an increase in wealth from allowing someone else to use their money unless the first person is prepared to expose their wealth to the risk of loss.
Interest-Only Mortgage
A mortgage loan whereby the monthly repayment covers only the interest on the whole amount borrowed for the whole mortgage period. At the end of the mortgage period, the borrower still owes the full amount borrowed and must repay this sum in one payment.