Struggling to understand English financial terms in other languages? This is why.
Money talks… in English!
English is the universal language of business and trade. There’s no denying it. And finance and accounting are no exception.
So, if you work in the financial sector, mastering this language is a must to communicate with your clients and partners from other countries.
One of your main stumbling blocks is bound to be financial and economic terminology. Keep on reading to find out why, and learn about how translation services help you overcome this challenge.
Why is financial terminology so complex?
Financial speak isn’t universal. Every language has its own terminology, which even native speakers may find hard to understand.
The thing is, financial terms define precise concepts where there’s no margin for error. Their specificity renders their translation into other languages very challenging.
Now, in English terminology you may find:
- Words borrowed from other languages, such as French.
- New phrases being coined as financial markets evolve.
- Terms that change meaning when used within the financial context.
In this post, we’ll focus on the third category and give you some examples of terms you may struggle with if you’re not an English native speaker.
- Terms containing figures of speech.
What this implies is that language is used creatively, deviating from the literal meaning of words.
Metaphors, personification, similes, hyperboles… These are all types of figures of speech you’ll come across in English financial terminology.
Check out the nuances of the following expressions when used in a financial context:
-
- Acid-test ratio.
Also known as the quick ratio, it measures a company’s ability to handle its financial commitments. In other words, it indicates whether a company has enough available assets to cover its short-term bills and obligations.
-
- Arm’s length.
A transaction where the buyer and seller make their choices independently, without being subject to any pressure from the other party. Both parties should have the same access to information related to the deal.
-
- Cash cow
A venture or operation that keeps the money flowing in with minimal effort. Like having a cow that gives you a steady supply of milk without needing too much attention.
-
- Dead cat bounce.
When the price of an asset goes up after a long slump, but it’s usually a short-lived, temporary recovery.
-
- Fallen angel.
Bonds that used to be considered investment-grade due to their issuer’s strong credit rating, but have since been downgraded to “junk” status.
-
- Yankee bond.
A type of debt IOU that is issued in the U.S. by foreign banks and corporations. These bonds are denominated in U.S. dollars and are part of the U.S. investment market, also known as “Yankee Market.”
- Terms containing colors.
-
- Blue chips.
Large, well-established companies that everyone sees as a safe bet for investment. Their shares often sell at a high price because they’re so reliable. The name comes from blue poker chips, which are usually worth the most.
-
- Greenback.
American dollar bills are green. Hence, this term is used in the U.S. to refer to its paper currency.
-
- White knight.
An individual or company that steps in to acquire an organization when it’s facing a hostile takeover attempt by another aggressive firm.
And you guessed it right: the latter is a black knight.
- Different meaning of common words.
-
- Acceptance.
A short-term credit instrument involving a written order issued by a buyer. This order obligates the buyer to pay a certain sum to the seller by a specified date.
-
- Advice.
When applying for a letter of credit from a bank, they give you an advance notice that is called “pre-advice”. This reminder is sent before they officially issue or amend the letter of credit.
- Compound words to express new notions.
-
- Chi-Next market.
A subsidiary of the Shenzhen Stock Exchange (SZSE), which is often referred to as China’s answer to NASDAQ.
-
- Stagflation.
An economic cycle where the economy is barely growing. Meanwhile, there’s a high unemployment rate accompanied by inflation.
How can translation services help you deal with financial jargon?
Financial translation is among the most complex specializations. That’s why, when dealing with numbers and financial information, you need a subject matter expert translator.
You need a professional who has a deep understanding of the finance market and its unique language.
What can you come to expect when working with a specialized financial translator?
- Hands-on experience.
Financial translators should be familiar with the region and industry they are translating for.
Take into account that financial processes vary widely from one region to another. Which has an impact on local terminology.
Likewise, the language of banking, crypto-assets and forex is not the same. So, you should make sure to hire a language service provider with experience in that specific sector.
- Ongoing learning.
The world of finance is constantly evolving, and so is its language. Translators must stay up to date with linguistic, technological and cultural changes having an impact on the finance sector.
- Confidentiality matters.
Since financial translations involve sensitive and confidential data, translators should be ready to share details about their security protocols and confidentiality practices if requested.
You may be wondering why you should entrust us with your translations. Besides our proven track record in dealing with financial content, Montero Language Services is one of Nimdzi’s Rising Stars.
In other words, our company has been ranked as a top regional mid-market provider in the language industry.
Still in doubt? Contact us and let us know whether you’d like to receive any specific information about our financial translation services.
