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Financial Dictionary & Jargon Buster

54 terms in plain English. Each one comes with a tip to help you avoid hype traps.

1 term

Debt & Solvency

Debt-to-Equity Ratio

This compares how much a company borrowed to how much the owners put in. A high number means it runs mostly on borrowed money.

Why it matters

Heavy debt makes good years look great and bad years deadly. Banks are a special case because borrowing and lending is their business.