Finance might seem very distant and dry to a lot of people with use of technical jargon that might make it look even more boring. However, there are a few creative expressions and slang phrases used in the financial industry and these peculiar buzzwords, coined over the years, add a touch of color and humor to the otherwise serious world of finance. Here are 5 such buzzwords:

Ankle biter:

In finance, an “ankle biter” refers to a small-cap investment. Just as small children may barely reach an adult’s ankles, these investments represent companies with a relatively low market capitalization, typically ranging from $300 million to $250 billion.

Big uglies:

“Big uglies” are big, older companies operating in traditional industries like mining or steel. Despite offering solid returns, these companies are often overshadowed by trendier stocks favored by investors seeking “cleaner” and more innovative options.

Chasing nickels around dollar bills:

This phrase describes the peculiar practice of large companies focusing on trimming trivial costs, such as candy in the lobby, while ignoring significant expenses like investing in research and development. It highlights the misplaced emphasis on minor savings rather than addressing substantial financial challenges.

Cockroach theory:

The “cockroach theory” suggests that when a company discloses bad news to the public, there is often more lurking beneath the surface. It implies that the revealed problems may be indicative of deeper issues within the company or even extend to the entire industry.

Cookie jar accounting:

“Cookie jar accounting” involves the improper practice of a company accumulating funds during prosperous periods to dip into during difficult times. This misleading tactic presents a false image of financial stability, deceiving investors by giving the illusion of meeting goals even when the company’s performance is declining. Consequently, it is considered forbidden and unethical.

Conclusion:

While finance may be known for its complex jargon, these five bizarre buzzwords bring a touch of eccentricity and humor to the world of numbers and investments. From ankle biters to big uglies, chasing nickels around dollar bills to the cockroach theory, and the deceptive practice of cookie jar accounting, these terms remind us that finance can also be full of colorful and intriguing expressions.