Words about economics

1. P2P

(Peer-to-peer)

Individuals use third-party platforms (P2P companies) on the premise of charging a certain service fee. A financial model that lends money to people in need of funds. This model is divided into two types:

1. Pure online model:

Advantages: Pure information matching , helping both parties to better match funds

Disadvantages: This online model does not participate in guarantees.

2. Creditor's rights transfer model (the platform itself lends money first, and then transfers the creditor's rights to the platform)

Advantages: It can obviously allow companies to improve the efficiency of financing;

< p>Disadvantages: It is easy for the capital pool to fail to fully utilize the capital efficiency.

2. P2C

(Production-to-Consumer)

Commodities and customers, products are delivered directly from the production company to the consumer, without any intermediate transaction link. This is called a life service platform in the country.

1) P2C model: Real estate, catering, dating, housekeeping services, ticketing, health, medical treatment, health care, etc. are aggregated on the platform to realize e-commerce in the service industry.

2 Specific manifestations of P2C: Merchants carry out business activities through the Internet. The possibility of such business activities has always existed. With the development of Internet technology platforms, it has gradually penetrated into small and medium-sized enterprises.

3. O20

(Online-to-Offine)

Combines offline business opportunities with the Internet, making the Internet a platform for offline transactions front desk.

1 Advantages: Enjoy online preferential prices and offline personal services; perfectly combine the advantages of online and offline; realize the implementation of the Internet; can achieve alliances with different merchants.

2 The core of the marketing model is online prepayment, which marks the final formation of a certain consumption and is the only reliable assessment standard for consumption data. For Internet companies that provide online services, users can only benefit from it if they complete payment online.

4. B2C

(Business-to-Customer)

1 is mainly online retail, using the Internet to carry out online sales activities and directly facing consumers Marketers sell products and services and provide customers with a new shopping environment through the Internet.

2 The website consists of three parts: an online shopping place; a delivery system; a customer identity authentication system and a bank for loan settlement.

5. B2B

(Business-to-Business)

1 refers to the marketing relationship between businesses, which provides customers with rapid response through the Internet. Provide better services to promote business development of enterprises.

2 Three elements of B2B: buying and selling, high-quality and low-priced goods; cooperation, cooperation with logistics companies; service, high-quality services to achieve repeated transactions.

6. C2C

(Consumer-to-Consumer)

1. Refers to e-commerce between individuals. Consumers use Internet-connected devices to conduct transactions through the Internet and sell items to another consumer, which becomes C2C e-commerce.

2. C2C elements: seller-electronic trading platform supplier-buyer.

7. OTC (Over The

Counter)

The over-the-counter market refers to the market where securities are bought and sold outside the stock exchange. OTC does not have a fixed, centralized trading place, but is conducted by many independent securities operating institutions, and transactions are mainly completed by telephone, telegraph, fax and computer network.

8. PMI (Purchase

Management Index)

Purchasing Managers Index. PM| is a comprehensive economic monitoring indicator system released monthly. PMI is an index compiled from a monthly survey of purchasing managers and reflects the changing trends of the economy.

9. MBO (Management

Buy-Outs)

It is the abbreviation of "Manager Buy-Outs". That is, an acquisition behavior in which the managers or managers of the target company use external financing capital to purchase the company's equity, thereby changing the company's owner structure, control structure and asset structure, thereby reorganizing the company and obtaining expected returns. After the MBO is completed, the former managers become today's shareholders.

10. CPI (Consumer

Price Index)

The Consumer Price Index, abbreviated as CPI, is based on price statistics of products and services related to residents’ lives. The price change index is usually used as an important indicator to observe the level of inflation. It is a popular economic indicator in financial markets.

11. PPI (Producer

Price Index)

The producer price index measures the (average) price of products produced by domestic manufacturers. An increase in PP means that the enterprise's production price index increases.

12. VC (Venture

Capital)

It is venture capital. Choosing the right venture capital is very important for start-up companies. The legal structure of a venture capital fund is in the form of a limited partnership, and the venture capital company serves as the general partner to manage the investment operations of the fund and obtain corresponding remuneration.

13. IPO ( lnital

Public Offerings )

Initial public offering refers to the first time a company (issuer) makes its shares available to the public Sale (initial public offering, refers to the issuance method of a joint-stock company to the public for the first time). Generally, shares of listed companies are sold through brokers or market makers according to the terms agreed in the prospectus or registration statement issued by the corresponding securities association. Generally speaking, once the initial public listing is completed, the company can apply to be listed on a stock exchange or quotation system.

14. PE (Price

to Earnings ratio)

The price-to-earnings ratio refers to the stock’s price during an investigation period (usually 12 months). The ratio of price to earnings per share. Investors usually use this ratio to estimate the investment value of a stock. Generally speaking, the inverse of the P/E ratio is the return on investment.

15. PB (Price to

book ratio)

Price to book ratio, which can be used for investment analysis, refers to the stock price per share and the net assets per share The ratio, price-to-book ratio = stock market price/net assets per share.

16. Capital market

Refers to the financial market for securities financing and medium- and long-term capital lending for more than one year. The money market is a financial market that operates short-term financing within one year. Fund demanders raise long-term funds through the capital market and short-term funds through the money market.

17. Stocks

are share certificates issued by a joint-stock company to investors when raising capital. Stocks represent the ownership rights of their holders (i.e. shareholders) in a joint-stock company. It has the following basic characteristics: non-repayability, participation, profitability (stocks are often regarded as preferred investment objects during periods of high inflation), liquidity, price volatility and risk.

18. Bonds

1) When governments, financial institutions, industrial and commercial enterprises and other institutions directly borrow debts from the society to raise funds, they issue them to investors and promise to pay interest at a certain interest rate and as agreed upon A creditor's right and debt certificate that requires the repayment of principal.

2 The essence of a bond is a certificate of debt, which has legal effect. The relationship between bond buyers and issuers is a creditor-debt relationship. The bond issuer is the debtor, and the investor (or bondholder) is the creditor. The most common bonds are fixed-rate bonds, floating-rate bonds, and zero-coupon bonds.

19. Bank non-performing assets

The non-performing assets of banks are also often called non-performing debts, the most important of which are non-performing loans, which refer to loans where customers cannot repay principal and interest on time and in quantity. . In other words, the loan issued by the bank cannot recover the principal and interest according to the pre-agreed term and interest rate.

20. Primary market

The primary market refers to the financial market where companies or government agencies that raise funds sell their newly issued securities such as stocks and bonds to initial buyers. . In other words, a company raising money through the issuance of new securities is a primary market transaction. Funds raised from securities sales become new capital for the company. The primary market is primarily a transaction between issuers and underwriters.