We all love being the cerebral genius in the room, especially when it comes to trendy corporate conversations. Yet, sometimes we feel lost in discussions with friends who effortlessly use jargon that we later end up googling secretly. Understanding these terms can sometimes be complex when you’re not a seasoned corporate professional. This is why, in this blog, we will introduce to you some of the most quirky and conversation-worthy business lingos. Time to add these to your vocabulary and impress your friends with your newfound knowledge. Let’s begin.
1. Godfather Offer
Godfather offer is a term used to describe a generous and compelling takeover offer made to a company or individual that seems too good to refuse. The term “Godfather Offer” was born from the famous line in the iconic movie, “The Godfather,” where the powerful mob boss, Don Corleone, says, “I’m gonna make him an offer he can’t refuse.”
2. Big Uglies
Big Uglies is a slang term used for unglamorous industries like oil, steel, and mining. These industries usually have lower growth rates but are also volatility resistant because they provide stable and consistent returns over a period of time.
3. Poison Pill
Remember Twitter painting headlines about taking a poison pill because of Elon Musk’s hostile takeover? Well, a poison pill is a defense strategy used by a company to prevent acquirers from buying a large number of company stocks. This can be done by issuing new shares at a discount to existing shareholders, making the acquisition more expensive, or implementing other measures that make the target company less attractive to the would-be acquirer.
4. Black Swan
The Black Swan event is an unexpected event that has a major negative impact on the economy or financial markets. Nassim Nicholas Taleb popularized this term in his book “The Black Swan.” According to him, these events are rare, unpredictable, and have extreme consequences. Some black swan events include, World War 1, 9/11 Attack, COVID Pandemic, etc.
5. Tip from a Dip
Tip from a Dip is the insider information about a company, or investment opportunity that is obtained from someone with privileged access, such as a company insider or government official.
6. Dead Cat Bounce
Dead Cat Bounce refers to a temporary increase in the price of a stock after a steep decline which is likely to be followed by another massive downtrend. The term is called so because the trendline of this event resembles a bouncing dead cat that fell from a height.
7. Eat Your Own Dog Food
The phrase “eat your own dog food” refers to the practice of a business employing its own goods or services to demonstrate its belief in the reliability and caliber of its offerings. For instance, Apple Inc using its own gadgets in its workspace is a classic example of eating their own dog food.
8. Golden Handcuffs
Golden Handcuffs are financial incentives offered to employees to motivate them to stay with a company for a longer period of time. These incentives can include stock option plans, travel allowances, or similar incentives that persuade the employee to remain with the company.
Understanding these terms and how they are used will give you a good picture of how the financial world works. So next time you hear terms like the ‘poison pill’ or the ‘black swan’, browse your investment lexicon, and Voila!