7 Finance Acronyms To Familiarise Yourself With So You’re Not Clueless At Dinner Parties

Acronyms and abbreviations are like a secret language, and once you know the lingo you’ll finally feel as though you belong in the “big boy’s club”. The finance and investment industry can feel exclusive with the many acronyms and abbreviations one has to learn. But once you become familiar with the lingo, a whole new world opens up and you can finally join in the conversations at the dinner party without feeling like a “blur sotong.”
22 September 2022

Acronyms and abbreviations are like a secret language, and once you know the lingo you’ll finally feel as though you belong in the “big boy’s club”.


The finance and investment industry can feel exclusive with the many acronyms and abbreviations one has to learn. But once you become familiar with the lingo, a whole new world opens up and you can finally join in the conversations at the dinner party without feeling like a “blur sotong.”

From what ETFs and ILPs are to understanding the concepts of BTD, here are 7 finance acronyms that we at VibeCheck feel that you should know.

1. ETF - Exchange-traded Funds

Exchange-traded funds are some of the most popular investment funds today. Essentially, they are a collection of stocks or bonds that are professionally managed and are traded on exchanges like the Singapore Exchange.

There are a few types of ETFs. Some follow the performance of an index like the S&P 500. Others are designed to track the price of a commodity like gold, or an industry like energy.

2. IPO - Initial Public Offering

One thing that companies like Grab and Razer have in common is that they both launched an Initial Public Offering (IPO). There are many reasons why companies do this. For them, it’s a good opportunity to raise capital and create brand awareness. But for the public - a.k.a. us - it’s a time to become an investor with the company as a shareholder.

An IPO is usually done when a company reaches a “unicorn” status where it’s worth at least $1 billion, and they’re riding that hype train all the way to the stock exchange.

3. ILP - Investment-linked Plan

Investment-linked plans, or ILPs, are a financial product that kills two birds with one stone as it contains both an investment as well as an insurance component.


Part of the premiums you pay every month goes into paying for units in the funds offered by the ILP which you’re typically able to choose. This in turn gives you the flexibility to tailor your plan according to your risk appetite.

4. ATH - All-Time High

During the cryptocurrency surge in 2021, you’d constantly hear people proclaiming that Bitcoin or Ethereum is hitting yet another ATH, or all-time high. It’s one of the most common and basic acronyms in the finance world that signals a stock or commodity reaching its highest price ever since it was listed.


It can also refer to other things like interest rates, COE prices, and more.

5. BTD - Buy The Dip

You’re not alone if you’ve felt hesitation about buying a certain stock or cryptocurrency, especially if you feel that the price will somehow go down. And when a certain commodity’s value drops, you’ll hear investors constantly telling you to BTD, or buy the dip.


The thought process behind buying the dip is the faith that the dip is just a momentary drop in value.

6. FIAT - Government-issued legal tender currency

No, we’re not talking about the car brand. Fiat is another term for legal tender currency like your $50 bill or coins. It’s all backed by the government. If too much money is printed, its value will drop like what happened in Zimbabwe.

7. ROI - Return on Investment

One of the most important terms to know as an investor is ROI or return on investment. It’s meant to see how well your investments are doing.


Let’s say you invested $1,000 into a furniture store last year, and your investment is now worth $1,500. Your ROI is 50%.

Finance & investment acronyms to know

Acronyms in the finance & investment sector might seem like a secret language, but once you know what these 7 terms mean, you’re more or less set. Some, like ETFs and ILPs, might be more common in your WhatsApp group chats as they’re readily-accessible products.

If you want to find out more about investment-linked plans, you can turn to Manulife Singapore. They offer a variety of ILPs that can cater to different needs based on your priorities, whether you’re looking to protect yourself, grow your wealth, or live your desired retirement lifestyle.


Find out more about investment-linked plans from Manulife.


T&Cs apply. All information is correct as of 22/09/2022.

Image credit: Towfiqu Barbhuiya on Unsplash

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