Economy and Business Terms - Charlie, your teacher of English
Exchange (Stock Exchange): An exchange is a marketplace in which securities, commodities,
derivatives and other financial instruments are traded. The core function of an exchange is to
ensure fair and orderly trading, as well as efficient dissemination of price information for any
securities trading on that exchange. Exchanges give companies, governments and other groups a
platform to sell securities to the investing public.
Exclusion clauses: clauses in a contract that are intended to exclude one party from liability if a
stated circumstance happens. They are types of exemption clauses. The courts tend to interpret
them strictly and, where possible, in favour of the party that did not write them. In customer
dealings, exclusion clauses are governed by regulations that render most of them ineffective but
note that these regulations do not cover you in business dealings.
Exemption clauses: clauses in a contract that try to restrict the liability of the party that writes
them. These are split into exclusion clauses that try to exclude liability completely for specified
outcomes, and limitation clauses that try to set a maximum on the amount of damages the party
may have to pay if there is a failure of some part of the contract. Exemption clauses are regulated
very strictly in consumer dealings but these don't apply for those who deal in the course of their
business.
Express terms - the terms actually stated in the contract. These can be the written terms, or verbal
ones agreed before or at the time the contract is made (see implied terms).
Expansion: It is, in a business cycle, a period of growth during which an economy moves from its
trough to its peak. For example, if an economy dips to growth of -2.5% and then recovers to 3%
growth, this period is called expansion. It is considered a normal and inevitable part of a business
cycle following a recession or other contraction. Expansion is also called recovery.
Express Terms: Clear; definite; explicit; plain; direct; unmistakable; not dubious or ambiguous.
Declared in terms; set forth in words. Directly and distinctly stated. Made known distinctly and
explicitly, and not left to inference. Manifested by direct and appropriate language, as distinguished
from that which is inferred from conduct. The word is usually contrasted with implied.
Externalities: They are the costs or benefits that affect society but are not included in the market
price of a good or service. Pollution is an example of a negative externality. Education is an
example of an externality benefit when members of society other than students benefit from a better
educated population.
Fabrication: Manufacturing process in which an item is made (that is, fabricated) from raw or semifinished materials instead of being assembled from ready-made components or parts. In the 21st
century house fabrication has become very popular because it is an easy way to construct a home,
and the housing industry is booming in the United States right now.
Financial year: A firm's financial year can run over any 12-month period it chooses, although the
most common year-ends are March 31 and December 31.
A fiscal year (or financial year, or sometimes budget year) is a period used for calculating annual
("yearly") financial statements in businesses and other organizations. In many jurisdictions,
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