I am always paying attention these days to how English in used in finance. And I notice that very often "noun and noun collocations" are used to describe economic terms.
In English it is an efficient way of expressing yourself. Instead of a complicated phrase, like:
You can simply say "equity risk premium"... Easy, isn't it?
Recently I came across an article that seemed to use a lot of noun and noun collocations, starting right from the title.
Goldman Says War Risk Premium Is Missing From Oil Markets | ZeroHedge
Here, instead of "equity risk premium", we have "war risk premium". But the meaning is simple enough to understand, if you know what risk premium is, that is. The "risk premium" is the additional percentage gain that investors expect to generate if there is extra risk. In this case, the article is implying that the oil price is too low, considering that there is a war going on in the Middle East.
In English it is an efficient way of expressing yourself. Instead of a complicated phrase, like:
- The premium applicable to risk related to investing in equities
You can simply say "equity risk premium"... Easy, isn't it?
Recently I came across an article that seemed to use a lot of noun and noun collocations, starting right from the title.
Goldman Says War Risk Premium Is Missing From Oil Markets | ZeroHedge
Here, instead of "equity risk premium", we have "war risk premium". But the meaning is simple enough to understand, if you know what risk premium is, that is. The "risk premium" is the additional percentage gain that investors expect to generate if there is extra risk. In this case, the article is implying that the oil price is too low, considering that there is a war going on in the Middle East.
Did you spot these noun and noun collocations in the rest of the article?
- 21-day ceasefire-fire
- world leaders
- war risks
- stimulus story
- Brent crude prices
- production hike
- oil manipulation game
- price target
- market implications
- oil markets
Certain phrases are so common that they become easily recognisable, such as "production hike", "oil market", "price target".
It is worth trying to incorporate noun and noun collocations in your writing and in your speech. Trust me, once you become comfortable with this, it will make expressing yourself in English a lot easier!