to be used for any question where one needs to understand the meaning of a specific term, or usage of a specific word

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2
votes
1answer
236 views

Bond : Difference between coupon and yield

On a bond chart, I always see the terms: Yield & Coupon, which seem to mean the same thing. What is the difference between these two terms?
1
vote
2answers
123 views

What does “basis points” mean in this context?

I read this sentence: Egypt's central bank cut its benchmark overnight deposit rate by another 50 basis points to 8.75 percent, its second rate cut in two months. What does basis points mean ...
6
votes
2answers
7k views

What is the difference between a Loan, a Lien, and a Mortgage?

So, I recently heard someone talk about a Lien as thought it was similar to a Loan. So, I googled various things for a while and came to no concrete, concise answer. If a Lien or a Mortgage is a ...
4
votes
2answers
747 views

What is the difference between “withdrawal” and “distribution” from a 401(k)?

My 401(k) plan lists several fees associated with my account. One of the fees is "Final Distribution", which is "$50.00 per distribution". Another is "Withdrawal", which is "$50.00 per withdrawal". ...
9
votes
2answers
694 views

Is there a country that uses the term “dollar” for currency without also using “cents” as fractional monetary units?

I'm wondering if there exists a country that uses the specific name "dollar" for their currency, without also using the concept where 1/100 of one dollar is called a "cent". Does such a currency ...
-1
votes
2answers
139 views

Please explain short interest; specifically, why is it called “interest”?

I understand that short interest is the number of shares that is currently short sold. A high short interest indicates that the share price is expected to fall. All good, but what is the word ...
3
votes
1answer
118 views

meaning of “differing bought and sold value of shares traded;” “money flows into vs out of” a stock

at: http://www.avafin.com/articles/1018128.html I see: "Today, a total of 141 block trades were recorded, typically at least 10,000 shares of stock or more represent a single block unit. Further ...
4
votes
2answers
5k views

What does “more buyers than sellers” in technical analysis of stocks actually mean?

I often hear/read technical analysts looking at volume and price action on a chart and claiming that there are "more buyers than sellers" or vice versa. Since every trade requires a buyer and a ...
6
votes
2answers
404 views

What is a private banker?

When I went to the bank , I was introduced by a staff to another woman who addressed her as a private banker. As I don't understand the term private banker clearly, below are my few questions. 1) ...
2
votes
3answers
310 views

If prices are falling, who will lend shares to short sellers?

Short selling is a process that involves borrowing shares from a person, selling them and then buying them back at a lower price, thus realizing a profit. In this situation, knowing that prices are ...
0
votes
1answer
60 views

Are “hard money loans” meant only for real estate?

I am interested to know whether Hard money loans are meant only for Real Estate or other fields too.
2
votes
4answers
1k views

“Derivative” and “asset-backed security”: Same concept, or related?

Derivative and asset-backed security seem to be similar, as both are based on some other assets. So I wonder if they are the same concept?
0
votes
2answers
207 views

What is meant by “proof of funds” and what would such proof be used for?

What does it mean when some funding firm or commercial bank asks for "proof of funds"?
9
votes
3answers
266 views

What is a “Junk Bond”?

I was reading Barbarians at the Gate and I read that junk bonds were required to do large leveraged buyouts. What is a junk bond and how does it differ from a regular bond? Why is there higher ...
1
vote
1answer
835 views

What's the difference between “marketable” vs. “tradable” (tradeable)?

In Bodie's textbook "Investments": Money market instruments include short-term, marketable, liquid, low-risk debt securities. I was wondering about the differences and relations between ...
5
votes
1answer
2k views

What is a financial security?

There are two sources that I have found about securities and am not sure how they are consistent with each other. The first one is from Wikipedia article about financial instruments: Financial ...
1
vote
2answers
106 views

Definition of equity

From Wikipedia: financial instruments can be categorized by "asset class" depending on whether they are equity based (reflecting ownership of the issuing entity) or debt based (reflecting a ...
7
votes
4answers
371 views

What is a subsidy?

I hear the words 'subsidy' and 'subsidize' sometimes. I've looked around for an answer as to what a subsidy is, but all I can find is convoluted finance jargon that means nothing to me (an average 16 ...
10
votes
4answers
2k views

Making your first million… is easy! (??)

I've seen several people claim "making a million dollars isn't THAT hard these days". Heck, I've seen it here on this forum. Being a complete beginner with investing, business and finance, I wonder ...
0
votes
1answer
522 views

What is a “Registered” plan, as in, what does “registered” specifically mean, in the context of an RRSP?

What is the meaning of the "Registered" part in "Registered Retirement Savings Plan"? What is an example of an unregistered savings plan?
6
votes
3answers
757 views

What is “beta” for an investment or a portfolio, and how do I use it?

Recently my financial adviser has been talking about my portfolio's "beta". I have also seen beta listed for some investments (for example: http://www.google.com/finance?q=goog). What is "beta" and ...
3
votes
2answers
387 views

Interactive Brokers: IOPTS and list of structured products

As below, Interactive Brokers lets me trade "IOPTS". What are these? They also let me trade "Structured Products". I know what these are, and even know what an ISIN is ...
5
votes
2answers
2k views

Mutual fund question; what is a 'Series'?

In mutual fund lingo, what is a 'Series'? What does it mean?
1
vote
2answers
1k views

Banking: What does the term “Sales Frontend” mean?

Could you please explain me what does it mean when banks refer to "Sales Frontend"? I have heard the term in sentences like "We need to improve our sales frontend in order to stay ahead in ...
1
vote
2answers
26k views

What is the difference between Debit and Credit?

What is the difference between Debit and Credit AND purchase and sale? These terms are very confusing. I have some example questions to understand it more easily. If I run a shop and a ...
11
votes
7answers
1k views

What is the difference between speculating and investing?

I keep hearing people saying that a speculation is NOT an investment, but isn't it really just investment with high risk?
7
votes
2answers
826 views

Definition of “secular” in the context of markets?

When fund managers makes statements like this... "... [many market] inefficiencies persist for years due to the long-term nature of secular and structural changes [...]" ... I assume that they are ...
8
votes
1answer
120 views

What is a “closed-end fund”? How is a closed-end fund different from a typical mutual fund?

I recently ran across the term "closed-end fund", but the author didn't explain what it was. What is a "closed-end" fund vs a typical mutual fund, and are there advantagets/disadvantages to each?
5
votes
2answers
118 views

What is a timeshare?

What is a timeshare and why might I want one? Are there any hidden costs to timeshares?
3
votes
1answer
430 views

What are prize bonds? Are prize bonds a good investment?

What are prize bonds? Are prize bonds a good investment?
6
votes
1answer
340 views

Currency values: Are there names for the parts before and after the decimal point?

What is the collective name / term given to the part of a currency value before and after the point? e.g. $123.99 So in the example above I'm after the name of the part '123' and the name of the ...
17
votes
3answers
3k views

What is a trust? What are the different types of trusts?

What is a trust? What are the different types of trusts? Are some better than others? What are the different roles involved in a trust?
7
votes
3answers
218 views

Please explain: What exactly is a CDS or “Credit Default Swap”?

I hear a lot about CDSs (Credit Default Swap) and I not really know what they are. Can you please explain it to me? What are they good for?
8
votes
1answer
164 views

Why are index funds called index funds?

Why are index funds called index funds?
9
votes
4answers
238 views

What is title insurance, and should I get title insurance for my home?

I have just sold my house and bought a new one. The lawyer I am working with to do all the necessary paperwork has sent me something about "Title Insurance". I am not quite sure exactly what this ...
6
votes
1answer
425 views

What does pink-sheet mean related to stocks?

I see the term pink-sheet mentioned a lot in context of stocks. What does it mean?
25
votes
3answers
55k views

Can someone explain a stock's “bid” vs. “ask” price relative to “current” price?

In my online brokerage account, I want to buy a particular stock and I see : Bid: 13.20 x200 Ask: 13.27 x1,000 the current stock price is : 13.22 Can someone explain what the bid and ask ...
5
votes
1answer
1k views

Mortgage: Difference between joint tenancy / tenants vs. tenancy in common?

When taking a mortgage, what is the difference between joint tenancy and tenancy in common? Under what circumstances is it preferable to choose one over the other? If your circumstances change how ...
8
votes
1answer
1k views

What is garnishing / garnishment of wages or accounts and when does it happen?

What does garnishing / garnishment of wages or accounts mean? Under what circumstances does it happen and what are the implications?
7
votes
1answer
1k views

What does CAGR mean when it is used in relation to a company stock?

I saw this abbreviation CAGR related to stocks and financial statements and I am not sure what it is. Can you please explain it to me?
2
votes
2answers
438 views

Group (pooled) RESP plans in Canada: Education savings advantages & disadvantages?

I'm familiar with the Individual and Family types of Registered Education Savings Plans (RESPs). There's also a third type: Group (pooled) RESPs, which I mentioned in this answer. I didn't provide ...
8
votes
3answers
490 views

What does the term “second mortgage” mean? Can I easily get one?

Are these loans easy to get if you have enough equity in your current home? Is there any negative connotation associated with getting a second mortgage
9
votes
2answers
182 views

What is Alternative Minimum Tax (AMT) and how does AMT get calculated? [U.S.]

What is Alternative Minimum Tax (AMT) in the U.S.? How does Alternative Minimum Tax get calculated? What conditions are likely to trigger an AMT assessment versus a regular tax assessment? Are ...
19
votes
9answers
2k views

What is the difference between “good debt” vs. “bad debt”?

This other question about home renovations makes reference to the concept of "good debt." Could somebody explain the concepts of good debt vs. bad debt, providing examples of each? Are there cases ...
8
votes
1answer
368 views

Trip Interruption insurance vs. Trip Cancellation insurance: what's the difference?

My credit card says they offer trip interruption insurance as a benefit. But I was only familiar with trip cancellation insurance. Are these the same or different?
11
votes
2answers
524 views

What is value investing? What are the key principles of value investing?

What is value investing? What are the key principles of value investing? Is there evidence indicating whether value investing results in higher returns, or lower risk, compared to other styles of ...
10
votes
1answer
210 views

What is long-term care insurance ? How does long-term care insurance work?

What is long-term care insurance? How does long-term care insurance work? Who should consider getting long-term care insurance and why?
16
votes
3answers
2k views

What is the meaning of “short selling” or “going short” a stock?

Can someone please explain the meaning of 'shorting' a stock with an example?
7
votes
2answers
3k views

What does market cap (or market capitalization) mean?

When I look at my Google finance page, and I look at a company, lets say Citigroup for example, and I see that the market cap is 83.45 billion, what does that mean? Does that mean Stock Price X ...
23
votes
3answers
490 views

What are “preferred” stocks? How are they different from normal (common) stocks?

What are "preferred" stocks? How are they different from normal (common) stocks that you can buy on a stock exchange?