For questions about terms used in personal finance, alternative names for concepts, etc.

learn more… | top users | synonyms

1
vote
1answer
45 views

What is done to capital to create a perpetuity

I'm trying to find a word. When one has capital, and does a particular process to it, they can create a perpetuity from it. I'm not actually certain, perpetuity is the right word here. By perpetuity ...
1
vote
0answers
29 views

What are alternative ways to title a year-to-date (YTD) figure in a financial report? [closed]

In most of my financial reports, I provide monthly numbers and YTD numbers. Now its easy to denote the 'Month' label in the column headers, but when it comes to the year-to-date (YTD), I feel the ...
-5
votes
3answers
96 views

Is Bitcoin a commodity or a currency [duplicate]

Bitcoin can be classified as a currency as it can be used as an medium of exchange or classified as an commodity given its speculative and volatile nature. What should we classify Bitcoin as ??
2
votes
2answers
60 views

What is the difference between trading and non-trading stock?

I am trying to set up an accounting program and would like to clearly understand what the terms "trading" and "non-trading" stock refer to.
1
vote
1answer
25 views

What do “yield type” and “duration” mean in this table of bonds?

In this table of bonds, what do the columns "Yield Type" (values e.g. "C", "M") and "Duration" mean? I thought "Duration" would be the number of years to maturity, but the values seem to be something ...
1
vote
1answer
36 views

Would an ESOP issue physical shares or stock options (call options) to participating employees?

The ESOP (Employee Stock Options Plan) has the word 'options' in it. Is it the same "options" as in "futures and options', i.e are there physical company shares held under the ESOP in an employee's ...
1
vote
1answer
57 views

What is meant by “buy-side firm” and “sell-side firm”?

Why are institutions knows as buy-side firms, and broker-dealers known as sell-side firms? From what I understand, both institutions and broker-dealers do both buying and selling, so what is this ...
10
votes
2answers
397 views

What is the difference between hedging and diversification? How does each reduce risk?

Hedging and diversification are both used for reducing financial risks, but what are the exact differences between these two?
1
vote
1answer
47 views

With respect to life insurance, why is reversionary bonus called “reversionary”?

I've googled reversionary bonus and can see that it's a an addition to insured benefits (often made annually). But why is it called "reversionary"? Is something reverting? Who to?
3
votes
1answer
73 views

What's the difference between “direct credit” vs. “local wire transfer”?

Wikipedia states that the alternatives to cheques include "direct credit" and "wire transfer" among others. What is the difference between "direct credit" and "local wire transfer"? For example, ...
5
votes
4answers
148 views

Is there a term for the risk of investing in an asset with a positive but inferior return?

For example, say I invest in a 5-year certificate of deposit at 3% annually. Let's assume the bank delivers on time (no defaults). However, a month after I buy it, another bank offered a 4% 5-year ...
2
votes
1answer
54 views

In a hedge fund, what is a “Partner”?

I will be meeting with representatives of a hedge fund (doing HFT FX trading), one of whom is titled "Partner". In the context of a hedge fund, what is the role of a "Partner"?
2
votes
3answers
386 views

What exactly is BATS Chi-X Europe?

I was told that BATS Chi-X Europe is not a stock exchange, that rather it is an equity market. The Wikipedia article states that it is an alternative to exchange traded equities and ...
1
vote
2answers
103 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 ...
1
vote
2answers
487 views

Is “AGI” the same thing as “taxable income”?

While researching how to determine my marginal tax rate, I came across the term "taxable income". Is "Adjusted Gross Income" (AGI) the same thing as "taxable income"?
6
votes
2answers
4k 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 ...
9
votes
2answers
598 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 ...
10
votes
2answers
796 views

Is there a term that better describes a compound annual growth rate (CAGR) when it is negative?

When calculating rates of return for an investment or portfolio over time, whether to report or compare performance, one frequently calculates the Compound Annual Growth Rate (CAGR). I've got a ...
1
vote
3answers
150 views

What does the term “match the market” mean?

What's the difference betweeng "matching" the market and "beating" the market?
10
votes
1answer
3k views

“Out of Pocket Maximum” and health insurance plan terminology & calculation?

I'm trying to understand the terminology on my health plan. I've read numerous websites, which have only confused me more, as they fail to use examples (more than one should be required) for people ...
0
votes
1answer
53 views

What assets does the term “security” encompass?

From what I understand, the term “security,” as used in finance, refers to equities, debt instruments (such as bonds), and derivatives based on equities and debt. Does the term encompass other ...
0
votes
2answers
75 views

What is a term for a company bank account that has been set up for non-business related expenses?

I'm looking for a financial term that describes a bank account that's been set up by a company for non-business related expenses; travel, hotels, food, etc. Sort of like petty cash, but it could be ...
1
vote
1answer
84 views

How would I categorise a personal account?

As a hobby project I'm writing a fairly simple open-source accounting package. It's aimed at individuals so you could argue I shouldn't bother with the more full-on accounting principles (like ...
1
vote
1answer
72 views

Debit/Credit confusion

For an asset account, I've learned that debit increases the balance. This makes perfect sense. So that it's straightforward to calculate net worth, it would make sense that when I buy something on a ...
0
votes
1answer
40 views

Terminology: What are the labels associated with a share called?

When I look up share information, e.g. here, I get at least three pieces of information: The share price (e.g. $681.79) The company name associated with the share (e.g. Google Inc) The shorthand ...
0
votes
1answer
2k views

Account that is debited and account that is credited

As a non-English-native person, I somehow find it difficult to understand the following: When an account is said to be debited, what does this mean? How does this differ from an account that is ...
5
votes
1answer
3k views

What does paying by invoice mean?

I was trying to buy a book from Springer in the Yellow Sale 2012. I chose to pay by invoice, without knowing what it means!?! Further, if it matters -- I filled in: Billing address, Shipping address ...
0
votes
2answers
84 views

Why is a “long put” called long if you have a higher net position if the price decreases?

From Wikipedia: to be long in a security, means the holder of the position owns the security and will profit if the price of the security goes up The Payoff/Profit diagram shows that you earn ...
5
votes
1answer
160 views

How do hedge funds work?

I understand the basic idea of hedging - buying contracts on something today hoping it will help flatten costs over the long run (eg what Southwest did in the late 90s and early 00s when they bought ...
2
votes
1answer
200 views

When Employees are “Granted” Stock Options, is the Company encouraging Long-Term investments from them?

I'm not exactly sure I understand the "why" behind a Company reasoning for offering "options" to their employees to invest in itself. I've found it is very unlikely of the employees to exercise for a ...
1
vote
1answer
170 views

What does “parity” mean with regards to student loans?

I read in a newspaper that interest on part-time student loans was made the same as a full time student's loan in order to "achieve parity between part-time and full-time student loan programs" ...
2
votes
1answer
128 views

What does the term “Boardroom poker” mean?

It seems to crop up occasionally, see for example this Wellington Fund blog post that uses the phrase: It is not time for high-stakes Boardroom poker, but that’s exactly what happened at ...
2
votes
1answer
86 views

Difference between clearing a check and hold on funds

Quick question on banking terminology: Can a check deposited in a U.S. bank clear, but still have the funds be subject to a hold? Or are clearing and not having a hold the same thing?
3
votes
2answers
4k views

What does “this trade was unsolicited” mean on a brokerage confirmation?

I sold some stock in my IRA brokerage account with Vanguard. Everything seems to have gone through fine, but the confirmation states in all caps that "this trade was unsolicited." I'm just curious ...
4
votes
1answer
169 views

Meaning of “readily transferable”?

From Wikipedia: Cash instruments are financial instruments whose value is determined directly by markets. They can be divided into securities, which are readily transferable, and other ...
5
votes
3answers
383 views

What do these options trading terms mean?

I'm trying to learn about options and when I log into my bank's online trading site I see the following selections in the menu. Can anyone explain what each of them mean and how they're different ...
4
votes
2answers
4k views

What is the difference between a fund manager and a portfolio manager?

What is the difference between: a fund manager, a portfolio manager and a trader?
7
votes
4answers
323 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 ...
6
votes
2answers
658 views

What is the difference between a 'trader' and a 'stockbroker'?

Are the two terms referring to the same person?
4
votes
3answers
391 views

What is an “International Equity”?

I'm an investment newbie, and I'm trying to understand the terminology. On the website for a certain investment firm, the main types of assets are: Large Cap Equity Small Cap Equity International ...
2
votes
3answers
657 views

Discussing stock and stock index movement: clarifying percentage vs. points?

I'm trying to understand more about financial terminology used in news reports, but I'm having a hard time understanding what is meant when someone says the following: "NASDAQ was down X points today ...
4
votes
1answer
123 views

What is a Remitting Entity?

In mutual fund jargon, what is meant by a remitting entity?
3
votes
2answers
355 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 ...
3
votes
1answer
1k views

Money owed to credit cards called “positive balances” or “negative balances”?

Q1) If my Visa credit card has a zero balance and then I charge something on the Visa, do I now have a "positive balance" or a "negative balance"? Q2) Same question for a utility account like a ...
7
votes
1answer
119 views

Is there a simple term to describe the non commutative property of decreasing and increasing a value by some X percentage?

I.e., $100 decreased by 20% requires an increase of (1/(1-0.2))-1) to return to $100. Is there a simple name that refers to this?
4
votes
3answers
920 views

Is installment the same thing as amortization?

Trying to make sense of the difference between installment and amortization. They seem to be used interchangeably in some places but to me it seems like amortization should be amount that you pay off ...
0
votes
2answers
156 views

What is the name of inverse of synergy? (finance)

I there: i want to know what is the name / buzzterm (if any) where i have a process and it produce two incomes (monetary or not), for example if i sell a t-shirt with a slogan that say "save the ...
3
votes
2answers
289 views

Understanding details for certificate of deposit: Explain the features of this CD?

Came across a "HARRIS N.A. IL" CD today (you can find the details here), and I'm strugging to understand the details. Here's what's listed: CUSIP: DSA991209 Pay Frequency: SEMIANNUAL Coupon: ...