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

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49 views

What do you call a registered taxpayer with no tax obligations? [closed]

What do you call a registered taxpayer with no outstanding tax-liability? I'll explain my hesitation with the term taxpayer: I take that payer means someone who pays money, so a taxpayer is someone ...
-2
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1answer
50 views

What is a term for the elements of a balance sheet?

What is a term for the elements of a balance sheet? Specifically I need a term that includes assets, liabilities, and owners equity. This term (t) needs to be one where I can say x "is a" t where x ...
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1answer
32 views

When is an option a certain number of strikes in the money? e.g. “two strikes in”?

What does it mean when someone says:this option is one strike in the money or that option is 2 strikes in the money and so on and so forth? I understand in the money, at the money, and out of the ...
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3answers
104 views

What is a checking account and how does it work?

Often you see the distinction of a saving accounts and a checking account in personal accounting software. The terminology my bank uses, are personal and saving accounts. At least in the BeNeLux ...
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2answers
79 views

Total assets and current assets

I was looking into company investment data and was doing some ratio calculation when I stumbled upon 4 Terms "Total Assets", "Current Assets", "Total Liabilities", "Current Liabilities". My instinct ...
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1answer
45 views

What to know before purchasing Individual Bonds?

What are the different factors and terms one should be acquainted with before investing in individual bonds? I'm currently looking at: It's all rather foreign to me though. When I look at this page ...
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2answers
291 views

What is the difference between direct plans and Institutional Plan?

When I look at ultra short term funds, I generally see at least these two options for a given fund house. If the fund house name is "ABC", then I generally see these 2 options: ABC Ultra Short Term ...
6
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1answer
366 views

What's the difference between a certified check, a cashier's check, a money order, and a bank draft?

The question comes from reading this answer. I've heard these terms used somewhat interchangeably, but I have no idea what the differences are. What's the difference between a certified check, a ...
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1answer
58 views

what does “payout” mean

From Smart Cities by Anthony M. Townsend: Finding growth opportunities has become a constant struggle for Cisco, and to make a dent on the bottom line it needs to have billion-dollar payouts. ...
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1answer
54 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 ...
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0answers
40 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 ...
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3answers
160 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 ??
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2answers
484 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.
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1answer
55 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 ...
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1answer
59 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 ...
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1answer
107 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 ...
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2answers
1k 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?
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1answer
54 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
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1answer
255 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, ...
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4answers
150 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
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1answer
58 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"?
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3answers
986 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 ...
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2answers
127 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 ...
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2answers
979 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"?
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2answers
8k 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 ...
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2answers
716 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 ...
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2answers
1k 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 ...
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3answers
234 views

What does the term “match the market” mean?

What's the difference betweeng "matching" the market and "beating" the market?
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1answer
5k 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 ...
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1answer
55 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 ...
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2answers
76 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 ...
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1answer
98 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 ...
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1answer
85 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 ...
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1answer
41 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 ...
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3answers
6k 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 ...
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1answer
6k 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 ...
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2answers
109 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 ...
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1answer
114 views

How to understand expenses matter relative to investment type for mutual funds?

From Wikipedia Expenses matter relative to investment type There are three broad investment categories for mutual funds (equity, bond, and money market - in declining order of historical ...
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1answer
173 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 ...
3
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1answer
301 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 ...
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1answer
191 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
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1answer
138 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
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1answer
103 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?
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2answers
6k 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 ...
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1answer
207 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 ...
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3answers
563 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 ...
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2answers
6k 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?
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4answers
388 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 ...
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2answers
915 views

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

Are the two terms referring to the same person?
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3answers
616 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 ...