For questions about the meaning and usage of specific terms used in personal finance, alternative names for concepts, etc.

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What are terms for taxes depending on who has to pay them

I'm searching for specific terms to distinguish different kinds of taxes, one has to pay when providing a bill to a customer: Lets say the base price for my services is 100$ A (normal) tax which is ...
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1answer
61 views

What does “DM currencies” mean in this context?

"Key drivers include: Low/negative real rates. the view that the dollar has peaked against DM currencies lingering macro risks." source: http://www.businessinsider.com/ubs-note-on-golds-new-phase-...
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2answers
83 views

What is street-side booking?

What is the meaning of the term "street-side bookings" in the context of broker operations? I suspect it has something to do with the Central Counter Party Clearing outlined in https://en.wikipedia....
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2answers
212 views

How would one follow the “smart money” when people use that term?

From time to time, articles talk about following the "smart money". My question is: What indicators or sectors do we look at that is considered the "smart money"? If everyone is following the smart ...
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51 views

What does “points” mean in such contexts (stock exchange, I believe)?

What does "points" mean in such contexts (stock exchange, I believe)? It would be also great if you provide references or example sentences. "S&P 500 is holding above the Moving Averages 10 it is ...
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105 views

Is a secured loan or mortgage considered debt? [duplicate]

Lets say you buy a home for $300k, and put down a $100k payment and take out a $200k loan. The house was purchased for a fair, properly appraised value. Does this mean that you are now $200k "in ...
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5answers
243 views

What is the official name for a (usually) 3 digit code (usually) on the back of a credit card?

My question is very similar to this one on SO that was closed for being off-topic there and too old to migrate, but it seems on topic here (and maybe on English Language & Usage, but it's not ...
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1answer
66 views

RRP/list price/retail price and cars?

Looking at an online car brochure (PDF version of printed material) for the Vauxhall Astra, it listed RRP: Link As far as I know, am I correct with these: List price is basic price Recommended ...
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4answers
88 views

How do you decide on your risk tolerance?

In investment, there is often a discussion of risk. Investors are told to assess their own risk tolerance, funds and derivatives often advertise their own expected risk, and brokers ask for your risk ...
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3answers
446 views

What is the difference between a bad/bounced check and insufficient funds?

I was reading the answer to another question, and read this statement which basically states that writing a bounced check can land you in jail: you're committing a fraud, namely offering someone a ...
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1answer
97 views

Is there a term for total money owed to you?

Is there a word, in finance, for the total amount of money owed to you? That is, for money you "have" but you don't have yet. For example, if I have $10k in the bank, and a total of $20k open ...
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1answer
397 views

What's the difference between stocks and shares?

I'm doing some research into investing in shares (or stocks, not sure which) and I keep getting confused between shares and stocks. Are they the same thing? Even on this site the two tags exist and ...
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198 views

Why is the number of issued shares less than the number of outstanding shares

We know that #issued shares = #outstanding shares + #treasury shares. So the number of issued shares must be greater than treasury shares by definition. However, Starbucks' fiscal 2014 From 10-K ...
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3answers
237 views

Is there a term for the situation where we will over-think small purchases, but not large ones?

I was recently at the record store thinking "I dunno, $10 is a bit much for this. $7...I'd probably buy it. But not for $10." That would be contrasted with a recent house we purchase where I'm sure I ...
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5answers
1k views

What is this type of risk-free investment called?

My mother told me that in 1994, she had $10K to put into a savings account or CD. She went to the local Citibank and didn't like the interest rates that they were offering on their savings/CD ...
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1answer
461 views

My “credit limit” is now a “credit access line”. Does it matter?

My credit card just got "upgraded". Tucked in among all the notes about new benefits I've got access to is this line: Please note: Your credit line/credit limit will now be referred to as a ...
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1answer
87 views

What are “equity assets”?

The definition of equity and the definition of asset are explained in many posts and across the Internet. However, it doesn’t seem possible to me to derive the meaning of "equity assets" from them. ...
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2answers
162 views

What does it mean “sell on ask” , “sell on bid” in stocks?

Is there any expression like "sell on bid"? Or is it only "sell on ask". I m learning stocks right now, my coach telling "we just sold on ask". so I wonder if there is the opposite - "sell on bid"?
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1answer
45 views

Currency forward rates

I'm looking at EUR/USD forward rates here: http://www.investing.com/currencies/eur-usd-forward-rates Can someone explain, in very simple terms, what do the bid/ask prices mean? And what is the ...
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6answers
203 views

Name of investment where capital guaranteed?

I remember briefly hearing about an investment type which guarantees your initial investment. So you are able to make a reasonable (but not mind-blowing) profit but the initial capital that you pay is ...
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1answer
100 views

Where did you learn banking related concepts? [closed]

I have only average knowledge of principle, interest, compound interest which I had learnt in high school. Now-a-days, I am facing lot more new terms, like EMI, credit card, current account, service ...
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1answer
188 views

Stock dividends effect on dividend received by shareholder

In CFA level 1 Reading 38, it says Stock dividends are a non-cash form of dividends. With a stock dividend (also known as a bonus issue of shares), the company distributes additional shares (...
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1answer
470 views

What do the suffixes on stock symbols indicate

For example, this article mentions symbols VZ.N, CVC.N, TWC.N, and CCOI.O. Are these related to share classes and/or warrants? Each of these symbols also seem to exist and can be referenced without ...
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1answer
44 views

Calculating long intervals of Interest with Simple Interest Formula

My last post Calculating long intervals of Interest calculates interest using compounding formula. But what about calculating simple interest accrued where the day count is actual/actual and it goes ...
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2answers
67 views

Calculating long intervals of Interest

Small interval calculations is fairly straight forward. But what about long intervals. If a loan's daycount is set to Actual/Actual and the duration has run into two different DayCount intervals, how ...
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1answer
141 views

Definition of basis and cobasis in a chart

In this article https://monetary-metals.com/silver-price-spikes-but-what-demand-4-oct-2015/, there is a chart of basis and cobasis. For basis I found too many different meanings and for cobasis ...
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0answers
428 views

What is an undervalued or overvalued bond?

Here's a small excerpt from Bond Valuation section on Investopedia: Determining Whether a Bond Is Under or Over Valued What you need to be able to do is value a bond like we have done before ...
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5answers
11k views

What does it mean to be 'in credit' or 'in debit'?

I always get this mixed up. My energy company says my account is 'in credit'. Does that mean I owe them money, or they owe me money? I thought it meant they owe me money but if that's case I don't ...
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36 views

Free float is expressed as percentage of shares issued or shares outstanding?

Quiet often, one sees the free float expressed as a percentage number, e.g. http://www.pse.com.ph/stockMarket/companyInfo.html?id=154&security=165&tab=0 The question is, is the free float ...
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4answers
1k views

What exactly is a “derivative”?

I haven't been able to find exactly what a derivative means. It seems to be some sort of cross of insurance, stock, and lay-a-way. When I try to look it up, all I find is all the problems not ...
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1answer
463 views

What does it mean to borrow short and lend long?

What does it mean that institution borrowed short and lent long?it would be great if u may use a comprehensive example. Thank you very much.
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1answer
113 views

Administrator vs Broker vs Custodian for a Solo 401(k)?

I'm planning to open a Solo 401(k) with Schwab. There are some provisions that are decided by the Plan Administrator, which I assumed would be me (my business, technically). However, doing research, I'...
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1answer
68 views

How to interpret the interest rate of treasury notes?

I am new to investing in the US and money terms in English, so forgive me if this is a stupid question. From this table, I can see, for example, that the most recent 2-year treasury note sale had an ...
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2answers
2k views

Mortgages: What is the terminology for how much I own and how much I still owe?

I'm looking for the terminology related to my home mortgage. The word or phrase for how much of my house I own. The word or phrase for how much I still owe. For example, suppose I bought a $500K ...
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1answer
310 views

Why do futures traders write months in a strange way?

I was reading up a bit on futures and found that futures clearing merchants write months in a very unexpected way: Month Month Code January F February G March H April J May ...
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1answer
682 views

What does “compression of spreads on high-yield debt” mean?

What did Federal Reserve Chair Janet Yellen mean when she said the following? "We’ve also seen the compression of spreads on high-yield debt, which certainly looks like a reach for yield type of ...
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2answers
164 views

Can someone please help me understand Foreign Exchange Rates?

As an example, this page gives the following rates: AUD/USD: Bank buys (I want to receive/sell) - 0.882 Bank sells (I want to send/buy) - 0.7448 Does this mean that if I want to ...
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2answers
66 views

How is “tax-free inside buildup” defined?

I'm not sure I understand the concept of "tax-free inside buildup." From what I understand, life insurance, annuities and IRAs (both Traditional IRAs & Roth IRAs) benefit from "tax-free inside ...
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2answers
179 views

If I get a bill (e.g. for internet service), is that a debt I owe? If no, what are the practical difference between a bill and a debt?

Merriam-Webster website defines debt one way as "an amount of money that you owe to a person, bank, company, etc." Does this mean that a debt is created when a bill (e.g. utility or internet service ...
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2answers
2k views

Is APR the same as Interest Per Annum?

I'm a tester working for a high cost, short-term loan credit company in the UK. Recently, the Financial Conduct Authority (FCA) issued a policy on statements which includes information on how they ...
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1answer
55 views

What's the difference between a company's after-tax profit and their sales/revenue?

Two fundamental analysis formulas have got me confused. One is the EPS (earnings per share) and the other is P/S (price/sales ratio). If I understand the formulas correctly, EPS is calculated by ...
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6answers
525 views

What is the opposite of a sunk cost? A “sunk gain”?

Here's an example of the sunk cost fallacy: You decided to buy a solar panel because you heard that you can make money from them over time. Unfortunately, you didn't do enough research and bought an ...
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1answer
102 views

In double entry book keeping terminology, what is the term or expression for when a journal entry both debits and credits the same account?

I configure point of sale software and thus deal with my clients' accounting people. I need to know how to properly express to them this situation, when they describe it. Thank you.
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1answer
99 views

Why is the terminology “put” and “call” not applicable to futures contracts?

Why is the concept of puts and calls applicable to options, but not to futures? Futures and options are similar, the key difference being that futures represent an obligation, whereas options ...
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1answer
60 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
279 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
138 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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4answers
3k views

What's the difference between Buy and Sell price on the stock exchange [duplicate]

I am new to stock investments. I usually ask for stock broker to write up a quote for me. I can also check the prices on the Malawi Stock Exchange website. However I am not sure which price she quotes,...
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2answers
156 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
54 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 ...