Questions tagged [terminology]
For questions about the meaning and usage of specific terms used in personal finance, alternative names for concepts, etc.
287
questions
20
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9answers
6k views
What are credit cards, debit cards, and other types of cards?
This question right here and the plethora of comments in it reminded me of something that I've found annoying for a long, long time. Seems that depending on where you come from the terms "credit card" ...
19
votes
1answer
4k views
What does “gross of” mean?
I'm reading a financial report summary of an investment and it says "The numbers below are presented gross of fees." Does that mean the numbers include fees, or don't include fees?
Why don't they ...
0
votes
0answers
18 views
In what case(s) is the end of the offering period (when one purchases the shares) considered the grant date?
I read on https://fairmark.com/compensation-stock-options/employee-stock-purchase-plans/dispositions-of-espp-stock/ in the context of employee stock purchase plans (ESPP) in the United States:
For ...
2
votes
1answer
60 views
Is the first day of the offering period always the same as the “grant date” in the context of employee stock purchase plans (ESPP)?
Is the first day of the offering period always the same as the "grant date" in the context of employee stock purchase plans (ESPP) in the United States?
Motivation to ask the question:
I'm asking as ...
52
votes
3answers
18k views
Are all current world currencies 'decimal'?
Historically, non-decimal monetary systems were common. E.g. pound / shilling.
Every currency I can think of or have ever used is 'decimal' (where a higher/lower unit of currency is either a ...
0
votes
1answer
100 views
Is there a word that encompasses both “compensation” and “reimbursement”?
Here on wordreference.com I was reading that:
Reimbursement is specifically giving back the same amount of money they paid.
Compensation is wider - it means giving them something, usually ...
0
votes
0answers
55 views
Who is the “issuer” of an intra-group term loan?
I've tried googling and looking in financial terminology dictionaries to find an answer to this question but I have been unsuccessful so far. My question is quite simple: who is considered the issuer ...
0
votes
0answers
47 views
“Capital regimes” - explanation and types?
I have come across this term "capital regime" from the following quote:
According to an overnight report from the FT which confirms what we
already disclosed previously, namely that JPMorgan ...
19
votes
7answers
5k views
What is the difference between money and currency?
Money is a medium of exchange, according to 1,000 ways to make $1,000.
Currency, on the other hand, is the "promissory note or coin". You may say that currency is a US dollar bill in the USA. But ...
0
votes
1answer
93 views
Can shareholders’ equity be more than total assets?
I was just learning about DuPont Identity on investopedia with this example:
#DuPont Identity Example Calculation
Assume a company reports the following financial data for two years:
Year one net ...
0
votes
1answer
70 views
“Negative Amortization” Terminology
I want to better understand the term "negative amortization".
For example, in the Graduated Payment Mortgage (GPM), people often say it usually has negative amortization as the loan balance increases ...
0
votes
2answers
64 views
What does “technical dynamics” means?
Example usage: "Following a perfect storm of negative technical dynamics, recent spinoff SnakeOil is a coiled spring ready to double over the next year."
I assume it has to do with technical analysis,...
1
vote
1answer
108 views
Alternative phrase for “fire sales” [closed]
According to investopedia:
A fire sale consists of selling goods or assets at heavily discounted
prices. Fire sale originally referred to the discount sale of goods
that were damaged by fire. ...
-3
votes
1answer
73 views
What's the etymology of “put feature”?
Gill, Madura. Personal Finance, 4th Canadian Edition 2019. p 358.
I don't know if "put" here is related to put options.
-2
votes
1answer
79 views
What's the etymology of “times interest earned ratio”?
Gill, Madura. Personal Finance, 4th Canadian Edition 2019. p 335. Emboldenings are mine.
Thus, a more appriopriate measure of the firm's ability to repay its debt is the times interest earned ratio,...
-2
votes
2answers
102 views
What's the etymology of “accounts receivable”?
Gill, Madura. Personal Finance, 4th Canadian Edition 2019. p 332. Emboldenings are mine.
Short-term assets include cash, securities purchased by the firm, accounts receivable (money owed to the ...
6
votes
3answers
633 views
Why does the Fed change rates in quarter points rounding?
I have always seen( since 1990s) that the Fed changes( cut/increase) interest rates in quarter point increment /decrements in USA that affect the world bond, stock market and borrowing rates, while I ...
3
votes
3answers
565 views
What are “redemption” schemes?
I am reading a page by the FBI on the Sovereign Citizen Movement. The article goes on to say:
Not every action taken in the name of the sovereign citizen ideology
is a crime, but the list of ...
0
votes
4answers
103 views
What is a “rates division”?
Deutsche Bank is shuttering its equities sales and trading business, while trimming its "rates division". It will also create a "bad bank" for €74 billion ($83 billion) in assets that eat up too much ...
3
votes
4answers
143 views
Correct term for a purchase split into several payments, with no interest
I'm looking for the correct and everyday usable term for a kind of purchase made with a credit card, which is split up in equal monthly payments, without incurring interest with the credit issuer.
I'...
1
vote
1answer
133 views
What is the origin of the name of Form 10-K?
I am assuming that Form 10-Q stands for quarterly, though I can't derive a good reason for the 10.
Wikipedia:
The name of the Form 10-K comes from the Code of Federal Regulations (CFR) designation ...
1
vote
2answers
99 views
What is the difference between “unités de compte” and ETFs?
What is the difference between "unités de compte" (often proposed in assurance-vies) and ETFs?
I don't see the difference when I read the definition on
https://www.journaldunet.fr/patrimoine/guide-...
2
votes
1answer
60 views
What is a nominee in the jargon of opening a bank account?
I am opening a bank account for my company and in the registration form they ask about the director of the company, who is me.
After setting my details, they ask if I am a nominee. What is that ...
1
vote
1answer
128 views
What is the difference between open access and open choice in health insurance plans in the United States?
What is the difference between open access and open choice in health insurance plans in the United States? I've seen both terms used in health insurance plan names.
Example, from https://www.aetna....
3
votes
1answer
112 views
What is a “cash carrying patient”?
I read on https://www.ccapta.org/mpage/MoveInsurance (mirror):
Physical therapist services may be obtained without a physician’s referral if you are a cash carrying patient, receiving treatment for ...
0
votes
2answers
285 views
Is the current stock price the last bid price or the last ask price, or what?
The answer to this question states: "current stock price … is actually the price of the last trade. It is a historical price…"
The last trade had a buyer and seller. The buyer paid the "ask" price, ...
1
vote
2answers
764 views
What is the difference between volatile and fluctuation in terms of stock?
Differences between volatile and fluctuation? I am new to the stock market, currently learning about the terminology and i came across these words. From what i know, volatile is like the speed and ...
1
vote
2answers
136 views
Definition of point
Jesse Livermore came out with a set of rules in his book "How To Trade In Stocks" in 1940.
One of the rules is that price of particular asset should deviate by 6 points from the last pivotal point in ...
1
vote
1answer
102 views
Shares issued vs Shares outstanding and where to find in morningstar.co.uk
When talking about stocks. I am a bit confused with the term "Shares issued" and "Shares outstanding".
Can someone please clarify me what is the difference?
Also I want to know where to find the ...
0
votes
1answer
110 views
What does indirect lending mean?
I found a webpage for a credit union that says that they do indirect lending. I can't understand the process. What does this mean?
2
votes
2answers
400 views
Why do debits/credits increase/decrease assets/revenues/expenses?
I'm taking an accounting course and am finding that I don't understand exactly why "A credit decreases assets, such as inventory", for example.
I understand that selling creates a decrease in assets. ...
1
vote
2answers
53 views
Bull call spread
My textbook says the following for a bull call spread.
"In the bull call spread, you sell a call with a lower strike price and buy a a call with a higher strike price. The call spread is a credit ...
7
votes
2answers
545 views
How can I trade in “OTC” stocks?
Where do you buy "OTC" stocks? I may be naive but OTC means over the counter.
I am confused as to where to purchase such stocks?
1
vote
4answers
263 views
Efficient market hypothesis
According to the efficient market hypothesis, does the price of a stock take into account the company's growth prospects? It says that it is hard to find undervalued stocks but theoretically, is it ...
3
votes
2answers
165 views
Understanding corporate earnings manipulation
While reading earnings manipulation on investopedia, I came across following sentences:
Another form of manipulation is to change company policy so more costs are capitalized rather than expensed ...
2
votes
1answer
222 views
What does PDS stand for?
I am looking at a funds fact sheet. The fact sheet contains the following warning
Past performance is not a reliable indicator of future results. You
should consider the PDS before making any ...
9
votes
2answers
477 views
What does Warren Buffett mean by “demand money” and “time money”?
I'm reading through Berkshire Hathaway Letters to Shareholders and I'm confused by the following quote:
In the last few years, Illinois National's mix of deposits has moved considerably more than ...
1
vote
3answers
149 views
What is the word for the sum of percentage gains from different investments? [closed]
Let's say I have $20. And I invested into two different stocks with $10 amount to each. From first investment I gained 10% profit and from second 30%. After that, I have $24.
My actual profit here is ...
0
votes
1answer
85 views
What are examples of administrative costs?
What do people really mean by administrative costs? Is it just an umbrella term to actually get money from a person for no real costs, just for a service? Or it includes really some expenses?
1
vote
1answer
792 views
How many bank tiers are there? [closed]
One can often see bank tiers 1-3 being mentioned, yet sometimes there are also tiers 4 to 6.
So, how many bank tiers are there really?
0
votes
1answer
69 views
What is an Initial Token Offering?
Is it the same thing as an 'Initial Coin Offering'?
What would the a-z of such a thing look like in plain terms?
13
votes
2answers
5k views
What's the meaning of the word 'less' in this tax table?
Our government introduced a new Payee tax scheme. Can someone please explain how does the word 'less' work in this context?
2
votes
2answers
2k views
What is the opposite of “paying in advance”?
In a following point of a tenancy agreement my tenant is arguing that he will not pay the rent in advance. He will rather pay Rs:9000 the next month starting from the date of agreement.
That the ...
3
votes
3answers
252 views
What is it called when a big player buys/sells so much volume of an asset that it changes the price?
Is there a term for when a big player buys/sells so much volume of an asset (stock, currency, gold, etc.) that it changes the price? Is there a name for this type of player?
I want to know the ...
1
vote
1answer
72 views
What do you call an intermediate trading step
Suppose you want to trade A for B, but there is no direct trade option available. However, the following possibility is available:
trade A for C
trade C for B
So, instead of making a direct trade (A ...
-2
votes
1answer
83 views
Natural way of expressing changes in percentages in the financial markets
Observing the gyrations in the stock market, at some point today the NASDAQ was up 0.30%, and as I tried to verbalize this figure, I realized how unnatural it is to say "it is up zero point three ...
7
votes
3answers
926 views
The proper term for a third party economy [closed]
A friend of mine asked me whether something odd was going on, including the following picture:
Basically, the companies listed (Bitcoin, Uber, Facebook, Alibaba and Airbnb) sell a service in a market ...
1
vote
1answer
366 views
How does “debt prescription” work in America (Utah if that matters)? [closed]
When googling for "debt prescription" I get a lot of hits in South Africa. Is it called something else in US English? And to the point, how does it work in America? Specifically contracts such as "...
-3
votes
2answers
106 views
Understand finance from its origin
The definition of Finance in Oxford Dictionaries is:
The management of large amounts of money, especially by governments or large companies.
its origin is:
Late Middle English: from Old French, ...
4
votes
2answers
636 views
What exactly is a time deposit?
I understand the function of a time deposit. You can make a deposit, and you cannot withdrawal (without a fine) for a set amount of time. Really what I'm confused upon is what types of accounts are ...
