Questions tagged [terminology]

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

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11 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 ...
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1answer
36 views

How is “Turnover” in HKEX different from “Volume”?

On page 26 of this PDF provided by HKEX, it describes turnover as: each trade concluded in the derivatives market will increase the turnover for that day Isn't it the definition for volume? When ...
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2answers
90 views

What is the difference between SEPA and a wire transfer

I am currently reading stellar documentation and I wondered about this part: Deposits and withdrawals should be processed through local domestic payment rails (ACH, SEPA, SPEI, etc.), not via wire ...
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7answers
3k views

Better terms to use to understand Puts and Calls for options trading

I've been trying to learn a little about options trading, specially puts and calls. The term options works well for my brain because someone is buying or selling the option to buy or sell something. ...
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1answer
57 views

How to name (BTC/AUD) / USD rate? [closed]

I am buying the BTC in Australian Dollars (AUD): BTC/AUD I want to convert this rate (BTC/AUD) to American Dollars (USD). So, I have the following rate: (BTC/AUD) / BUSD What's the name for rates like ...
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1answer
109 views

What's the difference between “gross profit”, “operating income” and “net income”?

I received an email boasting about a company doing the following in their 4th quarter Revenues up 94% to $978m USD Operating Income up 600% to $200m Net profit of $123.9m What is the difference ...
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1answer
76 views

What do all these mean? [closed]

Can someone explain what all these mean? (Apple's financials taken from google finance)
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2answers
122 views

Options trading: buy/sell to open/close terminology

I want to buy put options as I believe the price of the underlying asset is going down. In the linked video here at around 1:10 there is a bit saying that for short positions, you 'sell to open' to ...
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2answers
87 views

invested value + profit (-loss) =?

What is the financial name which a broker would give to the following returns: invested capital = 1000 profit = 2% currentValue1 = 1000*1.02 = 1020 $ currentValue2 = 100%+2% = 102% MarketValue is ...
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1answer
76 views

Why are Short Put option strategy losses said to be unlimited when they are limited by fact that stocks don't fall below zero?

This is really more a question about terminology. In many articles describing synthetic long stock options strategy, losses (on the Short Put leg of the trade) are noted as being "unlimited"....
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2answers
194 views

In the context of corporate profits, what does “back-half” mean?

Today, the following was reported: Clorox shares are trading lower after the company reported Q2 results. While the company beat estimates, it said it expects back-half sales to be about flat. What ...
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1answer
41 views

What is the “Cal 22” contract?

As far as I understood so far, it's a contract traded on the stock exchange. Is this correct and what does Cal 22 stand for? GERMAN – Cal 22 gains in line with carbon [EDIT] context: text on energy ...
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1answer
36 views

“Gross Margin” vs “Gross Profit Margin” in English

This is a question about financial terms and definitions in English. Gross Margin = Revenue - COGS Gross Profit Margin = (Revenue - COGS) / COGS In the first equation we also mean Profit (Gross Profit ...
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3answers
133 views

What is “negative liquid assets” called?

I technically have $3000 on my bank account. However, I have -$2000 in "liquid assets", as determined by my little software system which I've made. Basically, it takes the money I have and ...
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2answers
98 views

“margin” vs “profit” in English

What does the term margin mean in finance. Looking up the word margin in a dictionary gives: a sum deposited with a broker to cover the risk of loss on a transaction or account the profit made on a ...
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3answers
96 views

What are “bond marks”?

I've been Googling this term all day and can't find a straight answer. I know that it has something to do with the pricing of a bond and understand what "mark-to-market" is. But I'm unclear ...
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3answers
1k views

What is the difference between “wire” and “bank” transfer?

This question comes after reading a sentence https://money.stackexchange.com/a/69731/88420 Wire transfer is the only way I know that is not reversible. Bank transfers are reversible; From what I ...
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4answers
1k views

what's the trader term for return of 3x, 4x, 5x etc

There's a trader term for returns that are multiples of the original amount. I forget what the stem word is. Suppose it were "ball", tripling your money would be known as a three-ball, ...
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29 views

Difference between depth of market and the limit order book

In trading terminology, is there a difference between "depth of market" (DOM) and the limit order book? I suspect that they are the same because a limit order book shows the "depth"...
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50 views

Technical/academic term for frothy

I can appreciate the visceral clarity of the term "frothy," it's a pretty easy to understand phrase and is suitable for most audiences. However, for extremely formal situations/publications, ...
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1answer
46 views

Coupon payment intervals in bond names

Consider the name of a bond: "American Telephone & Telegraph Co. Convertible 4½s, due 1933"†. I have some questions about the coupon payment interval information contained in the name: ...
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58 views

How are remisiers in Malaysia and Singapore different from stock brokers in other countries?

In Singapore and Malaysia, some (most?) investors buy stocks through a "remisier". Remisiers are apparently special enough to get their own Wikipedia page: A remisier (also known as a ...
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1answer
48 views

Can one say “institutional ownership” for fixed income products?

I understand the bonds don't entail ownership of a company/country -- they just a pay a coupon at a later date. However, I want to verify the financial correctness of the term: Institutional ...
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1answer
77 views

Meaning of “Markets seldom are [wrong]”?

In the book How to Make Money in Stocks, the author says, Investors' personal opinions are generally wrong; markets seldom are. (p. 21) What does "markets" mean in this context?
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2answers
101 views

Bonds: Is “principal” a synonym of “face value”?

Consider a bond that has a face value (or par value, or nominal value) of $1000. Suppose I buy this bond at a price of $950. Is this $950 the principal, or is the principal $1000? From my perspective, ...
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1answer
336 views

What's the difference between a “market” and a “venue”?

I've seen the two terms used interchangeably. I've also seen ECNs referred to as "markets" but then seen ATSes referred to as "venues". I've seen "regulated markets" ...
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3answers
93 views

Is it correct to say that any “Basis of accounting” is a database that can be used to create a Trial balance? [closed]

I try to learn about some fundamental terms in account management and I have a trouble understanding the difference between the following two terms: In English Wikipedia, a Basis of accounting is ...
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1answer
614 views

What does an L mean at the end of the salary in India?

In the following job ad in India, what does the L mean at the end of the number? Expert level Data Engineer Bengaluru ₹15L – ₹20L
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2answers
611 views

What is a loan origination date?

From Investopedia we have the definition of a loan origination: Origination is the multi-step process that every individual must go through to obtain a mortgage or home loan. The term also ...
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1answer
58 views

What is the CRA definition of income? Why not any payment counts as income?

Official acts and guides shed light on what kinds of income there can be and distinguish between taxable and non-taxable income. However, I could not find any definition or even a hint of what is ...
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36 views

What to look for in a company's annual report?

For a beginner in stock investing, looking at a company's annual report can be an overwhelming experience. You can typically expect to see 50-100 pages of accounting lingo that may sound natural to ...
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2answers
136 views

What's the difference between mutual fund, index fund, etf, index mutual etf, etc.?

Originally, this was more of a conceptual question that I tried to Google, but after looking through many sources, I keep seeing different definitions and terminologies and a combination of them that ...
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42 views

Are these ratios I calculated actually useful?

I have worked out a growth portfolio to backtest against the S&P 500. I am now trying to find the last few assets that are underperforming. Here is a backtest analysis (note that some funds have ...
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1answer
65 views

Understanding the term “open position”

The investopedia page on open position states that: The recommendation for investors is to limit risk by only holding open positions that equate to 2% or less of their total portfolio value I am ...
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1answer
636 views

What does it mean in a stock when the Bid volume is 100x higher than the Ask volume?

I'm trying to understand how a certain stock fluctuates, I noticed periods recently when the Bid/Ask volume looks like 50,000/500 give or take. What does this mean in human language in terms of ...
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1answer
64 views

Why is the stock change calculated from the last day close instead of the current day open?

As I understand it, the stock change is intended to be a measure of how much the value of a stock changes over the course of a day. So why is it calculated as the difference between the current price ...
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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" ...
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1answer
5k 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 ...
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1answer
126 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 ...
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3answers
20k 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 ...
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1answer
104 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 ...
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56 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 ...
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7answers
6k 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 ...
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1answer
200 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 ...
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1answer
72 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 ...
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2answers
71 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,...
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1answer
133 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. ...
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1answer
83 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.
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1answer
88 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,...
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2answers
111 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 ...

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