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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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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5 votes
2 answers
770 views

Does the term "ordinary dividends" include qualified dividends?

There seems to be some inconsistency in the usage of the term "ordinary dividends". (I'm considering the United States tax system.) Most online sites seem to define the terms "ordinary ...
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Investment plans which give daily profit vs investment plans which give profit only at the end of a lock period

What is a good terminology for distinguishing between these two types of investments: An investment plan which gives daily profit, where the funds (initial investment plus profits) can be redeemed at ...
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1 vote
6 answers
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Why isn't there a universal investment standard/benchmark?

When I watch golf and look at the results of the top players, I can immediately know exactly how they compare both to the standard (called par) and to each other. Why doesn't investing have such a ...
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1 answer
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Corporate Finance Vs Corporate Finance? (w/ context differences)

I've heard corporate finance in 2 very different contexts, one referring to IBD, S&T, PE, VC and hedge funds, the other referring to a more financial accounting oriented role (at the same level w/ ...
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1 vote
1 answer
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What do you call leveraged real estate investors?

Is there a specific term or name for people who try to make a living by leveraging real estate? By that I mean those people who read get-rich-quick books and then borrow money to buy a property, rent ...
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2 votes
2 answers
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Does M8 contains 8 months?

The webpage https://www.sec.gov/files/aqfsn_1.pdf describe a term M8: M8 means 1st through 2nd trimester.Google search shows that trimester is a period of three months. 1st through 2nd trimester = 3+...
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-1 votes
2 answers
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What's the difference between a conventional index mutual fund and a non-conventional index mutual fund?

I read the term "conventional index mutual funds" in several places. E.g., https://investor.vanguard.com/etf/faqs: Similar to conventional index mutual funds, most ETFs try to track an ...
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1 vote
1 answer
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Mutual Fund: Dividends vs. Distributions

Take an actively managed mutual fund that trades stocks including dividend-paying ones. The fund can make money in 2 ways: Receive dividends from dividend-paying stocks Sell stocks above cost for a ...
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7 votes
1 answer
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What does "GILEAD SCIENCES INC REV NRA W/H ,03/30" mean?

What does the GILEAD SCIENCES INC REV NRA W/H ,03/30 mean in my broker's statement? I mean, the INC REV NRA W/H ,03/30 part. Is that a dividend?
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How could I locate any global corporation which sells to the private sector directly through E-commerce? [closed]

I understood that in recent years there is a tendency for some corporations (such as Coca Cola and Mutti1 at least in some countries) to sell directly to retail customers / private sector, if the ...
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0 votes
1 answer
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What are the terms for these interest rate types? [closed]

I'm a beginner, so I don't know the right term for the following interest rates: The interest rate between the Federal (in US) or Central bank and local banks? Between banks themselves? Between ...
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-3 votes
1 answer
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Word to describe increase shareholding in something

Suppose Company Z had a 30% stake in Company A. Then, Company Z bought another 15% stake in Company A, bringing the total to 45%. I want to find a specific term for this situation. I had initially ...
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1 vote
1 answer
190 views

How does the IRS define non-compliance?

How does the IRS define non-compliance? If an individual taxpayer makes a typo of $1 on a tax form, does the IRS consider that person to be non-compliant? Is there a scope of actions that the word ...
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1 vote
2 answers
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What is buying an option (capital market)?

I assumed that one either invests in a stock and becomes an "owner" of some sort or just covers a debt to do that but I have read that people can also buy "options" in the capital ...
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-1 votes
2 answers
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Why is the real estate excise tax referred to as an excise tax instead of a sale tax in the United States?

In real estate in the United States, local and state governments may levy a real estate excise tax (or REET) on the sale of real property. E.g., in Washington, the excise tax is as follows (as of 2021-...
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0 votes
1 answer
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Core Processing - Month & Year Length in Calculations

I'm looking for information into how financial institutions and their core processors perform their calculations. More specifically, how the month and year lengths are factored in. First, are there ...
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0 answers
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Loan Payment Formula Terminology

Consider the following formula: Payment = P * ([r * (1 + r)^n] / [([1 + r]^n) - 1]) Do any parts of this expression (not single variables) have a name? For example, (1 + r)^n repeats. Is there a name ...
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29 votes
3 answers
6k views

Are currency terms like USD, EUR, CNY used in all languages?

Currency codes like USD, EUR and CNY are well known in English. In accountancy documentation prepared in non-English languages, are these same terms used for foreign currency or are they translated? ...
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2 votes
1 answer
122 views

What is the name for the bank a check is written against?

I'm drafting a contract and want it to say that payment will be made by (among other ways) checks from a US bank (not from banks in other countries). What's the correct way to refer to the bank that a ...
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8 votes
3 answers
3k views

Why would a bank refund appear as a debit on my billing statement?

My bank in the US sent me a check accompanied by this letter: We're providing the attached check due to a refund on your account. This amount may appear as a debit on your billing statement. Why ...
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0 votes
1 answer
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What is the difference between a deferred annuity and an endowment policy?

This is a follow up question on Financial product where the investor makes regular contributions and receives a lump sum. "Deferred annuity" and "endowment policy" are the ...
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16 votes
3 answers
3k views

Why is the "discount rate", charged to merchants in card transactions, called that?

When accepting payment via a credit card or debit card, a merchant is charged a "discount rate" (or "discount fee") by the acquiring bank. For example, when a merchant receives a ...
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46 votes
9 answers
18k views

Am I a billionaire if a friend gives me $1000 for 0.0001% of my "company"?

If my friend gives me a thousand dollars for 0.0001% of my "company", am I technically a Billionaire now?
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0 votes
2 answers
149 views

Financial product where the investor makes regular contributions and receives a lump sum

What is the term that describes a financial product where an investor makes fixed regular payments during X years, and in return receives a big lump sum at the end of those X years? This is opposite ...
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1 vote
1 answer
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Is book value in BVPS really just shareholders equity?

So shareholders equity is total assets - total liabilities while book value is tangible assets - total liabilities. But apparently book value in practice could also just be total assets - total ...
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6 votes
1 answer
248 views

What does it mean when an ETF has a negative turnover rate?

In the fact sheet of Vanguard FTSE All-World UCITS ETF (accumulating), I see that the fund has a negative turnover rate: The ETF has a turnover rate of -28%. How can the turnover rate be negative? ...
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3 votes
1 answer
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What can I hold within a UK Stocks & Shares ISA?

I hold a S&S ISA and understand the principles of trading quite well, but beyond single stocks I don't really understand what can and cannot be held within this vehicle... funds, bonds, equities, ...
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3 answers
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What does Taylor Mason mean by predicting delta of a stock?

A stock is like a living organism. A sparrow, say. And we are able to create an emergent-based abstraction of that sparrow, which closely approximates the sparrow itself, accounting for migration ...
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1 vote
1 answer
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What are "unit interests" in the context of a mutual fund?

I'm trying to understand how listed open-ended funds (LOFs) work in different geographies and I sometimes encounter the term "unit interests." The fact that it is never elaborated on ...
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1 vote
0 answers
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Term for describing a stock listed multiple times in different currencies on a stock exchange

Suppose a stock has multiple tickers on a single stock exchange. All the tickers represent the same underlying instrument (i.e. same ISIN), but each ticker trades in a different currency (e.g. ticker ...
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-3 votes
2 answers
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What does "retirement" mean in (ira) account?

ira is abbreviation for (Individual Retirement Arrangement), what I don't understand: what is the relation between (retirement) word and a brokerage account? or does this word have different meaning ...
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3 votes
2 answers
126 views

Significance of the word iron in option strategies

Why is the word iron used in some of the option strategies, like iron butterfly or iron condor ?
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2 votes
0 answers
53 views

What are the correct terms for a fixed payment with variable rate mortgage vs variable payment with variable rate mortgage?

What are the correct terms for a fixed payment with variable rate mortgage and variable payment with variable rate mortgage? I've read on some articles that a variable rate mortgage and adjustable ...
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2 votes
1 answer
286 views

In a fixed mortgage, is the term the same as the amortization period?

From what I understand, the term is the length of time the mortgage agreement and interest rate will be in effect and the amortization period is the length of time it’d take to fully pay off the loan. ...
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0 votes
1 answer
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What does "handelstype" mean?

I was looking at the trading information for some stocks listed on the Euronext Paris stock exchange, and I don't understand what "handelstype" means. Some stocks have a "handlestype&...
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0 votes
2 answers
76 views

What is GST revenue?

I know that Revenue means Income-Investment. However in the context what is meant by revenue here? I do not think there is any investment involved when you take a tax. I feel this is extremely ...
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2 votes
1 answer
82 views

What's the difference between a buy vs an acquisition, and a sale vs a disposition?

The image below shows the recent insider transactions in Chipotle Mexican Grill, Inc. stock (NYSE: CMG). What is the difference between a "buy" and an "acquisition"? What is the ...
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0 votes
2 answers
214 views

Trading strategy with high probability of small profits and low probability of complete loss

What are some trading strategies that have high probability of small profits and low probability of catastrophic loss? I believe there is an academic term to describe a trading system that shows small ...
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2 votes
2 answers
183 views

Backwardation or Contango?

I was looking for graphs of backwardation and contango but I've found seemingly contradictory image results: For instance this image and this one show contago on top, but this one shows it on the ...
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11 votes
1 answer
4k views

What does the letter "c" mean with a number in an annual report (UK)

I had a question when reviewing an annual report of a company Wood PLC. In their report they have used the letter "c" in lowercase after different types of numbers. E.g., basic EPS is ...
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0 votes
1 answer
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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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2 votes
2 answers
5k 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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25 votes
7 answers
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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-1 votes
1 answer
63 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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2 votes
1 answer
195 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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0 votes
1 answer
88 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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1 vote
2 answers
169 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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-2 votes
2 answers
93 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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2 votes
1 answer
96 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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