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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46 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
71 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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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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87 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
86 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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209 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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1answer
213 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
55 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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34 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
107 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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39 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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31 views

Are IRS § 1032 and 118 redundant to each other?

118: In the case of a corporation, gross income does not include any contribution to the capital of the taxpayer. This is a bit cryptic, but based on the definition of "capital contribution", I ...
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62 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
214 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
62 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
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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
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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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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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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
19k 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
101 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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161 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 ...
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“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
124 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
71 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
68 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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117 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
78 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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86 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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107 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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3answers
648 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 ...
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3answers
664 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 ...
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4answers
136 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 ...
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4answers
181 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'...
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1answer
233 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 ...
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2answers
124 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-...
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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 ...
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1answer
164 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....
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114 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 ...
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566 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, ...
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2answers
1k 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 ...
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157 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 ...
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139 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 ...
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117 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?
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492 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. ...
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62 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 ...
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582 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?
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273 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 ...
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167 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 ...

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