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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45 views

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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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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1answer
37 views

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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40 views

Loan Payment Formula Terminology

Consider the following formula: Payment = P * ([r * (1 + r)^n] / [(1 + r)^n]) Do any parts of this expression (not single variables) have a name? For example, (1 + r)^n repeats. Is there a name this ...
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3answers
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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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1answer
112 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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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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1answer
70 views

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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3answers
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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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9answers
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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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2answers
143 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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1answer
47 views

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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1answer
140 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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1answer
94 views

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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3answers
132 views

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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1answer
54 views

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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0answers
32 views

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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2answers
132 views

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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2answers
118 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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0answers
52 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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1answer
272 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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1answer
94 views

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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2answers
72 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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1answer
66 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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2answers
209 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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2answers
88 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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1answer
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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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
46 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
2k 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
61 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
149 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
85 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
151 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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92 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
89 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
329 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
335 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
42 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
147 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
105 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
143 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
2k 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
2k 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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0answers
40 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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1answer
54 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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0answers
84 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
50 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
81 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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