Questions tagged [terminology]
For questions about the meaning and usage of specific terms used in personal finance, alternative names for concepts, etc.
387 questions
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Does REIT ETF count as "Hard Assets"?
I'm reading "The Permanent Portfolio" by Harry Browne, in Chapter 6 it talks about diversification strategies,
Most assets held by investors are so-called “paper assets.” A paper
asset is ...
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What does "origine: pur ordinaire" mean in the list of stocks in a French brokerage account?
What does "origine: pur ordinaire" mean in the list of stocks in a brokerage account?
I understand that an "action ordinaire" means:
An ordinary share is a type of share that ...
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What does Takeout and Putup mean?
What does takeout and putup values mean in fixed income trade and how would you interpret these values?
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What exactly is wrong with treating two conceptually similar trading indicators as independent pieces of evidence?
Suppose you come across a financial trading system which starts by checking a security's 200-Period Moving Average, either by itself or in conjunction with the security's price data, perhaps signaling ...
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Why are Market Cap Categories Not Consistent?
According to Investopedia, a "small cap" company is between $300M and $2Bn. However, on Fidelity, companies are marked as being "micro cap" until they have a market cap greater ...
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What does "Puttable Upon Death Of Holder" mean when purchasing a CD online from a brokerage via a Joint-Tenant w/ Survivorship account?
What does "Puttable Upon Death Of Holder" mean when purchasing a CD online from a brokerage via a Joint-Tenant with Survivorship account? Who is the "holder" in that case? And ...
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What is a trust? (Canada)
I'm having a very difficult time researching what exactly a trust is. Is a for-profit company with some additional agreements? Is it a not for profit?
If it's neither of the two, and is simply a ...
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What legal dictionary does the CRA use for business and tax terminology?
I am currently looking for the technical definition used by Canada's Revenue Agency for these words:
Payment
Capital Debt Obligation
To determine whether payments made towards my margin loan in my ...
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Is it wrong to say that a company only has a single stock?
I'm a newbie to investing and I was doing some research regarding the difference between stocks and shares. According to Investopedia stock simply refers to partial ownership of a company, whereas a ...
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Given a pair of currencies, are there one or several interbank currency exchange rates?
Let's consider a pair of currencies, e.g. EUR -> USD. Are there one or several interbank currency exchange rates?
I see that both Revolut and OFX claim to use the interbank currency exchange rate, ...
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What does the EE stand for in EE bonds?
I wonder what the letters "EE" represent in "EE bonds", i.e. whether it's an acronym and if so, what the full form of the EE acronym? I searched quite a bit and couldn't find the ...
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What's the difference between markups and "commissions, transaction fees and contract fees" when purchasing individual bonds on the secondary market?
I read on forbes.com:
It can be difficult for investors to know the true cost of individual bonds on the secondary market, as prices frequently include markups. In addition, it’s entirely possible to ...
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What's the difference between "Frais de gestion annuels (max.)" (~expense ratio) and "Total des frais sur encours" (~expenses on outstanding amounts)?
I see two fees on the ETF report below:
Frais de gestion annuels (max.), which can be translated as expense ratio.
Total des frais sur encours, which can be translated as total expenses on ...
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What's the "Fixed Interest Strategy Amount Withheld" in a life insurance?
For example, I'm looking at the Nationwide Indexed Universal Life Accumulator II 2020 life insurance with a Long-term Care Rider. Each month, the client pays some premium, say 50 USD. From the amount, ...
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What's an Index Interest Strategy Charge Rate in a long-term care (LTC) insurance plan?
I'm looking at some Life Insurance Illustration (mirror) for the Long-term care (LTC) insurance plan "Nationwide Indexed UL Protector II 2020" managed by the Nationwide Life and Annuity ...
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Why is a ‘Q’ added to the ticker symbol of a bankrupt company?
I read on investopedia.com:
If it's a Chapter 11 bankruptcy, common stock shares will become practically worthless and will stop paying dividends. The stock may be delisted on the major stock ...
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What is the difference between Capitalization Rate and Return on Assets?
In real estate, the capitalization rate (cap rate) is one of the metrics used to assess the rental profitability of a property. The formula for capitalization rate is net operating income divided by ...
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What is meant by daily high/low and monthly high/low when it comes to stocks?
I have started reading financial information. I see mention of stocks reaching "daily highs", "monthly highs" and so on.
What is the exact of these descriptions? What is a daily ...
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What's the name for a group of people pooling fund every period then loaning the collected sum to a single member periodically?
I got into an argument with a family member about a loaning mechanism they and their friends are using. They detailed it this way: in a group of 5, every member submits $200 to a safe keeper in the ...
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What is a 5 handle when talking about increases/decreases in price?
I keep hearing people say "its a 5 handle" or 3 handle, various numbers like that. I'm not sure if this is related to the cup with handle pattern or something else. And if it is related to ...
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What does the term Other Revenue mean?
I am looking at Target's recent earnings release which can be found at the following URL:Earnings Release.
On page five it show two types of revenue: sales and other revenue. What does other revenue ...
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"Buy assets, not liabilities": How is it possible to buy a liability?
Some personal finance gurus such as Robert Kiyosaki claim that people should "buy assets, not liabilities". This made me wonder: is it even possible to buy a liability? From what I have ...
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What is the spread between maturities called?
Credit spreads typically compare two bonds of the same maturity. For example, a 10-year US Treasury yielding 3% might be compared to a Corporate Bond yielding 4.5% and we'd say the spread was 1.5%.
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What does 'mutual' mean in mutual fund?
I am confused on the usage of 'mutual'. Is there any 'mutual benefit' or 'mutual dependence' between the participants (unit holders) in a mutual fund?
It looks more like a 'mixed fund' with diverse ...
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To what car value does Glass's Guide refer to wrt insurance?
If ones car is written off in an accident, a statement such as "We have used the Glass's guide for valuation of your vehicle" is expected from the insurance company one is dealing with. ...
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What is crypto deleveraging?
This excerpt says:
Multiple crypto company failures shouldn’t be surprising given huge price declines among tokens, and entities that used higher leverage in the past are the most vulnerable, ...
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Extension of Credit meaning
I'm reading some finance literature and often when it refers to loan it instead uses these term:
extending credit
extension of credit
credit extension
When I google define "credit extension&...
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What does "haircut" mean here?
I'm reading WHAT HAS WORKED IN INVESTING, and quote
When liquidation value appraisals are made, the estimated
"haircut" on accounts receivable and inventory is often recouped or exceeded by ...
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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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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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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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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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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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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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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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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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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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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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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 ...
user112709
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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 ...
al-harumi-jidan
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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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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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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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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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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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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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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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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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