Questions tagged [terminology]
For questions about the meaning and usage of specific terms used in personal finance, alternative names for concepts, etc.
322
questions
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0answers
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 ...
0
votes
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 ...
0
votes
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 ...
23
votes
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. ...
-1
votes
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 ...
2
votes
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 ...
0
votes
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 ...
-2
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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 ...
2
votes
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"....
2
votes
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 ...
0
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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 ...
1
vote
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 ...
3
votes
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 ...
0
votes
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 ...
1
vote
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 ...
9
votes
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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vote
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, ...
0
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0answers
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"...
0
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0answers
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, ...
1
vote
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:
...
1
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0answers
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 ...
0
votes
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 ...
0
votes
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, ...
1
vote
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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votes
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 ...
7
votes
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
4
votes
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 ...
2
votes
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 ...
0
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0answers
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 ...
3
votes
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 ...
0
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0answers
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 ...
1
vote
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 ...
2
votes
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 ...
0
votes
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 ...
21
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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" ...
19
votes
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 ...
2
votes
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 ...
52
votes
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 ...
0
votes
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 ...
0
votes
0answers
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 ...
19
votes
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 ...
0
votes
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 ...
0
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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 ...
0
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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,...
1
vote
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. ...
-3
votes
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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votes
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 ...
