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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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 ...
0 votes
1 answer
136 views

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 ...
0 votes
1 answer
84 views

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 ...
3 votes
3 answers
941 views

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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22 votes
6 answers
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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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1 vote
1 answer
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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%. ...
25 votes
1 answer
6k views

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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1 answer
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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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19 votes
3 answers
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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, ...
0 votes
2 answers
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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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1 answer
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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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0 answers
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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 ...
5 votes
2 answers
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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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1 answer
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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
4k views

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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0 votes
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
98 views

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 ...
1 vote
1 answer
45 views

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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-7 votes
1 answer
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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 ...
0 votes
1 answer
47 views

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 ...
1 vote
1 answer
191 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
57 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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-1 votes
2 answers
159 views

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-...
0 votes
1 answer
44 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 ...
0 votes
0 answers
70 views

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 ...
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? ...
2 votes
1 answer
127 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 ...
8 votes
3 answers
4k 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 ...
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 ...
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?
0 votes
2 answers
155 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
60 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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6 votes
1 answer
289 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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0 votes
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 ...
1 vote
0 answers
34 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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-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
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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
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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
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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 ...
2 votes
1 answer
94 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
225 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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