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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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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54 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, ...
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2answers
1k 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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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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3answers
19k views

Specifically when do options expire?

Take these calls for example: Call Time of expiration SBUX Jan13 55 Call 2012-01-18 4PM EST FIO Jan13 22 Call 2012-01-18 4PM EST FB JanWk4 32 Call ...
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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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117 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, ...
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1answer
529 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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5answers
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What is the opposite of a hedge?

As an example of what I mean, when you buy a stock but are afraid that it might go down, you "hedge" your bet. What is the opposite of a hedge? In other words, what do you do if you are convinced it ...
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1answer
159 views

What does "AMGP" stand for?

I'm now analyzing XBRL document. https://www.sec.gov/xbrl/site/xbrl.shtml There are namespaces gaap that stands for "Generally accepted accounting principles" and dei for "Document and Entity ...
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4answers
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Making your first million... is easy! (??)

I've seen several people claim "making a million dollars isn't THAT hard these days". Heck, I've seen it here on this forum. Being a complete beginner with investing, business and finance, I wonder ...
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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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1answer
275 views

Are "hard money loans" meant only for real estate?

I am interested to know whether Hard money loans are meant only for Real Estate or other fields too.
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2k 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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2answers
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Understanding details for certificate of deposit: Explain the features of this CD?

Came across a "HARRIS N.A. IL" CD today (you can find the details here), and I'm strugging to understand the details. Here's what's listed: CUSIP: DSA991209 Pay Frequency: SEMIANNUAL Coupon: 3....
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1answer
62 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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7answers
3k views

What is the opposite of a sunk cost? A "sunk gain"?

Here's an example of the sunk cost fallacy: You decided to buy a solar panel because you heard that you can make money from them over time. Unfortunately, you didn't do enough research and bought an ...
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40 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
214 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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1answer
68 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
866 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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4answers
2k views

What is quotational loss in stock market?

I'm reading Benjamin Graham's The Intelligent Investor currently, and there's a term "quotational loss." What does that mean? What we have just said indicates that there may no longer be such a ...
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1answer
76 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
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" ...
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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 ...
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1answer
168 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 ...
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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 ...
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4answers
59k views

What does "more buyers than sellers" in technical analysis of stocks actually mean?

I often hear/read technical analysts looking at volume and price action on a chart and claiming that there are "more buyers than sellers" or vice versa. Since every trade requires a buyer and a ...
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2answers
25k views

Why is routing number called ABA/ABN number?

That's what my bank said. But how does ABA and ABN stand for "routing" in anyway
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1answer
108 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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74 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 ...
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7answers
7k 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
267 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
74 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
74 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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2answers
608 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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1answer
143 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
88 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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2answers
121 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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1answer
91 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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669 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
817 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
204 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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236 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
377 views

What is a "closed-end fund"? How is a closed-end fund different from a typical mutual fund?

I recently ran across the term "closed-end fund", but the author didn't explain what it was. What is a "closed-end" fund vs a typical mutual fund, and are there advantagets/disadvantages to each?
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193 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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2answers
2k views

Origin of the term "Shell Bank"

Why are shell banks called "Shell" banks? I read somewhere it was because of their origin in the Caribbeans but I don't see the link.
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6k views

What does PMI mean?

I've seen the term PMI used a couple of times on this site and don't know what it is. What is it?
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7k views

Why do futures traders write months in a strange way?

I was reading up a bit on futures and found that futures clearing merchants write months in a very unexpected way: Month Month Code January F February G March H April J May ...

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