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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19
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1answer
1k views

What's the differences between a discount broker and a regular broker?

What are the differences between a discount broker and a regular broker? "Discount" implies a price difference... but why can they be cheaper than regular brokers??
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2answers
179 views

What is the difference between "unités de compte" and ETFs?

What is the difference between "unités de compte" (often proposed in assurance-vies) and ETFs? I don't see the difference when I read the definition on https://www.journaldunet.fr/patrimoine/guide-...
2
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1answer
62 views

What is a nominee in the jargon of opening a bank account?

I am opening a bank account for my company and in the registration form they ask about the director of the company, who is me. After setting my details, they ask if I am a nominee. What is that ...
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1answer
230 views

What is the difference between open access and open choice in health insurance plans in the United States?

What is the difference between open access and open choice in health insurance plans in the United States? I've seen both terms used in health insurance plan names. Example, from https://www.aetna....
4
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1answer
127 views

What is a "cash carrying patient"?

I read on https://www.ccapta.org/mpage/MoveInsurance (mirror): Physical therapist services may be obtained without a physician’s referral if you are a cash carrying patient, receiving treatment for ...
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2answers
1k views

Is the current stock price the last bid price or the last ask price, or what?

The answer to this question states: "current stock price … is actually the price of the last trade. It is a historical price…" The last trade had a buyer and seller. The buyer paid the "ask" price, ...
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2answers
2k views

What is the difference between volatile and fluctuation in terms of stock?

Differences between volatile and fluctuation? I am new to the stock market, currently learning about the terminology and i came across these words. From what i know, volatile is like the speed and ...
1
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1answer
224 views

Shares issued vs Shares outstanding and where to find in morningstar.co.uk

When talking about stocks. I am a bit confused with the term "Shares issued" and "Shares outstanding". Can someone please clarify me what is the difference? Also I want to know where to find the ...
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2answers
152 views

What are terms for taxes depending on who has to pay them

I'm searching for specific terms to distinguish different kinds of taxes, one has to pay when providing a bill to a customer: Lets say the base price for my services is 100$ A (normal) tax which is ...
7
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3answers
934 views

The proper term for a third party economy [closed]

A friend of mine asked me whether something odd was going on, including the following picture: Basically, the companies listed (Bitcoin, Uber, Facebook, Alibaba and Airbnb) sell a service in a market ...
4
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1answer
3k views

What do the suffixes on stock symbols indicate

For example, this article mentions symbols VZ.N, CVC.N, TWC.N, and CCOI.O. Are these related to share classes and/or warrants? Each of these symbols also seem to exist and can be referenced without ...
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2answers
24k views

What does CAGR mean when it is used in relation to a company stock?

I saw this abbreviation CAGR related to stocks and financial statements and I am not sure what it is. Can you please explain it to me?
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1answer
323 views

What does this mean? SELL -10 VERTICAL $IYR 100 AUG 09 32/34 CALL @.80 LMT

can someone please explain what does this quote mean? SELL -10 VERTICAL $IYR 100 AUG 09 32/34 CALL @.80 LMT what is Vertical what is -10 what the 32/34 stands for? what is LMT
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1answer
159 views

What does "half weighted" mean in this context?

The flip side of a strong dollar is weakness in other currencies. The U.S. dollar index is about half weighted in the Euro, and that unit broke down to multiyear lows. However, the Euro has been ...
0
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2answers
66 views

Bull call spread

My textbook says the following for a bull call spread. "In the bull call spread, you sell a call with a lower strike price and buy a a call with a higher strike price. The call spread is a credit ...
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2answers
320 views

What is a straddle?

I have heard the term straddle when referring to options many times. What would it mean if I wanted to enter into a straddle position?
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4answers
11k views

"Derivative" and "asset-backed security": Same concept, or related?

Derivative and asset-backed security seem to be similar, as both are based on some other assets. So I wonder if they are the same concept?
0
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1answer
129 views

What does indirect lending mean?

I found a webpage for a credit union that says that they do indirect lending. I can't understand the process. What does this mean?
2
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2answers
882 views

Why do debits/credits increase/decrease assets/revenues/expenses?

I'm taking an accounting course and am finding that I don't understand exactly why "A credit decreases assets, such as inventory", for example. I understand that selling creates a decrease in assets. ...
6
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5answers
330 views

Is there a term for the risk of investing in an asset with a positive but inferior return?

For example, say I invest in a 5-year certificate of deposit at 3% annually. Let's assume the bank delivers on time (no defaults). However, a month after I buy it, another bank offered a 4% 5-year ...
4
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2answers
407 views

What is a mutual fund?

From Investopedia I understand that a mutual fund is a pool of funds used to invest in various assets. I am struggling to understand what it is. I wouldn't be able to spot a mutual fund based on this ...
7
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2answers
413 views

What is a timeshare?

What is a timeshare and why might I want one? Are there any hidden costs to timeshares?
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3answers
6k views

What does market cap (or market capitalization) mean?

When I look at my Google finance page, and I look at a company, lets say Citigroup for example, and I see that the market cap is 83.45 billion, what does that mean? Does that mean Stock Price X ...
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4answers
290 views

Efficient market hypothesis

According to the efficient market hypothesis, does the price of a stock take into account the company's growth prospects? It says that it is hard to find undervalued stocks but theoretically, is it ...
3
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2answers
178 views

Understanding corporate earnings manipulation

While reading earnings manipulation on investopedia, I came across following sentences: Another form of manipulation is to change company policy so more costs are capitalized rather than expensed ...
2
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1answer
283 views

What does PDS stand for?

I am looking at a funds fact sheet. The fact sheet contains the following warning Past performance is not a reliable indicator of future results. You should consider the PDS before making any ...
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2answers
12k views
20
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2answers
273k views

What are "headwinds" and "tailwinds" in financial investments?

I've seen/heard these terms in various writings & broadcasts lately. What do they mean?
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2answers
492 views

What does Warren Buffett mean by “demand money” and “time money”?

I'm reading through Berkshire Hathaway Letters to Shareholders and I'm confused by the following quote: In the last few years, Illinois National's mix of deposits has moved considerably more than ...
19
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2answers
17k views

"Out of Pocket Maximum" and health insurance plan terminology & calculation?

I'm trying to understand the terminology on my health plan. I've read numerous websites, which have only confused me more, as they fail to use examples (more than one should be required) for people ...
1
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3answers
169 views

What is the word for the sum of percentage gains from different investments? [closed]

Let's say I have $20. And I invested into two different stocks with $10 amount to each. From first investment I gained 10% profit and from second 30%. After that, I have $24. My actual profit here is ...
14
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3answers
530 views

What exactly is a credit default swap?

I hear a lot about credit default swaps (CDSs) and I do not really know what they are. Can you please explain it to me? What are they good for?
0
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1answer
91 views

What are examples of administrative costs?

What do people really mean by administrative costs? Is it just an umbrella term to actually get money from a person for no real costs, just for a service? Or it includes really some expenses?
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1answer
3k views

How many bank tiers are there? [closed]

One can often see bank tiers 1-3 being mentioned, yet sometimes there are also tiers 4 to 6. So, how many bank tiers are there really?
0
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1answer
79 views

What is an Initial Token Offering?

Is it the same thing as an 'Initial Coin Offering'? What would the a-z of such a thing look like in plain terms?
2
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1answer
6k views

What is an "undervalued" or "overvalued" bond?

Here's a small excerpt from Bond Valuation section on Investopedia: Determining Whether a Bond Is Under or Over Valued What you need to be able to do is value a bond like we have done before ...
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2answers
7k views

What's the meaning of the word 'less' in this tax table?

Our government introduced a new Payee tax scheme. Can someone please explain how does the word 'less' work in this context?
3
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2answers
4k views

What is the opposite of "paying in advance"?

In a following point of a tenancy agreement my tenant is arguing that he will not pay the rent in advance. He will rather pay Rs:9000 the next month starting from the date of agreement. That the ...
3
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1answer
5k views

Money owed to credit cards called "positive balances" or "negative balances"?

Q1) If my Visa credit card has a zero balance and then I charge something on the Visa, do I now have a "positive balance" or a "negative balance"? Q2) Same question for a utility account like a ...
3
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3answers
263 views

What is it called when a big player buys/sells so much volume of an asset that it changes the price?

Is there a term for when a big player buys/sells so much volume of an asset (stock, currency, gold, etc.) that it changes the price? Is there a name for this type of player? I want to know the ...
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1answer
85 views

Natural way of expressing changes in percentages in the financial markets

Observing the gyrations in the stock market, at some point today the NASDAQ was up 0.30%, and as I tried to verbalize this figure, I realized how unnatural it is to say "it is up zero point three ...
14
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2answers
2k views

Mortgages: What is the terminology for how much I own and how much I still owe?

I'm looking for the terminology related to my home mortgage. The word or phrase for how much of my house I own. The word or phrase for how much I still owe. For example, suppose I bought a $500K ...
1
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1answer
74 views

What do you call an intermediate trading step

Suppose you want to trade A for B, but there is no direct trade option available. However, the following possibility is available: trade A for C trade C for B So, instead of making a direct trade (A ...
7
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2answers
502 views

What are futures and how are they different from options?

As a form of investment there are contracts to buy commodities at a specific time in the future or at a specific price. How is this different from an option to buy a share?
165
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3answers
685k views

Can someone explain a stock's "bid" vs. "ask" price relative to "current" price?

In my online brokerage account, I want to buy a particular stock and I see the following: Bid: 13.20 x200 Ask: 13.27 x1,000 the current stock price is 13.22. Can someone explain what ...
4
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2answers
2k views

What's the difference between stocks and shares? [duplicate]

I'm doing some research into investing in shares (or stocks, not sure which) and I keep getting confused between shares and stocks. Are they the same thing? Even on this site the two tags exist and ...
1
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1answer
499 views

How does "debt prescription" work in America (Utah if that matters)? [closed]

When googling for "debt prescription" I get a lot of hits in South Africa. Is it called something else in US English? And to the point, how does it work in America? Specifically contracts such as "...
0
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1answer
148 views

What's the difference between a company's after-tax profit and their sales/revenue?

Two fundamental analysis formulas have got me confused. One is the EPS (earnings per share) and the other is P/S (price/sales ratio). If I understand the formulas correctly, EPS is calculated by ...
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2answers
109 views

Understand finance from its origin

The definition of Finance in Oxford Dictionaries is: The management of large amounts of money, especially by governments or large companies. its origin is: Late Middle English: from Old French, ...
4
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2answers
688 views

What exactly is a time deposit?

I understand the function of a time deposit. You can make a deposit, and you cannot withdrawal (without a fine) for a set amount of time. Really what I'm confused upon is what types of accounts are ...

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