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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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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1answer
144 views

Mortgage payment which starts after a year

Is there any kind of mortgage in which the first payment due starts after a year? If so, what is it called (I don't mean the one that you need to prove financial hardship).
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1answer
111 views

Is there any deferral for a Roth 401(k)?

When contributing to a 401(k) plan via paycheck deduction, one may contribute to an after-tax 401(k), a Roth 401(k), or (the or is non exclusive) a traditional (a.k.a. pre-tax) 401(k). In one ...
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4answers
6k views

Does the 'A' in IRA stand for "Account" or "Arrangement"?

From the comments at: https://money.stackexchange.com/a/85769/4522 One poster called an IRA an: Individual Retirement Account Another stated it was an: Individual Retirement Arrangement What ...
5
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1answer
715 views

What actions 'encumber' shares?

Reading through a shareholder agreement, I encountered the following section: Encumbering shares Subject to a special resolution of the shareholders to the contrary, no shareholder shall ...
9
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1answer
4k views

Generic name for the smallest unit of currency?

For example, in Canada and the US, it's a "cent", in Bitcoin it's the "satoshi", in Bahrain it's the "fil". What's a generic word that means "smallest unit of this currency"? By "smallest" I mean ...
1
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2answers
191 views

What is the long side of a short transaction called?

The way that a short sale occurs is that a person called the short seller borrows the item to be shorted from someone else and then sells it. The debt is for the item itself, so as long as it is ...
2
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2answers
12k views

What is buying pressure?

Sometimes I hear market commentators talk about "buying pressure". But in the market for every trade there is a buyer and a seller. How can there be "buying pressure" or "selling pressure"; aren't ...
3
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1answer
116 views

Why values within a "Style Box" are discrete and not continuous?

Style Boxes map financial products on a two axes diagram, but instead of using continuous values for the axes, they use discrete values (small/medium/large, value/blend/growth, etc.). (source) How ...
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3answers
9k views

Is there a term that better describes a compound annual growth rate (CAGR) when it is negative?

When calculating rates of return for an investment or portfolio over time, whether to report or compare performance, one frequently calculates the Compound Annual Growth Rate (CAGR). I've got a ...
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2answers
269 views

Do I own "shares" or "units" in a collective investment vehicle?

I was reading the ISO 10962(classification of financial instruments, 2015 version) and I found that the investment on Collective Investment Vehicles (Standard Funds, Hedge Funds, REIT, ETF, Pension ...
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1answer
458 views

Proper name for banknote values (sizes)? [closed]

For example USD uses $1, $2, $5, $10, $20, $50, $100. What is a proper name for these options? If I want to give someone $1000, what would be the proper way of asking them what is the largest bill ...
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1answer
8k views

What is the meaning of the net worth of a person?

What is the meaning of the net worth of a person? For example, How do I find out my net worth? Bill Gates's net worth is $86.0 billion. Does that mean Bill Gates can give/donate $86.0 billion to ...
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2answers
421 views

What does it mean if "IPOs - normally are sold with an `underwriting discount` (a built in commission)"

I am learning about the caveat of New Issues in The Intelligent Investor - Chapter 6: Portfolio Policy for the Enterprising Investor: Negative Approach One of the reasons for being cautious about new ...
1
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1answer
317 views

What is the meaning of Volume factor?

I want to calculate T3 Moving Average. In order to calculate T3 Moving Average, it need Volume factor, But I don't know Volume factor. What is the meaning of Volume factor as a terminology of ...
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3answers
5k views

What is it called when you sell and reinvest to pay lower taxes?

Every year or so, I sell my investments and then immediately buy them again. I do this because I'm in a low enough tax bracket that I don't have to pay capital gains on my long term investments, so I'...
2
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2answers
375 views

Is there a difference between "Coinsurance" and "Coinsurance after deductible"?

I'm looking at plans on the coveredCA site, and I see both terms used. However, my understanding is that coinsurance only kicks in after the deductible has been paid anyways, so "coinsurance after ...
2
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2answers
6k views

What are tax allowances? How many should I claim?

I've been asked by my employer to fill out a form with my US Tax Information. One section of the form, (State/Local Tax Data: NYS IT-2104), asks for my allowances. I generally understand that ...
0
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2answers
238 views

ETFs are a type of mutual fund, correct?

Many different sources I've seen refer to ETF as distinct from mutual funds, while others say ETFs are a type of mutual fund. (I understand that the main difference between a (I suppose, typical?) ...
4
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1answer
191 views

What are "Republic of Cuba 4½s " referred to in The Intelligent Investor?

I am on Chapter 6 of the Intelligent Investor - Portfolio Policy for the Enterprising Investor: Negative Approach. in the specific topic of Foreign Government Bonds. It gave a brief intro about how ...
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2answers
199 views

Is there a term for the portion of sale proceeds that match the cost basis?

Is there a word or phrase that refers to the portion of the net sale proceeds that aren't capital gain? I know that portion is equal to the asset's cost basis (gain = proceeds - cost basis), but I ...
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3answers
12k views

What does it mean "sell on ask" , "sell on bid" in stocks?

Is there any expression like "sell on bid"? Or is it only "sell on ask". I m learning stocks right now, my coach telling "we just sold on ask". so I wonder if there is the opposite - "sell on bid"?
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1answer
134 views

Is there a better term that means "the amount subject to a commission rate"? [closed]

If you were building a commission report laid out like the example below, is there a succinct term or word that would work well for the third column? Employee Commission Type ??????????????? ...
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1answer
39 views

Can I use the terms ask and bid in a service market? [closed]

I am writing a document for which: there are companies that set a price for the service they provide there are users that set the price for which they are willing to pay for the service Can I call ...
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1answer
479 views

Difference between a returned versus declined transaction?

Is there a legal or industry standard for the definition of a "returned" transaction? I recently had my Empire District electric bill auto-payment declined, and the electric company charged me a $20 "...
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2answers
4k views

What is meant by one being in a "tax bracket"?

I've always wondered but just now asking: What is meant by one being in a "tax bracket"? Does that mean only Federal, or does it include State AND Federal? For example: I (would like to) make $100K a ...
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1answer
137 views

What is the difference between fractional shares and unit linked investing?

As the title says, I am confused about the difference. From my understanding both allow you to own a share of a company without owning a full share.
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2answers
9k views

Is an earning statement a paystub?

I have never seen a paystub or been told what a paystub is. For each wage payment, I got an "Earning Statement" on https://my.adp.com. Is an earning statement a paystub?
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5answers
122k views

What does it mean to be 'in credit' or 'in debit'?

I always get this mixed up. My energy company says my account is 'in credit'. Does that mean I owe them money, or they owe me money? I thought it meant they owe me money but if that's case I don't ...
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1answer
14k views

What doe IPO and FPO mean? Are they related to Equity services?

Are the terms 'IPO' and 'FPO' related to equity? If so, how? Are they related to any kind of investments?
2
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2answers
853 views

What does "conviction sector" mean?

What does "conviction sector" mean in this sentence? Those are our three higher conviction sector overweights that I do think have more room to run, especially financials. Source: http://uk....
3
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1answer
9k views

Meaning of "Non-trading Item" and "Capital Item"

I'm reading the income statement of a company, and the column describing profit is titled Profit from operations before non-trading and capital items. So, my question is a two-parter: What is a non-...
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2answers
12k views

Is a website/domain name an asset or a liability?

To what extent can one consider a domain name and/or website to be an asset vs. liability? Clearly the people who have websites that do make big profits off of them consider them to be valuable, ...
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1answer
415 views

What is base price of a security? [closed]

What is the difference between the Base Price of Security and the Face Value of Security?
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3answers
4k views

Why is the number of issued shares less than the number of outstanding shares

We know that #issued shares = #outstanding shares + #treasury shares. So the number of issued shares must be greater than treasury shares by definition. However, Starbucks' fiscal 2014 From 10-K ...
11
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2answers
74k views

What is the difference between a Loan, a Lien, and a Mortgage?

I recently heard someone talk about a Lien as thought it was similar to a Loan. I googled various things for a while and came to no concrete, concise answer. If a Lien or a Mortgage is a "type of ...
0
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1answer
1k views

Distribution vs withdrawal for an investment account

In my previous question, I got replies which said that distributions and withdrawals are the same in terms of IRA. More generally in investment, for an investment account, do they mean the same? ...
10
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1answer
72k views

What does "first, last and deposit" mean when looking for an apartment?

I was online looking for an apartment. It says, "we'll only need first, last, and deposit once your application is approved." What does this mean?
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2answers
8k views

What is the correct pronunciation of CAGR?

My apologies if this is the wrong place to ask this, but it is financing nomenclature. I didn't find this question anywhere on SE, and I have been dissatisfied with Google results. I have heard ...
2
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1answer
2k views

What is meant by the term "representative stock list" here?

I'm learning about stocks concepts right now. I'm new in the field of finance. At current I'm reading Chapter 1 of The Intelligent Investor by Benjamin Graham. I'm having a problem in understanding ...
13
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4answers
725 views

What is the theory behind diversification? Why does it work?

We are told always that diversification in a portfolio is good. "Don't put all your eggs in one basket." But is there mathematical theory behind diversification to back up the advice?
2
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1answer
182 views

How do finance professionals procounce "CECL"? [closed]

I am interviewing for a financial company that models risk and is working to be prepared for the upcoming compliances changes regarding CECL (current expected credit loss). I've been doing research ...
0
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4answers
423 views

What, exactly, do you mean by an "Emergency Fund"?

This seems like a phrase that gets mentioned in just about every thread here, yet also seems pretty ill-defined. I'm guessing that it might be that it's basically a way to tell financially ...
3
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3answers
248 views

Can anybody explain "sending your money off to do the heavy lifting" for me, please?

Sean Gould, a wealth strategist with Waddell and Associates and a certified financial planner, explains that before sending your money off to do the heavy lifting, you'll want to have an emergency ...
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4answers
896 views

What does the term "second mortgage" mean? Can I easily get one?

Are these loans easy to get if you have enough equity in your current home? Is there any negative connotation associated with getting a second mortgage
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1answer
84 views

What term should I use to refer to an entrepreneur I invested in?

I am planning to invest in a project of another entrepreneur. How would I refer to this person? Is there a term which describes my relationship to them?
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1answer
156 views

Is there a hidden condition in these T&C?

I went through a FAQ on a website regarding an offer where it mentioned customers using a particular credit card can get a 10% discount. The minimum limit to get the discount is Rs. 6000. 1. What ...
4
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1answer
354 views

What does the term "Boardroom poker" mean?

It seems to crop up occasionally, see for example this Wellington Fund blog post that uses the phrase: It is not time for high-stakes Boardroom poker, but that’s exactly what happened at easyhome ...
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2answers
4k views

What is the meaning of realization in finance?

The definition of "realization" is well defined by multiple sources in accounting terms while we google it. But, can someone explain in terms of real life example that suits the meaning of ...
2
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1answer
168 views

What are frontier markets? Is investing in them a good idea?

Recently I had a look through a number of funds that offered investment options to various geographic areas of the world. One such sector I had never heard of before: frontier markets. I know many ...

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