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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3answers
2k views

Proper term for amount + currency

What is a proper term to name amount of money and their currency? Like 100 USD, 50 EUR, 100 GBP - all are "amount", "value", "sum"?
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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
104 views

The correct usage of "back charge"

I need to explain the following process: The landlord takes the electricity bill for the common areas in the building and divides them amongst the tenants. Each tenant's portion is appended to the ...
11
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3answers
7k views

What is the difference between fund and portfolio?

I am new to the finance world, and I keep hearing fund and portfolio. What is the meaning of these words and how are they related? Can someone please explain with examples? Is there any difference ...
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1answer
71 views

What are GNMA bonds? Is investing in them a good idea?

Recently I was looking at a number of bond mutual funds to invest in, and one was called GNMA. It seemed to be some sort of government or municipal bond. What are GNMA bonds, and are they a good ...
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 ...
2
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1answer
38k views

What does the column 'Maint req' mean in TD Ameritrade's position table?

What does 'Maint req' mean in this TD Ameritrade position table? Am I losing money?
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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 ...
2
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1answer
932 views

What does “DM currencies” mean in this context?

"Key drivers include: Low/negative real rates. the view that the dollar has peaked against DM currencies lingering macro risks." source: http://www.businessinsider.com/ubs-note-on-golds-new-phase-...
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2answers
9k views

What is street-side booking?

What is the meaning of the term "street-side bookings" in the context of broker operations? I suspect it has something to do with the Central Counter Party Clearing outlined in https://en.wikipedia....
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2answers
1k views

How would one follow the "smart money" when people use that term?

From time to time, articles talk about following the "smart money". My question is: What indicators or sectors do we look at that is considered the "smart money"? If everyone is following the smart ...
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2answers
490 views

What does "points" mean in such contexts (stock exchange, I believe)?

What does "points" mean in such contexts (stock exchange, I believe)? It would be also great if you provide references or example sentences. "S&P 500 is holding above the Moving Averages 10 it is ...
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2answers
496 views

Is a secured loan or mortgage considered debt? [duplicate]

Lets say you buy a home for $300k, and put down a $100k payment and take out a $200k loan. The house was purchased for a fair, properly appraised value. Does this mean that you are now $200k "in ...
3
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5answers
3k views

What is the official name for a (usually) 3 digit code (usually) on the back of a credit card?

My question is very similar to this one on SO that was closed for being off-topic there and too old to migrate, but it seems on topic here (and maybe on English Language & Usage, but it's not ...
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1answer
558 views

RRP/list price/retail price and cars?

Looking at an online car brochure (PDF version of printed material) for the Vauxhall Astra, it listed RRP: Link As far as I know, am I correct with these: List price is basic price Recommended ...
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4answers
148 views

How do you decide on your risk tolerance?

In investment, there is often a discussion of risk. Investors are told to assess their own risk tolerance, funds and derivatives often advertise their own expected risk, and brokers ask for your risk ...
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3answers
6k views

What is the difference between a bad/bounced check and insufficient funds?

I was reading the answer to another question, and read this statement which basically states that writing a bounced check can land you in jail: you're committing a fraud, namely offering someone a ...
2
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1answer
640 views

Is there a term for total money owed to you?

Is there a word, in finance, for the total amount of money owed to you? That is, for money you "have" but you don't have yet. For example, if I have $10k in the bank, and a total of $20k open ...
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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 ...
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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 ...
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3answers
422 views

Is there a term for the situation where we will over-think small purchases, but not large ones?

I was recently at the record store thinking "I dunno, $10 is a bit much for this. $7...I'd probably buy it. But not for $10." That would be contrasted with a recent house we purchase where I'm sure I ...
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5answers
2k views

What is this type of risk-free investment called?

My mother told me that in 1994, she had $10K to put into a savings account or CD. She went to the local Citibank and didn't like the interest rates that they were offering on their savings/CD ...
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1answer
8k views

My "credit limit" is now a "credit access line". Does it matter?

My credit card just got "upgraded". Tucked in among all the notes about new benefits I've got access to is this line: Please note: Your credit line/credit limit will now be referred to as a Credit ...
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1answer
1k views

What are "equity assets"?

The definition of equity and the definition of asset are explained in many posts and across the Internet. However, it doesn’t seem possible to me to derive the meaning of "equity assets" from them. ...
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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
79 views

Currency forward rates

I'm looking at EUR/USD forward rates here: http://www.investing.com/currencies/eur-usd-forward-rates Can someone explain, in very simple terms, what do the bid/ask prices mean? And what is the ...
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5answers
241 views

Name of investment where capital guaranteed?

I remember briefly hearing about an investment type which guarantees your initial investment. So you are able to make a reasonable (but not mind-blowing) profit but the initial capital that you pay is ...
2
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1answer
177 views

Where did you learn banking related concepts? [closed]

I have only average knowledge of principle, interest, compound interest which I had learnt in high school. Now-a-days, I am facing lot more new terms, like EMI, credit card, current account, service ...
2
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1answer
1k views

Stock dividends effect on dividend received by shareholder

In CFA level 1 Reading 38, it says Stock dividends are a non-cash form of dividends. With a stock dividend (also known as a bonus issue of shares), the company distributes additional shares (...
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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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1answer
148 views

Calculating long intervals of Interest with Simple Interest Formula

My last post Calculating long intervals of Interest calculates interest using compounding formula. But what about calculating simple interest accrued where the day count is actual/actual and it goes ...
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2answers
112 views

Calculating long intervals of Interest

Small interval calculations is fairly straight forward. But what about long intervals. If a loan's daycount is set to Actual/Actual and the duration has run into two different DayCount intervals, how ...
2
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1answer
869 views

Definition of basis and cobasis in a chart

In this article https://monetary-metals.com/silver-price-spikes-but-what-demand-4-oct-2015/, there is a chart of basis and cobasis. For basis I found too many different meanings and for cobasis ...
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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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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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4answers
2k views

What exactly is a "derivative"?

I haven't been able to find exactly what a derivative means. It seems to be some sort of cross of insurance, stock, and lay-a-way. When I try to look it up, all I find is all the problems not ...
4
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1answer
14k views

What does it mean to borrow short and lend long?

What does it mean that institution borrowed short and lent long?it would be great if u may use a comprehensive example. Thank you very much.
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1answer
309 views

Administrator vs Broker vs Custodian for a Solo 401(k)?

I'm planning to open a Solo 401(k) with Schwab. There are some provisions that are decided by the Plan Administrator, which I assumed would be me (my business, technically). However, doing research, I'...
2
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1answer
90 views

How to interpret the interest rate of treasury notes?

I am new to investing in the US and money terms in English, so forgive me if this is a stupid question. From this table, I can see, for example, that the most recent 2-year treasury note sale had an ...
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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 ...
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2answers
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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1answer
7k views

What does "compression of spreads on high-yield debt" mean?

What did Federal Reserve Chair Janet Yellen mean when she said the following? "We’ve also seen the compression of spreads on high-yield debt, which certainly looks like a reach for yield type of ...
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2answers
199 views

Can someone please help me understand Foreign Exchange Rates?

As an example, this page gives the following rates: AUD/USD: Bank buys (I want to receive/sell) - 0.882 Bank sells (I want to send/buy) - 0.7448 Does this mean that if I want to convert ...
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2answers
145 views

How is "tax-free inside buildup" defined?

I'm not sure I understand the concept of "tax-free inside buildup." From what I understand, life insurance, annuities and IRAs (both Traditional IRAs & Roth IRAs) benefit from "tax-free inside ...
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2answers
632 views

If I get a bill (e.g. for internet service), is that a debt I owe? If no, what are the practical difference between a bill and a debt?

Merriam-Webster website defines debt one way as "an amount of money that you owe to a person, bank, company, etc." Does this mean that a debt is created when a bill (e.g. utility or internet service ...
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2answers
8k views

Is APR the same as Interest Per Annum?

I'm a tester working for a high cost, short-term loan credit company in the UK. Recently, the Financial Conduct Authority (FCA) issued a policy on statements which includes information on how they ...
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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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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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1answer
195 views

In double entry book keeping terminology, what is the term or expression for when a journal entry both debits and credits the same account? [closed]

I configure point of sale software and thus deal with my clients' accounting people. I need to know how to properly express to them this situation, when they describe it. Thank you.
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1answer
186 views

Why is the terminology "put" and "call" not applicable to futures contracts?

Why is the concept of puts and calls applicable to options, but not to futures? Futures and options are similar, the key difference being that futures represent an obligation, whereas options ...

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