Questions tagged [terminology]

For questions about the meaning and usage of specific terms used in personal finance, alternative names for concepts, etc.

Filter by
Sorted by
Tagged with
4
votes
1answer
403 views

What is a Remitting Entity?

In mutual fund jargon, what is meant by a remitting entity?
3
votes
2answers
1k views

Interactive Brokers: IOPTS and list of structured products

As below, Interactive Brokers lets me trade "IOPTS". What are these? They also let me trade "Structured Products". I know what these are, and even know what an ISIN is (http://en.wikipedia.org/wiki/...
5
votes
2answers
4k views

Mutual fund question; what is a 'Series'?

In mutual fund lingo, what is a 'Series'? What does it mean?
3
votes
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 ...
7
votes
1answer
172 views

Is there a simple term to describe the non commutative property of decreasing and increasing a value by some X percentage?

I.e., $100 decreased by 20% requires an increase of (1/(1-0.2))-1) to return to $100. Is there a simple name that refers to this?
2
votes
2answers
2k views

Banking: What does the term "Sales Frontend" mean?

Could you please explain me what does it mean when banks refer to "Sales Frontend"? I have heard the term in sentences like "We need to improve our sales frontend in order to stay ahead in ...
6
votes
3answers
199k views

What is the difference between Debit and Credit?

What is the difference between Debit and Credit AND purchase and sale? These terms are very confusing. I have some example questions to understand it more easily. If I run a shop and a ...
6
votes
3answers
8k views

Is installment the same thing as amortization?

Trying to make sense of the difference between installment and amortization. They seem to be used interchangeably in some places but to me it seems like amortization should be amount that you pay off ...
11
votes
7answers
2k views

What is the difference between speculating and investing?

I keep hearing people saying that a speculation is NOT an investment, but isn't it really just investment with high risk?
0
votes
2answers
473 views

What is the name of inverse of synergy? (finance)

I there: i want to know what is the name / buzzterm (if any) where i have a process and it produce two incomes (monetary or not), for example if i sell a t-shirt with a slogan that say "save the ...
6
votes
2answers
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?
5
votes
2answers
5k views

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....
8
votes
2answers
3k views

Definition of "secular" in the context of markets?

When fund managers makes statements like this... "... [many market] inefficiencies persist for years due to the long-term nature of secular and structural changes [...]" ... I assume that they are ...
11
votes
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?
7
votes
2answers
412 views

What is a timeshare?

What is a timeshare and why might I want one? Are there any hidden costs to timeshares?
5
votes
1answer
606 views

What are prize bonds? Are prize bonds a good investment?

What are prize bonds? Are prize bonds a good investment?
12
votes
1answer
5k views

Currency values: Are there names for the parts before and after the decimal point?

What is the collective name / term given to the part of a currency value before and after the point? e.g. $123.99 So in the example above I'm after the name of the part '123' and the name of the ...
24
votes
3answers
10k views

What is a trust? What are the different types of trusts?

What is a trust? What are the different types of trusts? Are some better than others? What are the different roles involved in a trust?
14
votes
3answers
526 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?
9
votes
1answer
396 views

Why are index funds called index funds?

Why are index funds called index funds?
12
votes
4answers
534 views

What is title insurance, and should I get title insurance for my home?

I have just sold my house and bought a new one. The lawyer I am working with to do all the necessary paperwork has sent me something about "Title Insurance". I am not quite sure exactly what this is....
7
votes
1answer
606 views

What does pink-sheet mean related to stocks?

I see the term pink-sheet mentioned a lot in context of stocks. What does it mean?
165
votes
3answers
684k 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 ...
5
votes
1answer
2k views

Mortgage: Difference between joint tenancy / tenants vs. tenancy in common?

When taking a mortgage, what is the difference between joint tenancy and tenancy in common? Under what circumstances is it preferable to choose one over the other? If your circumstances change how ...
8
votes
1answer
3k views

What is garnishing / garnishment of wages or accounts and when does it happen?

What does garnishing / garnishment of wages or accounts mean? Under what circumstances does it happen and what are the implications?
11
votes
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?
2
votes
2answers
565 views

Group (pooled) RESP plans in Canada: Education savings advantages & disadvantages?

I'm familiar with the Individual and Family types of Registered Education Savings Plans (RESPs). There's also a third type: Group (pooled) RESPs, which I mentioned in this answer. I didn't provide ...
11
votes
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
10
votes
2answers
539 views

What is Alternative Minimum Tax (AMT) and how does AMT get calculated? [U.S.]

What is Alternative Minimum Tax (AMT) in the U.S.? How does Alternative Minimum Tax get calculated? What conditions are likely to trigger an AMT assessment versus a regular tax assessment? Are ...
22
votes
9answers
4k views

What is the difference between "good debt" vs. "bad debt"?

This other question about home renovations makes reference to the concept of "good debt." Could somebody explain the concepts of good debt vs. bad debt, providing examples of each? Are there cases ...
9
votes
1answer
1k views

Trip Interruption insurance vs. Trip Cancellation insurance: what's the difference?

My credit card says they offer trip interruption insurance as a benefit. I am only familiar with trip cancellation insurance. Are these the same or different?
12
votes
2answers
985 views

What is value investing? What are the key principles of value investing?

What is value investing? What are the key principles of value investing? Is there evidence indicating whether value investing results in higher returns, or lower risk, compared to other styles of ...
11
votes
1answer
534 views

What is long-term care insurance ? How does long-term care insurance work?

What is long-term care insurance? How does long-term care insurance work? Who should consider getting long-term care insurance and why?
27
votes
4answers
14k views

What is the meaning of "short selling" or "going short" a stock?

Can someone please explain the meaning of 'shorting' a stock with an example?
11
votes
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 ...
30
votes
3answers
1k views

What are "preferred" stocks? How are they different from normal (common) stocks?

What are "preferred" stocks? How are they different from normal (common) stocks that you can buy on a stock exchange?
12
votes
2answers
4k views

What is a stock warrant? How do warrants work?

What is a stock warrant? How do warrants work? I've been told they are similar to options; how? Then why not just call them options - what makes them different?
7
votes
2answers
500 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?
10
votes
1answer
2k views

How exactly do dividend reinvestment plans (DRIPs) work?

And where can I find out what companies offer them? Are there good resources for information on these plans?
17
votes
2answers
7k views

What is "financial literacy" and how does one become "financially literate"?

How does one become "Financially Literate"? Also, on a side question; what does "Financially Literate" even mean?
6
votes
2answers
516 views

What is a FICO score and how is it related to a credit report?

What is a FICO score and how is it related to a credit report?
20
votes
2answers
551 views

What is a reverse mortgage?

What is a reverse mortgage? I hear these advertise often but don't understand how they are different from a regular mortgage! Can somebody explain please what they are and when they would be useful? ...
13
votes
4answers
723 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?
19
votes
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??
19
votes
1answer
573 views

What's an Exchange-Traded Fund (ETF)?

I've been hearing a lot about exchange-traded funds, or ETFs. What exactly are they, and how would I use them?

1
3 4 5 6
7