Personal Finance Glossary
Frequently Searched Terms
Definition of Startup
All
"Form 10-Q" is the form required by the SEC to be filed by public companies on a quarterly basis,... more
A "1040 form" is the standard IRS tax return form for... more
A "1099" is a statement sent to the IRS and taxpayers by the payers of dividends and... more
"401(k)" refers to Section 401(k) of the U.S. Internal Revenue Code, which authorizes a deferred... more
"401(k) Plan" refers to Section 401(k) of the U.S. Internal Revenue Code, which authorizes a... more
A "403(b) plan" is a plan that is designed as a retirement savings plan, used by tax-exempt... more
"Abusive tax shelter" generally refers to a limited partnership or other vehicle that is wrongfully... more
"Accelerated cost recovery system" is the schedule of depreciation rates allowed for tax... more
An "acceleration clause" is a contractual provision stating that the unpaid balance becomes due and... more
"Account executive" generally refers to a stock brokerage firm employee who handles securities... more
An "accountant" is an individual or firm that generally prepares, audits, and/or inspects the... more
"Accounting method" is the method by which income and expenses are arrived at for purposes of... more
"Accounting period" is the period reflected by a company's set of financial statements. An... more
"Accounts payable" is a company's accounting entry reflecting short term obligations owed to... more
"Accounts receivable" is a company's accounting entry reflecting money owed from customers for... more
"Accounts receivable financing" is a short-term financing method in which accounts receivable are... more
"Accredited investor" is a term defined under SEC Regulation D to refer to investors who are deemed... more
In reference to discount bonds, "accretion" is a straight-line accumulation of capital gains on a... more
"Accrual accounting" is an accounting method that tries to match the recognition of revenues earned... more
"Accrual basis" refers to an accounting method in which expenses and income are accounted for as... more
"Accrued interest" is interest on a loan obligation that has been earned but not... more
"Accrued market discount" is the gain in the value of a discount bond expected from holding it as... more
An "accumulated earnings tax" is a tax imposed by the federal government on companies with retained... more
"ACH" stands for Automated Clearing House and is the national network that allows for transferring... more
"Acquiree" refers to a target company being acquired. Also see "Merger" , "M&A Transaction" and... more
A firm or company that is acquiring a company. . Also see "Merger", "M&A Transaction" and... more
An "acquisition" is when one firm or a company buys another company. This is often referred to as a... more
An "Acquisition Agreement" is a contract where one party is buying the assets or stock of another... more
"Acquisition cost" is the expense undertaken to acquire equipment, real property or other... more
"ACRS" stands for Accelerated Cost Recovery System which is the schedule of depreciation rates... more
"Active income" is income from an active business as contrasted with passive investment income... more
"Active investing" refers to a portfolio securities management strategy in which the manager... more
"Actuarial risk" is the risk that the assumptions employed by an actuary to calculate the cost or... more
An "actuary" is a professional in pension and life insurance matters, experienced in math,... more
An "ad valorem tax" is a tax based on the value (or assessed value) of... more
An "adjustable-rate mortgage" is a mortgage loan where the interest rate is periodically adjusted... more
"Adjustable-rate preferred stock" is a preferred stock whose dividend changes according to changes... more
"Adjusted gross income" is a tax term used to determine how much income is taxable. Adjusted gross... more
The "adoption credit" is a tax credit for qualified adoption expenses incurred for a... more
"American depositary receipt" is a certificate issued by a United States depository bank... more
"American depositary shares" represent foreign shares held in the United States and registered in... more
An "advance directive" is a form of legal document expressing a person's wishes about medical... more
An "advance refunding" is a financing structure under which new municipal or government bonds are... more
"Affidavit of loss" is a sworn statement describing the particulars and circumstances of the loss... more
The "Affidavit of Lost Stock Certificate" is a legal form used by a stockholder to represent under... more
An "Affiliate Agreement" is a legal contract between a Web site operator and a third party that... more
"Affiliated corporation" is a corporation that is usually connected through common ownership or... more
"After hours trading" refers to securities trading by investors that takes place after regular... more
An "agency bond" is a debt security issued by a Federal government-sponsored enterprise and... more
An "agent" is person or entity who is formally authorized to act on another's behalf. The... more
"Adjusted gross income" is a tax term used to determine how much income is taxable. Adjusted gross... more
"Agreement among underwriters" is a contract among participating members of a syndicate that... more
An "Agreement for Professional Services" is a contract between two or more parties where the one... more
An "Agreement of Sale" is a contract between seller and buyer in which they reach a meeting of... more
"Ahead of itself" generally refers to stocks that are overbought on a fundamental... more
Alan Greenspan is the former Chairman of the Board of Governors of the Federal Reserve System, over... more
"Algorithmic trading" refers to securities trading in which buy or sell orders are determined by a... more
"Alimony" refers to temporary or permanent financial support paid by one spouse to another,... more
"Alternative minimum tax" or "AMT" is a federal tax designed to prevent wealthy taxpayers from... more
"Amended return" is a tax return filed in order to make modifications or corrections to a tax... more
"American depositary receipt" is a certificate issued by a United States depository bank... more
"American depositary shares" represent foreign shares held in the United States and registered in... more
An "American option" refers to a stock option that can be exercised before and up to its expiration... more
The "American Stock Exchange" or "AMEX" is a U.S. stock exchange based in New... more
The "AMEX" or "American Stock Exchange" is a U.S. stock exchange based in New... more
"Amortization" is the repayment of a bond or loan by regular principal... more
The "AMT" or "Alternative Minimum Tax" is a federal tax designed to prevent wealthy taxpayers from... more
An "analyst" typically refers to a professional employed by a securities brokerage firm or mutual... more
A person who provides funds for small start-up companies or... more
The federal Fair Credit Reporting Act (FCRA) requires each of the nationwide consumer reporting... more
The "annual meeting" is the meeting of the stockholders of a company held once a year. At the... more
"Annual percentage rate" is the interest charged on a debt, expressed as a yearly rate. For... more
An "annual report" is a yearly report of a company's financial condition and operations, issued... more
"Annuity" is a series of fixed (or sometimes variable) payments paid at regular intervals (such as... more
An "anti-dilution provision" is a provision in an stock investment contract or company charter... more
"Appraisal" is a valuation of property (such as of real estate or of a business) based on an... more
An "appraisal fee" is the fee charged by an appraiser to deliver a professional opinion as to the... more
"Appraisal rights" represent the right under state corporation law of stockholders in a merger to... more
"Appraised value" is a valuation of property (such as of real estate or of a business) based on an... more
"Appraiser" is an individual or organization who estimates the fair market value of property (such... more
The "APR" or "annual percentage rate" is the interest charged on a debt, expressed as a yearly... more
"Arbitrage" is the buying and selling of a security at two different prices in two different... more
An "arbitrageur" is a person who engages in arbitrage, purchase or selling securities in multiple... more
An "Arbitration Agreement" is an agreement between two or more parties to resolve a dispute through... more
An "ARM" or "adjustable-rate mortgage" is a mortgage loan where the interest rate is periodically... more
"ARPS" or "Adjustable-rate preferred stock" is a publicly traded security that may be... more
The "Articles of Incorporation" is the document filed with a state government that officially... more
"Assessed value" is the dollar value assigned to property by a municipality for the purpose of... more
"Assessor" is the local or city government official who determines the fair market value of... more
An "asset" is any property that has... more
The term "asset allocation" refers to the process of dividing investments among different kinds of... more
"Asset class" is a specific category of assets or investments, such as domestic stocks, bonds, real... more
"Asset-backed security" is a security that is collateralized by loans, leases, receivable, or... more
"Asset-based financing" refers to a security in which lenders and equity investors look principally... more
"Assets" typically refers to a company's resources having economic value, such as cash,... more
An "assignable contract" is a contract that permits a contract party to convey his or her rights in... more
The term "assignment" refers to the method of transferring a right or contract from one person to... more
An "Assignment of Lease" is a transfer by the tenant under a lease in its interest in the lease to... more
An "assumable mortgage" is a mortgage that can be transferred to the buyer of a real estate... more
"At par" means a price equal to nominal or face value of a security. Sometimes, "at par" refers to... more
The term "at risk rules" refers generally to the rules under the Internal Revenue Code that the... more
"At Will Employment" is an employment relationship where either the employer or the employee can... more
The term "at-the-close-order" refers to a securities order to execute a buy or sell within the last... more
An "at-the-opening-order" is an order to buy or sell securities at the opening price on a trading... more
"ATM" stands for "automated teller machine" which is a computer controlled terminal which allows... more
An "attorney-in-fact" is an authorization to act on someone else's behalf in a legal or... more
"Attornment" typically refers to an act or agreement by a tenant in accepting a replacement... more
An "audit" is an examination of a company's financial and accounting books and records by an... more
An "auditors report" is a report of an outside accounting firm about the accuracy of the... more
"Authorized stock" is the maximum number of shares authorized for issuance by a company's... more
"Automated Clearing House" is the national network that allows for transferring funds... more
An "automated teller machine" is a computer controlled terminal which allows customers to make... more
An "automatic extension" refers to an extension automatically granted to file a tax... more
An "automatic investment plan" is an investment program in which funds are automatically... more
An "automatic reinvestment plan" is an investment program in which capital gains, dividends, or... more
An "automatic stay" is a law that goes into effect immediately upon filing a bankruptcy petition.... more
"Available credit" is the unused portion of a line of credit for which a person or firm is... more
"Average cost" typically refers to the average cost of stock or other securities bought at... more
A "baby bond" usually refers a bond that has a par value of less than... more
There are typically three parts to a financial services company (for example, a stock broker or a... more
A "back stop" is something that bolsters or supports; something that provides extra support or... more
"Back-end load" refers to one of three types of sales charges imposed by mutual funds that charge... more
"Backdating" is the dating of any document with a date earlier than the actual date on which the... more
A "backup withholding" is the withholding of taxes from the proceeds of the sale of an investment.... more
A "bad debt" is a debt that is written off and deemed... more
The "balance of trade" is the difference of a country's imports and its exports over a specific... more
"Balance sheet" is a financial statement that summarizes a person's or company's assets,... more
A "balanced fund" is a mutual fund that invests in a mix of stocks and... more
A "balloon mortgage" is a mortgage loan with periodic payments of principal and interest that do... more
The final payment that repays all the remaining principal and interest of a partially amortized or... more
A "bank" is a financial institution that receives deposits and channels money into lending... more
A "bank line" is a line of credit issued by a bank for the benefit of a customer of the bank. The... more
"Bankruptcy" is a legal proceeding under federal law that releases a person or entity from repaying... more
The "Barron's Confidence Index" is the weekly index prepared by the publishers of Barrons, a... more
"Basis point" is a term used to quote yields of 1/100 of a percent for interest rates. For example,... more
A "Business Development Company" or a "BDC" is a company that is created to help finance companies... more
A "bear hug" is a form of unsolicited corporate takeover proposal (often in the form of a letter),... more
"Bear market" is a stock market in which prices exhibit a declining trend, for a prolonged period,... more
"Bearer bonds" are bonds that are not registered in the name of the owner on the books of the... more
A "bellwether stock" is a stock which is used to gauge the performance of the stock market in... more
A "beneficial owner" is any person or entity with sole or shared power to vote or dispose of the... more
A "beneficiary" is generally a person or entity who receives money or other benefits. The... more
"Bequest" is property left to an heir under the terms of... more
The term "best ask" refers to the lowest quoted offer of all competing market makers to sell a... more
"Best bid" typically refers to the highest price at which any buyer is currently willing to pay for... more
A "bi-weekly mortgage" is a mortgage loan on which interest and principal payments are made every... more
The term "bid" in the context of the securities over-the-counter market refers to the highest price... more
The term "bid-asked spread" refers to difference between the bid and ask price for a security. The... more
"Big Board" is a nickname for the New York Stock Exchange, located on Wall Street in New... more
A "bill of exchange" is a written document used primarily in international trade that requires one... more
A "Bill of Sale" is typically a simple form of legal document to transfer legal title of personal... more
The term "Black Scholes Model" refers to a mathematical model used to determine the value of equity... more
The term "blackout period" refers to a timeframe established by a publicly traded company during... more
A "blanket lien" is a lien covering nearly all types of assets owned by a debtor. Banks making... more
The term "blind pool" often refers to either (1) a limited partnership which doesn't identify... more
A "blind trust" is a trust in which the trustees have full discretion over the assets, and the... more
A "block trade" is a large stock trading... more
"Blue sky laws" are state laws covering the offer and sale of... more
"Blue chip stocks" are stocks of the biggest, best known, and often consistently profitable... more
A "Board Observation Rights Letter" is a legal document that grants an investor in a company the... more
The "Board of Directors" of a corporation is the governing body of a corporation, responsible for... more
The term "Board of Directors' Resolutions" refers to formal actions or approvals taken by the... more
The term "boiler room" often refers to a stock brokerage firm that uses aggressive or dishonest... more
"Boilerplate" often refers to standard clauses or language in a contract or legal document. Typical... more
A "bond" is a certificate or a debt instrument upon which the issuing company or governmental body... more
A "bond anticipation note" is a short-term bond, one year or less, used for interim financing by... more
A "bond broker" is a securities broker that trades bonds on a securities... more
A "bond fund" is a fund (including mutual and closed-end funds) that invests in corporate or... more
The "bond market" refers to the place where newly issued and existing corporate and government... more
A "bond mutual fund" is a mutual fund that invests in bonds. A bond mutual fund is usually... more
The term "bond quote" refers to a quote of a bond's current trading price. For example, a... more
A "bond rating" is a rating based on the possibility of default by a bond issuer. The ratings range... more
The term "bond swap" refers to the sale of a bond and the purchase of another bond with similar... more
"Bond yield" refers to the return an investor would earn if a bond was purchased and held to... more
A "bondholder" is the holder of corporate or government... more
"Book runner" refers to the managing underwriter for a new securities issuance. The book runner... more
"Book value" is a company's total assets minus its liabilities (such as loans or accounts... more
"Book-entry securities" are those not represented by paper certificates but are maintained in... more
"Borrow" means to obtain or receive money on loan with the promise that it will be repaid on... more
"Borrower" means a person or entity that borrows money or uses another form of... more
A "bought deal" refers to a securities offering in which the lead underwriter buys all the... more
A "bounced check" is a check returned by a bank because of insufficient funds in the checking... more
The term "Bourse" refers to a French term for a stock exchange. The national stock market of... more
"Brady Bonds" are bonds issued by the governments of developing countries as part of a... more
"Bridge financing" is an interim financing in anticipation of a more permanent financing to be... more
The term "broad based index" usually refers to a stock or bond index designed to reflect the... more
A "broker" is person or entity who, for a fee, acts as the agent of another, assists in arranging... more
The term "broker-dealer" usually refers to a financial institution that has registered with the SEC... more
A "brokered deposit" is a deposit that is obtained from or through the assistance of a deposit... more
A "budget" is an organized financial plan for a scheduled financial activity (such as an overall... more
"Budget deficit" is the amount by which expenses exceeds revenues during an accounting period.... more
The term "bulge bracket" refers to the group of investment banking firms in an underwriting... more
"Bull market" is a stock market marked by rising prices and... more
A "bullet loan" is a loan without periodic principal payments but with the entire amount (balloon... more
A "bullet repayment" is where a loan is repaid entirely at the maturity date. See "Bullet... more
"Bullish" refers to investor optimism or outlook, as opposed to a "bearish" or pessimistic investor... more
A "bunny bond" is a bond that offers investors the option to reinvest interest payments into... more
"Burn rate" refers to a company's rate of negative cash flow while ramping up operations and... more
A "Business Development Company" or a "BDC" is a company that is created to help finance companies... more
"Business expenses" are the cost of carrying on a trade or business. These expenses are usually... more
"Business incubators" are organizations that assist start up (new) companies by providing office... more
A Business Plan is a document that sets forth a description of a particular company and its plans... more
To "buy on margin" involves a stock investor borrowing money to buy additional shares, and using... more
A "buy-and-hold strategy" is an investment strategy to buy securities and hold them for the long... more
The term "buyback" in the context of the financial markets refers to a situation where a company is... more
A "buydown" is a term often used to describe a payment to a mortgage lender from the seller or... more
A "buyout" often refers to a purchase of a controlling interest of a company's stock or the... more
The "Bylaws" of a corporation contain the rules and procedures that govern rights and powers of... more
A "C corporation" refers to the federal tax classification of a corporation with respect to how... more
A "cafeteria plan" is an employee benefit plan that allows employees to select among various... more
A "calculation agent" is a professional who determines the value of a derivative security or the... more
A "calendar spread" is an options trading strategy where options are bought and sold on the same... more
"Call date" is the date when an issuer of bonds may retire a portion or all of its outstanding... more
"Call option" is an option contract that gives the holder the right to purchase a set number of... more
A "call premium" refers to either (1) the amount that a call option costs or (2) the price premium... more
A "call price" is the premium (or penalty) a securities (often bonds or preferred stock) issuer... more
"Call protection" is a feature in some callable bonds providing that the bonds may not be redeemed... more
The term "call risk" refers to the risk to a bondholder that a bond may be redeemed (or "called")... more
A "callable bond" is a bond that permits the issuer to redeem the bond before the stated maturity... more
"Called away" refers to a bond that is redeemed prior to its stated maturity date, pursuant to a... more
"Capital" in the financial context means money invested in a company typically through issuance of... more
A "capital appreciation fund" is a mutual fund that seeks maximum capital appreciation through the... more
"Capital asset" is a long term asset such as land or property, not purchased for sale or lease in... more
"Capital cost allowance" is a tax term used for depreciation; in essence, the portion of the cost... more
"Capital expenditures" refers to expenditures used to acquire or improve long-term (or capital)... more
"Capital gain" is the difference between the net sales price of an asset or security and its net... more
A "capital gains distribution" is a distribution to the stockholders of a mutual fund out of... more
A "capital gains tax" is the tax levied on profits from the sale of capital... more
A "capital improvement" is an improvement to property that adds to the value and extends the useful... more
A "capital lease" is a lease obligation that, under applicable accounting practices, has to be... more
"Capital loss" is when an asset or security is sold at a loss, equal to the difference between the... more
"Capital stock" is all ownership shares of a corporation, including common stock and preferred... more
"Capital surplus" is the contribution by shareholders of a corporation in excess of par value of... more
The term "capitalization" has multiple meanings, including: (1) the value of outstanding stock of a... more
"Capitalization rate" is the rate of interest used to calculate the present value of a number of... more
A "capitalization table" of a company displays the capitalization of the company from each... more
"Capitalized interest" is accrued interest which is added to the principal of a loan creating a new... more
The term "carry forwards" generally refers to tax losses allowed to be used to offset taxable... more
A "cash advance" is a cash loan from a credit card using an ATM or bank withdrawal. Interest on the... more
The term "cash and equivalents" refers to cash on a company's balance sheet plus the value of... more
"Cash basis accounting" refers to the accounting method that recognizes revenues and expenses when... more
A "cash discount" often refers to a discount from the purchase price of a good or service, based on... more
A "cash dividend" is a dividend paid in cash to a company's stockholders. The amount is... more
"Cash flow" refers to a company's earnings before depreciation, amortization and non-cash... more
"Cash out refinance" refers to a new mortgage for an existing property which allows the borrower... more
"Cash surrender value" refers to the amount of cash a person may obtain by voluntarily surrendering... more
"Cash value insurance" is a life insurance policy which in addition to providing death benefits... more
The term "cash-on-cash return" refers to the calculation of the rate of return earned on the cash... more
A "cash-out refinance" is the situation where a borrower refinances his mortgage at a higher amount... more
A "cashier's check" is a check issued by a bank where the bank is the sole obligor on the... more
A "cashless exercise" is the exercise of an option by the option holder in a manner that does not... more
"Casualty insurance' is insurance protecting a company or property owner against losses caused... more
A "casualty loss" is a financial loss caused by damage, destruction or loss of property as a result... more
A "collateralized bond obligation" (sometimes referred to as a "CBO") is a bond backed (or... more
The "Chicago Board Options Exchange" is a securities exchange based in Chicago, Illinois for the... more
The "Chicago Board of Trade" is an exchange for financial futures and... more
A "certificate of deposit" or "CD" is a certificate typically usually issued by a bank, credit... more
The "Commodity Exchange Act" or "CEA" is the federal law regulating commodity futures and options... more
The "CEO" or "Chief Executive Officer" is the highest ranking officer of a corporation. He or she... more
A "CEO Employment Agreement" is an agreement containing the employment terms and conditions between... more
A "certificate of deposit" or CD is a certificate typically issued by a bank, credit union or... more
The "Certificate of Incorporation" (or sometimes called the Articles of Incorporation) is the... more
A "certified check" is a check drawn on the account of a person or entity on which a bank has... more
A "certified financial planner" is the designation awarded by the Certified Financial Planner Board... more
The term "certified financial statements" refers to the balance sheet, income statement, and other... more
A "certified public accountant" or "CPA" is an accountant who has met certain standards and passed... more
"CFA" stands for Chartered Financial Analyst, which is a professional designation given by the CFA... more
The "Chief Financial Officer" or "CFO" is the corporate officer often primarily responsible for the... more
The "Commodity Futures Trading Commission" or "CFTC" is a federal agency that regulates exchange... more
"Channel stuffing" is the practice of a company or its sales force in artificially inflating its... more
A "Chapter 11 Bankruptcy" is a category of proceeding under federal bankruptcy laws where a... more
The term "Chapter 13" is a category of proceeding under federal bankruptcy laws. Under Chapter 13,... more
A "Chapter 7 Bankruptcy" is a category of proceeding under federal bankruptcy laws under which the... more
A "charge card" is similar to a credit card, but that charges no interest and requires you to pay... more
A "charge off" is a term often used to indicate that a creditor does not expect to collect the... more
A "chargeback" occurs when a customer disputes a credit card sale by a merchant. When there is a... more
A "charitable donation" is a tangible gift in the form of money or goods to a public or private... more
A "charitable lead trust" is a trust established to pay income to a charity for a specified time... more
A "charitable remainder trust" is an irrevocable trust that pays income to one or more individual... more
A "charter" is the governing document to form a corporation. See "Articles of Incorporation" and... more
A "Chartered Financial Analyst" or "CFA" is a professional designation given by the CFA Institute... more
A "chastity bond" is a bond that becomes immediately due and payable up on the completion of a... more
"Cheap stock" often refers to stock sold by a company prior to its IPO at prices "substantially"... more
A "checking account" is a, account at a bank or similar financial institution (for example, a... more
The "Chicago Board of Trade" or "CBOT" is an exchange for financial futures and... more
The "Chicago Board Options Exchange" or "CBOE" is a securities exchange based in Chicago, Illinois... more
The "CEO" or "chief executive officer" is the highest ranking officer of a corporation. She or he... more
The "chief financial officer" or "CFO" is the corporate officer primarily responsible for the... more
A "chief operating officer" or "COO" is a corporate officer responsible for management of... more
A "child tax credit" is a federal tax credit based on the number of dependent children in a family.... more
The term "churning" refers to excessive securities trading by a stock broker who derives a profit... more
A "classified board" is a corporate Board structure where only a portion of the Board of Directors... more
The term "classified shares" refers to the categorization of company stock into more than one class... more
"Clear title" often refers to title to real property that is free of defects or legal challenges to... more
A "clearing house" is an organization handling the processing of securities that are purchased or... more
The term "cliff vesting" refers to the process of holders of employee stock options vesting (or... more
A "close corporation" is a corporation that elects in its Certificate of Incorporation (or Articles... more
A "closed end fund" is a mutual fund that sells a fixed number of shares in a managed portfolio of... more
The term "closely held" refers to a corporation whose voting stock is held by a few... more
The term "closely held shares" refers to all or a majority of shares in a corporation that are held... more
A "closing bell" is a bell that rings to signify the end of a stock exchange... more
"Closing costs" are the expenses involved in transferring ownership or borrowing against a real... more
A "closing price" is thee price of the last transaction of a particular stock at the end of a... more
A "closing statement" is a statement typically prepared by a title or escrow company in connection... more
The term "closing tick" means the number of stocks on the New York Stock Exchange which closed... more
The term "cloud on title" refers to a defect in the title to real property which prevents the title... more
"Club deals" typically refers to a group of private equity investors who band together to buy out... more
Commercial mortgage-backed securities" or "CMBS" are mortgage backed securities that are backed by... more
A "collateralized mortgage obligation" or "CMO" is a fixed-income investment (bond) backed by... more
The term "co-pay" usually refers to a dollar amount required to be paid by a member of a health... more
A "co-payment" is a specified dollar amount which a member under a health insurance plan must pay... more
A "co-signer" is an additional person who assumes liability for obligations under a loan by... more
The term "COBRA" stands for the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended.... more
The term "COFI" stands for the 11th District Cost of Funds Index, an index that is used to... more
"Coinsurance" refers to a type of health insurance policy where the insured pays a set percentage... more
The term "COLA" or "Cost of Living Adjustment" refers to the increase in wages or pension benefits... more
"Collateral" is an asset or real property used as security for... more
A "collateralized bond obligation" (sometimes referred to as a "CBO") is an investment grade bond... more
A "collateralized mortgage obligation" or "CMO" is a fixed-income investment (bond) backed by... more
A "collection agency" is a business that pursues payments on debts owed by individuals or... more
The term "combined loan to value ratio" refers to the total balance of mortgages on a property... more
A "comfort letter" is typically a letter written by an independent accountant to an underwriter or... more
A "commercial letter of credit" is a letter usually issued by a bank that on behalf of a buyer that... more
Commercial mortgage backed securities" or "CMBS" are mortgage backed securities that are backed by... more
"Commercial paper" is a short term unsecured promissory note issued by a company, typically for a... more
The term "commercial real estate" generally refers to properties used for industrial, commercial,... more
The term "commingled fund" refers to a type of mutual fund with assets from multiple accounts that... more
The term "commingling" refers either to (1) the act of mixing money or property that is separate in... more
The term "commission" typically refers to either (1) the fee paid to a stockbroker to execute a... more
A "commitment fee" is the fee charged by the lender to commit itself to a mortgage or loan on... more
A "commodity" is a food, a metal or another physical substance that investors buy or sell,... more
The "Commodity Exchange Act" or "CEA" is the federal law regulating the commodity futures and... more
The "Commodity Futures Trading Commission" or CFTC is a federal agency that regulates exchange... more
"Common stock" is the basic class of stock in a corporation, giving the owner a share of the... more
"Community property" is term describing how some states classify property acquired during a... more
"Comparables" is a real estate term referring to properties which are similar to a particular... more
The term "competitive bid" refers to the price and terms submitted in a sealed bid to an issuer by... more
"Compound interest" refers to the process of adding interest to the principal of a loan and... more
"Compounding" is term often used to describe the process of adding interest to the principal amount... more
A "condominium" is a form of real estate ownership in which each owner has title to a specific unit... more
A "confidentiality agreement" is a contract that contemplates one party disclosing proprietary or... more
A "conforming loan" is a mortgage that meets the requirements for purchase by Fannie Mae or Freddie... more
A "conglomerate" is a term often used to refer to a large corporation that has diversified its... more
A "consent by Lessor" is a legal document where the landlord of leased premises gives his or her... more
A "conservatorship" is a legal process in which an adult is appointed by a court to make financial... more
A "consignment agreement" is a contract where the owner of goods turns them over to a seller (such... more
A "consolidated financial statement" is a financial statement that shows all the assets,... more
The "Consolidated Omnibus Budget Reconciliation Act of 1985", as amended, or "COBRA", is a federal... more
A "construction loan" is a short term loan that is used to finance the construction of homes or... more
The term "construction spending" refers to an economic indicator published on a monthly basis by... more
A "consulting agreement" is a contract between two parties where the "consultant" provides... more
"Consumer credit" is a category of credit that a bank or other lender grants to consumers for the... more
"Consumer durables" refers to consumer products that are expected to last at least three years. ... more
The "Consumer Price Index" or CPI is the monthly measure of prices of consumer goods or services... more
A "contract" is a legally binding agreement between two or more parties to do or not do certain... more
A "contract for sale of goods" is a legal agreement where the seller of goods transfers ownership... more
A "controller" is one of the most senior accountants in a company, responsible for financial books... more
A "conventional mortgage" is a mortgage loan made by a bank or other financial institution without... more
A "convertible ARM" is an adjustable rate mortgage that can be converted into a fixed-rate mortgage... more
A "convertible bond" is a debt obligation of a corporation that can be exchanged for a designated... more
A "convertible debenture" is a debt obligation of a corporation that allows the holder at his... more
"Convertible preferred stock" is a corporation's preferred stock that can be converted into... more
"Convertibles" are securities (generally bonds or preferred stock) that are exchangeable at the... more
A "chief operating officer" or "COO" is a corporate officer responsible for management of... more
The term "cook the books" refers to the fraudulent creation or alteration of a company's... more
A "copyright assignment" is a contract that transfers a copyrighted work from the copyright holder... more
A "corporate bond" is a debt security issued by a corporation obligating the corporation to pay... more
A "corporate charter" is a legal document creating a corporation, such as a Certificate of... more
The term "corporate tax" refers to refers to taxes charged by various jurisdictions (federal,... more
A "corporation" is a legal entity established under state law (and sometimes federal law such as a... more
"Cost basis" is the original price of an asset or property, which is used to ultimately determine... more
The term "cost of debt" refers to the effective rate of interest that a company pays on... more
The "cost of goods sold" is the total costs for buying raw material and other items (including... more
The term "Cost of Living Adjustment" (sometimes abbreviated to "COLA") refers to the increase in... more
A "counter offer" is a seller's response to a buyer's offer where the seller proposes... more
The term "counterparty" refers to the other individual or institution that is party to an... more
A "coupon bond" is a security issued with detachable certificates (the "coupon") entitling the... more
"Coupon payments" are interest payments made under... more
A "covenant" is a legal promise obligating a party to do something. Covenants are typically... more
A "covered call" is trading position where the trader has sold a call option while holding an... more
A "covered put" is a put options position where the option writer is also short the corresponding... more
A "certified public accountant" or "CPA" is an accountant who has met certain standards and passed... more
The "CPI" is short for the Consumer Price Index, which is the monthly measure of consumer goods or... more
The term "credit" has multiple meanings. Credit means the promise to pay in the future in order to... more
A "credit application" is a form to be completed by an applicant for a loan, credit card, or credit... more
"Credit bureaus" are credit reporting agencies. They collect information from creditors and lenders... more
A "credit card" is a plastic card that can be used to buy goods and services on credit. The credit... more
"Credit counseling" is counseling that helps individuals focus on reorganizing outstanding debts... more
"Credit enhancement" is credit support purchased by an issuer to raise the credit rating on a debt... more
"Credit history" is a record showing how a person has borrowed and repaid debt. The credit history... more
A "credit limit" is the maximum amount of money that can be borrowed under a credit card or credit... more
A "credit rating" is an evaluation of the credit worthiness of an individual or business and the... more
A "credit rating agency" is a company that assigns credit ratings for issuers of various debt... more
The term "credit repair" refers to the attempt to improve one's financial reputation... more
A "credit report" is the report maintained by credit bureaus on the borrowing activities and credit... more
A "credit score" is a numerical value that summarizes an individual's creditworthiness at a... more
A "credit union" is a co-operative financial institution that is owned and controlled by its... more
A "creditor" is a person or business that lends money or extends credit. Types of creditors include... more
A "cross default" refers to a clause in a loan or credit agreement that allows the lender to... more
The term "cum dividend" refers to the buyer of a share of stock who is entitled to the next... more
"Cumulative dividends" are dividends on preferred stock of a corporation that accrue if not paid... more
"Cumulative voting" is a procedure used for electing directors in which shareholders are entitled... more
For financial accounting purposes, the term "current assets" refers to assets on the balance sheet... more
"Current liabilities" are amounts owed for salaries, interest, accounts payable and other debts due... more
The term "current market value" often refers to the worth of securities held. To determine the... more
"Current yield" is the rate of return on an investment, expressed as a percentage. For bonds, the... more
"CUSIP" stands for the Committee on Uniform Securities and Identification Procedures, the standards... more
A "CUSIP number" is a nine character number that uniquely identifies a particular security. CUSIP... more
A "custodial account" is on account opened on the behalf of a minor by an adult who acts as... more
"Date of issue," in connection with bonds, refers to the date that the bond is issued and when... more
The term "date of record" refers to the date on which a stockholder must officially be on the... more
"Day trading" refers to the purchase and sale of securities (often the same securities) on the same... more
"Deal flow" refers to the rate (or "flow") at which investment proposals or business plans come to... more
A "debenture" is an unsecured debt obligation of an issuer. The terms of a debenture are typically... more
A "debit card" is a card that resembles a credit card but purchases on the card result in an... more
"Debt" typically refers to... more
"Debt consolidation" is a process of combining debts into one loan or repayment plan. Debt... more
"Debt counseling" is counseling that helps individuals focus on reorganizing outstanding debts into... more
The term "debt financing" is the borrowing of money by a government or a business, usually in... more
"Debt holder" is a holder of bonds or... more
A "debt instrument" is a contract which sets forth the terms and conditions of a loan between a... more
The term "debt restructuring" refers to the process of renegotiating the terms and conditions of... more
A "debt security" is a contract which sets forth the terms and conditions of a loan between a... more
"Debt service" refers to the amount of funds necessary to meet the periodic payments of principal... more
"Debt-to-income ratio" refers to a calculation of how much your monthly fixed payments (minimum... more
The term "debt/equity ratio" refers to a measure of a company's debt leverage calculated by... more
A "debtor" is a person or entity who owes money to another... more
A "debtor in possession" is a company that continues to operate under Chapter 11 of the U.S.... more
"Debtor-in-possession financing" is new debt obtained by a company during a Chapter 11 bankruptcy... more
The term "decimalization" refers to the changing of prices that securities trade at from fractions... more
A "declaration date" is the date on which a corporation's Board of Directors formally... more
A "declared dividend" is a dividend payment that has been authorized or approved by a... more
A "deductible" is the amount of the loss which a person is responsible to pay under an insurance... more
A "deduction" is an expense that is allowed as a reduction of gross taxable income for tax... more
A "deed" is a legal instrument used for transferring title to real estate from one party to... more
A "deed of trust" is a legal contract that grants (or creates) a security interest in real property... more
The term "deep in the money" often refers to a (1) call option whose exercise price is considerably... more
A "default" is the failure to perform a legal obligation. For example, a mortgage or deed of... more
"Default risk" refers to the risk of non-payment by a borrower under a... more
"Deferred compensation" refers to compensation earned by an employee but paid at a later date,... more
A "deferred income tax" is a liability recorded on a company's balance sheet for tax that will... more
A "defined benefit plan" is a pension plan set up by a company to make specified payments to... more
A "defined contribution plan" is a pension plan set up by a company to make specified contribution... more
"Deflation" is a general decline in the prices of goods and services. It is the opposite of... more
"Delinquency" is a term used for failure by a borrower or debtor to make payment on a loan, debt or... more
"Delisting" refers to the removal of a listed company or securities from listing on a stock... more
A "demand deposit" is a bank deposit that can be withdrawn by the depositor at any time. A... more
A "demand for payment" is typically a letter or other notice demanding payment for overdue sums. A... more
A "Demand for Rent" is typically a letter or other notice demanding payment from a tenant for... more
A "demand loan" is a loan that must be repaid in full, on demand by the... more
The "Department of Commerce" is the U.S. Cabinet Department which encourages and promotes the... more
The "Department of Treasury" is the U.S. Cabinet Department which performs several functions:... more
"Deposit insurance" is insurance, usually by a government entity (such as the Federal Deposit... more
A "depositary receipt" is a security that is traded on a local stock exchange but represents a... more
A "depository institution" is a financial institution that obtains its funds mainly through... more
"Depreciate" means to fall in value or price. Equipment and cars typically depreciate... more
"Depreciation" is the decrease in the value of an asset from wear and tear and the passage of time.... more
A "derivative" is a financial instrument that changes in value in relation to the price movements... more
A "derivative security" is a financial security whose value is derived in part from the value and... more
A "direct deposit" is the automatic deposit of wages or benefits to a customer's bank account.... more
A "direct participation program" is an investment vehicle typically structured as a limited... more
A "direct stock purchase plan" is a program that allows an investor to purchase stock directly from... more
A "director" is a member of the Board of Directors of a corporation, which is the governing body of... more
"Disability income insurance" is an insurance policy that insures a worker in the event of a... more
A "discount bond" is a bond trading at a discount from par or its face... more
A "discount broker" is a stock brokerage house that charges relatively low commission rates for... more
A "discount note" is an unsecured non-interesting bearing debt obligation that is issued at a... more
"Discounted cash flow" is the value of an investment (measured in terms of the cash invested and... more
"Discretionary income" is the amount of an individual's income available for spending after all... more
"Disposable income" is the amount of personal income that an individual has available after... more
A "distressed security" is a bond or stock of a company undergoing or expected to undergo... more
The term "distribution"often refers to (1) the income or capital gain made by a mutual fund that is... more
"Diversification" refers to the spreading of investments among different categories of assets or... more
A "diversified fund" is a mutual fund that invests in a diversity of securities across a variety of... more
The term "divestiture" refers to the disposition of all or part of a business, asset or investment... more
A "dividend" is a distribution of money or stock that a corporation pays to its stockholders. A... more
The term "dividend policy" refers to the policy of a corporation with respect to the amount of... more
A "dividend reinvestment plan" or "DRIP" is a company plan providing for an automatic reinvestment... more
A dividend yield" is a ratio that shows how much a company pays out in dividends each year relative... more
The "DJIA" or "Dow Jones Industrial Average" is the best known general index of stocks. The index... more
The "DJTA" or "Dow Jones Transportation Average" is an index based on the market prices of 20... more
The "DJUA" or "Dow Jones Utility Average" monitors the stock performance of 15 gas, electric and... more
"Dollar cost averaging" refers to an investment strategy of buying securities in fixed dollar... more
A "domain name purchase agreement" is a contract where the owner of a domain name (e.g.,... more
The "DJIA" or "Dow Jones Industrial Average" is the best known general index of stocks. The index... more
The "Dow Jones Transportation Average" or "DJTA" is based on an index of 20 stocks in the... more
The "Dow Jones Utility Average" or "DJUA" monitors the stock performance of 15 gas, electric and... more
"Dow theory" is a theory that major market trends depend on how the Dow Jones Industrial Average... more
A "down payment" with reference to a home or other real estate purchase refers to the cash portion... more
The term "downgrade" is often used in the stock market to refer to a analyst's change in the... more
The term "downtick" refers to how a stock has traded on a stock exchange when compared to the... more
A "DPP" or "direct participation program" is an investment vehicle typically structured as a... more
"Drag along rights "refer to a contractual right in an investment contract that large or majority... more
A "DRIP" or "dividend reinvestment plan" is a company plan providing for an automatic reinvestment... more
"Dual listing" refers to a company's securities being listed on more than one stock exchange... more
"Due diligence" is the process of a review of a company's operations, financial statements,... more
A "due diligence checklist" is a checklist typically used by acquirers of businesses or venture... more
A "due diligence questionnaire" is a questionnaire given to the company being reviewed for a... more
A "due on sale clause" is a contract provision often found in a mortgage or deed of trust providing... more
A "durable power of attorney for healthcare" is a document in which a person is appointed to make... more
"Durables" are a type of consumer product that do not have to be purchased frequently and intended... more
A "Dutch auction" is a method used in the sale of securities in which the security's offer... more
An "E-commerce agreement" is a contract between two parties, relating to the promotion of products... more
An "early withdrawal penalty" is a penalty paid by the holder of a fixed-term debt instrument (such... more
"Earned income" refers generally to an individual's income earned from employment or... more
The "earned income credit" is a federal tax credit that low income workers may be entitled to... more
An "earnest money deposit" is the amount of money given by the buyer to a seller of an asset upon... more
The term "earnings" typically refers to (1) in the case of an individual, salary and other... more
"Earnings before interest and tax" or "EBIT" is a financial measure of a company defined as its... more
"Earnings before interest, taxes, depreciation and amortization" or "EBITDA" is a financial measure... more
"Earnings before tax" refers to a company's revenues minus all expenses other than... more
An "earnings estimate" is an estimate by a securities analyst as to the future expected earnings... more
"Earnings management" typically refers to a practice undertaken by public companies to manipulate... more
"Earnings per share" or "EPS" is a financial measure of a company based upon the company's... more
The term "earnout" refers to a contract provision in an acquisition contract stating that the... more
"Earthquake insurance" is a form of property insurance that pays the policyholder in the event of... more
An "easement" is a limited legal right to use another person's real estate for a specific... more
"Earnings before interest and taxes" or "EBIT" is a financial measure of a company defined as its... more
"Earnings before interest, taxes, depreciation and amortization" or "EBITDA" is a financial measure... more
"EBT" stands for "earnings before tax," which is a company's income minus all expenses, other... more
The "Equal Credit Opportunity Act" or "ECOA" is a federal law that protects consumers from... more
"EDGAR" refers to the SEC's Electronic Data Gathering, Analysis and Retrieval system, a... more
An "education IRA" is a form of individual retirement account enabling the contribution of up to... more
The term "effective tax rate" refers to the ratio, generally expressed as a percentage, of taxes... more
"Electronic filing" typically refers to the filing of tax returns with the Internal Revenue Service... more
"Electronic funds transfer" or "EFT" is a transfer of funds electronically rather than by check or... more
An "eligible rollover distribution" is a distribution from an IRA or qualifying retirement plan... more
The "Elliott Wave Theory" is a technical analysis theory for predicting the behavior of the stock... more
An "emerging market fund" is a mutual fund that invests in securities which are traded in the... more
The term "emerging markets" refers to the financial markets of developing... more
To make sure that employees keep a company's proprietary information confidential, an "employee... more
An "employee contribution plan" is a retirement plan whereby employees make contributions to an... more
An "employee handbook" is a company's written statement of policies and procedures applicable... more
The "Employee Retirement Income Security Act" or "ERISA" is the U.S.federal law that governs the... more
An "employee share ownership trust" or "ESOT" is a trust account established by a corporation to... more
An "employee stock ownership plan" or "ESOP" is a company contributed trust fund that buys and... more
An "employee stock purchase plan" or "ESPP" is a company sponsored plan where participating... more
An "employment agreement" is a contract between an employer and employee setting forth the terms of... more
An "employment application" is a form to be filled out by prospective employees. The application... more
The "employment rate" is the percentage of the number of persons actually employed over the total... more
An "encumbrance" is a legal term referring to anything that affects or limits the title to... more
An "endorsement" has multiple meanings, including (1) a written form attached to an insurance... more
An "endowment fund" is a fund generated from the gift (usually of cash) of a donor to an... more
"Enterprise value" is defined to mean a company's market value (in other words, the total value... more
The term "entrepreneur" refers to an individual starting a new business and taking on the risks... more
"Earnings per share" or "EPS" is a financial measure of a company calculated by the company's... more
The "Equal Credit Opportunity Act" or "ECOA" is a federal law that protects consumers from... more
"Equifax" is one of the three main credit reporting agencies in the United States, headquartered in... more
An "equipment lease agreement" is a contract that sets forth the rights and obligations between a... more
The term "equity" has multiple meanings, depending on the context. In connection with real estate,... more
The term "equity financing" refers to the sale of preferred stock, common stock, options or... more
An "equity fund" is a mutual fund that invests primarily in stocks. The value of the shares in the... more
"Equity holders" are those individuals or entities who hold portions of a firm's equity. In a... more
An "equity market" is a stock market for the trading of publicly held company stock and equity... more
The "Employee Retirement Income Security Act" or "ERISA" is the federal law that governs the... more
"Escrow" is a financial mechanism where property or money is held by a third party (the "escrow... more
An "escrow holdback" is an escrow mechanism used in merger and acquisition transactions where a... more
An "employee stock ownership plan" or "ESOP" is a company contributed trust fund that buys and... more
An "employee share ownership trust" or "ESOT" is a trust established by a corporation to facilitate... more
An "employee stock purchase plan" or "ESPP" is a company sponsored plan where participating... more
An "estate" often refers to the assets left behind by a person upon his or her death. The assets... more
"Estate planning" is the process where a person plans for the disposition of his or her assets and... more
An "estate tax" is a federal or state tax imposed on an individual's assets upon his or her... more
An "estoppel certificate" often refers to either (1) a document in which a borrower certifies the... more
"Exchange-traded funds" or "ETFs" represent a pool of stocks similar to an index mutual fund.... more
The "euro" is the common currency of many countries in the European Monetary Union (EMU). The... more
A "eurobond" is a debt obligation that has been issued in one country's currency but is traded... more
"Euronext" is a European stock exchange with subsidiaries in Belgium, France, Netherlands, Portugal... more
The "European Union" is an economic association of European countries whose goals are a single... more
"Ex-dividend" means "without dividend." The buyer of stock when they are quoted "ex-dividend" is... more
"Exchange-traded funds" or "ETFs" represent a pool of stocks similar to an index mutual fund.... more
An "excise tax" is a tax applied to the consumption of a particular type of good, such as alcohol... more
An "executor" is an individual or trust institution designated in a will to administer the estate... more
An "exemption" is a deduction allowed by law to reduce the amount of income that would otherwise be... more
"Exercise price" is the price at which an option, warrant, or futures contract can be exercised to... more
The term "expense" with respect to accounting/financial matters refers to an outgoing payment made... more
The "expense ratio" of a stock or asset mutual fund is the total percentage of fund assets used for... more
The term "expensed" refers to charging an expense to an expense account, and getting... more
"Experian" is one of the three major credit reporting agencies in the United States, formerly known... more
"Face value" is the nominal, or stated, value of a stock or bond. For bonds, face value is also... more
A "face-amount certificate" is a type of debt instrument (like a bond). A face-amount certificate... more
"Factor" often refers to a financial institution that will purchase a company's accounts... more
The "Free Application for Federal Student Aid" or "FAFSA," is the form that student borrowers fill... more
The "Fair Credit Reporting Act" or "FCRA" is a federal law that protects the consumers' rights... more
The "Fair Housing Act" or "FHA" is a federal law promoting fair housing throughout the United... more
"Fair market value" is an appraisal term for the "price" of a property that a seller should be able... more
A "fairness opinion" is an investment banker's professional opinion as to the "fairness" of a... more
A "family limited partnership" or "FLP" is a type of limited partnership in which family members... more
"Family of funds" is a group of mutual funds, each having a different objective such as one may be... more
"Fannie Mae" is a government sponsored entity that buys mortgages from lenders, bundles them into... more
The "Fair Credit Reporting Act" or "FCRA" is a federal law that protects the consumers' rights... more
The "Federal Deposit Insurance Corporation" or "FDIC" is a government corporation that insures... more
The "federal deficit" is the amount of money within the annual budget that the federal government... more
The "Federal Deposit Insurance Corporation" or "FDIC" is a government corporation that insures... more
The "federal gift tax" is the tax imposed by the federal government on the person making a gift,... more
The "Federal Home Loan Bank System" or "FHLB" is a corporation owned by thousands of member... more
The "Federal Insurance Contributions Act" or "FICA" is a U.S. federal law that established the... more
The "Federal Reserve Board" is the governing body of the Federal Reserve System, which is... more
"Fee simple" ownership of real estate is the most common form of real property ownership in the... more
The "Fair Housing Act" or "FHA" is a federal law promoting fair housing throughout the United... more
The "Federal Home Loan Bank System" or "FHLB" is a corporation owned by thousands of member... more
The "Federal Home Loan Mortgage Corporation" or "FHLMC", also known as Freddie Mac, is a... more
The "Federal Insurance Contributions Act" or "FICA" is a U.S. law that established the payroll tax... more
The "FICO score" is also known as an individual's credit score. FICO is an acronym for Fair... more
A "fiduciary" is a person, company, or an association that holds or manages assets for a another... more
"First In, First Out" or "FIFO" is an accounting method for inventory based on the premise that the... more
"Filing status" refers to certain tax categories used in connection with filing tax returns.... more
A "final prospectus" is a legal document that describes the offering of securities by a company,... more
"Finance charge" is the total cost of credit a customer must pay on a consumer loan, including... more
"Financial accounting" is the preparation of financial statements by the reporting and recording of... more
The "Financial Accounting Standards Board" or "FASB" is the entity composed of independent members... more
A "financial advisor" is someone who is proficient in the financial field and who can offer... more
A "financial asset" is any identifiable asset such as equipment, land, or buildings that can be... more
A "financial institution" is an organization that receives funds through deposits from corporations... more
"Financial instruments" are papers or documents, some in physical form and others in electronic... more
A "financial planner" is a trained professional who offers advice on how to plan out personal or... more
"Financial statements" typically refer to a company's profit and loss statement, balance sheet,... more
A "firm commitment underwriting" is typically an arrangement in which an underwriter agrees to sell... more
"First In, First Out" or "FIFO" is an accounting method for inventory based on the premise that the... more
"First mortgage" is a loan secured by a first lien on real property, given the lien holder priority... more
"Fiscal policy" refers to the federal tax and spending policies set by Congress and/or the... more
"Fiscal year" is a twelve month accounting statement for a business showing the financial results... more
"Fiscal year-end" is the last date of which a business' fiscal year ends. The accounting period... more
A "fixed rate loan" is a loan whose interest rate is fixed throughout the term of the loan.... more
A "fixed rate mortgage" is a real estate mortgage loan whose interest rate is fixed throughout the... more
A "flat tax" is a system that taxes everyone's income at the same tax rate no matter how large... more
A "flat yield curve" is the graphical representation of a situation in which there is little or no... more
"Flipping" is when shares of stock are purchased in an initial public offering (IPO) and then are... more
The "float" is the number of shares of a company that are publicly owned and tradable. Large... more
"Floating interest rate" is a rate that goes up and down with the condition of the general market... more
A "floating-rate note" is a debt security the interest rate of which is periodically adjusted. For... more
"Flood insurance" is insurance that is designed to protect a homeowner against losses caused by a... more
"FNMA" or "Fannie Mae" is a government sponsored entity that buys mortgages from lenders, bundles... more
A "follow-on offering" is a type of secondary offering of a stock in which a company sells... more
"Forbearance" is a postponement of monthly payments for a limited amount of time in which a... more
"Force majeure" is a contract clause that excuses one or both parties from fulfilling all or part... more
"Foreclosure" is the process by which a holder of a mortgage or deed of trust forces a sale of the... more
"Foreign currency" is money of another... more
"Form 10-K" is the SEC form required to be filed by publicly held companies that provide annual... more
"Form 10-Q" is the form required by the SEC to be filed by public companies on a quarterly basis,... more
"Form 1099-DIV" is the IRS form usually sent by financial institutions to investors and to the IRS... more
"Form 1099-Q" is an IRS form used to report disbursements from a Coverdell Education Savings... more
"Form 1099-R" is a form issued by the Internal Revenue Service, used to report individual... more
"Form 3" is the form required by the SEC from all holders of 10% or more of a public company's... more
"Form 4" is the form required by the SEC for a change in the holdings of an individual owning 10%... more
"Form 5" is an SEC form that must be filed annually by directors and officers of a public company,... more
"Form 8-K" is an SEC filing that a publicly-traded company must file to report any material changes... more
A "forward contract" is a contract in which a seller and buyer will privately agree upon delivery... more
A "fractional share" is a stock that is less than one full share. This usually happens when an... more
A "franchise" is a business that has been established or operates under the authorization to sell... more
A "franchise agreement" is a contract that is between a franchisor and a franchisee. This contract... more
"Fraudster" refers to someone who commits fraud of some kind, such as Internet fraud or securities... more
The term "fraudulent conveyance" (or fraudulent transfer) refers to the transfer of valuable assets... more
The "Federal Home Loan Mortgage Corporation" or "FHLMC", also known as Freddie Mac, is a... more
The "Free Application for Federal Student Aid" or "FAFSA," is the form that student borrowers must... more
In a financial services company, the front office typically includes corporate finance and sales... more
"Front-end load" is one of three types of sales charges imposed by mutual funds that charge fees:... more
A "front-end ratio" is the percentage of a person's monthly income allotted to mortgage... more
A "full service broker" is a securities broker who provides clients a broad selection of fincial... more
An offering of shares of securities is said to be "fully subscribed" when all the shares have been... more
A "fund manager" is the person who oversees the investment money invested in a specific mutual... more
A "fund of funds" is a mutual fund, hedge fund, or other investment fund that invests in other... more
"Futures" is a term used to designate contracts covering the sale of financial instruments or... more
A "futures contract" is a legally binding agreement to buy or sell a commodity or financial... more
"GAAP" or "Generally Accepted Accounting Principles" are the overall rules and procedures that... more
"Gain" is the increase in value of an investment or asset. It can be contrasted with loss, a... more
"Gambling income" is money received as the result of playing games of chance or wagering on events,... more
"Gambling loss" is money lost as the result of playing games of chance or wagering on events, such... more
"Garnishment" refers generally to a legal process undertaken by a creditor to take a portion of a... more
A "global depositary receipt" or "GDR" is a financial instrument that is held in a bank in one... more
A "general ledger" is the accounting records of a business that set forth all of its financial... more
A "general obligation bond" or "GO Bond" is a municipal bond (a debt investment) that is backed by... more
A "general partner" is a member of a general or limited partnership and who has unlimited liability... more
A general partnership is a form of business entity in which all partners have unlimited liability... more
A "general power of attorney" is a legal document that allows one party to act as an agent on... more
"Generally Accepted Accounting Principles" or "GAAP" are the overall rules and procedures that... more
A "generation-skipping trust" is a form of legal trust that designates that a person's assets... more
A "GIC" or "guaranteed investment contract" is a debt instrument issued by an insurance company in... more
A "gift tax" is a tax assessed on the gift giver of an asset or property. Federal law provides for... more
The Government National Mortgage Association (GNMA), also called "Ginnie Mae", is a U.S. government... more
A "global bond" is a bond issued by a company in one country and sold on the exchange in another... more
A "global depositary receipt" or "GDR" is a financial instrument that is held in a bank in one... more
A "global fund" is a mutual fund that holds a portfolio of securities from around the world. Global... more
The Government National Mortgage Association (GNMA), also called "Ginnie Mae", is a U.S. government... more
A "GO bond" or "general obligation bond" is a municipal bond (a debt instrument) that is backed by... more
"Going private" refers to the act of a public company being bought by a group of private investors... more
"Going public" or "IPO" refers to a private company first offering its shares to the... more
A "golden parachute" is a term used to describe a contract clause in a company executive's... more
"Government obligations" are U.S. government-backed debt instruments, such as Treasury bonds,... more
"Grace period" typically refers to the time period specified in a loan agreement or credit card... more
A "grantor" can be the person (individual or corporation) that makes a grant to another person. For... more
A "grantor retained annuity trust" or "GRAT" is a trust with a set expiration date into which the... more
A "Grantor Retained Income Trust" or "GRIT" is a trust where the grantor transfers property to a... more
A "GRAT" or "grantor retained annuity trust" is a trust with a set expiration date into which the... more
The "greater fool theory" holds that a person can buy any investment, whether overpriced or not,... more
"Greenmail" is the practice of acquiring a large portion of the shares of a company and then... more
A "greenshoe option," also called an over-allotment option, gives the underwriter (usually an... more
A "Grantor Retained Income Trust" or "GRIT" is a trust where the grantor transfers property to a... more
"Gross income" typically refers to a person's taxable income received, including wages, tips,... more
In a "gross lease," the owner of the property--the landlord--is responsible for most if not all... more
"Gross margin" is the ratio of gross profit to net sales, expressed as a percentage. It is... more
"Gross profit" is a company's net sales minus the cost of the goods sold. The revenue is... more
"Gross profit margin" is the ratio of a company's gross profit to its net sales. Gross profit... more
"Gross sales" is the total value of sales before deducting discounts and returns. The figure... more
The "gross spread" is the price at which a security is offered to the public minus the price at... more
A "ground lease", also referred to as a land lease, is a lease agreement in which the lessee leases... more
A "growth company" is a company with cash flows or earnings that appreciate quickly relative to the... more
A "growth fund" is a mutual fund that invests primarily in growth... more
A growth stock is stock in a company with cash flows or earnings that appreciate (or are expected... more
A "guaranteed investment contract" or "GIC" is a debt instrument issued by an insurance company in... more
A "guardian" is a person or institution with the legal responsibility to care for a minor or some... more
"Gun jumping" is the illegal practice of selling shares of stock or soliciting offers for shares... more
A "health savings account" or "HSA" is an account, funded by an individual or his or her employer,... more
A "hedge" is an investment that reduces an investor's risk from another investment. The hedge... more
A "hedge fund" is a private investment fund that invests in stocks, and may employ a variety of... more
"Hedging" is the investment strategy of using hedges to reduce the risk of adverse price movement... more
An "heir" is someone who is legally entitled to receive a person's assets when that person... more
A "high yield bond" is a bond with a relatively high interest rate (and thus a relatively high... more
A "high-deductible health plan" or "HDHP" is a health insurance plan with a relatively high... more
A "high-grade bond" is a bond with an AAA or AA rating in Standard & Poor's or Moody's... more
A "high-tech stock" (or simply "tech stock") is stock in a company in the technology sector. Such... more
A "high-yield fund" is a mutual fund that primarily invests in lower rated bonds that have... more
"Hitting the bid" occurs when a dealer of stocks agrees to sell shares of the stock for another... more
A "hobby loss" is a financial loss (as opposed to a gain) that an individual incurs as the result... more
A "hold recommendation" is an analyst's opinion that can loosely be interpreted to mean that a... more
A "holdback escrow" is an escrow mechanism used in merger and acquisition transactions where a... more
The "holder of record" is the person (an individual or entity) who is the registered owner of a... more
A "holding period" is the period of time an asset, such as an investment, is held by an owner... more
"Home equity" is the fair market value of a home minus the total amounts of any mortgages on the... more
A "home equity line of credit" is a line of credit allowing the borrower to draw down loans from... more
A "home equity loan" is loan or line of credit that is secured by the borrower's equity in his... more
A "home office expense" is an IRS income tax deduction that allows people who spend at least half... more
The term "home warranty" can denote an agreement between a home buyer and home seller as to the... more
A "homeowners' association" is a corporation or other type of organization consisting of... more
"Homeowner's insurance" is an insurance product designed to indemnify a homeowner for covered... more
A "hostile takeover" refers to an acquisition of all or a significant number of the shares of a... more
A "hot IPO" is a highly anticipated initial public offering (IPO) of shares of stock. The IPO is... more
A "hot issue" is a stock that is in high demand. The term "hot issue" generally applies to a hot... more
A "housing bond" is a debt security issued by a municipal government to finance construction of... more
The "housing expense ratio" is a figure that lenders use to help determine the amount of a home... more
The "housing market index" is a statistical model used to track the demand for new homes. It is... more
"Housing starts" refers to the number of home constructions begun during a certain time period.... more
An "HSA" or "health savings account" is an account, funded by an individual or his or her employer,... more
"HUD" is the U.S. Department of Housing and Urban Development, a federal agency. HUD was... more
The "HUD-1 Form," also called the "closing sheet" or "settlement sheet" is a detailed accounting of... more
The "hurdle rate" is the rate of return on an investment below which a person will not invest. In... more
"I-Bonds" or "inflation bonds" are U.S. Treasury savings bonds with indexed to try to take account... more
"Identity theft" is the deliberate assumption of another person's identity, usually to gain... more
An "international depository receipt" or "IDR" is a certificate issued by a bank as evidence of... more
The "International Monetary Market" or "IMM" is a centralized market in Chicago where currency,... more
"Impaired credit" refers to the situation where a company's or an individual's financial... more
"Imputed interest" is interest that is considered to have been paid although no actual payment was... more
The phrase "in the money option" refers to a stock option where the market price of the underlying... more
An "incentive stock option" or "ISO" is a stock option that has met certain requirements specified... more
The term "income" generally refers to the money earned by individuals or companies. For... more
An "income bond" is a bond that only pays interest if the corporation has enough earnings. These... more
An "income fund" is a mutual fund whose goal is to provide an income from investments, typically in... more
"Income property" refers to real estate purchased for the purpose of generating... more
"Income statement" is an accounting statement showing revenues, expenses, and net income of a... more
"Income tax" is a tax based on income earned by an individual or company. The taxpayer typically... more
The term "income verification" refers to the process whereby a lender confirms the income of a... more
"Incorporation" is a legal process through which a corporation is created. Usually, a corporation... more
Indemnification is the legal right to be reimbursed pursuant to an indemnity for damage or loss... more
"Indemnity" is a contract whereby one party agrees to compensate a second party for any damages or... more
An "indenture" is a legal document setting forth the specifics of a bond issuance, and setting... more
An "independent contractor agreement" is a contract between two parties where the "contractor"... more
An "index fund" is a mutual fund that is designed to match the returns of a particular stock market... more
An "index option" refers to call and put option contracts traded on an underlying index, such as... more
An "individual retirement account" or "IRA" is a federally sanctioned retirement account for... more
"Inflation" refers to a general increase in the prices of goods and services. Over time, inflation... more
"Inflation bonds" or "I-Bonds" are U.S. Treasury savings bonds indexed to try to take account of... more
"Inheritance" refers to the passing of assets and liabilities to heirs or persons identified in a... more
An "inheritance tax" is a tax based on the value of property in an estate of a deceased individual.... more
An "initial public offering" or "IPO" is the process of a private company first selling its stock... more
The term "insider information" refers to relevant material information about a publicly traded... more
"Insider trading" is the buying or selling of a security by a person (e.g., an officer, director,... more
"Insolvency" describes a financial condition experienced by a person or business when assets no... more
An "installment account" is an account that has a set regular payment, typically every month. Auto... more
An "installment debt" is a debt that has a set regular payment, typically every month. Auto loans... more
An "installment sale" is a transaction in which the sale price is paid in installments. The term... more
"Instinet" is a stock exchange allowing members to display bid and offer quotes for stocks, and to... more
An "institutional fund" is a type of mutual fund catering primarily to institutional investors,... more
An "institutional investor" is a financial institution such as a mutual fund, bank, insurance... more
"Institutional shares" refer to a class mutual fund shares that are available to large... more
"Insurance" protects against loss or damage, the insured makes periodic payments to an insurer, and... more
An "insurance agent" is a person who is authorized by an insurance company to sell... more
An "insurance broker" is a professional broker who represents the interest of the buyer in... more
An "insurance claim" is a claim for reimbursement of a loss or damage pursuant to the coverage... more
An "insurance policy" is a contract providing for coverage of loss or damage to person or property,... more
An "insurance premium" is the payment made by an insured under the terms of an insurance... more
An "insured" is the person(s) or property covered by an insurance... more
An "inter vivos trust" is a trust that an individual establishes while he or she is alive, enabling... more
"Interest" is the price paid for borrowing money. For example, a 5% annual interest rate on a $1000... more
"Interest deduction" is an interest expense that is allowed as a tax deduction for tax purposes.... more
An "interest only mortgage" is a real estate loan in which only the interest is payable at regular... more
An "interest rate" is the amount of interest charged, usually characterized as a percentage of the... more
An "interest rate cap" is an interest rate ceiling in a loan where the interest rate can not exceed... more
"Interest rate options" are option contracts that are based upon underlying debt instruments. ... more
An "interest-only loan" is a loan in which payment of principal is deferred until maturity, and the... more
An "interest-only mortgage" is a mortgage in which payment of principal is deferred until maturity,... more
The "internal rate of return" or "IRR" is the discount rate often used in capital budgeting to... more
The "Internal Revenue Code" contains the various statutes that make up the U.S. federal... more
The "Internal Revenue Service" or "IRS" is the US Treasury Department agency responsible for... more
"International bonds" are bonds that are issued by an entity or company in a country where they are... more
An "international depository receipt" or "IDR" is a certificate issued by a bank as evidence of... more
An "international fund" is a mutual fund investing in securities of countries other than the United... more
The "International Monetary Market" or "IMM" is a centralized market in Chicago where currency,... more
"Intestacy" is the situation where a person dies without having made a valid will. Intestacy law... more
"Intestate" refers to dying without a will or without a... more
The term "intraday" means "within the day." The term is often used when stating the high and low... more
An "intrastate offering" is an offering of securities solely to residents of one state, structured... more
An "inverted yield curve" is the unusual situation where long term debt instruments have a lower... more
An "investment bank" is a financial services company that gives advice to companies, assists them... more
An "investment banker" is a person with an investment bank that gives advice to companies, assists... more
An "investment company" is a company (corporation, LLC, trust, or partnership) that is primarily... more
The "Investment Company Act of 1940" is the federal law that regulates investment companies... more
"Investment grade bonds" are high-quality bonds rated as investment grade by one of the credit... more
"Investment income" is income that is generated from securities and other investments, such as... more
"Investment real estate" is real property held for investment, as opposed to property used for... more
An "investor" is someone who commits capital in order to gain financial returns from the... more
An "investor rights agreement" is a contract typically used by venture capitalists in connection... more
An "invoice" is a bill or list of charges for services rendered or products sold. For example, an... more
An "initial public offering" or "IPO" is the process of a private company first selling its stock... more
An "IPO lock-up" is a contract with certain investors in a company in connection with its IPO. A... more
An "individual retirement account" or "IRA" is a federally sanctioned retirement account for... more
The "internal rate of return" or "IRR" is the discount rate often used in capital budgeting to... more
The term "irrevocable beneficiary" often refers to a beneficiary whose rights to the proceeds of an... more
An "irrevocable letter of credit" is a letter of credit that can not be cancelled by the issuing... more
An "irrevocable proxy" is an authorization to a person to act on behalf of another party with... more
An "irrevocable trust' is a trust that can not be amended or... more
"IRS" stands for the Internal Revenue Service, the US Treasury Department agency responsible for... more
An "incentive stock option" or "ISO" is a stock option that meets certain requirements specified by... more
An "issuer" is an entity, such as a corporation, municipality, or government, that issues or... more
"Itemized deductions" are amounts paid by an individual taxpayer for personal and certain business... more
A "joint account" is an account shared by two or more... more
The term "joint and several" generally refers to a liability which allows a creditor to sue any one... more
A "joint tax return" is a tax return filed by two people, typically... more
"Joint tenants in common" refers to the ownership of property by two or more individuals. A... more
A "joint tenancy with right of survivorship" or "JTWROS" refers to the ownership of property by two... more
A "joint venture" is an arrangement by two or more parties to pursue a particular business... more
A "joint tenancy with right of survivorship" or "JTWROS" refers to the ownership of property by two... more
A "judgment", in the legal context, is the decision of a court upon the respective rights and... more
A "jumbo CD" is a certificate of deposit with a minimum denomination of $100,000. Jumbo CDs are... more
A "jumbo loan" or "jumbo mortgage" is a mortgage loan that exceeds the limits set by Fannie Mae... more
A "jumbo mortgage" or "jumbo loan" is a mortgage loan that exceeds the limits set by Fannie Mae... more
A "junior mortgage" is a mortgage loan whose security interest is subordinate to a senior... more
A "junior security" is a security that has a lower-priority claim on a company's assets and... more
A "junk bond" or "high yield bond" is a bond with a speculative investment rating from the credit... more
A "Keogh Plan" is a type of pension account in which taxes are deferred, for those who are... more
"Key man insurance" is a life insurance policy purchased by a company to insure the life of a key... more
The "know your customer" concept applies to securities brokers, in that an adviser who recommends... more
"Land" is real property, which consists of the surface of the earth, including the sub surface and... more
"Land value" refers to the actual value of the land on which a property sits. This does not include... more
A "landlord" is an owner of real property who rents all or a portion of the property to a tenant.... more
"Large cap stocks" typically refers to stocks of publicly traded companies who have a market... more
"Last in, first out" or "LIFO" is an accounting method based on the premise that the newest... more
The term "last trading day" refers to the last day that an options or futures or contract may trade... more
A "late charge" is a fee charged by a lender or creditor when a payment owed is made after the due... more
A "late fee" is a fee charged by a lender or creditor when a payment owed is made after the due... more
A "late payment" is a payment that is made after the date that it was due. Late charges are... more
A "leveraged buy out" or "LBO" is a transaction typically involving a public corporation being... more
A "lease" is a contract providing for the rental of property for a specified term with designated... more
A "leaseback" is a business transaction whereby an asset is simultaneously sold and leased back to... more
"Leasehold improvements" are expenses incurred for the permanent improvements to rented facilities.... more
A "lender" is an individual, entity, or financial institution, who provides the funds for a loan.... more
A "lessee" is a person or entity that leases real or personal property from the owner of that... more
A "lessor" is an owner of real or personal property who leases that property to a user of the... more
A "letter of credit" is a form of guarantee of payment by a bank or financial institution. Letters... more
A "letter of intent" is a document where two or more parties set forth an indication of interest in... more
The term "letter stock" refers to stock that has not been registered with the Securities and... more
"Leverage" is the process of incurring debt in order to continue or expand the scope of a business.... more
A "leveraged buy out" or "LBO" is a transaction typically involving a public corporation being... more
A "leveraged lease" is a lease where the lessor purchases the asset with part of the consideration... more
"Liability" generally refers to a legal responsibility, obligation, or debt. Examples of... more
The "London Interbank Offered Rate" or "LIBOR" is the rate of interest that major international... more
A "license agreement" gives a person or entity the right to use someone else's assets. A... more
A "lien" is a security interest in an asset or property, protecting a lender or creditor's loan... more
"Life insurance" refers to a contract policy that pays a monetary sum to the insured person's... more
"Last in, first out" or "LIFO" is an accounting method based on the premise that the newest... more
"Like-kind property" is a term used in the context of tax deferred exchanges of real property under... more
A "limit order" refers to an order to buy a stock at or below a designated price, or to sell a... more
A "limited liability company" or "LLC" is a form of business organization authorized by state law.... more
A "limited partnership" is an entity formed under state law that includes one or more general... more
A "limited partnership agreement" is a contract among the general and limited partners of a limited... more
A "limited warranty" is a contractual promise by a manufacturer or seller of goods or services,... more
A "line of credit" is a pre-established loan agreement between a bank or financial institution and... more
A "Liquid Yield Option Note" or "LYON" is a zero-coupon bond issued by a corporation, which also... more
"Liquidate" refers to the process of selling securities or assets to obtain cash. For example, one... more
The term "liquidation" in connection with finance and business often has two meanings: (1)... more
"Liquidation rights" refers to the rights of a security holder in the event of a liquidation of a... more
A "listed option" is a put or call option that is traded on a national options exchange. Listed... more
A "listed security" is a stock or bond that has been authorized for trading on a stock exchange.... more
A "listed stock" is a stock that has been approved and listed for trading on a stock... more
"Listing broker" refers to the real estate broker who is responsible for the listing of a property... more
"Listing requirements" are the rules of eligibility that a corporation must meet before its stock... more
A "living trust" is a trust that an individual establishes while he or she is alive, enabling the... more
A "living will" is a legal document setting forth the kind of medical care a person wants or... more
A "limited liability company" or "LLC" is a form of business organization authorized by state law.... more
A "load fund" is a mutual fund that charges a fee for either purchase or sales of its... more
A "load mutual fund" is a mutual fund that charges a fee for either purchase or sales of its... more
A "loan" is an arrangement where a sum of money is borrowed from one party (the "lender") with a... more
A "loan commitment" is a written promise by a lender to make a loan under specified terms and... more
A "loan officer" is a representative of a lending institution who is empowered to act on behalf of... more
A "loan origination fee" is a fee charged by a lender for making a loan. Such a fee is often... more
A "loan processing fee" is a fee charged by some lenders in order to process a loan... more
A "loan syndication" refers to a group of banks or other lenders coming together to make one large... more
A "loan to value ratio" is the ratio of money borrowed on a property to the property's fair... more
A "lock-in" refers to a commitment from a lender guaranteeing g a specified interest rate for a... more
A "lock-up agreement" is a contractual commitment between the underwriters and insiders of a... more
An "LOI" or "letter of intent" is a document where two or more parties set forth an indication of... more
The "London Interbank Offered Rate" or "LIBOR" is the rate of interest that major international... more
A "long bond" generally refers to a 30 year U.S.... more
A "long position" is an investment in a security where the investor owns the security and expects... more
"Long capital term gain" is the profit on the sale of the capital asset (such as stocks or real... more
"Long term gain" is the profit on the sale of the capital asset (such as stocks or real estate)... more
A "low documentation loan" is a mortgage that requires only minimal verification of income and... more
A "lump sum distribution" is a distribution from a 401(k) retirement plan that includes the entire... more
A "Liquid Yield Option Note" or "LYON" is a zero-coupon bond issued by a corporation, which also... more
"Make a market," in reference to securities, is where securities broker-dealers quote prices at... more
A "managed account" is a securities portfolio managed by a professional investment... more
The term "managed money" refers to the situation where an investor uses an investment professional... more
A "management buyout" or "MBO" is a leveraged buyout (LBO) in which the acquirer is led by the... more
A "managing underwriter" is the leading investment banking firm in an underwriting group and acts... more
A "margin account" is a securities brokerage account that can hold deposited cash and securities,... more
A "margin call" is the demand by a securities brokerage firm to a customer for additional funds or... more
The "marginal tax rate" is the additional tax a taxpayer would pay if he or she earned one more... more
The "marital deduction" is the deduction allowed by the Internal Revenue Code for estate and gift... more
"Marital property" generally refers to property earned or acquired by either spouse during the... more
The term "mark to market" refers to a procedure to adjust the carrying value of a security or... more
"Market capitalization" is the total value of all corporate shares outstanding. For public... more
"Marketable securities" are stocks, bonds or other securities that can be quickly converted to cash... more
A "master limited partnership" or "MLP" is a publicly traded limited partnership, such as oil and... more
"MasterCard" refers to MasterCard Incorporated, an organization owned by the public and financial... more
In reference to finance transactions, "maturity" is the date on which a loan or bond becomes due... more
"Maturity date" typically refers to the date the principal amount of a bond, loan or other debt... more
A "management buyout" or "MBO" is a leveraged buyout (LBO) in which the acquirer is led by the... more
"Medicaid" is a program sponsored by the federal government and administered by states that is... more
"Medicare" refers to a program of health insurance for persons over 65, some disabled people under... more
A "medium term note" or "MTN" is a debt obligation with a typical term of 5-10... more
"The Merc" is shorthand for the Chicago Mercantile... more
A "merger" is the combination of one company with another, typically through an acquisition. In a... more
A "merger account" is an account where stocks can be purchased for cash and a loan. The loan is... more
A "merger agreement" is a contract whereby one company merges its business with another company.... more
"Micro cap stock" typically refers to the stock issued by companies having a market capitalization... more
A "mid-cap stock" typically refers to the stock issued by companies whose market capitalization is... more
In a financial services company, the middle office typically includes risk management, calculation... more
A midnight dividend is a dividend paid just before a company goes public, typically funded by debt,... more
"Mileage allowance" typically refers to the fixed mileage limit under a car lease. If the limit is... more
A "master limited partnership" or "MLP" is a publicly traded limited partnership, such as oil and... more
The "MLS" or "Multiple Listing Service" is a service created and run by real estate professionals... more
"Momentum investing" refers to the strategy of buying stocks that have a strong upward price... more
"Money management" refers to the process of budgeting, saving, or investing of the cash of an... more
A "money manager" is a professional who is responsible for a portfolio of securities. In return for... more
A "money market account" is an account (such as a bank account or brokerage account) that pays... more
A "money market fund" is a mutual fund that invests only in short term securities, such as... more
A "money order" is a financial instrument backed by a deposit of cash, and which can easily be... more
"Moody's ratings" are opinions of the credit rating agency Moody's Corporation of the... more
A "mortgage" is a loan secured by specified real property, and which requires the borrower to make... more
A "mortgage banker" is an entity or individual that originates mortgage loans and sells them to... more
A "mortgage broker" is an entity or individual that places mortgage loans with lenders, but does... more
The "mortgage interest deduction" is the federal tax deduction for interest paid on a mortgage used... more
The phrase "mortgage interest expense" refers to interest paid on a mortgage loan that is fully... more
"Mortgage life insurance" is a life insurance policy that pays off the remaining balance of the... more
A "mortgage rate" is the interest rate on a... more
A "mortgage refinance" is a new mortgage loan used by the borrower to pay off an old mortgage loan.... more
A "mortgage REIT" is a real estate investment trust that invests in loans secured by real estate,... more
"Mortgage backed securities" are securities backed by a pool of mortgage... more
The "mortgagee" refers to the lender of funds in connection with a mortgage loan. The borrower is... more
A "mortgagor" is the borrower of a loan secured by real... more
An "MTN" or "medium term note" is a debt obligation with a typical term of 5-10... more
The "Multiple Listing Service" or "MLS" is a service created and run by real estate professionals... more
"Municipal bonds" are bonds issued by state or local governmental units. Interest on the bonds... more
A "municipal bond fund" is a mutual fund that invests primarily in bonds and debt securities issued... more
"Municipal bond insurance" is an insurance policy which guarantees payment on municipal bonds in... more
A "mutual fund" is an investment pool managed by a professional investment company. A mutual fund... more
A "naked call" is the writing (selling) of a call option without ownership of the underlying... more
A "naked option" is the writing (selling) of a call or put option without ownership of the... more
The term "naked position" refers to a securities investment that is not hedged from market risk. ... more
A "naked put" is the writing (selling) of a put option without ownership of the underlying... more
The "National Association of Securities Dealers" or the "NASD" is a nonprofit, self-regulatory... more
"NASDAQ" or the "National Association of Securities Dealers Automatic Quotation System" is an... more
The "NASDAQ 100 Index" is an index that tracks the 100 largest stocks listed by the Nasdaq... more
The "NASDAQ Composite Index" is a market-capitalization weighted index of the more than 5,000... more
The "NASDAQ National Market" is a market that consists of over ,3000 companies that have an... more
The "National Association of Securities Dealers" or the "NASD" is a nonprofit, self-regulatory... more
The term "national debt" refers to the debt owed by the U.S. government, including T-bills, bonds,... more
"NAV" stands for "net asset value." In connection with reference to mutual funds, NAV is typically... more
"Negative amortization" refers to a loan repayment schedule where the outstanding principal balance... more
"Negative cash flow" refers to a situation where a business is spending more than it is... more
"Net Asset Value" or "NAV", in connection with reference to mutual funds, is typically defined to... more
"Net income" typically refers to a company's revenues minus its expenses. Net income is also... more
A "net lease" is a lease under which the lessee is responsible for all property taxes, insurance,... more
The term "net loss" refers to the financial situation where the total expenses of an enterprise... more
A "net operating loss" or "NOL" is a tax term for the excess of business expenses over income in a... more
The "New York Stock Exchange" or "NYSE" is one of the major stock markets in the United States. The... more
"Nikkei" refers to the main index for the Tokyo stock... more
A "no documentation loan" is a mortgage where the applicant provides minimal information and... more
A "no-load fund" is a mutual fund that does not charge a sales commission, although it can charge... more
"No par value stock" is stock without a designation of par value in the company's charter. ... more
A "net operating loss" or "NOL" is a tax term for the excess of business expenses over income in a... more
A "non-competition agreement" is a contract between one party who agrees not to compete with the... more
A "non-disclosure agreement" is a contract that contemplates one party disclosing proprietary or... more
A "non-qualified stock option" or "NSO" is a stock option which does not qualify for the special... more
The term "nontaxable dividends" refers to dividends that are not taxed to the recipient. An... more
A "not sufficient funds check" or "NSF" is a check drawn on a financial institution with... more
A "NSF" is a check drawn on a financial institution with insufficient funds in an account to cover... more
A "non-qualified stock option" or "NSO" is a stock option which does not qualify for the special... more
The "New York Stock Exchange" or "NYSE" is one of the major stock markets in the United States. The... more
The "NYSE Composite Index" is a market value weighted index that tracks all of the common stocks on... more
An "obligor" is the person or entity required to perform on a debt or obligation. In loan... more
The "Options Clearing Corporation" or "OCC" is the world's largest equity derivatives clearing... more
An "odd lot" is a trading order for less than 100 shares of... more
"Off balance sheet financing" refers to a form of financing which is structured so as to not... more
The term "offering" refers to the offering of an issue of securities or bonds presented for sale. ... more
An "offering circular" is the document substantially similar to a prospectus used for securities... more
An "offering memorandum" is a document setting forth the terms of a private placement securities... more
An "office lease" is a legal contract where one party (typically referred to as the "landlord" or... more
An "official statement" is a securities document describing the offering of a municipal security,... more
An "original issue discount" or "OID" refers to a bond or other debt security that is issued at... more
An "online broker" is a stockbroker who has an online system for customers to buy and sell... more
An "online contract" is a contract that governs the use of a Web site by viewers of the site. The... more
An "open end fund" or "open end mutual fund" is the most common type of mutual fund. Investors may... more
An "open end mutual fund" or "open end fund" is the most common type of mutual fund. Investors may... more
An "opening bell" is a bell that rings to signify the day's start of trading on a stock... more
An "operating lease" is a lease that is not a capital or finance lease. An operating lease usually... more
"Operating margin" is the ratio of operating income divided by sales revenue, expressed as a... more
An "option" gives the holder of the option the right, but not the obligation, to buy or sell an... more
An "option agreement" is a contract giving the option holder the right to acquire an asset on... more
"Options backdating" refers to the granting an option that is dated prior to the date that the... more
The "Options Clearing Corporation" or "OCC" is the world's largest equity derivatives clearing... more
The term "options contract" refers to one option contract representing 100 shares of the underlying... more
The phrase "ordinary and necessary expenses" is a tax term relating to what is allowable as a tax... more
An "ordinary annuity" refers to a series of equal payments over a fixed number of... more
"Ordinary income" is income subject to taxation at full or ordinary rates rather than at favorable... more
An "ordinary loss" refers to a loss for tax purposes that is not a capital loss and that is fully... more
An "original issue discount" or "OID" refers to a bond or other debt security that is issued at... more
"Origination" in the loan context refers to a process whereby the lender or its agent handles the... more
The term "origination fee" refers to a fee charged by a lender in connection with making a loan. ... more
The term "origination points" refers to a fee charged by a lender in connection with making a loan.... more
The term "OTC" or "over-the-counter" refers to a market in which security transactions are... more
The "OTC Bulletin Board" or "Over-the-Counter Bulletin Board" refers to an electronic trading... more
The phrase "out of the money" refers to either (1) a call option whose exercise price is above the... more
"Out-of-pocket expenses" refers to direct outlays of cash. Companies will often reimburse... more
The term "outsourcing" refers to the concept of paying an outside company to handle internal... more
"Outstanding shares" are shares of a corporation that are issued and held by... more
The term "OTC" or "over-the-counter" refers to a market in which security transactions are... more
The "OTC Bulletin Board" or "Over-the-Counter Bulletin Board" refers to an electronic trading... more
The term "overallotment option" refers to the right of the underwriter in a registered public... more
The terms "overbought" or "oversold generally refer to stocks that are either viewed as priced too... more
An "overdraft" is a check written without sufficient funds to back it up. Such a check is also... more
"Overdraft protection" is a service that allows a checking account owner to use a savings account... more
"Owner financing" refers to a real estate purchase transaction in which the seller provides all or... more
"P & L statement" generally refers to the profit and loss (or income) statement of a... more
A "P/E ratio" refers to a corporation's stock price divided by the past annual earnings... more
"Paid-in capital" refers to the capital a corporation receives from investors in exchange for the... more
"Paid-up capital" refers to the amount of capital contributed by stockholders into a... more
"Paper gain" refers to unrealized gain on securities based on a comparison of current market price... more
"Paper loss" refers to unrealized loss on securities based on a comparison of current market price... more
"Paper profit" refers to unrealized gain on securities based on a comparison of current market... more
The term "par" in connection with finance transactions refers to the nominal or face value of a... more
A "parent company" refers to a company that can control a majority-owned or 100% owned subsidiary... more
"Pari passu" is a Latin term meaning "equal in all respects". In finance transactions, pari passu... more
A "partnership" generally refers to a business enterprise between two or more persons who agree to... more
A "partnership agreement" is a contract among persons or entities (known as partners) that spells... more
"Passive income" for tax purposes means income from business activities in which the taxpayer does... more
"Passive loss" refers to loss from activities in which a taxpayer does not materially participate,... more
A "patent assignment" is a contract transferring (assigning) ownership of a patent to a third... more
A "pay-in-kind security" is a security (such as bonds or preferred stock) in which the interest or... more
A "payday loan" typically refers to a small, short-term loan without a credit check that is... more
A "paying agent" is an agent who makes principal and interest payments to holders of bonds on... more
"Payment in kind bonds" refer to bonds whose interest is paid through the issuance of additional... more
A "payroll tax" is tax in which employers are required to withhold from employees' paychecks.... more
The "PBGC" or "Pension Benefit Guaranty Corporation" is the federal body functioning under the... more
Generally, a "penny stock" refers to a stock traded over-the-counter at less than $1 a... more
A "pension" is a sum of money paid regularly usually as a retirement... more
The "PBGC" or "Pension Benefit Guaranty Corporation" is the federal body functioning under the... more
A "pension fund" is a fund set up to pay pension benefits of a company's workers after... more
A "pension plan" refers to a plan established and maintained by an employer or union to provide for... more
The "periodic rate" generally refers to the monthly effective interest rate on a credit card. For... more
The term "personal finance" generally refers to financial planning for an individual or family.... more
A "personal guarantee" is contract whereby an individual or entity takes responsibility for payment... more
The term "personal income" refers to income received by individuals, from all sources including... more
"Personal property" refers to property that is not real property. Examples of personal property... more
A "philanthropist" is an individual who practices philanthropy, i.e., the practice of donating... more
"Philanthropy" is the practice of donating personal wealth to charitable or similar... more
"Phishing" is a form of Internet or email fraud that aims to steal valuable user and financial... more
A "piggy back registration" is where a holder of shares of a corporation is included in a public... more
"PIK" stands for "pay-in-kind" and refers to interest or dividends on bonds or preferred stock,... more
"PIK dividends" generally refer to dividends paid on preferred stock that are paid through the... more
"Pink sheets" refers to an electronic quotation system that displays quotes from dealers for a... more
"Private mortgage insurance" or "PMI" is an insurance policy protecting the holder of a mortgage... more
"Points" in connection with mortgage loans refers to the loan origination fee charged by lenders. A... more
A "poison pill" often refers to provision in a corporation's articles of incorporation or... more
"Policyholder" typically refers to the holder of an insurance... more
"Ponzi schemes" or "pyramid schemes" are illegal fraudulent schemes in which people are recruited... more
A "portfolio" is a collection of assets held by an investor, such as bonds, stocks, options, and... more
"Portfolio income" refers to income from such sources as dividends, interest, capital gains, and... more
"Portfolio management" is the process of managing money and investments, with the goal of... more
A "portfolio manager" is a professional who actively manages an investment portfolio (stocks,... more
A "power of attorney" is a written legal document that authorizes a person to act as an agent on... more
A "pre-approval letter" is a document from a mortgage lender that indicates a potential home buyer... more
A "pre-emptive right" is the right of a shareholder to purchase shares in future offerings of the... more
A "pre-incorporation agreement" is a contract between two or more parties that sets forth that a... more
"Predatory lending" refers to lending practices that are unfair and abusive. For example, a lender... more
"Preferred stock" is a security of a corporation that gives the holder a claim, prior to the common... more
A "preferred stock purchase agreement" is a contract where an investor purchases preferred stock in... more
A "preliminary prospectus" is a preliminary document used in connection with a proposed public... more
The term "premium" can have multiple meaning, including (1) the payments made under an insurance... more
A "prenuptial agreement" is a contract entered into by two people prior to marriage. Prenuptial... more
A "prepackaged bankruptcy" is where a company and its creditors agree to a plan of reorganization... more
"Prepaid interest" is interest paid in advance of its due date. Prepaid interest is charged in... more
"Prepayment" refers to the payment of all or a portion of a loan before its maturity date. Some... more
A "prepayment penalty" is a fee imposed by a lender in the event a loan is paid off before its... more
"Prepayment risk" refers to the risk a borrower will prepay a mortgage or other loan (typically... more
A "press release" is a public relations announcement by a company distributed to newspapers and... more
A "P/E ratio" refers to a corporation's stock price divided by past ("trailing") annual... more
The "prime rate" is typically defined to mean the interest rate at which financial institutions... more
A "principal residence" is the dwelling that a person lives in most of the time during... more
A "privacy policy" is a Web site's official statement on the type of user information it... more
A "private foundation" is a nonprofit organization established and supported primarily by private... more
A "private investment fund" is a fund primarily engaged in investing in securities, but, where the... more
A "private letter ruling" is a ruling by the Internal Revenue Service in response to a written... more
"Private mortgage insurance" or "PMI" is an insurance policy protecting the holder of a mortgage... more
A "private placement" is the offer and sale of securities to a limited group of investors without... more
A "private placement memorandum" is a document that lays out the details of a securities investment... more
"Probate" is the legal process where a deceased's estate is administered and the assets from... more
A "profit warning" is a statement by a publicly held company that its earnings will not be meeting... more
A "promissory note" is a contract obligating one party to pay or repay a specified dollar amount to... more
"Property" refers to assets of some kind, typically broken down into real property (homes,... more
"Property insurance" is insurance that provides financial protection against the loss of, or damage... more
A "property management agreement" is a contract between an owner of real estate and a person or... more
"Property tax" is a tax imposed by a state, city or municipality on real property based on its... more
A "prospectus" is a formal disclosure document used to sell securities, describing the issuer of... more
A "proxy" is a written authorization from a stockholder that empowers someone to vote on the... more
"Proxy materials" are the documents used by corporations to solicit votes for corporate decisions,... more
A "proxy statement" is a document prepared by a corporation for dissemination to its stockholders,... more
A "public company" is a company whose shares are traded on a stock exchange or in the... more
A "public offering" refers to the offering of securities by a company or organization to the public... more
A "public offering price" is the price offered to the public for new securities to be issued in a... more
A "put," in the financial context, is an option giving the holder the right to sell an underlying... more
A "put bond" is a bond that gives the holder the right to require the issuer of the bond to redeem... more
A "put option" is a financial instrument that gives the holder right to sell a given stock (or... more
"Pyramid schemes" or "Ponzi schemes" are illegal fraudulent schemes in which people are recruited... more
A "qualified retirement plan" is a retirement plan established by employers for their employees... more
The term "Qualified Savings Bond" refers to a Series EE United States savings bond issued after... more
The term "quantitative analysis" refers to a form of securities analysis that looks at a... more
A "quarterly earnings report" is a quarterly filing made to the SEC by public companies to report... more
"Quick assets" is a term used in connection with a company's financial statements, referring to... more
The phrase "quid pro quo" is a Latin term, meaning "this for that" or "something for something." It... more
The "quiet period" is the period of time where a company is in registration with the Securities and... more
A "quitclaim deed" is a deed which conveys only the present interest a person or entity may have in... more
The term "quorum" refers to the percentage of voting shares required to be represented in person or... more
The "quoted price" is the price at which the last trade transaction of a particular security took... more
"Research & development" or "R & D" is a phrase that relates to activities (and related expenses)... more
A "Rabbi Trust" is a method of deferring compensation for executive employees. The Rabbi Trust is... more
See "Anti-Dilution... more
A "rate lock" is an agreement between a lender and a real estate loan applicant guaranteeing a... more
The "rate of exchange" is the price at which the money of one country can be converted into the... more
A "rating" is a grade - usually denoted by a letter or series of letters such as AAA or BBB -... more
"Real estate" is typically a piece of land and whatever building that occupies... more
A "real estate agent" is a salesperson licensed to aid buyers and sellers in the home sales... more
A "real estate appraisal" is an estimate of the fair market value of a piece of real property,... more
A "real estate broker" is a professional intermediary who assists in the purchase or sale of real... more
A "real estate investment trust" or "REIT" is a corporation, association or trust that uses the... more
A "real estate limited partnership" is a limited partnership formed to invest and hold real estate.... more
"Realized gain" is the gain resulting from the sale of an asset minus the adjusted basis of the... more
"Realized loss" is the loss resulting from the sale of the assets at a price lower than the... more
A "realtor" is a real estate broker who is affiliated with the National Associate of Realtors and... more
A "reassessment" is the process of revising or updating the estimated value of real estate for... more
"Receivables" or "accounts receivables" refer to a company's accounting entry reflecting money... more
"Receivership" is the legal status of a corporation, partnership or individual over whom a receiver... more
A "recognized loss" is a loss incurred by a taxpayer for income tax... more
A "record date" is the date established by a company for the purpose of determining the... more
A "record holder" is the individual or entity listed on a corporation's stock ledger as a... more
The term "recording" refers to the filing in a public office of the details of a legal document... more
A "recruiter agreement" is a contract where a company hires an employment recruiting firm to... more
A "red herring" is a preliminary prospectus for a securities offering filed with the Securities and... more
"Redeemable" refers to securities such as preferred stock or bonds that may be repurchased from the... more
"Redemption" refers to the purchase of securities by an issuing company from the holder, at a time... more
A "redemption fee" is a fee charged by some mutual funds when an investor sells shares of the... more
"Redlining" is the practice by financial institutions or insurance companies of denying or... more
A "refinancing" is a substitution of new debt financing to replace... more
In connection with bonds, a "refunding" means the sale of a new issue of bonds, the proceeds of... more
"Regulation T" or "Reg T" is a regulation established by the Federal Reserve Board which covers the... more
"Registration rights" are rights granted to investors in a company, to require the company to... more
A "registration statement" is a legal document filed with the SEC in connection with a... more
A "regressive tax" is a tax in which the poor pay a larger percentage of income than the rich. For... more
A "regulated investment company" is a company that uses its capital to invest in securities or... more
"Regulation D" is a federal regulation promulgated pursuant to the federal Securities Act of 1933,... more
"Regulation T" or "Reg T" is a regulation established by the Federal Reserve Board which covers the... more
"Reinsurance" often refers to an agreement whereby an insurance company transfers part or all of... more
A "real estate investment trust" or "REIT" is a corporation, association or trust that uses the... more
"Rent control" is a municipal or city regulation restricting the amount of rent that can be charged... more
A "rental agreement" is a contract under which the owner of a property (the "lessor" or "landlord")... more
A "rental application" is a form to be filled out by a prospective tenant in order for the landlord... more
"Renter's insurance" is an insurance policy that covers a renter's personal possessions and... more
A "repurchase agreement" or "repo" is a financial transaction in which a dealer in effect borrows... more
"Repossession" is defined to mean the legal process by which a borrower in default on a secured... more
A "repurchase agreement" or "repo" is a financial transaction in which a dealer in effect borrows... more
"Research & development" or "R & D" is a phrase that relates to activities (and related expenses)... more
A "residential rental agreement" is a contract under which the owner of an asset (the "lessor" or... more
A "residential rental application" is a form to be filled out by a prospective tenant in order for... more
A "resolution" is a formal decision or action by a Board of Directors or stockholders of a... more
"RESPA" stands for the Real Estate Settlement Procedures Act, a federal consumer protection law... more
The term "restricted stock" typically refers to stock that is granted by an employer to compensate... more
"Retained earnings" are earnings of a corporation that are retained by the corporation for... more
"Return on investment" or "ROI" is the profit or loss resulting from an investment transaction or a... more
A "reverse mortgage" is a loan usually used by older borrowers as a way of converting the equity in... more
A "reverse stock split" is a proportionate decrease in the number of shares of a corporation... more
A "revocable proxy" is an authorization to a person to act on behalf of another party, which may be... more
A "revocable trust" is a trust in which any of its provisions can be changed, or the trust itself... more
A "revolving account" is an account which requires at least a specified minimum payment each month... more
A "rewards card" is a type of credit card that rewards the user of the card based on the amount of... more
A "right of first refusal" is a provision in a contract stating that a party must be given an... more
A "right of first refusal agreement" is a contract stating that a party must be given an... more
A "rights agreement" or "poison pill" is an anti-takeover mechanism that gives the shareholders of... more
A "rights offering" is an offering by a corporation to its existing stockholders of additional... more
The term "risk capital" refers to money that investors can allocate to investing in high risk... more
A "risk score" is formula generated number that rank-orders consumers according to the likelihood... more
The term "risk tolerance" refers to an investor's willingness to accept declines in the value... more
A "road show" is a presentation by an issuer of stock or other securities to prospective investors,... more
"ROI" stands for "return on investment" and is the profit or loss resulting from an investment... more
The term "rollover" refers to the nontaxable transfer of assets from one qualified retirement plan... more
A "Roth IRA" is a type of Individual Retirement Account (IRA) authorized by U.S. federal law. ... more
"Rule 144" refers to an SEC rule that sets forth the conditions allowing the sale of unregistered... more
"Rule 144A" refers to an SEC rule that sets forth the conditions allowing the sale and trading of... more
The "Russell 2000 Index" is a market capitalization weighted index measuring the performance of the... more
The "Russell 3000 Index" is an index measuring the performance of the 3,000 largest U.S. companies... more
An "S Corporation" is a special type of corporation under the Internal Revenue Code that allows the... more
"S&P 500" or the "Standard & Poor's 500 Index" is an index of widely held domestic stocks, and... more
An "S-3 filing" is a filing by a company with the SEC, and is one of the most simplified... more
An "S-8 filing" is a SEC filing that is required for public companies that wish to issue options or... more
"Sale and leaseback" refers to the sale of an asset with a simultaneous lease back to the original... more
A "sales representative agreement" is a contract by a company offering products for sale and an... more
"Sales tax" is a percentage tax owed on the purchase price of goods and services. The percentage... more
The "Santa Claus rally" is a seasonal rise in the price of a stock during the last week between... more
The "Sarbanes-Oxley Act" is a federal law passed in 2002 in response to accounting and financial... more
"Savings" refers to funds that are set aside for investment and future use, such as for emergencies... more
A "savings account" is an account that is maintained with a financial institution such as a bank by... more
A "savings bond" is a U.S. government issued bond, issued in face value denominations that range... more
"SBA" is the abbreviation for Small Business Administration. It is a U.S. federal government... more
"Scienter" is the mental state of mind of the intent to deceive or defraud. It is sometimes... more
"Scrip" often refer to a temporary document that represents a part of a share of stock. This is... more
A "seal" is a mark or impression printed on, embossed upon, or affixed to an agreement or other... more
The "Securities and Exchange Commission" or the "SEC" is the federal agency that regulates the... more
A "second mortgage" refers to a mortgage whose lien is subordinate to that of a first or "senior"... more
The "secondary market" is the market in which securities are traded after they are initially... more
A "secondary offering" is a sale of securities held by existing shareholders of a company.... more
"Section 1031" refers to a section of the Internal Revenue Code allowing the deferral of capital... more
A "Section 1031 Exchange" is a type of disposition of real estate described in Section 1031 of the... more
A "sector fund" is a mutual fund that concentrates on a relatively narrow market sector. These are... more
A "secured credit card" is a type of credit card that is linked to a bank account. This allows the... more
A "secured debt" is an obligation backed up by a security interest in specified collateral. If the... more
The "Securities Act of 1933" is a federal law requiring the registration of the offer and sale of... more
A "securities analyst" is an employee that works for a brokerage firm who evaluates the investment... more
The "Securities and Exchange Commission" or "SEC" is an independent regulatory agency with the... more
"Securities lending" is a lending of securities, typically to cover a... more
A "security" is a financial instrument giving the owner a right to a percentage ownership in a... more
"Seed capital" typically refers to the early or initial funding of a start-up... more
A "self-directed IRA" is an individual retirement account that permits the account owner to make... more
"Self-employment tax" is a Social Security and Medicare tax primarily for individuals who work for... more
"Senior debt" is debt that has a repayment priority over any... more
"Senior Security" is a security that must be repaid before other security holders receive any... more
A "SEP Plan" or "Simplified Employee Pension Plan" is a type of retirement plan for self-employed... more
A "separate account" is a pooled investment fund created by an insurance company but segregated... more
"Series 3" refers to a security license that entitles the holder to sell future contracts as well... more
"Series 4" refers to a securities license that entitles the holder to supervise options sales... more
"Series A preferred stock" usually refers to the first round of preferred stock issued by a company... more
A "Series EE bond" is a United States government savings bond that has the properties of a zero... more
A "Series HH bond" is a bond issued by the United States government and is only available in... more
A "settlement agreement" is a contract between two or more parties that have a dispute, where the... more
"Settlement date" is the date in which an executed securities order must be settled by the transfer... more
"Severance pay" is the compensation that an employer gives to an employee in connection with the... more
A "sexual harassment policy" is a written policy adopted by a company stating that illegal sexual... more
A "share repurchase" is a purchase of a company's own shares in the open market. This is... more
A "shareholder activist" is an individual or a group that takes action in order to try to influence... more
The term "shareholder resolutions" refers to actions or approvals taken by the shareholders of a... more
"Shareholders' equity" is the total assets of the company minus the total liabilities in that... more
A "share" is a unit of ownership interest that is provided to a... more
A "shelf offering" is a form of registration of a new securities offering with the SEC, with the... more
A "shelf registration" is a procedure in which a company files a registration statement with the... more
"Short" or "Short Position" in a stock means that the investor has either sold the borrowed shares... more
"Short covering" is the buying of stock to return stock that was previously borrowed in order to... more
"Short interest" is the total number of shares of a company that have been sold short and not yet... more
A "short sale" is the borrowing of a security from a stockbroker and selling it, with the... more
"Short sale against the box" is an act of short selling securities that are already owned. When... more
"Short selling" is the act of selling a security that the seller does not own. Those that are short... more
"Short squeeze" is a situation in which the price of a stock rises and investors who sold the stock... more
"Short-swing profit rule" is a Securities and Exchange Commission regulation that requires the... more
A "SIMPLE 401(k) Plan" is a retirement plan sponsored by employers which is simple and less costly... more
"Simplified Employee Pension" (SEP) is a type of retirement plan that the employer can establish.... more
"Simplified Employee Pension Plan" (SEP Plan) is a retirement program that is much like an... more
"Sinking fund" is money that is set aside regularly by a company in order to redeem its bonds or... more
"Six Sigma" refers to a process and methodology that utilizes data and statistical analysis to... more
"Small Business Administration" or "SBA" is a federal government department that provides services... more
"Small cap" refers to company stocks that have a relatively small market capitalization, generally... more
"Social Security" is a federal benefits program that was developed in 1935 by United States. It... more
"SSN" or "Social Security Number" is a nine digit number that is issued by the federal government.... more
"Software" is coded instructions or programs that allow a computer to produce useful work. ... more
When you purchase a software product (such as Windows or Quicken), you do not actually get... more
"Sole proprietorship" is an unincorporated business organization that has only one... more
"SPDRs" or "Spiders" are shares or units that are issued by a trust that owns stocks that are in... more
A "power of attorney" is a written legal document that authorizes a person to act as an agent on... more
A "specialist" is a member of a stock exchange that acts as the market maker in order to facilitate... more
A "speculative stock" is a stock that is an extremely high risk but also has potential for a high... more
"SPDRs" or "Spiders" are shares or units that are issued by a trust that owns stocks that are in... more
A "split adjusted price" is the price per share of a stock after it has been... more
A "spot market" is any market in which goods or currencies are bought and sold "on the spot." ... more
The "spot price" is the current price of goods or commodities for immediate... more
"SSN" or "Social Security Number" is a nine digit number that is issued by the federal government.... more
A "Staffing Agency Agreement" is a contract between a company and a staffing agency, where the... more
"Standard & Poor's 500 Index" or "S&P 500" is a market-value weighted index. The companies that... more
"Standard deduction" refers to an IRS-determined amount that a taxpayer is allowed to reduce income... more
A "standby commitment" is a commitment by a financial institution to loan money up to a specified... more
"Startup" refers to a new or early stage... more
"Step-up in Basis" often refers to the change in value of an asset inherited upon an owner's... more
"Stock" is an instrument that represents an ownership position in a corporation. The percentage... more
"Stock Bonus Plan" is an incentive program. It rewards employee performance with a grant of stock... more
A "stock buyback" is a purchase of a company's own shares in the open market. This is usually... more
A "stock certificate" is a legal document evidencing ownership of shares of a corporation. The... more
"Stock dividend" is payment of a corporate dividend in the form of additional shares of stock... more
A "stock ledger" is a corporate record that lists the owners of shares of stock in a corporation.... more
"Stock market" refers to a market used for trading equities such as the New York Stock Exchange.... more
A "stock market bubble" refers to an economic exuberance (or extreme excitement) taking place in... more
"Stock option" is an instrument giving the holder the right to purchase shares of stock at a... more
"Stock power" is a power of attorney form that is used to transfer stock from one owner to another.... more
"Stock quote" is a price of a stock that a party is willing to either sell or buy a certain number... more
"Stock record" is the bookkeeping a securities brokerage company keeps all of its securities held... more
A "stock split" is a split of existing shares of stock into a different number of shares of stock.... more
A "stock subscription agreement" is a contract to invest in shares of stock of a company by the... more
"Stock symbol" is a trading symbol given to a security. AMEX and NYSE stocks have three or less... more
"Stockbroker" is a broker who deals in securities transactions (stocks, bonds, options) on behalf... more
A "stockholder voting Aareement" is a leal contract among stockholders of a corporation relating to... more
A "stop order" is an order to sell or buy securities at the market when a certain price (the "stop... more
"Stop-Limit Order" is an order to buy a designated amount of securities at a specified price or... more
A "stop-loss order" is an order to sell stock if the stock drops to a certain level. A stop-loss... more
"Straight life annuity" is an insurance product that makes periodic payments to the annuitant (the... more
"Straight line depreciation" is a method of calculating the depreciation of an asset, which assumes... more
A "strategic alliance" is an agreement between two are more parties to jointly pursue an agreed... more
"Street expectation" often refers to the estimated earnings that are expected to be made by a... more
"Street name" is the term given to securities held in the name of a broker or other nominee. Shares... more
"Structured note" is a debt security with special features, such as interest payments pegged to an... more
"Subchapter S Corporation" is a special type of corporation under the Internal Revenue Code that... more
A "sublease" refers to a contract where a tenant under a lease transfers the right to occupy the... more
"Subordinated debt" refers to a loan that ranks junior to other loans for purposes of repayment. In... more
A "subordination clause" usually refers to a provision in a mortgage or loan agreement which allows... more
A "subprime borrower" often refers to a borrower who does not meet the qualifications for standard... more
A "subprime loan" often refers to a loan made to subprime borrowers (a borrower whose credit rating... more
A "subscription agreement" is a contract to invest in a particular company by the subscriber. The... more
A "subsidy" is a tax credit or payment by a government to producers or exporters of goods to... more
"Surtax" is a tax that is in addition to the normal tax paid by corporations or... more
"Swap" is an agreement between two parties that provides for the exchange of something to the other... more
"Sweep account" is a deposit account at a financial institution where at the end of each business... more
A "syndicate" typically refers to a group of banking firms which jointly underwrite a new stock,... more
"Syndicated loan" is a loan where a group of banks work together in order to provide the funds to a... more
A "Treasury bill" or "T-bill" is a short-term debt obligation backed by the U.S. government.... more
A "Treasury bond" or "T-bond" is a debt obligation issued by the U.S. government, having a maturity... more
"Tag-Along Rights" often refer to rights established by a contract that afford protection to... more
A "takeover" occurs when one company (the "acquirer") purchases or acquires another company (the... more
"Takeover target" often refers to the company that is the focus of a proposed "takeover," or... more
"Net worth" is determined by total assets minus total liabilities. "Tangible net worth" takes the... more
A "tax audit" occurs when a taxing agency examines a company or individual's tax returns to... more
The "tax basis" is the price paid for the acquisition of a security or an... more
A "tax bracket" is an income range that establishes the amount of income tax to be levied against... more
"Tax court" is a federal court that hears taxpayers' appeals from decisions of the Internal... more
A "tax credit" is a direct dollar-for-dollar reduction of tax liability. The tax credit can be... more
An item or expense is "tax deductible" if it may legitimately be subtracted from gross income.... more
A "tax deduction" is an expense that a taxpayer is allowed to deduct from gross income, and thus... more
"Tax deferred" income is income where payment of any tax is postponed until a later date or the... more
"Tax equivalent yield" is a method of measuring the return on tax exempt investments in comparison... more
"Tax evasion" is a crime that occurs when illegal methods, such as failure to report income or... more
A "tax haven" often refers to a country that offers favorable tax treatment to foreign companies or... more
A "tax holiday" often refers to the temporary elimination or reduction of a tax. Governments... more
"Tax liability" refers to the amount of tax that must be paid, taking into consideration income,... more
A "tax lien" is a legal claim filed by a state or federal taxing agency against the assets of a... more
A "tax loss carry forward" is a tax benefit that allows an individual, corporation, or a fund to... more
The "tax rate" is the percent of income, or the percent of the value of goods or services, that... more
A "tax refund" is the amount of money owed to a taxpayer when the taxpayer's total tax payments... more
A "tax return" is the government form that a taxpayer completes and submits to the taxing agency to... more
A "tax schedule" is a document upon which taxpayers itemize deductions, show dividend and interest... more
"Tax shelter" often refers to an investment that legally reduces the amount of tax due, whether by... more
In general, a "tax swap" is the sale of a security that has lost value since purchase, along with... more
A "tax table" is a chart that shows the amount of tax attributable to a certain income range. Tax... more
A "tax treaty" is an agreement between two countries that is intended to address situations that... more
"Tax exempt" is a general term that refers to a financial transaction that is not subject to... more
A "tax-exempt bond" refers to a type of bond, typically issued by a municipal, county, or state... more
"Commercial paper" refers to short-term, unsecured, and negotiable notes sold by one company to... more
"Tax-Exempt Interest" generally refers to interest income that is exempt from federal income tax.... more
A "tax-sheltered annuity" is a retirement plan for employees of tax-exempt organizations, public... more
A "taxable bond" is a type of debt security where any return earned by the investor will be subject... more
The "taxable equivalent yield" is the return from a higher-paying investment where taxes must be... more
Under federal law, the "taxable estate" is determined by subtracting certain statutory deductions... more
A "taxable event" is any transaction or occurrence that has tax consequences. Examples include the... more
"Taxable gain" refers to the portion of a sale of capital assets that is subject to taxation. When... more
"Taxable income" is the amount of income subject to income taxes. "Income" includes both earned... more
"Taxes" refers to the financial obligation placed on a business or individual by a governmental... more
A "teaser rate" is a low initial interest rate on an adjustable rate mortgage... more
A "tenancy-in-common" is a form of ownership for two or more owners. The individual interests do... more
A "tender offer" usually occurs within the context of a takeover bid in the form of a public... more
"Term life insurance" refers to a type of life insurance policy that provides protection for a... more
A "term loan" is a bank loan for a specified amount that typically matures in between 1 and 10... more
A "term sheet" is the document that summarizes key provisions of a proposed transaction, such as a... more
A "terms of use agreement" is a contract that governs the use of a Web site by viewers of the site.... more
A "testator" is someone who has made a legally valid will or testament before death. The will... more
"Total Enterprise Value" or "TEV" is one of several ways to measure the complete value of companies... more
A "three-day notice" often refers to a notice by a landlord that a tenant's tenancy will be... more
A "tenancy-in-common" or "TIC" is a form of ownership for two or more owners. The individual... more
"Ticker symbols" are the letters or characters used as a code to identify publicly traded stocks or... more
In the early 20th century, there were machines that transmitted stock information via telegraph... more
"Treasury Investment Growth Receipt" or "TIGRs" are a form of bond backed by the federal... more
"Time value" can be used in several different contexts. (1) In general, "time value" describes the... more
A "tippee" refers to the recipient of material non-public information about a public company, from... more
"Tipping" in the securities context refers to a person providing material non-public information... more
A "tippor" refers to a person who provides material non-public information about a public company... more
"TIPS" or "Treasury Inflation Protected Securities" are a special type of Treasury note that offers... more
A "title" can be (1) the document that shows legal ownership of real or personal property or (2) a... more
A "title search" is the process of examining in detail the various public records related to... more
The "TMWX" is an index composed of nearly 6,700 publicly-traded companies that are all... more
"Total Enterprise Value" or "TEV" is a way to measure the complete value of companies with varying... more
"Touting" refers to the act of a firm or individual promoting a company or security without... more
A "trade name" is the name under which a company conducts business, or by which its business,... more
A "trade name license agreement" spells out the terms allowing the use of the trade name of another... more
A "trademark" is a word, phrase, symbol or design (or any combination thereof) used to distinguish... more
A "trademark assignment" is a contract transferring (assigning) ownership of a trademark to a third... more
A "trading account" is similar in operation to a traditional deposit account. It is held at a... more
In general, a "transfer" occurs when money or its equivalent is moved from one place to another. A... more
A "transfer agent" can be a trust company, bank, or similar financial institution engaged by a... more
TransUnion is one of the three major credit reporting agencies in the United States. See... more
"Traveler's checks" are an internationally recognized and redeemable draft that can be... more
A "Treasury bill" or "T-bill" is a short-term debt obligation backed by the U.S. government.... more
A "Treasury bond" or "T-bond" is a debt obligation issued by the U.S. government, having a maturity... more
The "Treasury Index" is an index based on auctions of U.S. Treasury bills, or on the U.S.... more
"TIPS" or "Treasury Inflation Protected Securities" are a special type of Treasury note that offers... more
"Treasury Investment Growth Receipt" or "TIGRs" are a form of bond backed by the federal... more
"Treasury notes" are debt obligations of the U.S. Treasury with maturities of more than one year,... more
"Treasury stock" (or "treasury shares") refers to stock that has been repurchased by the issuing... more
"Treasury stock method" refers to the method used to calculate diluted earnings per share when... more
"STRIPS" stands for "Separate Trading of Registered Interest and Principal Securities." "Treasury... more
A "triple net lease" is a commercial lease where, in addition to the agreed upon rent payment, the... more
"Triple witching hour" refers to the hour before the stock market closes on the third Friday of... more
A "trust" describes a fiduciary relationship in which a person or institution, called a trustee,... more
In general, a "trust deed" is a formal document that outlines the terms of a trust agreement,... more
The "Trust Indenture Act of 1939" is a federal law passed in 1939 to protect the interests of... more
A "trustee in bankruptcy" is a person who is usually appointed by a U.S. District court or by... more
The term "Truth in Lending" is derived from the federal Truth in Lending Act, see 15 USC Section... more
The "U.S. Department of Commerce" is the U.S. Cabinet department which encourages and promotes the... more
The "U.S. Department of Treasury" is the U.S. Cabinet Department that performs several functions:... more
"U.S. Savings Bond" is a bond with a fixed interest rate over a specific period of time.... more
The "U.S. Treasury" is responsible for issuing all bills, notes and bonds of the United States. The... more
A "U.S. Treasury bill" or "T-bill" is a short-term debt obligation backed by the U.S. government.... more
A "U.S. Treasury bond" or "T-bond" is a debt obligation issued by the U.S. government, having a... more
"U.S. Treasury notes" are debt obligations of the U.S. Treasury with maturities of more than one... more
The "Uniform Gifts to Minors Act" or "UGMA" allows minors to own various properties including... more
"Umbrella liability insurance" refers to a form of insurance policy that provides specific... more
"Unconscionable" refers to something unreasonable or outrageous. Courts typically refuse to... more
An "underpayment penalty" is a tax penalty issued to an individual who does not pay enough of his... more
An "underwriter" often refers to an investment banking firm that purchases a securities issue from... more
"Underwriting" in the securities context refers to the process of an underwritten offering and... more
An "underwriting spread" is the income that is earned from an underwriting of a specific security... more
The "Uniform Gifts to Minors Act" or "UGMA" allows minors to own various properties including... more
The "UTMA" or "Uniform Transfers to Minors Act" is an extension to the Uniform Gifts to Minors Act... more
"Universal life insurance" is a flexible insurance offering in which low-cost term life insurance... more
"Unlisted trading privileges" includes specific rights that allow a broker the ability to trade an... more
"Unsecured" is when no guarantee of payment or satisfaction is given for a loan, and no collateral... more
"Unsecured debt" is a debt obligation that is not secured or... more
An "unsecured loan" is a loan that is not secured or... more
The term "closing tick" means the number of stocks on the New York Stock Exchange which closed... more
"Usury" is the charging of interest on a loan or debt obligation in excess of the limit allowed by... more
The "UTMA" or "Uniform Transfers to Minors Act" is an extension to the Uniform Gifts to Minors Act... more
A "value fund" often refers to a mutual fund that primarily invests in stocks deemed to be... more
"Value investing" refers to the investing in stocks that are deemed to be undervalued in the... more
"Variable annuities" include investment contracts where the issuer pays a specific amount based on... more
"Variable cost" refers to a cost that tends to vary directly and proportionally with the changes in... more
"Variable interest rates" are rates on loans or bonds that adjust from time to time. The... more
"Variable rate loans" often refer to loans made with fluctuating interest rates that are originally... more
"Vendor financing" refers to a seller of goods extending credit to allow a customer to purchase the... more
"Venture capital" refers to the financing provided by investors to start up and emerging companies... more
"Venture capital funds" refer to funds which pool and manage money from investors seeking private... more
A "venture capital term sheet" is typically a proposed summary of terms by which a prospective... more
A "venture capitalist" refers to an investor in start up and emerging companies with perceived high... more
"Voting trusts" are legal trusts that combine the voting power of several shareholders. The legal... more
A "voting trust agreement" is a contract among shareholders establishing a voting trust, including... more
A "W-4 form" is a form completed by an employee to indicate their exemptions or status for the... more
A "W-8 form" is a foreign status certificate form to tell a broker, transfer agent or payer that an... more
A "W-9 form" is an employer's request for one's taxpayer identification number. This is... more
A "waiting period" often refers to a specific period of time in which the SEC studies a... more
"Wall Street" often refers to the collective financial/investment community including large banks,... more
Also known as a "sell-side analyst", a "Wall Street analyst" works for a securities brokerage firm... more
A "warrant" often refers to a specific security that gives the holder the right to buy a designated... more
"Warrant coverage" refers to a contract between a company and an investor where the company issues... more
A "warranty deed" is a legal document in which the grantor transfers specified real property and... more
A "Web linking agreement" is a contract between a Web site owner with another Web site owner giving... more
In creating a Web site, you may want to include lots of information or advice on the site. Although... more
A "Web Site development agreement" is a contract with a Web site developer for the development of a... more
A "whisper number" often refers to the unpublished/unofficial earnings per share forecasts that... more
A "whistle blower" is a person that is aware of fraudulent activities occurring within a government... more
A "wholly owned subsidiary" is a company whose stock is owned 100% by a parent... more
A "will" is a declaration of how an individual wishes to distribute his or her money or property... more
The "TMWX" is an index composed of nearly 6,700 publicly-traded companies that are all... more
A "windfall tax" is a government levied tax against specific industries whose companies enjoy... more
A "wire transfer" is the electronic transfer of funds. This allows individuals in different... more
The term "withholding" refers to the act of deducting a portion of an employee's wages used to... more
A "withholding allowance" is determined on an individual's W-4 IRS form. This is used to assist... more
"Withholding tax" is the portion (federal, state, and local) of an employee's paycheck that an... more
"Workers compensation" is a monetary compensation to a worker who is injured while working on the... more
"Working capital" is the amount of capital or current assets available for use in operating a... more
A "wrap account" is a securities account where the money manager or brokerage firm manages the... more
A "wrap fee" is the fee for a securities investment program (a "wrap account") that bundles or... more
A "writ" is a legal,document issued by a judge for specific action to occur. A writ is often used... more
A "write-down" is the reduction of an asset's recorded value on a balance... more
A "write-off" is the expensing of a balance sheet asset that has no future benefits. The worthless... more
"Year to date" refers to the period from January 1 to the current date. Companies sometimes use... more
"Yield" is the annual rate of return received on an investment, usually expressed as a percentage. ... more
A "yield curve" is a line that shows specific interest rates during specific dates of bonds that... more
"Yield maintenance" often refers to a prepayment penalty built into a loan, that allows a lender... more
"Yield pickup" is a yield gain that occurs because of the sale of one bond and a purchase of... more
"Yield spread" is the difference between various yields on bonds with different credit quality... more
"Yield to maturity" is the rate of return, usually shown in a percentage, which is paid on a fixed... more
"YTD" stands for "year to date," referring to the period from January 1 to the current date. ... more
A "zero-coupon bond" refers to a security that doesn't pay interest currently. It is initially... more
A "zero-coupon convertible" is a zero-coupon bond issued by a corporation that can be converted... more
"Zoning" refers to municipal and government laws based on the control of specific land within a... more
Word of the Day
Naked Option
A "naked option" is the writing (selling) of a call or put option without ownership of...
Personal Finance Answers categories
Why search the Web, when you can go straight to the best.
- 401(k) & IRAs
- Annuities
- Attorneys
- Banks
- Bonds
- Buying Your Home
- Car Financing
- Careers
- Child Care
- College Savings
- Company Research
- Credit Cards
- Credit Reports
- Currency/Foreign Exchange Trading
- Employee Stock Plans
- Estate Planning
- Government
- Health Care
- Identity Theft
- Insurance