Terms You should know

[Jeffs07]

Or at least be aware of. A great refresher in business terminology.

http://www.startpagedesign.com/blog...erms-you-should-know-or-at-least-be-aware-of/

1. financial planning - A coordinated process for identifying, planning for, and meeting goals related to financial needs for individuals, families, and small businesses.
2. disposable income - Money left over after all expenses have been met.
3. common stock - The primary stock of a corporation. This stock gives shareholders the right to participate in management of the corporation and give the shareholder a proportionate share of the dividends.
4. T-bill - A short-term debt security of the US Treasury, issued with a maturity of 3, 6, or 12 months and sold on a discounted basis.
5. bond - Debt security, in which the issuer owes the holders a debt and is obliged to repay the principal and interest (the coupon) at a later date.
6. tax bracket - The rate at which income at a particular level is taxed.
7. mutual fund - An open-end investment company that offers the investor the benefits of portfolio diversification (provides greater safety and reduced volatility), and professional management.
8. itemized deduction - An item off a list of allowable deductions which decreases the amount owed on state and/or Federal taxes.
9. liability - A debt or obligation.
10. blue chip stock - Shares of generally large companies that have a history of strong earnings growth and dividend payments.
11. social security - The old age, survivors and disability insurance section of the Federal Social Security Act.
12. underwriting - The process by which a lender decides whether to lend money, based on the value of the property, the borrower’s credit history and any other relevant factors.
13. mortgage - A mortgage is a method of using property (real or personal) as security for the payment of a debt.
14. renters’ insurance - Property insurance providing coverage to an individual living in a rented dwelling, apartment, or other location owned by someone else.
15. preferred stock - A security that shows ownership in a corporation and gives the holder a claim, prior to the claim of common stockholders, on earnings and also generally on assets in the event of liquidation.
16. whole life insurance - A basic type of permanent life insurance that, as long as the premiums are paid, can cover the policyholder over the course of their entire life.
17. stock broker - Stock brokers are people who deal with stock & bonds
18. capital gains - Profit on the sale of an asset such as timber, land, or other property held for one year or longer.
19. futures - Legally binding standardised agreements to buy or sell a commodity, currency or security at a fixed time in the future, at a price agreed upon today.
20. liquidity - The ability and availability of assets to be readily converted into cash.
21. coupon rate - In bonds, notes or other fixed income securities, the stated percentage rate of interest, usually paid twice a year.
22. net worth - Property owned (assets), minus debts and obligations owed (liabilities), is the owner’s equity (net worth).
23. compound interest - Interest that accrues when earnings for a specific period are added to principal; thus interest for the following period is computed on the principal plus accumulated interest.
24. 401(k) - The 401(k) plan is a type of employer-sponsored retirement plan in the United States and some other countries, named after a section of the U.S. Internal Revenue Code.
25. tax deferred - A term to describe an investment whose earnings are free from taxation until they are withdrawn by the investor.
26. bull market - A prolonged period in which investment prices rise faster than their historical average.
27. bear market - A prolonged period in which investment prices fall, accompanied by widespread pessimism.
28. leverage - The use of borrowed money or other senior capital to increase business and earnings opportunities.
29. annuity - Income from capital investment paid in a series of regular payments;
30. derivatives - Financial contracts that derive their value from an underlying asset or index, such as an interest rate or foreign currency exchange rate.
31. par value - A minimum price of a share below which the share cannot be issued, as designated in the articles of incorporation.
32. installment loan - Borrowed money that is repaid in equal payments, known as installments.
33. PITI - An acronym used to describe the total sum paid each month for principal, interest, taxes and insurance.
34. APY - Annual percentage yield is the amount you earn on an interest-bearing investment in a year, expressed as a percentage.
35. equity - The ownership interest of common and preferred stockholders in a company.
36. balance sheet - An itemized statement that lists the total assets and total liabilities of a given business to portray its net worth at a given moment in time.
37. APR - Annual Percentage Rate - The true rate of interest you are paying on a finance agreement.
38. amortization - A gradual reduction of a loan debt through periodic installment payments of principal and interest.
39. floater - A bond, or some other type of debt, whose coupon rate changes with market conditions (short term interest rates).
40. time value of money - A name given to the notion that the use of money costs money. A dollar today is worth more than a dollar tomorrow because of interest costs.
41. insolvent - A term used to describe the negative financial condition of a person or business when they have an inability to pay their debts as they become due.
42. risk and return trade off - A financial theory describing the hope that a high risk investment will lead to a high return in the future, but also holds the possibility of greater loss.
43. cosigner - A cosigner on a loan assumes responsibility for the loan if the borrower should fail to repay it.
44. “spiders†- S&P Depositary Receipts, otherwise known as “spiders,†represent a single unit of ownership in the SPDR trust.
45. tax credit - A provision of the tax code that specifies an amount by which a taxpayer’s taxes will be reduced in return for some behavior.
46. bankruptcy - A legal proceeding which allows a debtor to discharge certain debts or obligations without paying the full amount or allows the debtor time to reorganize his financial affairs so he can fully repay his debts.
47. discretionary income - The amount of income leftover after essential commitments, such as housing and food, have been paid.
48. standard deduction - A base amount of income not subject to tax.
49. lease - A contract between lessor and lessee for a specified time period and at a specified payment.
50. term insurance - Insurance in which the benefit is payable only if the loss occurs during a specific period of time.
51. actual cash value - The fair market value of property taking into account factors that might augment or reduce the value of the property in question.
52. NASDAQ - The second largest stock market in the United States . Launched in 1971, the National Association of Securities Dealers Automated Quotation (Nasdaq) market is the nation’s first electronic stock market, linking buyers and sellers via a computer network.
53. round lot - A quantity of a commodity equal in size to the corresponding futures contract for the commodity.
54. marginal tax rate - Marginal tax rate refers to the highest published tax rate at which a taxpayer’s last dollar earned is taxed.
55. PPO - Percentage Price Oscillator, A technical momentum indicator showing the relationship between two moving averages.
56. load funds - A mutual fund that sells shares with a sales charge.
57. commercial paper - Debt instruments issued by companies to meet short-term financing needs.
58. options - These contracts give the holder the right to buy or sell securities at a set price or a set period of time.
59. NYSE - Oldest and largest stock exchange (an organized marketplace where stocks and bonds are traded) in the US, listing more than 3,000 companies.
60. income statement - A statement of revenues and expenses. It shows the shows the financial progress of a company over a period of time.
61. sinking fund - A type of savings fund in which deposits are made regularly to be used later for a specific purpose, such as purchasing equipment or buildings.
62. dividend - A dividend is a portion of a company’s profit paid to common and preferred shareholders.
63. personal exemption - An amount excluded from taxable income, given to any taxpayer who cannot be claimed as a dependent by another taxpayer.
64. principal - The amount of money you are borrowing, not including any fees, costs or interest.
65. day trading - Actively trading securities during the trading day but closing all positions by the end of the day.
66. retirement - In the securities industry, the term refers to the repayment of a debt obligation or the cancellation of securities that have been redeemed.
67. yield to maturity - The percentage rate of return paid on a bond, note, or other fixed income security if the investor buys and holds it to its maturity date.
68. real property - Land, from the center of the earth and extending above the surface indefinitely, including all inherent natural attributes and any man-made improvements of a permanent nature place thereon.
69. selling short - Selling shares you do not possess in the expectation of being able to buy them at a lower price before they are due for delivery.
70. Roth IRA - A special type of IRA under which distributions may be tax exempt.
71. tax free - The elimination of income tax liability on accumulated investment earnings.
72. liquid asset - A cash asset or an asset that is easily converted into cash.
73. certificate of deposit - Money deposited in a bank or savings and loan for a stated time period and normally paying a fixed rate of interest.
74. financial planner - A professional who analyzes a client’s overall financial situation and develops a comprehensive plan that meets his/her goals and objectives.
75. gross income - Income before taxes, deductions, and allowances have been subtracted.
76. taxable income - Net income less certain allowable deductions such as capital losses and capital gains deductions.
77. REIT - Real estate investment trusts are like a mutual fund of real estate investments. Such trusts invest in a collection of properties (from shopping centers to apartment buildings).
78. limit order - An order to buy or sell when the price reaches a specified level.
79. title insurance policy - A contract by which the insurer agrees to pay the insured a specific amount for any loss caused by defects of title to real estate, wherein the insured has an interest as purchaser.
80. ARM - A mortgage with an interest rate that changes over time in line with movements in the Index.
81. yield - A percentage that measures the cash returns to the owners of a security.
82. margin - Collateral that the holder of a position in securities, options, or futures contracts has to deposit to cover the credit risk of his counterparty.
83. vesting - The right of an employee, on termination of employment, to part or all of his accrued benefit.
84. FICA - A tax on employees and employers that is used to fund the Social Security system
85. audit - A formal examination of an organization’s or individual’s accounts or financial situation.
86. balloon payment - Final installment payment of a promissory note larger than any single preceding installment payment.
87. private mortgage insurance - Mortgage insurance that is provided by a private mortgage insurance company to protect lenders against loss if a borrower defaults.
88. opportunity cost - The value of foregone opportunities or alternatives unable to be achieved because of time or money towards some other option.
89. WSJ - The Wall Street Journal, a periodical specializing in business and financial news.
90. “diamonds†- An index-based unit investment trust (UIT) that holds the 30 stocks in the Dow Jones Industrial Average (DJIA).
91. “rule of 72″ - A calculation of the approximate number of years required to double an investment at an interest rate.

 

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[Eric]

Very nice! speed +++

 

[Tony]

Great information, just printed it out so I can look it over and over again...thanks a lot..

 

[lightning]

Great post!!!! Speed++!

 

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[WheelsRCool]

Yeah thanks, Speed++