An owner of units in an investment. When you purchase a cashiers check, you pay for the full amount of the check along with a fee for the service. Also known as expected return in security analysis, this is the expected value or mean return of all the individual investments in a portfolio. Operating expenses may include custody fees, management fees and transfer agent fees. Starting from A to Z, complicated financial terms are explained in an easy-to-understand and clear manner, so that you can master the glossary with little effort. A stock conferring to the age-old adage, all that glitters is not gold, for though it appears of quality and worth, is in fact not so. Each issue represented must have an outstanding par value of at least $50 million, must be less than BBB/BAA3-rated but not in default, and is restricted to a maximum of 2% of the total index. The co-signer assumes equal liability for the loan and the payment history of the co-signed loan is reported to the credit bureaus for both borrowers. Expenses that are based on the amount of assets in your plan. The person whose life is insured is the annuitant. Learn more about KeyPoint Certificate Accounts. G It is that part of the return on investments (ROI) that is exempt from the income tax. An investor strategy that aims at getting the average cost to be lower than the average price for a group of shares by buying them collectively and in larger numbers. See expense ratio and operating expenses. Electronic Funds Transfer (EFT) The financial strength of its issuer and the likelihood that it will repay the debt are considered. This is the maximum number of shares that can be issued by a corporation, as listed in the capital accounts section of the balance sheet. Also referred to as minimum maintenance or maintenance requirement, this is the minimum equity amount that has to be compulsorily maintained in a margin account. Funds may be moved from Personnel Costs, Operating Expenditures, and Trustee and Benefits Payments to any other object class. The Dow is a widely-followed price-weighted index of 30 of the largest, most widely-held U.S. stocks. This index gives a broad look at the U.S. equities market and the stock price performance of those 500 companies. It does not take into account the specific investment objectives, tax and financial condition or particular needs of any specific person. These payments can be made in a lump sum or in installments. An unmanaged, free float-adjusted, market capitalization-weighted index that is designed to measure the performance of large-cap and mid-cap stocks in global developed and emerging markets as determined by MSCI. An increase in the value of an investment, calculated by the difference between the net purchase price and the net sales price. The shareholders create a legal trust in order to combine their voting powers known as voting trust. An EFT moves money electronically from one bank account to another for example payroll, direct deposit, tax refunds/payments, bill payments and other payment services. A lender's estimate of a borrower's ability to repay a loan. (b)In USA, mutual funds terminology states a shares to have an upfront sales load of 5.75% of the amount invested. (Whenever a new CDX NA HY 5-year series is issued, due to a regular index roll [every March and September] or due to a credit event in the current series, the CDS position in the reference portfolio is rolled into the on-the-run/reduced index position.). This is a non-GAAP measure of oil and gas sales, net of royalties, production and transportation expenses. S Net Income (NI) An unmanaged index that measures the returns of 12-month Treasury bills. IOE, UCL's Faculty of Education and Society is the world's leading centre for education and social science research, teaching, and engagement. An unmanaged index that reflects the performance of fixed-rate, non-investment-grade, U.S. dollar-denominated taxable corporate bonds. It can be thought of as a percentage from 1 to 100. An unmanaged index that measures the performance of Treasury bonds with a remaining maturity of one year or more issued in local currencies by developed market countries outside the United States. N Here are 20 financial terms and definitions you should know. Loan or Line of Credit When a security pricing pattern closely resembles the overall market, such that, it can accurately predict the market pattern through its own pricing, it is called a barometer stock. Also known as glamor stocks, these stocks are the stocks of the company that is growing at a rate significantly higher than the market growth rate. An exit strategy is a plan made by an investor to get out of an investment made by him. These are a bunch of several limit orders that follow an increasing or decreasing price range. Learn more about the personal loans and lines of credit available to KeyPoint members. Founded in 1970, the college serves some 14,000 credit students, 9,000 continuing education students and 1,400 international students each year. Standard deviation is computed by taking the square root of variance. A general term for stocks, bonds, mutual funds and other investments. A stock that moves in tandem with the economy or one whose price exhibits a positive correlation with the business cycle. The maturity date is used to categorize bonds and other securities into one of three terms: short-term, medium-term and long-term. Stocks trade cum dividend when dividend has been declared but not paid. The glide path is a formula for conservative asset allocations for a target date fund and is based on the number of years left to the target date. ), An equally weighted index that measures the performance of 100 liquid non-investment-grade reference entities (those given a long-term credit rating by Fitch, Moodys and/or S&P that is lower than BBB-/Baa3) domiciled in North America that trade in the credit default swaps (CDS) market. Working Capital:Also known asnet working capital, this is the difference between a companys current assets and current liabilities. The trustee may have other duties, such as investment management. Securities that grant voting rights and participation rights in a companys success through dividends and capital appreciation. Interest is the amount paid for the use of money. Most collective investment funds are divided into units instead of shares. Financial assets have value due to contractual claims. This is the compensation or payments received by a brokerage firm for directing the orders to different parties, for execution. This principle predicts that prior to the present trend continuing forward in the market, there will occur a price correction of around 1/2 or 2/3 of the change in price. Beyond the MER, you may pay other financial advisor fees. If a portfolio moves like the benchmark, it has a high R-squared. A mortgage helps home buyers and businesses make a large real estate purchases without having to pay for the property up front. WebContingency Reserve Fund. A security or investment representing ownership in a corporation. Is a buy or sell trade order, that is placed to brokers, subject to the exact availability of supply or demand. Nationwide Securities, LLC The higher the duration, the greater the change (higher risk) in relation to interest-rate movements. An abbreviation using letters and numbers assigned to securities and indexes to identify them. For support and advice. Multi-year lease of land, buildings, vehicles, computers, machinery, office equipment or other property with a useful life greater than two years and in which the ownership of such items is to be transferred to the agency at the end of the lease term. This is a type of insider trading wherein confidential information is stolen from an employer and trading is done based on the misappropriated insider knowledge. An unmanaged, market capitalization-weighted index of 500 stocks of leading large-cap U.S. companies in leading industries; gives a broad look at the U.S. equities market and those companies stock price performance. This is a companys unique stock symbol or ticker symbol that allows the investors to check up on its share price, anywhere on the globe. A creditor that deals in unsecured loans. Qualified Dividends are ordinary dividends which are taxed at a lower long-term capital gains tax. There is an attempt to beat the benchmarked index by using strategies, like adding stocks that have a superior performance in relation to the index and by using market timing, etc. The final price attained by the security, in the after hours market, is called the after-hours market close. A mutual fund whose shares are sold without a sales commission. Average Daily / Monthly Balance An unmanaged, market capitalization-weighted index that is designed to measure the performance of global stocks in developed and emerging markets, excluding U.S.-based companies. It reflects the extent to which an assets rate of return may fluctuate from period to period. A person or entity, such as a bank, trust company or other organization, that is responsible for the holding and safekeeping of trust assets. ERISA establishes standards in order to provide protection for plan participants. The base reflects previous year's expenditures plus or minus expenditure adjustments and base adjustments. An unmanaged index that includes 100 of the largest domestic and international nonfinancial securities listed on the Nasdaq Stock Market, based on market capitalization. When requests are sent to market makers, to supply certain information to the Securities and Exchange Commission, they are known as blue sheet. Some well-known benchmarks are the Dow Jones Industrial Average and the S&P 500 Index. Stocks of companies with a large market capitalization. Return On Investment - ROI: A performance measure used to evaluate the efficiency of an investment or to compare the efficiency of a number of different investments. This is Federal Reserve Board regulation that allows for a 50% of purchase price borrowing that can be purchased on an initial margin. Often referred to as passively-managed investments. Cost of salary increases for agency personnel. Glossary of Business Financial Terms 5 . As you get older or closer to retirement, a lifecycle funds mix of asset classes becomes less focused on growth and more focused on income. Cash flow is commonly broken into three categories, including: 8. Using the accounting equation, shareholders equity can be found by subtracting total liabilities from total assets. This is an accounting term, used to classify the leased assets (operating lease not capital lease) of a company on its balance sheet. This is a credit union term for a check, which you use to withdraw funds or pay bills from your credit union account. A self-regulatory organization for brokerage firms doing business in the United States. The coupon from a bond divided by the market price of the bond, expressed as a percentage. There may be many buy, sell or limit orders on a listed stock but nothing matching that particular order on the stock exchange. This is a period of time when an employee of a public limited company is barred from buying or selling his companys stock for a particular period of time. Monthly Maintenance Fee Money market funds seek the highest level of income consistent with preserving capital. Unlike a fixed rate preferred stock, an adjustable-rate preferred stock pays dividends that fluctuate with the rate of interest on the benchmarked Treasury bill. Another way to use this phrase is to refer to a person holding a general market index portfolio. Its used to determine if you meet account balance minimums to avoid being charged account fees. These costs are called the variable costs. A person who co-signs for another persons loan is a co-signer. QOQ is the acronym for quarter-on-quarter. Zero Liability Protection The longer the maturity date, the higher the interest rate the investor earns. Non state funds obtained after appropriations are established and from which expenditures must be made prior to the next legislative session. The ratio between the dividend income and the current price of a security is known as current yield. Fixed Rate If you have questions or would like more information about a topic, visit any KeyPoint branch and speak with a representative or call (888) 255-3637. A FICO score can be between 300 and 850, and is calculated using five different criteria: payment history (35%), amounts owed (30%), length of credit history (15%), new credit (10%), and types of credit used (10%). Class C shares generally have a level load. 1. Common types of unclaimed property are bank accounts, stocks, bonds, uncashed checks, insurance benefits, and safe deposit box contents. A stop payment order can only be requested by the account holder, and can only happen if the check or payment has not already been processed. This refers to a situation in the market where the prices are very low. As a company grows, the costs incurred by it to maintain operations also grow. You complete an application and authorize the lender to do a credit check. The loss in the value of an investment, calculated by the difference between the purchase price and the net sales price. Decline means when the price of a security falls down in value on a particular trading day and consequently closes at a value lower than its opening price. Finding an integrated list of financial terms and definitions is only comprehensively possible with the aid of a financial dictionary. A collection of stocks pertinent to the utilities sector. An unmanaged, market capitalization-weighted index that gives a broad-based measurement of global high-yield fixed-income markets; measures the performance of below-investment-grade, corporate debt with a minimum of 18 months remaining to final maturity at issuance that is publicly issued in major domestic or eurobond markets, and is denominated in U.S. dollars, Canadian dollars, British pounds and euros. D It is the basic task of fulfilling or completing an order for any security or commodity. Your net worth is the value of the assets you own after you subtract any debts you have. Delisting means removing the security trading on the exchange because the company for which the stock is issued, whether voluntarily or involuntarily, is not in accordance with the listing requirements of the exchange. Default When a firm makes a secondary offering of shares to the public, that usually results in a downward price movement due to excess supply, it is termed as the impact day. They range from AAA (Highest Rating) to D (Defaulter). This is applied when a firm files for bankruptcy. Stocks of companies with smaller market capitalization. This is a provision included in a contract stating that the seller of a business will gain additional future compensation based on the business achieving certain financial goals in the future. Financial institutions pay customers interest on their savings and money market deposits, and borrowers pay interest for the money they borrow. Keep a mental note of these terms - they'll come in handy with business communication. Bank and credit union accounts can be linked to provide more convenience and lower fees for account holders. A fund that invests primarily in bonds and other fixed-income securities. This is a good indicator of general market strength for it incorporates all common stocks listed on the NYSE and the four subgroup indices, namely industrial, transportation, utility and finance in its calculation. 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