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Glossary
Glossary
Glossary | |
| Terms that are on use on this site. | |
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| There are 14 entries in the glossary. | |
| Pages: 1 | |
| Term | Definition |
| Accumulated Dividend | A dividend due to stockholders of cumulative preferred stock that has not been paid to them. Until the dividend is paid, it is carried on the corporation's books as a liability. |
| ACH | Automated Clearing House. This is a national network that allows for transferring funds electronically between businesses, consumers and financial institutions. |
| Adjustable Rate Mortgage (ARM) | A home loan where the interest rate is changed periodically based on a standard financial index. ARM's offer lower initial interest rates with the risk of rates increasing in the future. In comparison, a fixed rate mortgage (FRM's) offers a higher rate that will not change for the length of the loan. ARMs often have caps on how much the interest rate can rise or fall. |
| Adjusted Basis | The base price that is used to assess capital gains and losses when a security is sold. When net proceeds are used for tax purposes, the commissions are deducted at the time of sale. If any stock splits have occurred since the original purchase, the stock's price needs to be adjusted to obtain a correct adjusted basis. |
| Aggressive Growth Fund | A mutual fund that buys shares in small or speculative growth companies to achieve maximum capital appreciation. |
| Alternative Mortgage | Any home loan that is not a standard fixed-rate mortgage. This includes ARM's, reverse mortgages and jumbo mortgages. |
| American Stock Exchange (AMEX) | The second largest stock exchange in the US is located in the financial district of New York City at 86 Trinity Place. As a general rule, the securities traded on the AMEX are those of small to mid-size corporations. The AMEX also trades options of many NYSE securities and some OTC securities. |
| Annual Percentage Rate (APR) | The interest rate being charged on a debt, expressed as a yearly rate. Credit cards often have several different APR's - one for purchases, one for cash advances and one for balance transfers. Some lenders may increase the APR if a payment is late. |
| Annual Report | A report that companies send their shareholders on an annual basis that outlines earnings and other information. |
| Annuity | A contract between a life insurance company and an individual that guarantees income for a defined period, usually starting at retirement, to the person on whose life the contract is based. In exchange, the individual agrees to make periodic payment to the insurance company. All capital in the annuity grows tax-deferred. |
| Application Fee | Amount a lender charges to process loan application documents. Quality lenders do not charge these fees (though they may charge many others). |
| Appraised Value | An educated opinion of how much a property is worth. An appraiser considers the price of similar homes in the area, the condition of the home and the features of the property to estimate the value. |
| Asset | Assets are things owned by a person that have cash value. This can include homes, cars, boats, savings and investments. |
| Asset Allocation | The allotment of investment funds amongst various types of assets such as cash equivalents, stock, fixed-income investments, real estate, and precious metals. It also applies to sub-classifications such as industry groupings of common stocks and government, municipal, and corporate bonds. Asset allocation affects both risk and return. |
| Glossary V2.0 | |
