financial terms glossary 2

Financial Glossary: Business Terms, Definitions & Concepts Hub

An unmanaged, market capitalization-weighted index of 500 stocks of leading large-cap U.S. companies in leading industries. This index gives a broad look at the U.S. equities market and the stock price performance of those 500 companies. An unmanaged, modified, market capitalization-weighted index that measures the performance of the technology sector of the U.S. equity market.

Annuity

Welcome to our Glossary of Financial Terms, meticulously crafted to help you explore and demystify the complex lingo of the financial world. Multiplicator used to neutralize differences in the characteristics in terms of coupon rate and maturity of the deliverable bonds for a futures contract. Interest rate futures contract on a notional long-term German government bond (Bundesanleihe) with a remaining term comprised between 8.5 and 10.5 years. Interest rate futures contract on a notional very long German government bond (Bundesanleihe) with a remaining term comprised between 24 and 35 years. Interest rate futures contract on a notional long-term Italian government bond (Buoni del Tesoro Poliennali or BTP) with a remaining term comprised between 8.5 and 11 years and a 6% coupon.

Unsecured Loan

• A generally unscrupulous or illegal form of credit counseling that promises the impossible, such as erasing accurate records from your credit report.
• Each person on the account is legally responsible for the debt and the account will be reported to each person’s credit report.
• RebalancingRebalancing involves adjusting asset allocations within a portfolio to realign with an investor’s risk profile and financial objectives.
• Also known as open lines of credit, or “charge cards”, these debts are due in full at the end of each month; the most common open credit line is the traditional American Express card.

Once a low-tech system of regional credit reporting agencies, the industry is now consolidated into the three national credit bureaus – Equifax, Experian and TransUnion. The official document that describes certain investments, such as mutual funds, to prospective investors. The prospectus contains information required by the SEC, such as investment objectives and policies, risks, services and fees. A debt security that represents money borrowed by a corporation, government, or other entity.

A trusted finance partner who arranges finance directly with a lender on behalf of their client (the borrower). Their job is to find the right finance solution for their clients and they often have working relationships with banks or other types of lenders such as alt-fi and specialist lenders. Balance sheets are used by businesses alongside other important financial statements to conduct essential business evaluations and calculate financial ratios. Remembering them all can be difficult, which is why we’ve put together this helpful financial terms glossary for you to refer back to whenever you need a reminder. An agreement where a creditor is placed in a lower asset collection priority than it previously had. This means that the new, higher priority, creditor has the right to collect any debts owed by the borrower prior to the other, more subordinate, creditors.

• In this system, software tags financial data and allows it to be more easily transferred between businesses and business units.
• Unit PriceThe value of one unit in a unit trust or OEIC, reflecting the underlying asset value and market conditions.
• The price of a stock divided by trailing 12-month earnings per share.
• Subprime borrowers should review the terms of their loan offers carefully to see if this fee is included.
• Assets can include shares, commodities, real estate, and currencies, many of which can be traded with derivative products such as CFDs.

Stock

A fund with an investment objective of both long-term growth and income, through investment in both stocks and bonds. An optional service that will periodically exchange money between funds in your account to maintain your original investment levels. AAR saves you the time and hassle of manually reallocating your current balance every few months. The process carried out by financial lenders when assessing financial terms glossary whether or not a business or individual meets their criteria for lending. The process is administered by an underwriter, who looks at the prospective borrower’s application and credit file to determine the level of risk to the lender.

Financial Loan Consulting

Financial products differ in terms of their underlying asset class, volatility, risk and return. A senior financial advisor or planner can help you determine which products make the most sense for your unique situation. Typically has long approval times and stringent requirements inclduing 2 years of tax returns, audited financials, personal financial statements, cash flow, and projections.

An unmanaged index in the Emerging Market Bond Index (EMBI) series that measures the performance of U.S. dollar-denominated sovereign bonds issued by emerging market countries as selected by JPMorgan. An account within a fixed or variable annuity that is guaranteed by the insurance company to earn at least a minimum rate of interest while invested in the contract. Financial statements are usually published in a company’s annual report. They generally include a balance sheet, an income statement, and other financial statements and disclosures. Any person or party who exercises any discretionary authority or control over the management of a plan, or the disposition of its assets.

A loan that is not backed by collateral; it is guaranteed only by the borrower’s promise to repay. A loan that is backed by collateral, such as an auto loan or a loan that finances the purchase of some appliances or furniture. A non-binding evaluation of a prospective borrower’s finances to determine how much he or she can borrow and on what terms. A pre-qualification letter is a less formal version of a pre-approval letter. Also known as open lines of credit, or “charge cards”, these debts are due in full at the end of each month; the most common open credit line is the traditional American Express card. Your income after taxes and other withholdings have been deducted, or your take-home pay.

What is Personal Finance?

However, re-aging can also be used illegally by collections agencies to make a debt account appear much younger than it actually is. Some collections agencies use this tactic to keep an account from expiring from your credit report in order to try to get you to pay the debt. For variable-rate credit card plans, the interest rate is explicitly tied to another interest rate. The interest rate on fixed-rate credit card plans, though not explicitly tied to changes in other interest rates, can also change over time. A record of a business request to see your credit report data for the purpose of an application for credit. Hard inquiries appear on your credit report each time you complete an application for a credit card, loan, cell phone, etc.

An unmanaged index that measures the performance of the mid capitalization growth segment of the U.S. equity universe. Includes Russell Midcap® Index companies with higher price-to-book ratios and higher forecasted growth values. An unmanaged index that measures the performance of the small capitalization growth segment of the U.S. equity universe. Includes Russell 2000c Index companies with higher price-to-book ratios and higher forecasted growth values. An unmanaged index that measures the performance of the large capitalization value segment of the U.S. equity universe.

In contrast, a negative alpha indicates the fund’s underperformance, given the expectations established by the fund’s beta. An investment fund that takes higher risk of loss in return for potentially higher returns or gains. A third party who agrees to pay the borrower’s debt if the borrower defaults on a loan obligation. The guarantor will typically guarantee a loan by pledging their own assets as collateral. A document that summarises the financial position of a business, including assets, liabilities, and net worth. It is used to assess the financial health of the business or individual.