Terms with Category Investments

  • Accounts Payable (A/P, AP) Bank,
    • Money owed by a business for goods and services received.
  • Accounts Receivable (A/R, AR) Bank, Important,
    • Money owed to a business by purchasers of goods and/or services.
  • Accrual Method Bank,
    • Business accounting in which you report income in the year you earned it and expenses in the year you incur them, rather than reporting income and expenses when you receive payment or when you pay the expenses. Under this method, if you built a deck and billed the client in December 1999, the amount you charged would be reported in 1999 as income even if you didn't get the payment until January 2000. If you own a business that maintains an inventory, you are required to use the accrual method.
  • Accumulation Period (AP) Bank, Important,
    • The period where an investor continues to put money into his or her investment(s).
  • Acid-Test Ratio Bank,
    • A ratio that determines the liquidity of a company without requiring the company to sell assets or inventory.
  • Actuarial Table Bank,
    • A table used in actuarial science that outlines the statistical probability that an individual of a specific age and sex will die within a year.
  • Actuary Bank,
    • An individual who assesses the mechanisms, mathematics and complexities of risk and uncertainty.
  • Agency (agcy) Bank,
    • A relationship between two parties -- a client and an agent -- in which the agent represents the client in transactions with a third party.
  • Agent (agt) Bank,
    • A person who acts on behalf of another. In real estate, an agent is a person who conducts transactions on behalf of sellers and sometimes buyers.
  • Angel Investors Bank,
    • Private individuals with capital to invest in business enterprises.
  • Annual Crediting Cap Bank,
    • The highest rate that can be credited to an equity-indexed annuity in a year.
  • Annual Percentage Yield (APY) Bank,
    • The percentage, required by Truth in Savings regulations, to be disclosed on interest-bearing deposit accounts that reflects the total interest to be earned based on an institution's compounding method, assuming funds remain in the account for a 365-day year.
  • Annuitant Bank,
    • An individual who owns or is the recipient of an annuity.
  • Annuitization Bank,
    • The process of turning a retirement plan or annuity into income in the form of periodic payments or a single lump sum.
  • Annuitization Options Bank,
    • The different income dispersal options available when annuitizing a retirement plan or annuity, such as the timeframe and list of beneficiaries.
  • Annuity Bank,
    • A financial instrument that disperses a number of payments over a set period of time.
    • A regular periodic payment made by an insurance company to a policyholder for a specified period of time.
  • Annuity Certain Bank,
    • A type of annuity that makes payments to the annuitant for a set term; payments stop when the agreed upon term ends, even if the annuitant is still alive after the term ends.
  • Annuity Consideration Definition,
    • The payment(s) made by an individual in order to accumulate value in an annuity.
  • Annuity Contract Bank,
    • A contract that outlines each party's responsibilities as they relate to an annuity.
  • Annuity Factor Method Bank,
    • A way of determining the maximum amount an annuitant can withdraw from an annuity before penalties are applied.
  • Annuity in Advance Bank,
    • When payments are made at the start of a period as opposed to the end.
  • Annuity in Arrears Bank,
    • When payments are made at the end of a period as opposed to the start.
  • Annuity Ladder Bank,
    • A financial plan to purchase multiple annuities from different companies over a number of years in order to minimize interest rate risk and the risk of a total loss.
  • Annuity Table Bank,
    • A table that can be used to find the future value of an annuity.
  • Appreciation Bank,
    • An increase in the value of a property or item.
  • Asset-Backed Securities (ABS) Acronym, Very Important,
    • Securities backed by a pool of assets.
    Financial security made up of a bundle of assets.
  • Average Annual Yield (AAY) Bank,
    • The average yield per year over the life of the investment, assuming all principal and interest remain on deposit until maturity.
  • Backflip Takeover Bank,
    • A form of takeover where the purchasing company becomes a subsidiary of the purchased company.
  • Balance Sheet (B/S, BS) Bank,
    • A listing of a business' assets, liabilities and ownership equity as of a specific date.
  • Bank of Canada (BC, BOC) Bank Est. 1935, Ottawa, Ontario, Canada, Important,
    • Canada's central bank.
    Canada's central bank.
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