You will deal with mortgage options, credit reports, loan applications, contracts, points, appraisals, change orders. Dictionary of finance and investment terms barrons business dictionaries downes, john, goodman, jordan on. Use the free adobe acrobat reader to view pdf files. This forces investors to sell stock, with prices of investments falling over an extended. This glossary presents an overview of the most common forms of investments based on three fundamental. Keeping up with the increasing number of investment products and services in the marketplace today can be confusing. Some of the definitions are tsxspecific and, as a result, may differ from standard general definitions. Government agencies, such as the federal home loan bank. The guide is an important resource that will help to create a much greater understanding of. Kingdom of saudi arabia capital market authority guide for investment terminology. Jun 28, 2016 a different take on a glossary of financial terms, including. If an insurance policy does not provide cover for certain things, it will list them and call them.
Benefits of mutual funds include diversification and professional money management. A term used to describe the takeover or buying of a. Through a 401k, you can authorize your employer to deduct a certain amount of money from your paycheck before taxes are calculated, and to invest it in the 401k plan. Absolute return the return that an asset achieves over a period of time. Glossary of finance words and investment terms factorpad. The terms of such instruments are nonstandard and are the. It consists of an 80% 30 year first lien at market rates, a 10% 15 year second lien at a slightly higher interest rate, and a 10% down payment. Assetbacked securities a security whose value and income payments are derived from, and collateralized by, a specified pool of underlying assets, such as loans, leases, credit cards, and royalties.
Glossary of real estate terms 801010 a type of blended mortgage loan which avoids private mortgage insurance pmi. The most comprehensive investing glossary on the web. Over 18000 financial and investing definitions, with links between related terms. Investment returns of mutual funds may fluctuate and are subject to market volatility, so that an investors shares, when redeemed or sold, may be worth more or less than their original cost.
Avestra capital pty ltd avestra afsl 292464, and ste, as corporate authorized representative of avestra, disclaims all liability of avestra, ste and its associates for any loss or damage suffered by any person by reason of the use by that. This measure simply looks at the appreciation or depreciation expressed as a percentage that an asset usually a stock or a fund faces over a. An investor who believes that the price of a security or the overall. Sip systematic investment plan this is the systematic investment plan option and one of the favourite terms of mutual funds representative. Investment a financial product or other asset or item of value acquired for the purpose and expectation of increasing its value through growth increase in price or income dividends or interest with favorable future returns. We have written this a to z guide to help you to understand some of the terms you. Certain terms that a particular plan sponsor may want to include in its glossary because of specific plan investment options and other circumstances may not appear. A person or organization hired by an investment fund or an individual to give professional advice on investments and asset management practices. Morgan asset managements glossary of investment terms, which is a valuable resource especially if youre new to investing. We have expanded this years edition of the investment dictionary by introducing several terms since our last update in 2012 that cover industry updates, as well as other terms not covered previously. The three s sip, stp, swp the terms are very familiar but to know the true meaning lets read through.
Whether youre a new investor or a seasoned pro, it helps to have a solid glossary at your fingertips to provide quick clarification on a particular term or to expand your. Instead of having to come up with a 20% down payment, a buyer. Professionally managed by financial experts, these funds help you create wealth in a taxfriendly way. Use this finance glossary to learn common investment terms that describe how your money is managed. Investment an investment is an instrument such as a certificate of deposit, bond, stock, or real estate that generates profits. Investorwords the most comprehensive investing glossary on the web. A security such as a bond that pays a specified cash flow over a specific period of time.
International glossary of business valuation terms 2001, the source will be noted in parentheses after the term is defined. Understanding what theyre actually saying will help you make smarter investing decisions. With that in mind, heres a primer on the a to z of the wall street universe. However, since banking is a significant part of our business and personal life, it is useful for consumers to learn some common banking terms.
The terms broker, brokerdealer, and dealer are sometimes used interchangeably. Asset any item of economic value that is owned by an individual or entity. Dollarcostaveraging a system of buying securities at regular intervals with a fixed dollar amount. Asset classes categories of investments that share certain characteristics and exhibit similar patterns of return. Glossary of investment terminology free download as pdf file.
An important tool for the investor is to understand the meaning and sense of investment terms used. Working on this glossary, we went through many authoritative glossaries to pick up the useful contemporary words for the readers of this. Shares which existing shareholders receive from a company on a free. We have written this a to z guide to help you to understand some of the terms you will come across when you buy a house, go into business, take out insurance, invest your money and do all. Bailout a bailout, in economics and finance, is a fresh. Riskfree profit derived from differences in price when the same or equivalent investment is traded on two or more markets or in more than one form. Glossary of investment terms agency securities securities issued by u. Alternative investment market the alternative investment market usually shortened to aim is a junior market of the main london stock exchange. By taking advantage of price disparities between markets, arbitrageurs perform the economic function of making these markets trade more efficiently. This glossary of terms has been produced to aid beginning traders in the challenging task of. Investment grade bonds a bond generally considered suitable for purchase by prudent investors. Investment dictionary annual report an annual report is a document that offers information about the companys activities and operations and contains financial details, cash flow statement, profit and loss statement, balance sheet, etc. Glossary of investment terminology bonds finance stocks scribd. For most mutual funds, shareholders are free to sell their shares at any time, although the price of a share in a mutual fund will fluctuate daily, depending upon the performance of the securities held by the fund.
A slang term used to refer to something favorable that has happened in business. Investment objective the goal of a mutual fund and its shareholders, e. Until we have completed such steps, we will not be deemed to have a lawyerclient relationship with you, and will have no duty to keep confidential the information we receive from you. The basis of accounting under which revenues are re corded when earned and expenditures are recorded as soon as they. It gives consumers a free, independent service to help resolve disputes. Banking terms list of important banking terminology pdf.
Introduction an important tool for the investor is to understand the meaning and sense of investment terms used in the financial markets. Free indices reflect the actual buyable opportunities, adjusted for local market restrictions on share ownership by foreigners. How to talk the talk buying a home can be exciting. A comprehensive glossary is a valuable reference tool that can be used when attending seminars, watching or listening to financial programs and reading financial market material. This glossary is for anyone who wants and needs to learn the terms related to the field of money and banking.
Investment glossary the meaning of investment terms. Under this system investors buy by the dollars worth rather than by the number of shares. The idea of writing a guide like this was conceived when i first taught an introductory finance course at the university of saskatchewan in 1992. The sharpe ratio is similar to alpha except that it measures risk and performance in excess of a risk free investment. Basic investment terms annuity a financial product sold by financial institutions pay out a stream of payments to the individual at a later point.
The a to z of financial terms plain english campaign. Banking terms and concepts are many and can sometimes be difficult to figure out, even for the industry professionals. This practical glossary of wall street terms covers everything from investment fundamentals to the. Mutual funds are an ideal way of investment where an investor may choose to invest in a fund and asset of his choice, be it equity debt or gold. You will deal with mortgage options, credit reports, loan applications, contracts, points, appraisals, change orders, inspections, warranties, walkthroughs, settlement. Investing glossary use this finance glossary to learn common investment terms that describe how your money is managed. This az pocket guide to understanding financial terms is just one of the achievements of ebss partnership with nala.
Apr 01, 2014 dictionary of finance and investment terms barrons business dictionaries downes, john, goodman, jordan on. Dictionary of finance and investment terms barrons business dictionaries. Having launched it originally in 2004 we have now updated it with modern terminology to meet with the increasing demand for the book. The glossary defines terms that are likely to apply to a wide group of plans and investments, but it does not include definitions for every retirement plan and investmentrelated term. Noun n the codes c and u show whether a noun, or a particular sense of a noun, is countable an agenda, two agendas or uncountable. Stock market terms speak the language of the stock market consult our stock market terms for a glossary of terms and vocabulary that may help you better understand the capital markets. Glossary of real estate investing terms abstract a synopsis of the legal history of ownership of real property. Before taking on a representation, we must determine whether we are in a position to assist you and agree on the terms and conditions of engagement with you. Investments are flexible and give you an array of choice to.
These securities have high credit ratings but are not backed by the full faith. Investment advisor an investment advisor is a professional who helps customers with security and risk analysis, offers investment advice, and manages assets and portfolios. The child trust fund ctf is a longterm savings and investment account for children. Index a benchmark used in executing investment strategy which is viewed as an independent representation of market performance. The investor must be familiar with them in order for him to be able to get a. For example, an employee receiving a raise may reply with the words cool beans, upon receiving the news. An important tool for the investor is to understand the meaning and sense of investment terms used in the financial markets. Bear bear refers to a market on which the value of securities decreases. If you are in a pension scheme and take this option, you will receive a. Acceleration clause a clause in a mortgage that provides, at the option of the lender, the entire unpaid balance of the note. The additions reflect the everchanging face of investment markets, with the associated phraseology that this introduces. While lecturing on certain topics, i would occasionally observe puzzled faces upon mentioning some basic financial terms. Dictionary of finance and investment terms barrons business. Glossary of business terms adjective adj headwords for adjectives followed by information in square brackets only before a noun and not before a noun show any restrictions on where they can be used.
If another source was used other than the original. A summary of recorded instruments, which affect title, arranged in the order of recording. The glossary of direct investment terms and definitions 148k pdf file is based on the methodology for compiling foreign direct investment fdi set out in the international standards, namely, the fifth edition of the imfs balance of paymentws. A corporation or trust that invests pooled shareholder dollars in securities appropriate to the organizations objective.
Longterm investment strategy a strategy that looks past the daytoday fluctuations of the stock and bond markets and. A record that holds the results of financial transactions. Basic investment terms creative capital management. It also lists creditors who have been owed money for the longest. Automatic investment plan also known as a systematic investment plan, a set arrangement where an individual invests in an investment on a periodic basis. A financial goal usually expressed in terms of growth, income and safety of principal that can be used by an investor to determine which types of investments are appropriate. This glossary is designed to help you understand some of the more common investment and financial terms you may encounter.