Trending Business / Commerce Terms
Asset Allocation:
Asset allocation involves dividing your investments among different assets, such as stocks, bonds, and cash. This asset allocation decision is a personal one. The allocation that works best for you changes at different times in your life, depending on how long you have to invest and your ability to tolerate risk. The process of dividing your money between different types of assets, such as stocks, bonds and cash, to generate the overall return you need in a manner that is consistent with your risk tolerance.
Asset Classes:
Equities (e.g., stocks), fixed income (e.g., bonds), cash and cash equivalents, real estate,commodities, and currencies are common examples of asset classes. Different types of investments. Stocks, bonds and money market investments are broad asset classes, which can be further divided into smaller groups, such as large-cap and small-cap stocks, government and municipal bonds, etc.
It is an investment program that allows investors to contribute funds to an investment account in regular intervals. it is a method for investing in mutual funds which enables a shareholder to select a specific amount to be withdrawn from a bank checking or savings account, or an automatic exchange from another mutual fund, on a regularly scheduled basis and invested in additional fund shares.
Automatic Reinvestment:
A shareholder-authorized purchase of additional fund shares using dividend distributions or capital gains distributions.
Bond:
An IOU issued by a corporation, municipality or government agency. A bond issuer is borrowing money from you and other members of the public and, in exchange, promises to pay interest at regular intervals until the bond matures, at which time investors receive their principal back.
Brokered Certificates of Deposits ("CD"): Brokered CDs are CDs issued by banks that are made available to the customers of a deposit broker. Brokered CDs are obligations of the bank, not the broker.
Brokered CDs generally have the features of CDs available directly from banks and are eligible for the same deposit insurance (Federal Deposit Insurance Corporation ("FDIC") as CDs purchased directly from banks.
Compounding:
A process by which investment earnings build up not only on the money originally invested but also on the earnings and gains made in previous years.
Cost Basis:
The original cost of an investment, used to determine capital gains and losses for tax purposes.
The interest rate percentage that an issuer of debt securities promises to pay over the life of the security.
Cash App:
It is a mobile payment service available in the United States and the United Kingdom that allows users to transfer money to one another using a mobile phone app. In September 2021 this application was launched and available in android and i o s
The Certified Cash Manager ( C C M ) professional designation has been merged into the Certified Treasury Professional ( C T P ) certification. The Association for Financial Professionals ( A F P ) oversees both C C M and C T P credentials.
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