Financial definitions

Financial Definitions, from A-Z.

Freshen up on the lingo.

Term
Definition
1
10% International Markets
These mare investments made on international companies, funds or any foreign stocks.
1
10% Small Cap
These companies are typically young and can be valued between $300M to $2B. While they might be projected to grow rapidly, they might be limited in resources to grow and this can make them much more vulnerable to a business or economic down-turn.
1
20% Large Cap
These are large well-known companies who's market value is above $10B. They have a long track record of growth and steady performance.
1
20% Mid Cap
These are medium-sized established companies who's market value is between $2 and $10B, and they are projected to grow rapidly.
1
πŸ‘΅πŸΌ
401(k)
Type of retirement savings plan that offered by most employers where your invested amount may be matched
1
5% Emerging Markets
These are International markets or regions that are undergoing fast economic growth.
1
πŸ‘¦πŸΌ
529 plans
Tax-advantaged savings plan to save up for your child's future education costs
1
πŸ“ˆ
APR: Annual Percentage Rate
% value that indicates how much the cost of borrowing a loan or a line of credit is applied to: credit card, personal bank loans, auto loans & mortgages
1
πŸ“ˆ
APY: Annual Percentage Yield
β€’ The amount of money that your current bank account balance will earn in compound interest over one year β€’ For ex: say you have $25K in your savings account... depending on the APY %, your account balance will change β—¦ βœ… Look into savings accounts with high apy % β—¦ ⚠️ APY % can swing from time to time so it may not always be constant, so watch out
1
Account Status
can be open, closed, paid, refinanced, transferred or foreclosed
1
Adjustable-Rate
interest rate on loans that may go up or down
1
Adjusted Gross Income
Your gross income minus the deductions such as contributions to your retirement account, paid student loan interests, educator expenses, etc.
1
Asset
Any tangible or intangible resource of financial value that is owned by an individual, company or the government
1
πŸ“š
Asset Collection
Really fancy way of saying "investment strategy". Think of this as the different categories you plan to put your money towards
1
⏰
Average Age of Accounts
Total months active of all opened accounts divided by the overall number of accounts you own
1
Back Taxes
Taxes that have been partially paid or fully unpaid for the year that they were due
1
🧸
Bear Market
When there is a major market decline and the economy isn't doing too great
1
πŸ“
Benchmark
A numerical measure that can help you understand how different assets are performing in comparison to the overall market
1
πŸ’°
Bonds
Officially known as "fixed-income securities". When you purchase a bond, you are lending a company or the government money at a fixed interest rate. Essentially you become the bank that lends money out
1
πŸ‚
Bull Market
When the economy is doing well and investing is on the rise
1
Cash & equivalents
Money in the bank in the form of saving accounts, money market accounts and bank certificate deposits
1
πŸ’΅
Checking Account
β€’ The account to spend moolah - day to day spending, bills / purchases β€’ You can withdraw your money whenever β€’ Little to no interest earned here
1
πŸ‡ΊπŸ‡Έ
Community foundations
public charities that are focused on addressing key issues of a specific geographical area
1
⏫
Compound Interest
The opportunity for you to earn interest on the initial interest you've already gained on your money
1
Credit
ability to borrow money or access goods or services with the understanding that you'll pay later