Financial Words You Should Know: Over 1,000 Essential Investment, Accounting, Real Estate, and Tax Words
Format: PDF / Kindle (mobi) / ePub
The average person has greater need and opportunity to invest and yet less disposable income to risk. Too few people truly understand the implications of the click of the mouse, simply because they do not understand the language and concepts of finance. In "Financial Words You Should Know", the language and concepts will be explained in plain English. People will be able to make educated decisions regarding their personal finances, whether they are saving for a one-time event or working toward retirement. Arranged in standard dictionary form, "Financial Words You Should Know" will be in a familiar, user-friendly format. Throughout the book, key concepts will be highlighted and explained in greater detail. While dealing appropriately with a serious topic, "Financial Words You Should Know" will, at the same time, have a light tone, achieving the feeling of a conversation with a smart friend rather than a lecture from a stern grandparent.
trends. Then a tornado wipes out one of their factories, and revenues actually decrease by 2%. No lawsuit would be allowed because their original projection was made in good faith, regardless of the actual outcome. See also: Pro forma financial statements Investors simply took their losses after the fire in the warehouse because they knew the safe harbor rule would protect the corporation. Sale and leaseback A business agreement where one company sells a key asset to a second company, then
arrangement between a lender (creditor) and a borrower (debtor) that details the terms of their agreement, including the original loan amount (face value), loan term, maturity date, repayment schedule, and interest rate. See also: Creditor, Debtor, Investment grade, Par value Treasury bills and municipal bonds are among the most common debt instruments found in conservative investors’ portfolios. Debt securities Investments that represent a loan made by the investor to the issuer, in exchange
Profitability comes from interest rate changes rather than changes in net asset value. See also: Mutual fund, Money market account, Net asset value Eric and Laura moved some money from a bond fund into a money market fund because they were concerned about interest rates and risk. Fund Investing The most popular load funds tend to be those with the highest historical returns. municipal bond fund 128 M Municipal bond fund A typically tax-advantaged investment pool that holds only debt
mimicked. Works best with the buy-and-hold style. contrarian 146 Investing C Contrarian An investor who acts against prevailing market trends, buying when a security is performing poorly and selling when a security does well. Tend to seek out unpopular investments that have low P/E ratios. See also: Price-to-earnings ratio, Value investing Although unconventional, Jamal’s contrarian ways had made him a very successful investor. Country risk The chance that a security will lose value
appreciated his financial advisor because she was good at kicking the tires before recommending any investments in new corporations. Leaseback A business arrangement where one company sells a major asset to another company, then rents it back from them. A strategy used when a company needs a big cash infusion, but still needs to use their asset. Also called “sale and leaseback.” See also: Asset, Lease The landscaping company entered into a leaseback with the tractor retailer and managed to score