Financial Terms Dictionary: Terminology Plain and Simple Explained

1334 Pages·2017·5.653 MB·English

by  Thomas Herold, Wesley Crowder

"This book is equally valuable to the experienced and
the novice reader." - Martin Steiner
Best selling author of "Building Wealth with Silver"
Financial Terms Dictionary - Terminology Plain and Simple Explained

Financial Terms Dictionary
Terminology Plain and Simple Explained

Published May 15, 2017
Revision 1.2
© 2014-2017 Evolving Wealth - Thomas Herold - All rights reserved
Financial Terms Dictionary
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Financial Terms Dictionary - Terminology Plain and Simple Explained

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Financial Terms Dictionary - Terminology Plain and Simple Explained

Table Of Contents
401(k) Plan .......................................................... 21
403(b) Plan .......................................................... 23
408(k) Plan .......................................................... 25
412(i) Plan .......................................................... 27
457(b) Plan .......................................................... 29
501(c) .............................................................. 31
AAA Rating ......................................................... 33
Absorption Rate ...................................................... 35
Accountant .......................................................... 37
Adam Smith ......................................................... 38
Adjustable Rate Mortgage (ARM) .......................................... 40
Affidavit ............................................................ 41
Agency Bonds ........................................................ 42
Alan Greenspan ...................................................... 43
Algorithmic Trading ................................................... 45
American Bankers Association (ABA) ....................................... 47
American Express ..................................................... 49
American Institute of Banking (AIB) ........................................ 51
American International Group (AIG) ....................................... 53
American Stock Exchange (AMEX) ......................................... 55
Amortization ........................................................ 56
Annual Percentage Rate (APR) ............................................ 57
Annuity ............................................................ 58
Appraisal ........................................................... 60
Appraised Value ...................................................... 61
Arbitrage ........................................................... 63
Assessed Value ....................................................... 64
Asset Allocation ...................................................... 66
Asset Backed Security (ABS) ............................................. 68
Asset Classes ......................................................... 70
Assets .............................................................. 72
Assets Under Management (AUM) ......................................... 73
Assumable Loan ...................................................... 75
Austerity ........................................................... 76
Austrian Economics .................................................... 78
Automated Underwriting ................................................ 80
Bad Debt ........................................................... 82
Bailout ............................................................. 83
Balance of Payments ................................................... 84
Balanced Budget ...................................................... 85
Balloon Loan ........................................................ 87
Banco Santander ...................................................... 88
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Financial Terms Dictionary - Terminology Plain and Simple Explained

Bank for International Settlements (BIS) ..................................... 90
Bank Notes .......................................................... 92
Bank of England ...................................................... 94
Bank of Japan ........................................................ 96
Bank Run ........................................................... 98
Bank Stress Tests ..................................................... 99
Bankruptcy ........................................................ 101
Barclays ........................................................... 102
Barings Bank Collapse ................................................. 104
Barristers .......................................................... 106
Barter ............................................................ 108
Bear Market ........................................................ 109
Bear Stearns ........................................................ 110
Ben Bernanke ....................................................... 112
Benjamin Graham .................................................... 114
Berkshire Hathaway .................................................. 116
Bernard Madoff ..................................................... 118
BG Group ......................................................... 120
Big Oil Super Majors .................................................. 121
Binary Options ...................................................... 123
Bipartisan ......................................................... 125
Bitcoin Currency ..................................................... 126
Black Monday ....................................................... 128
Black Thursday ...................................................... 130
Black Wednesday .................................................... 132
Blanket Loans ....................................................... 134
Bloomberg ......................................................... 136
Blue Chip Stocks ..................................................... 138
BNP Paribas ........................................................ 139
Bond Market ....................................................... 141
Bonds ............................................................. 143
Book Value ......................................................... 144
Bookkeeper ........................................................ 145
Boom ............................................................. 146
Bretton Woods Agreement .............................................. 147
Bretton Woods Committee .............................................. 149
Brexit ............................................................. 151
Bridge Loan ........................................................ 153
British Bankers Association (BBA) ........................................ 154
British World Economic Order ........................................... 156
Brokers ........................................................... 158
Bubble ............................................................ 159
Budget Deficit ....................................................... 160
Bull Market ........................................................ 162
Bundesbank ........................................................ 163
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Financial Terms Dictionary - Terminology Plain and Simple Explained

Bureau of Economic Analysis (BEA) ....................................... 165
Bureau of Engraving and Printing (BEP) .................................... 167
Business Cycle ...................................................... 169
Call Option ......................................................... 171
Cap Rate .......................................................... 172
Capital Appreciation .................................................. 174
Capital Expenditures .................................................. 175
Capital Flight ....................................................... 177
Capital Gains ....................................................... 179
Capital Markets ..................................................... 180
Capital Stock ....................................................... 182
Carl Icahn ......................................................... 183
Case Shiller Index .................................................... 184
Cash Flow ......................................................... 186
Cash Flow Quadrant .................................................. 187
Cash Management .................................................... 188
Cash On Cash Return (CCR) ............................................ 190
Cash Reserves ....................................................... 191
Cash Savings Account ................................................. 193
Central Bank ....................................................... 195
Certificate of Occupancy ............................................... 196
Certificate of Title .................................................... 197
Certified Public Accountant (CPA) ........................................ 198
Cession Deed ....................................................... 199
CFA Institute ....................................................... 201
Chain of Title ....................................................... 203
Chapter 7 Bankruptcy ................................................. 205
Charge Off ......................................................... 207
Charles Schwab ..................................................... 208
Citigroup .......................................................... 210
Closed End Funds .................................................... 212
Closeout Sale ....................................................... 214
Closing Costs ....................................................... 216
CME Group ........................................................ 217
CMG Plans ......................................................... 219
Collaboration ....................................................... 220
Collateralized Debt Obligations (CDO) ..................................... 221
Collateralized Mortgage Obligation (CMO) .................................. 222
Collectibles ......................................................... 223
Collective Bargaining .................................................. 224
Collective Investment Fund (CIF) ......................................... 226
Commercial Banks ................................................... 228
Commercial Paper ................................................... 230
Commodities ........................................................ 231
Commodity Broker ................................................... 233
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Financial Terms Dictionary - Terminology Plain and Simple Explained

Commodity Exchange (COMEX) ......................................... 235
Commodity Futures Modernization Act (CFMA) .............................. 237
Commodity Markets .................................................. 239
Commodity Money ................................................... 241
Common Securitization Platform (CSP) ..................................... 243
Common Stock ...................................................... 245
Commonwealth of Nations .............................................. 246
Compound Interest ................................................... 247
Compounding of Money ................................................ 249
Congressional Budget Office (CBO) ....................................... 250
Constructive Eviction ................................................. 252
Consumer Data Industry Association ....................................... 254
Consumer Debt ...................................................... 256
Consumer Financial Protection Bureau (CFPB) ............................... 258
Consumer Price Index (CPI) ............................................. 260
Contango .......................................................... 261
Contingency ........................................................ 263
Conversion Discount .................................................. 264
Convertible Bond .................................................... 265
Core CPI .......................................................... 267
Corporate Bonds ..................................................... 268
Corporation ........................................................ 269
Cost of Goods Sold (COGS) ............................................. 270
Cost Push Inflation ................................................... 272
Cost Segregation ..................................................... 273
Council of Economic Advisers (CEA) ...................................... 274
Counter Offer ....................................................... 276
Credit Agricole ...................................................... 277
Credit Analysis ...................................................... 279
Credit Bureaus ...................................................... 281
Credit Default Swaps .................................................. 283
Credit Derivatives .................................................... 284
Credit History ....................................................... 286
Credit Ratings Agencies ................................................ 287
Credit Repair Organizations ............................................ 289
Credit Report ....................................................... 290
Credit Risk ......................................................... 291
Credit Suisse ........................................................ 293
Credit Union ........................................................ 295
Creditor ........................................................... 297
Currency .......................................................... 299
Currency Intervention ................................................. 301
Currency Pairs ...................................................... 303
Currency Standards .................................................. 304
Currency Trading .................................................... 305
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Financial Terms Dictionary - Terminology Plain and Simple Explained

Custodian Bank ..................................................... 307
Customer Base ...................................................... 308
Cyclical Manipulation ................................................. 310
Day Trading ........................................................ 311
Debasement ........................................................ 313
Debasing the Currency ................................................ 314
Debit Card ......................................................... 315
Debt Ceiling ........................................................ 316
Debt Consolidation ................................................... 318
Debt Coverage Ratio (DCR) ............................................. 320
Debt Relief ......................................................... 322
Debt Restructuring ................................................... 324
Debt Service ........................................................ 326
Deduction .......................................................... 327
Deed in Lieu of Foreclosure ............................................. 329
Defeasance Clause .................................................... 330
Deferred Maintenance ................................................. 331
Deficit ............................................................ 332
Deficit Spending ..................................................... 333
Defined Benefit Plan .................................................. 334
Defined Contribution Plans ............................................. 336
Deflation .......................................................... 337
Demand Pull Inflation ................................................. 338
Demutualization ..................................................... 340
Department of Justice ................................................. 342
Department of the Treasury ............................................. 344
Dependency Theory ................................................... 346
Dependent Development ............................................... 348
Depreciation ........................................................ 350
Depression ......................................................... 352
Derivative .......................................................... 354
Deutsche Bank ...................................................... 355
Devaluation ........................................................ 357
Digital Currency ..................................................... 358
Digital Wallet ....................................................... 360
Discount Fee ........................................................ 362
Discount Mortgage Broker .............................................. 364
Discount Points ...................................................... 365
Discount Rate ....................................................... 366
Discover ........................................................... 367
Discretionary Expenses ................................................ 369
Discretionary Income .................................................. 371
Disposable Income .................................................... 373
Distressed Assets ..................................................... 374
Diversifying ........................................................ 375
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Financial Terms Dictionary - Terminology Plain and Simple Explained

Dividend .......................................................... 376
Dividend Reinvestment Plans ............................................ 377
Dividend Yield ...................................................... 379
Dodd-Frank Act ..................................................... 380
Dollar Standard ..................................................... 382
Dotcom Bubble ...................................................... 384
Dow Jones ......................................................... 386
Dow Jones Industrial Average (DJIA) ...................................... 388
Dow Theory ........................................................ 389
Down Payment ...................................................... 391
Dual Index Mortgage .................................................. 392
Due Diligence ....................................................... 393
Due Process ........................................................ 394
Due Process Oversight Committee (DPOC) .................................. 396
Dumping .......................................................... 398
Earned Income ...................................................... 400
Earned Income Tax Credit (EITC) ........................................ 401
Earnings Per Share (EPS) .............................................. 403
Econometrics ....................................................... 404
Economic Commission for Latin America and the Caribbean ...................... 406
Economic Embargo ................................................... 408
Economic Globalization ................................................ 410
Economic Growth .................................................... 412
Economic Indicators .................................................. 414
Economic Output .................................................... 416
Economic Sanctions ................................................... 418
Economic Surplus .................................................... 420
Efficient Market Hypothesis (EMH) ....................................... 422
Egalitarianism ...................................................... 424
Elastic Demand ...................................................... 425
Embargo .......................................................... 427
Embezzlement ...................................................... 429
Emerging Markets ................................................... 431
Employee Stock Option (ESO) ........................................... 432
Employee Stock Ownership Plan (ESOP) .................................... 434
Employees ......................................................... 436
Energy Commodities .................................................. 437
Enron Bankruptcy ................................................... 439
Entrepreneurs ...................................................... 441
Environmental Impact Statement (EIS) ..................................... 442
Environmental Protection Agency (EPA) .................................... 444
Equal Credit Opportunity Act (ECOA) ..................................... 446
Equifax ........................................................... 448
Equities ........................................................... 450
Equity ............................................................ 451
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Financial Terms Dictionary - Terminology Plain and Simple Explained

Equity of Redemption ................................................. 452
Equity Securities ..................................................... 454
ERISA ............................................................ 455
Escrow ............................................................ 456
ESOP ............................................................. 457
EUREX Exchange .................................................... 459
Euro ............................................................. 461
Euro Stoxx 50 Index .................................................. 462
Euro-skeptics ....................................................... 464
European Central Bank (ECB) ........................................... 466
European Debt Crisis ................................................. 468
European Investment Bank (EIB) ......................................... 470
European Monetary System (EMS) ........................................ 472
European Sovereign Debt Crisis .......................................... 474
European Stability Mechanism (ESM) ...................................... 476
European Union ..................................................... 478
Eurozone .......................................................... 480
Eurozone Crisis ...................................................... 482
Eviction ........................................................... 484
Excess Reserves ...................................................... 485
Exchange Rate ...................................................... 487
Exchange Rate Mechanism (ERM) ........................................ 488
Exchange Traded Funds (ETF) ........................................... 490
Expense Ratio ....................................................... 491
Experian .......................................................... 493
Export ............................................................ 495
Export Quotas ...................................................... 496
Extendable Commercial Paper (XCP) ...................................... 498
Face Value ......................................................... 500
Fair Credit Billing Act ................................................. 502
Fair Housing Act ..................................................... 504
Fannie Mae ........................................................ 506
Federal Debt ........................................................ 508
Federal Deposit Insurance Corporation (FDIC) ............................... 510
Federal Housing Finance Agency (FHFA) ................................... 512
Federal Open Market Committee ......................................... 514
Federal Reserve ..................................................... 516
Federal Reserve Act of 1913 ............................................. 517
Federal Reserve Bank ................................................. 518
Federal Reserve Bank Notes ............................................. 519
Federal Reserve System ................................................ 521
Federal Trade Commission (FTC) ......................................... 523
Fedwire ........................................................... 525
Fiat Dollars ........................................................ 527
Fiat Money ......................................................... 528
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