Personal Finance Glossary
Frequently Searched Terms
Definition of MBO
A
"Abusive tax shelter" generally refers to a limited partnership or other vehicle that is wrongfully... more
"Accelerated cost recovery system" is the schedule of depreciation rates allowed for tax... more
An "acceleration clause" is a contractual provision stating that the unpaid balance becomes due and... more
"Account executive" generally refers to a stock brokerage firm employee who handles securities... more
An "accountant" is an individual or firm that generally prepares, audits, and/or inspects the... more
"Accounting method" is the method by which income and expenses are arrived at for purposes of... more
"Accounting period" is the period reflected by a company's set of financial statements. An... more
"Accounts payable" is a company's accounting entry reflecting short term obligations owed to... more
"Accounts receivable" is a company's accounting entry reflecting money owed from customers for... more
"Accounts receivable financing" is a short-term financing method in which accounts receivable are... more
"Accredited investor" is a term defined under SEC Regulation D to refer to investors who are deemed... more
In reference to discount bonds, "accretion" is a straight-line accumulation of capital gains on a... more
"Accrual accounting" is an accounting method that tries to match the recognition of revenues earned... more
"Accrual basis" refers to an accounting method in which expenses and income are accounted for as... more
"Accrued interest" is interest on a loan obligation that has been earned but not... more
"Accrued market discount" is the gain in the value of a discount bond expected from holding it as... more
An "accumulated earnings tax" is a tax imposed by the federal government on companies with retained... more
"ACH" stands for Automated Clearing House and is the national network that allows for transferring... more
"Acquiree" refers to a target company being acquired. Also see "Merger" , "M&A Transaction" and... more
A firm or company that is acquiring a company. . Also see "Merger", "M&A Transaction" and... more
An "acquisition" is when one firm or a company buys another company. This is often referred to as a... more
An "Acquisition Agreement" is a contract where one party is buying the assets or stock of another... more
"Acquisition cost" is the expense undertaken to acquire equipment, real property or other... more
"ACRS" stands for Accelerated Cost Recovery System which is the schedule of depreciation rates... more
"Active income" is income from an active business as contrasted with passive investment income... more
"Active investing" refers to a portfolio securities management strategy in which the manager... more
"Actuarial risk" is the risk that the assumptions employed by an actuary to calculate the cost or... more
An "actuary" is a professional in pension and life insurance matters, experienced in math,... more
An "ad valorem tax" is a tax based on the value (or assessed value) of... more
An "adjustable-rate mortgage" is a mortgage loan where the interest rate is periodically adjusted... more
"Adjustable-rate preferred stock" is a preferred stock whose dividend changes according to changes... more
"Adjusted gross income" is a tax term used to determine how much income is taxable. Adjusted gross... more
The "adoption credit" is a tax credit for qualified adoption expenses incurred for a... more
"American depositary receipt" is a certificate issued by a United States depository bank... more
"American depositary shares" represent foreign shares held in the United States and registered in... more
An "advance directive" is a form of legal document expressing a person's wishes about medical... more
An "advance refunding" is a financing structure under which new municipal or government bonds are... more
"Affidavit of loss" is a sworn statement describing the particulars and circumstances of the loss... more
The "Affidavit of Lost Stock Certificate" is a legal form used by a stockholder to represent under... more
An "Affiliate Agreement" is a legal contract between a Web site operator and a third party that... more
"Affiliated corporation" is a corporation that is usually connected through common ownership or... more
"After hours trading" refers to securities trading by investors that takes place after regular... more
An "agency bond" is a debt security issued by a Federal government-sponsored enterprise and... more
An "agent" is person or entity who is formally authorized to act on another's behalf. The... more
"Adjusted gross income" is a tax term used to determine how much income is taxable. Adjusted gross... more
"Agreement among underwriters" is a contract among participating members of a syndicate that... more
An "Agreement for Professional Services" is a contract between two or more parties where the one... more
An "Agreement of Sale" is a contract between seller and buyer in which they reach a meeting of... more
"Ahead of itself" generally refers to stocks that are overbought on a fundamental... more
Alan Greenspan is the former Chairman of the Board of Governors of the Federal Reserve System, over... more
"Algorithmic trading" refers to securities trading in which buy or sell orders are determined by a... more
"Alimony" refers to temporary or permanent financial support paid by one spouse to another,... more
"Alternative minimum tax" or "AMT" is a federal tax designed to prevent wealthy taxpayers from... more
"Amended return" is a tax return filed in order to make modifications or corrections to a tax... more
"American depositary receipt" is a certificate issued by a United States depository bank... more
"American depositary shares" represent foreign shares held in the United States and registered in... more
An "American option" refers to a stock option that can be exercised before and up to its expiration... more
The "American Stock Exchange" or "AMEX" is a U.S. stock exchange based in New... more
The "AMEX" or "American Stock Exchange" is a U.S. stock exchange based in New... more
"Amortization" is the repayment of a bond or loan by regular principal... more
The "AMT" or "Alternative Minimum Tax" is a federal tax designed to prevent wealthy taxpayers from... more
An "analyst" typically refers to a professional employed by a securities brokerage firm or mutual... more
A person who provides funds for small start-up companies or... more
The federal Fair Credit Reporting Act (FCRA) requires each of the nationwide consumer reporting... more
The "annual meeting" is the meeting of the stockholders of a company held once a year. At the... more
"Annual percentage rate" is the interest charged on a debt, expressed as a yearly rate. For... more
An "annual report" is a yearly report of a company's financial condition and operations, issued... more
"Annuity" is a series of fixed (or sometimes variable) payments paid at regular intervals (such as... more
An "anti-dilution provision" is a provision in an stock investment contract or company charter... more
"Appraisal" is a valuation of property (such as of real estate or of a business) based on an... more
An "appraisal fee" is the fee charged by an appraiser to deliver a professional opinion as to the... more
"Appraisal rights" represent the right under state corporation law of stockholders in a merger to... more
"Appraised value" is a valuation of property (such as of real estate or of a business) based on an... more
"Appraiser" is an individual or organization who estimates the fair market value of property (such... more
The "APR" or "annual percentage rate" is the interest charged on a debt, expressed as a yearly... more
"Arbitrage" is the buying and selling of a security at two different prices in two different... more
An "arbitrageur" is a person who engages in arbitrage, purchase or selling securities in multiple... more
An "Arbitration Agreement" is an agreement between two or more parties to resolve a dispute through... more
An "ARM" or "adjustable-rate mortgage" is a mortgage loan where the interest rate is periodically... more
"ARPS" or "Adjustable-rate preferred stock" is a publicly traded security that may be... more
The "Articles of Incorporation" is the document filed with a state government that officially... more
"Assessed value" is the dollar value assigned to property by a municipality for the purpose of... more
"Assessor" is the local or city government official who determines the fair market value of... more
An "asset" is any property that has... more
The term "asset allocation" refers to the process of dividing investments among different kinds of... more
"Asset class" is a specific category of assets or investments, such as domestic stocks, bonds, real... more
"Asset-backed security" is a security that is collateralized by loans, leases, receivable, or... more
"Asset-based financing" refers to a security in which lenders and equity investors look principally... more
"Assets" typically refers to a company's resources having economic value, such as cash,... more
An "assignable contract" is a contract that permits a contract party to convey his or her rights in... more
The term "assignment" refers to the method of transferring a right or contract from one person to... more
An "Assignment of Lease" is a transfer by the tenant under a lease in its interest in the lease to... more
An "assumable mortgage" is a mortgage that can be transferred to the buyer of a real estate... more
"At par" means a price equal to nominal or face value of a security. Sometimes, "at par" refers to... more
The term "at risk rules" refers generally to the rules under the Internal Revenue Code that the... more
"At Will Employment" is an employment relationship where either the employer or the employee can... more
The term "at-the-close-order" refers to a securities order to execute a buy or sell within the last... more
An "at-the-opening-order" is an order to buy or sell securities at the opening price on a trading... more
"ATM" stands for "automated teller machine" which is a computer controlled terminal which allows... more
An "attorney-in-fact" is an authorization to act on someone else's behalf in a legal or... more
"Attornment" typically refers to an act or agreement by a tenant in accepting a replacement... more
An "audit" is an examination of a company's financial and accounting books and records by an... more
An "auditors report" is a report of an outside accounting firm about the accuracy of the... more
"Authorized stock" is the maximum number of shares authorized for issuance by a company's... more
"Automated Clearing House" is the national network that allows for transferring funds... more
An "automated teller machine" is a computer controlled terminal which allows customers to make... more
An "automatic extension" refers to an extension automatically granted to file a tax... more
An "automatic investment plan" is an investment program in which funds are automatically... more
An "automatic reinvestment plan" is an investment program in which capital gains, dividends, or... more
An "automatic stay" is a law that goes into effect immediately upon filing a bankruptcy petition.... more
"Available credit" is the unused portion of a line of credit for which a person or firm is... more
"Average cost" typically refers to the average cost of stock or other securities bought at... more
Question & Answers
Word of the Day
Federal Reserve Board
The "Federal Reserve Board" is the governing body of the Federal Reserve System, which...
Personal Finance Answers categories
Why search the Web, when you can go straight to the best.
- 401(k) & IRAs
- Annuities
- Attorneys
- Banks
- Bonds
- Buying Your Home
- Car Financing
- Careers
- Child Care
- College Savings
- Company Research
- Credit Cards
- Credit Reports
- Currency/Foreign Exchange Trading
- Employee Stock Plans
- Estate Planning
- Government
- Health Care
- Identity Theft
- Insurance