Pdf glossary of financial terms bond

This guide has been created for you to use with your clients to help make investment literature easier to understand and to clarify some of the more common terms. You can also own financial assets, which are intangible but still can rise or fall in value. The most comprehensive investing glossary on the web. Keeping up with the increasing number of investment products and services in the marketplace today can be confusing. Examples include bid bond, performance and payment bond. The msrb updated the glossary in 2004 and again in 20 with the. A glossary of financial terms that provides definitions for processes, schemes, laws, and institutions that fall under various financial sectors, including. An assetbacked bond is a bond secured by loans or by money owed to a company. A coupon is set at the time a security is issued and, for most bonds, stays the same until maturity. The most comprehensive mutual fund glossary on the web. Most comprehensive financial dictionary with over popular financial terms. Over 18000 financial and investing definitions, with links between related terms.

The forbes financial glossary defines hundreds of finance terms to help you decode the puzzle. This financial glossary gives better, more precise, and simpletounderstand meanings of financial terminology. This az pocket guide to understanding financial terms is just one of the achievements of ebss partnership with nala. Basic investment terms annuity a financial product sold by financial institutions pay out a stream of payments to the individual at a later point. For example, equities, cash, fixed interest or property. A bond indenture restriction that permits additional borrowing on if the ratio of assets to debt does not fall below a specified minimum.

Coupon the contractual interest obligation a bond or debenture issuer covenants to pay to its debtholders. List of important banking terms download in pdf banking terms and concepts are many and can sometimes be difficult to figure out, even for the industry professionals. Issuing bonds and other kinds of debt instruments to finance agency. A written promise made by governments and companies to repay any money. A bond also may be supported by collateral, typically in the form of capital assets that must be sold or transferred to the investor if the borrower defaults. Accrual bond often the last tranche in a cmo, the accrual bond or ztranche receives no cash. Aggressiverelating or referring to an investment philosophy that seeks aboveaverage returns by accepting aboveaverage risk. Comptrollers office releases glossary of finance terms. A slang term used to refer to something favorable that has happened in business. Budget a plan of financial operation embodying an estimate of proposed expenditures for a. We have expanded this years edition of the investment dictionary by.

Adjusted gross incomeamount of income that is subject to federal income tax. The bank of canada glossary contains definitions of terms from various fields, including economics, finance and currency. Finance instruction budget instruction glossary ally. Period is a specified duration of time covered by a financial statement or reporttypically a month or quarter for internal statements and reporting, and a year for external statements. A financial security whose payments are derived solely from the cash flows of glossary. Having launched it originally in 2004 we have now updated it with modern. As rates rise, the value of existing bonds typically falls. Bonds are issued by governments or corporations in order to raise funds. The idea of writing a guide like this was conceived when i first taught an introductory finance course at the university of saskatchewan in 1992. When a zerocoupon bond matures, the investor receives the face value of the bond. A financial services company which is one of the best known bond rating agencies in the country. In addition to any other tax credits, contributions to iras and 401k plans are subtracted from the total. Financial system lexicon the financial system lexicon, although not exhaustive, has been created as an aid to consistent usage.

Glossary of financial and business terms over 2,500 entries. Blacks calls it a procedural system, such as the anglo american legal system, involving active and unhindered parties contesting with each other to put forth a case before an independent decision maker. Go through the glossary of financial terms and know the meaning of all financial terms through their definitions here at the economic times. Bond when you purchase a bond, you are lending money to a government, municipality, corporation, federal agency or other entity, known as the issuer. Financial terms and definitions the economic times. An investing glossary of terms for seasoned and rookie investors alike. Sometimes financial experts engaging in accounting or bookkeeping work use unfamiliar terms to explain and describe transactions such as loans or investments. The glossary of financial and investing terms allows you search by term or browse by letter more than 8,000 terms and definitions related to the stock market. Glossary of mutual fund and other related financial terms adviser.

State and local governments repay this debt with taxes, fees, or other sources of governmental revenue. The market value of a bond will fluctuate with changes in interest rates. Money in a bank or building society account is known as a liquid asset. This broad term describes a financial asset that can be sold on an. A financial security whose payments are derived solely from the cash flows of. From 401ks to zerosum investments, the glossary is an evolving reference for investors and. Zerocoupon bonds are purchased at a discount from their face value. Bond a bond is a debt instrument that allows governments, municipalities, and companies to raise capital for. Pdf glossary of financial terms bond download pdf glossary of financial terms bond read online his glossary defines various budgetary and economic. While lecturing on certain topics, i would occasionally observe puzzled faces upon mentioning some basic financial terms. Cpi consumer price index the cpi is a measure of retail inflation. A glossary of public finance the comptrollers office has many responsibilities related to tennessees public finances including managing the states debt programs and working to maintain and monitor the. Glossary of financial terms and definitions wealth how. Bond rating the risk of default on bonds varies from issuer to issuer.

One common example of a situation where an assetbacked bond is created is when a securities firm bundles credit card debt and sells the bundle to an investor. An asset is a piece of property that has value and can potentially be sold to someone else for cash. Glossary of finance terms national association of counties. It also lists creditors who have been owed money for the longest. Bonds terms and definitions investment and financial.

Laymans guide to financial terms 2014 university of toronto. Glossary of terms asset size group a term used to describe the insured institutions covered in the liquidity analysis in this report. A bond which has other financial instruments, such as mortgage loans, pledged as security against default. Clearnet to the writer of an option in order to communicate that the writer must now fulfil his or her obligations under the terms of the option. A bond is a type of security held on a debt or a single premium life assurance investment bond. Barter this is a way of paying for things, without using money, by exchanging goods. Financial manager top level professional who may have final responsibility for aspects of a business financial activity accountant professional who produces and examines financial records, prepares financial reports and tax returns. Put simply, the higher the duration number the higher the potential return and the greater the risk. Glossary of terms glossary of terms annual percentage rate apr the interest rate charged, expressed as a percent per year, for the use of credit assets possessions that have economic value some of which may provide an economic andor financial return atm automated teller machine. Bond a bond acts like a loan or an iou that is issued by a corporation, municipality or the u. The spreading of risk by putting assets in several categories of investments, i. It is also a receipt for cargo accepted for transportation, and must be presented for taking delivery at the destination. The dictionary is intended to supplement rather than replace expert investment advice. A laymans guide to financial terms utsc university of toronto.

Bow wave any additional cost or savings that occurs in the future because a budget item in the current biennium is not fully funded or is onetime. A coupon is usually stated in terms of the rate paid on a bond s face value. Learn the most commonly used terms in finance, business and the stock market. Glossary of financial terms clute wealth management. In budgets, an amount that is set aside to meet unforeseen circumstances. Glossary of terms luxembourg professional schroders. Clear and concise article style description with practical examples. Glossary of key economic and stock market terms prudential. A number of the terms have other noninvestment related meanings, which we have not captured.

Bare trustee a bare trustee holds property on trust for another person until asked to return the property. Brief glossary of financial management terms city of huntington. Years after its first publication, the demand for the msrbs glossary remains strong, attesting to the need for such a reference in the industry. A term referring to the refund of previously paid prop erty taxes due to the overvaluation of property. A financial institution whose failure would impose significant losses on creditors and counterparties, call into question the financial strength of other similarly situated financial institutions, disrupt financial markets, raise borrowing costs for households and businesses, and reduce household wealth. This article is an attempt to create a glossary of financial terms, which is both compact as well as comprehensive.

Also called a debt security, bonds are usually issued by government agencies. Investorwords the most comprehensive investing glossary on the web. That is, the coupon is the amount that the issuer must pay to the holder of each bond in exchange for investing in that bond. The most common asset classes are stocks, bonds and cash equivalents. The tennessee comptrollers office is making it easier to understand the technical terms and jargon of public finance with its new glossary entitled defining tennessee finance. Average maturity for a bond fund, the average of the stated maturity dates of the debt. The issuer promises to repay the full amount of the loan on a specific date and pay a specified rate of return for the use of the money to the investor at specific time intervals. Treasury bill tbill shortterm, highly liquid government securities issued at a discount from the face value and returning the face amount at maturity. However, since banking is a significant part of our business and personal life, it is useful for consumers to learn some common banking terms. If you dont understand the terminology, you might not have a full grasp of the process. Bond a contract between a borrower and a lender in which the borrower promises to pay the face value at maturity and to pay interest at a specified rate at regular intervals.

Bond fund a mutual fund that invests exclusively in. In return for the loan, the issuer promises to pay you a specified rate of interest during the life of the bond and to repay the face value of the bond the principal when it matures, or comes due. This glossary is designed to help you understand some of the more common investment and financial terms you may encounter. The different types of assets available to investors. The period in a financial statement will usually be in terms of the fiscal year of an organization rather than a calendar year. It takes into account the current value of the bond, the coupon or interest payment, the book cost, and the number of years the bond has left to run. Glossary of bond terms accreted value the current value of your zerocoupon municipal bond, taking into account interest that has been accumulating and automatically reinvested in the bond. Items that are owned by an individual such as property and investments. Investopedias comprehensive list and definitions of business terms that start with a.

An alternative is an interest rate swap linked to an asset i. Comprehensive glossary of common financial terms and definitions. Learn and know the meaning of these finance terms by their definitions here at the economic times. While managing your finances, you may come across terms you dont understand.

Improve your financial literacy with this dictionary of financial terms. The basis of accounting under which revenues are recorded when earned and expenditures are recorded as soon as they result in liabilities for benefits received. Assets resources with economic value owned by a company, fund, or individual. Phone 2015680249 glossary of utility finance and accounting terms used in our seminars letters in parenthesis, preceding the definition, identify the sources used in compiling the glossary. A type of employersponsored retirement account where employees may contribute a portion of their salary. Banking terms and concepts are many and can sometimes be difficult to figure out, even for the industry professionals.