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 GLOSSARY
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Getting the definition of financial terms is like putting money "in the bank!"

 

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A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
  

Accountant:
A Professional who records and examines the finances of individual clients or businesses.
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Adjustable-rate mortgage (ARM) :
A type of home mortgage with interest rates that vary- increasing or decreasing over time in accordance to changes in market interest rates.   Because you yourself are taking some of the interest rate risk, the advantage of an adjustable-rate mortgage is that lenders often charge a lower rate for loans.  Thus- initially at least, monthly payments are lower.  An adjustable-rate mortgage provides a way for buyers to afford a larger loan amount for a given monthly payment. If the interest rate drops, this type of mortgage yields great benefit for the client, but conversely rising interest rates can present risk as well.
(Compare to Fixed Rate Mortgage)
http://www.truveo.com/What-is-an-adjustable-rate-mortgage/id/3403404236

Advance
In Business: Cash paid to an employee before it is needed or earned in order to cover emergency expenses or business trips
http://www.videojug.com/interview/stock-indexes
http://www.videojug.com/interview/tax-audits 
 
Audit
A professional examination and verification of a company’s accounting documents that checks its fairness, consistency, and conformity to Generally Accepted Accounting Principles.
http://www.truveo.com/Annuities-Offer-Different-Kinds-Of-Protection/id/1328442378 
 
Annual effective yield
The actual annual yield of an account after the interest is compounded
http://www.truveo.com/Finance-Investment-Tips-What-Is-Negative/id/44317165

Amortization
The accounting procedure that companies use to write off intangible rights or assets—such as goodwill, patents or copyrights—over the period of their existence. For fixed assets the term used is depreciation. Both depreciation and amortization expenses are subtracted from a company's operating revenues to calculate net income.

Alimony
After a divorce settlement, alimony is a type of payment made from one former spouse to the other.  Alimony is tax-deductible for the spouse who pays it, and is considered taxable income for the recipient.
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Appreciate
An increase in an asset's value. 
i.e.: stocks, bonds, commodity, real estate etc. 
 
Assets
An item of economic value owned by an individual or corporation, particularly one that could be converted to cash.
i.e.: cash, securities, inventory, office equipment, real estate, property etc.

Averages
In the stock market, averages are indicators that measure price changes in representative stock prices. The most popular indicator is the Dow Jones Industrial Average, which measures the performance of 30 large-capitalization stocks.

Average Annual Yield
A way to calculate the return on investments of more than one year. It is calculated by adding each year's return on investment and dividing that number by the number of years invested.

Annuity
A contract sold by life insurance companies guaranteeing fixed or variable payments to the client at a future time (usually retirement). A fixed annuity is paid in regular installments, while a variable annuity is pays in varying installments based on the value of underlying investments.