Over 4000 business and finance definitions
Showing 40 articles
The percentage increase in price levels over time, measuring the decline in purchasing power of a currency.
Gross domestic product adjusted for inflation, providing an accurate measure of economic growth and productivity over time.
Short-term government debt securities with maturities of one year or less, sold at a discount and considered virtually risk-free.
The use of borrowed capital to increase potential return on investment, amplifying both gains and losses.
The pledge of a government to use all available resources, including taxation power, to repay debt obligations.
Medium-term government debt securities with maturities from 2 to 10 years, paying fixed interest semi-annually.
Municipal bonds backed by the full faith, credit, and taxing power of the issuing government entity.
A residential building with three separate apartments, commonly found in urban areas as an investment property type.
The administrative and support functions of a financial institution that don't involve direct client interaction but ensure smooth operations.
Taxes based on the assessed value of an asset, most commonly property taxes calculated as a percentage of property value.
Property owned by a lender after unsuccessful foreclosure sale, typically sold at discount to recover loan losses.
A mortgage with an interest rate that adjusts periodically based on market indices, offering lower initial rates than fixed mortgages.
Latin term meaning 'as is' or 'such as they are,' commonly used in commodity trading and sales agreements.
A project delivered complete and ready to operate, where the contractor handles all aspects from design to commissioning.
The interest rate used to calculate present value of future cash flows, or the rate the Federal Reserve charges banks for overnight loans.
Restructuring agreement between borrower and lender to avoid default or foreclosure through modified loan terms.
The most profitable legal use of a property that is physically possible, appropriately supported, and financially feasible.
The value placed on property by a public tax assessor for purposes of taxation, typically lower than market value.
Bonds that pay periodic interest payments to holders, named after physical coupons that were historically detached for payment.
Legal procedure where an employer withholds portion of employee's wages to pay creditors or satisfy court judgments.
Business expenses that remain constant regardless of production volume, including rent, salaries, and insurance.
A procedure where a broker purchases securities on behalf of a client or another broker who failed to deliver on a transaction.
Consumption tax added at each stage of production and distribution, widely used globally except in the United States.
The price an asset would sell for on the open market between a willing buyer and seller with reasonable knowledge of relevant facts.
The additional cost incurred from producing one more unit of a good or service, essential for pricing and production decisions.
Bonds sold at a deep discount that pay no periodic interest, with all return coming from price appreciation to par value at maturity.
The amount an insurance policyholder receives when canceling a whole life or universal life insurance policy before death.
Municipal bonds backed by revenue from specific projects like toll roads, utilities, or airports rather than general tax revenue.
Banking service where checks and deposits are collected from business locations, common for commercial clients.
When a bond trades below its par value, the difference represents a discount reflecting higher yields than the coupon rate.
The weighted average time until principal of a debt security is repaid, important for mortgage-backed securities and bonds.
Municipal bonds repaid through special taxes levied on properties that benefit from the financed public improvement project.
The nominal value of a security stated on the certificate, equal to par value for bonds and different from market value.
Financial obligations and assets not recorded on the balance sheet, including operating leases and special purpose entities.
Bonds issued at the same time but with different maturity dates, commonly used by municipalities to match debt service with project revenue.
Federal law requiring banks to meet credit needs of communities they serve, including low and moderate-income neighborhoods.
Unregistered bonds where physical possession constitutes ownership, no longer issued in the U.S. due to money laundering concerns.
Document bearing account holder's signature(s) used by banks to verify authorization for transactions and withdrawals.
Tax-exempt municipal bonds issued to finance private sector projects that serve public purposes like job creation and economic development.
Service where dividends and distributions are automatically used to purchase additional shares, enabling compound growth.