|
|
Financial Dictionary
(According Financial Dictionary at www.thefreedictionary.com)
Money
1. A commodity or asset, such as gold, an officially issued currency, coin, or paper note, that can be legally exchanged for something equivalent, such as goods or services.
2. As defined by common law: a medium of exchange authorized or adopted by a domestic or foreign government and includes a monetary unit of account established by an intergovernmental organization or by agreement between two or more nations.
Cash - The value of assets that can be converted into cash immediately, as reported by a company. Usually includes bank accounts and marketable securities, such as government bonds and Banker's Acceptances. Cash equivalents on balance sheets include securities (e.g., notes) that mature within 90 days.
Credit
1. A contractual agreement in which a borrower receives something of value now, with the agreement to repay the lender at some date in the future. Also, the borrowing capacity of an individual or company.
2. An accounting entry system that either decreases assets or increases liabilities.
Debt - An amount of money borrowed and owed by one party to another.
Debit - An accounting entry which results in either an increase in assets or a decrease in liabilities on a company's balance sheet or in your bank account.
Loan - When a lender gives money or property to a borrower, and the borrower agrees to return the property or repay the borrowed money along with interest, at a predetermined date in the future.
Lender - Businesses that provide loans to others.
Mortgage - A loan secured by the collateral of some specified real estate property that the borrower is obliged to pay back with predetermined set of payments.
Equity
1. Stock or any other security representing an ownership interest.
2. On the balance sheet, the amount of the funds contributed by the owners (the stockholders) plus the retained earnings (or losses). Also referred to as "shareholder's equity".
3. In the context of margin trading, the value of securities in a margin account minus what has been borrowed from the brokerage.
4. In the context of real estate, the difference between the current market value of the property and the amount the owner still owes on the mortgage. Thus, it is the amount, if any, the owner would receive after selling a property and paying off the mortgage.
Insurance - A contract (policy) in which an individual or entity receives financial protection, or reimbursement, against losses from an insurance company, which pools client's risks to make payments more affordable, in exchange for a premium.
|
|
If you would like a free quote
click here to become Debt Free!
Advertise Here
Place your text advert
here. Reach a targeted
finance audience now!
|
