If you have ever been stumped by financial
expressions such as ‘accelerated depreciation’
or ‘asset allocation’? Look up the meaning with
our financial glossary! To begin, just select a letter with
the dropdown on the left.
| A&L Management |
Is the analysis and management of the firm's assets and liabilities or balance sheet items.
|
| |
|
| |
|
| Accelerated Depreciation |
Is an accounting technique which provides larger than straight-line depreciation amounts in the early years and smaller than straight-line depreciation amounts in the later years.
|
| |
|
| |
|
| Acceptance |
The writing of the word 'accepted' on the face of a bill of exchange by the drawee together with his/her signature indicating that the bill will be paid when due.
|
| |
|
| |
|
| Asset |
An asset is anything owned which can produce future economic benefit. There are a few classifications of assets:
1. Current Assets - Current assets are cash and other assets expected to be converted to cash, sold, or consumed in the operating cycle.
2. Investments - Stock and Bonds
3. Fixed Asset - Assets which are purchased for continued and long-term use in earning profit in a business, e.g. Land, Buildings, Furniture, etc.
|
| |
|
| |
|
| Asset Allocation |
The practice of distributing a certain percentage of a portfolio between different types of investment assets, such as stocks, bonds, mutual funds, cash, real estate, options, etc. By diversifying an individual's asset base, one hopes to create a favorable risk/reward ratio for a portfolio.
|
| |
|
| |
|
| Asset Class |
A type of investment, such as stocks, bonds, real estate, or cash.
|
| |
|
| |
|
| Bill Of Exchange (BE) |
An order in writing by one person to another to pay a specified sum to a specified person or bearer on a particular date.- The person making the order or drawing the bill is known as the drawer
- The person to whom the bill is addressed is the drawee (for example a bank)
- The person to whom the bill is payable is the payee
|
| |
|
| |
|
| Bonds |
A long-term debt security issued by corporations and governments offering fixed interest payments periodically for a period of more than one year.
|
| |
|
| |
|
| Capital Preservation |
An investment strategy whose primary goal is to prevent the loss of an investment's total value.
|
| |
|
| |
|
| Cash Flow |
| A measure of a company's financial health.
|
| |
|
| |
|
| Diversification |
A portfolio strategy designed to reduce exposure to risk by combining a variety of investments, such as stocks, bonds, and real estate, which are unlikely to all move in the same direction. The goal of diversification is to reduce the risk in a portfolio. Volatility is limited by the fact that not all asset classes or industries or individual companies move up and down in value at the same time or at the same rate. Diversification reduces both the upside and downside potential and allows for more consistent performance under a wide range of economic conditions.
|
| |
|
| |
|
| Dividend |
| Dividend is the distribution or sharing of parts of profits to a company's shareholders.
|
| |
|
| |
|
| Estate Planning |
| The preparation of a plan of administration and disposition of one's property before or after death, including will, trusts, etc.
|
| |
|
| |
|
| Fund Manager |
| The individual responsible for making decisions related to any portfolio of investments (often a mutual fund, pension fund, or insurance fund), in accordance with the stated goals of the fund.
|
| |
|
| |
|
| Funds |
| Money or sometimes, money plus assets which could be converted to money.
|
| |
|
| |
|
| Goodwill |
| Goodwill is an accounting concept that describes the value of a business entity not directly attributable to its tangible assets and liabilities.
|
| |
|
| |
|
| Health/Medical Insurance |
Insurance against loss by illness or bodily injury. Health insurance provides coverage for medicine, visits to the doctor or emergency room, hospital stays and other medical expenses. Policies differ in what they cover, the size of the deductible and/or co-payment, limits of coverage and the options for treatment available to the policy holder.
|
| |
|
| |
|
| Income Replacement Insurance |
Insurance that provides a regular income if you become unable to work as a result of accident, sickness or disability. The amount paid out is linked to your overall level of income.
|
| |
|
| |
|
| Insurance |
A promise of compensation for specific potential future losses in exchange for a periodic payment. Insurance is designed to protect the financial well-being of an individual, company or other entity in the case of unexpected loss. Some forms of insurance are required by law, while others are optional. Agreeing to the terms of an insurance policy creates a contract between the insured and the insurer. In exchange for payments from the insured (called premiums), the insurer agrees to pay the policy holder a sum of money upon the occurrence of a specific event. In most cases, the policy holder pays part of the loss (called the deductible), and the insurer pays the rest. Examples include car insurance, health insurance, disability insurance, life insurance, and business insurance.
|
| |
|
| |
|
| Investment |
In general terms, investment means the use money in the hope of making more money.
|
| |
|
| |
|
