World Of Financing» Financial Definitions WOF – Bad Credit Unsecured Loans

Financial Definitions – Arrearage

Wofadmin — Thu, 30 Nov 2006 16:49:05 +0000

1) Generally this means the amount owed between two parties from a prior financial agreement. 2) In the area of investments, this means the money owed in interest on dividends or bonds on cumlative preferred stock is over-due. In the case of cumulative preferred stock, common dividends cannot be paid by a com pany as long as preferred dividends are in arrears.

Financial Definitions – Arms’s Length Transaction

Wofadmin — Wed, 29 Nov 2006 14:28:43 +0000

An arm’s length transaction is carried out as if the principals are not related in any way. This is a good way to stay away from any appearance of a conflict of interest. A good example of an arm’s length transaction is; the present law states that parents can rent real estate to their kids and still claim business deductions like depreciation. This is only legal if the parents receive the same amount of rent from their kids that they would receive from any other renters.

Financial Definitions – Arithmetic Mean

Wofadmin — Tue, 28 Nov 2006 12:08:21 +0000

An average created by dividing the sum of two or more financial items by the number of financial items.

Financial Definitions – Arbitrageur

Wofadmin — Mon, 27 Nov 2006 09:47:59 +0000

A firm, person, or financing company working in arbitrage. Arbitrageurs try to make a profit when the same security or commodity is trading at different prices in more than two markets. Firms, financial houses, and people working with risk arbitrage try to profit from buying stocks of announced or potential takeover opportunities.

Financial Definitions – Aunt Millie

Wofadmin — Sun, 26 Nov 2006 07:27:37 +0000

Aunt Millie is a tag, handle, or term, that is used in the financing industry to describe an investor that has very limited understanding of the financing industry. Many investment company staff will refer to an investment as an “Aunt Millie Investment”, which means that the details of the investment are simple and something a novice investor will usually move on. There are also many ethical brokers and fund management employees that are wary of “Aunt Millies” and try make sure these inexperienced investors are given the facts they need to make sound financial decisions.

Financial Definitions – Audit Trail

Wofadmin — Sat, 25 Nov 2006 05:07:15 +0000

An audit trail is a detailed collection of data on paper, tape, or digital media that shows the true source of income and and expenses for a company or individual.

Financial Definitions – Automatic Investment Program Example #3

Wofadmin — Fri, 24 Nov 2006 02:46:53 +0000

3) Example #3 of an automatic investment program would can be a payroll savings plan (usually in the way of bonds). These automatic investment programs entail the investment in bonds by employees of a company. On the event of retirement the inactive employees can automatically withdraw monies on a monthly, biweekly, or weekly schedule. These withdrawals mean the automatic selling of a certain amount of bonds in order to ensure a full, and consistent retirement income.

Financial Definitions – Automatic Investment Program Example #2

Wofadmin — Thu, 23 Nov 2006 00:26:30 +0000

2) Example #2 of an automatic investment program would be for stock dividends. This means that winning shareholders who are enjoying profit in the way of dividends may have those money used to buy more shares in the company. This is especially used when a company is in a boom mode, and the share holders can enjoy further profits. This kind of investment program usually includes light brokerage fees.

Financial Definitions – Automatic Investment Program Example #1

Wofadmin — Tue, 21 Nov 2006 22:06:08 +0000

1) Example #1 of an automatic investment program would be a mutual fund that automatically withdrawals money from a client’s bank account (checking or savings) that can be invested in the mutual fund. The mutual fund can also automatically re-invest capital gains from the clients account(s) in the said mutual fund.

Financial Definitions – Automatic Investment Program

Wofadmin — Mon, 20 Nov 2006 19:45:46 +0000

An automatic investment program is a program in which an investor can accumulate or withdraw funds automatically. Some of the most popular automatic investment programs will be mentioned in the next three following posts. Click the “next” link for those automatic investment program examples.