Financial Dictionary

I saw Mr. Dorsley and his son, Anthony, in the farmer's market downtown last Sunday. I saw them in the fish section since Mr. Dorsley is planning to cook a special crab dish for his wife and children. We chat for awhile regarding family life and jobs. He told me that Anthony is a
Finance major and wants to work in a bank someday. Mr. Dorsley asked about my job and its duties. I told him that I am a real estate agent and the nature of work is not difficult. I also told him that my salary is average. I informed him that I have plans of leaving my current job.

After he asked thousands of questions about me, I took the opportunity to turn the tables and ask questions. I asked about his work and job description. He told me that he is CSO or Chief Security Officer. This is the first time I've heard about this term and job. I asked him, "What's the job of a CSO?" He simply answered, "I'm the head of the security in our company."

Then his Finance major son butt in, "No dad. According to my financial dictionary, a CSO is the one who looks after the security of information assets and personnel. Some companies called this position as Director of Corporate Security," he said. His explanation left Mr. Dorsley and I in awe. After hearing this job description, I want to apply in this position.

Before our winter vacation last December, our professor told us to write a paper about the Black Friday incident in history. As I was searching the internet, I thought that the black friday my professor wants us to do research on is the Black Friday of United States. In US, when people say black friday that means a day of shopping after thanksgiving day. Shopping is related to finance and business also that's why I thought I got the right materials for my paper. When the submission of our paper came, my professor got angry at me and reprimanded me for doing poor in research. He then explained that Black Friday in finance means the September 24, 1869 incident or the Fisk-Gould Scandal. This referred to the gold market cornering of two spectators.

If there's a Black Friday, there's also a Black Monday in the financial dictionary. Black Monday ocurred in October 19, 1987 when world's stock market falls down as a result of the fall of US share prices. A lot of countries' economies has been affected by this world phenomena in 1987. I've noticed that every time something bad or negative happens to the world market, they will named it as black day. Perhaps, they used it to commemorate what happened to the finance world during these dates. I wondered, if there's a black Tuesday or Wednesday as well.

Studying financial dictionary for four years, has lead me to discover that the finance's favorite color is black. They often attach this color to disaster events and downfalls in the finance world. For example, they use it to remember the Fisk-Gould Scandal or Black Friday. Then the October 19 incident came into being and became popularly known as Black Monday. Today, I've learned another financial term, Black market. This term is very popular as people used it convey an illegal market or business. Every time I hear this term, Johnny Depp's Pirates movie came into my mind. Maybe it's because of their ship named black pearl.

I was astonished to find my five-year-old niece memorizing all the acronyms related to finance while playing exciting xbox games. When I asked her how on earth she knew about this stuff, she simply smiled at me and said that she wants to be in the Guiness Book of Records that's why she's memorizing every acronym she could find on the internet. She told me that a lot of kids her age know about all the countries and their capitals, but she wants to stand out from the rest that's why she chose to memorize these acronyms. One of the acronyms she said is ABM, which means Activity Based Management. When I asked her the meaning of the acronym, she said: "ABM is like a system for an organization improvement." We have a genius in our midst! How come i didn't get that gene?!

My financial dictionary is so poor even though I studied Finance and Commerce when I was in College. This is why I'm trying to study it all over again. As I was browsing on the internet, I came across the acronym AAGR, which means Average Annual Growth Rate. This term simply means growth or increase in value, as simple as that. I remembered this acronym not because it's acronym is also the meaning of the term but because my professor told us to say, Arrgghh! whenever we feel that somebody else's portfolio is increasing, which is very much the same as in the financial world.

One of the methods I used in studying for my exams is giving acronyms to the things I need to memorize. In this way, I can put it in my head without the hassle of memorizing everything including the position of the periods and commas. I guess this is also the way it is in the Financial world. One time when I did a research paper, I discovered a lot of financial acronyms which are really cool. One of the acronym I really liked is AFA which in layman's term is Afghanistan Afghani. AFA is the currency of Afghanistan. Not only does the internet have a shortcut, but finance, too.

Whenever you're applying for a loan, there are two terms that you always encounter: the credit report and credit bureau. I was checking my papers one day when I saw my credit report. I was about to place it inside an envelope when my teenage sister who was holding a Da Vinci Code book came up to me and saw the document. She was very curious of the document that I was holding, so I explained to her what it was.

Based on the financial dictionary, a credit report is a detailed report of an individual's credit history prepared by a credit bureau and used by a lender in determining a loan applicant's credit worthiness. This report includes personal data such as current and previous addresses, social security number, employment history, summary of credit history like the number and type of accounts that are past-due or in good standing, detailed account information, inquiries into applicant's credit history, number and type of inquiries into applicant's credit report, details of any accounts turned over to credit agency such as information about liens, wages garnishments via federal, state or county records, and information on how to dispute any of the above information. When a negative information appears on an individual's credit report, there is little he can do to clear it up if the information is certain and accurate.

On the other hand, while a credit report is a statement, a credit bureau is the agency that researches and collects individual credit information and sells it for a fee to creditors so they can make a decision on granting loans. Their typical clients include banks, mortgage lenders, credit card companies and other financing companies. This bureau is also referred to as consumer reporting agency or credit reporting agency. For instance, you did not qualify for a credit, do not get furious with the credit bureau. Again, they are just collecting the credit report. They are not the one who decides on your credit's faith.

The term "effect" has come to mean gazillions of nuances when it comes to investment. I'm just on my way out to work when a sudden headache gripped me. Could've been one of those migraine that one gets when stock markets rise and fall, one that is coined the "Aspirin Count Theory". The explanation is simple: when stock prices rise, people take less aspirin. In other words, there is wealth behind the Wall Street index rise, and thus there is less cause for people to worry.

The changing everyday weather causes all this commotion in stock market. Each has an effect on the buyer and the seller, and there's a term to define each effect. Lots of folks tend to get put off by the market jargon but don't fret. It's easy when you suddenly get violent financial advice due to sudden news on the tube. This is dubbed as the CNN effect. This was evident during the Depression era or the Iran-Iraq war in 1991, where the United States and Kuwait had caused major upheaval in stock market.

Early in the year, stock prices usually rise and investors often dub this as the January effect. Later in the year though, stock prices tend to dip. Statisticians argue that this is mainly a superstitious cause, since just because markets crashed on October months doesn't mean it happens year after year. Investors fear this October effect. As if it hasn't affected me well enough, what investors call the Monday effect is killing me. Stock markets were way below the mark last Friday. The Monday effect says this trend will prevail throughout the weekend and even right on the first day of the business week.

Everyone is talking about a broker. We always hear words like "broker" or "agent" in the marketing field. When we go out on the streets, we see those properly-groomed individuals who usually wear coat and tie with an brief case, and they are called insurance broker or insurance agent. But the question is do we know what "broker" and "agent" mean? Do you really know how hard to be a broker or an agent? Often than not, these two terms are used interchangeably. However, there is a slight difference on the meaning and functions that they do.

A broker is defined as an individual or firm that charges a fee or commission for executing buy and sell orders submitted by an endorser. It can also be the role being portrayed by a firm when it acts as an agent for a customer and charges the customer a commission for its services. A broker can also be a licensed real estate professional who typically represents the seller of a property. There are several roles that a broker does. They include determining market values, advertising properties for sale, showing properties to prospective buyers, and advising clients with regard to offers and related matters.

On the other hand, an agent is an individual or firm that places securities transactions for clients. It is also a licensed person by a state to sell insurance. An agent is also a securities salesperson who represents a broker-dealer or issuer when selling or trying to sell securities to the investing public. This is the person that transacts in behalf of their employer or client.

Last weekend, I had a time to check my old college books and notes and some of my things during my teenage years. My mom put them inside a big box so that my room will be clean and organized. When I got married, I brought all those things in our new house because they have such sentimental value. I was checking my economics books when I saw my Super Mario magazines. Those games are awesome and funny. Later, my brother came and asked if I have my economics books. He had an assignment and he forgot to go to the library. His topic was about inflation and deflation.

After reading my books, he learned that inflation is the overall general upward price movement of goods and services in an economy and is usually measured by the Consumer Price Index and the Producer Price Index. This term strictly applies to a given economic region in which a currency is used. It may also apply to smaller or larger regions. He also took notes about deflation, which occurs when decreased demand for goods and services causes a widespread drop in prices. It usually occurs during a recession or depression as consumers and business spending shrinks. When he finished his homeworks, he was so thankful that my books were still available and useful.

Everyone wants to have their own beautiful house. All of us wants to drive our own car. But how can we afford these things if we have to address our basic needs first, our monthly bills, and our children's education? Will our shoe-string budget have the ability to pay for a new Ferrari car or probably a nice vacation villa in India? Given the our struggling condition financially, it's impossible!

But worry no more because there is a way to make these dreams come true. You can have your own car or a house and lot if you apply for a loan. But what is a loan? A loan is a type of debt. Whoever applies for a loan will receive an amount of money from the lender. They have to pay it in installment with a corresponding interest. Looking for a financial institution where you can apply for a loan is not a problem. There are a lot of them and you can check their websites. You just have to prepare the forms that these institutions need to process your application. But beware of some lenders who uses predatory lending. It means granting a loan to put the borrower in a state that the lender can take advantage over him.

While drinking a beer after our dinner, my daughter approached me and asked about Paris Hilton and her sister Nicky. I was a bit shocked because my five-year old girl was asking about a controversial celebrity of today. At first, I told myself I should guard the shows that she watches to protect her from idolizing Paris (good heavens, please!). However, I was stunned when she asked me that she's not after Paris. She just wanted to learn about the word that the media had attached to her. And that word is none other than "heiress".

I explained to my daughter that heiress is the female counterpart of the word "heir." This word pertains to a person who inherits some or all of the estate of a recently deceased person. I was halfway my explanation when she had her follow-up question as who can be an heir? So I told her that this legal successor is usually selected because they are related to the deceased person by direct bloodline, meaning a family member, or can be designated in a will or by a legal authority. After my explanation, she smiled and thanked me. She even kissed me before she went to her room. I just said to myself, "One day, you will become a heiress, too darling. I will make sure of that, Chesca."

Have you heard of the word "intellectual property" or IP? This is what my younger sister asked me when she saw me resting in our garden full of Hibiscus plants. Those flowers are one of my Mom's favorite flowers because of its different colors. My younger sister sat beside me and asked what I know about this term. Intellectual property right or IP right refers to a legal entitlement which sometimes attaches to the expressed form of an idea, or to some other intangible subject matter. That's according to an online dictionary that we consulted earlier. According to encyclopedia.thefreedictionary.com, this term reflects the idea that this subject matter is the product of the mind or the intellect, and that IP rights may be protected at law in the same way as any other form of property.

I also explained to her that laws associated with intellectual property are territorial which means that the registration or enforcement of IP rights must be pursued separately in each jurisdiction of interest. We also found out that these laws are increasingly harmonized probably because of the effects of international treaties such as the WTO Agreement on Trade-Related Aspects of Intellectual Property Rights, while other treaties may facilitate registration in more than one jurisdiction at a time. I also informed my sister that this term is very important. I told her some stories of people who were sent to jail because of stealing the idea of others. So, I remind her to be extra careful.

Nope, this is not the name of my dog. It's not the name of my neighbor, either. But if you guess that it's the of name of my trusted financial broker, well, you are wrong, but you are close. Freddie Mac is actually famous among mortgage people and anyone who knows Freddie Mac is probably a homeowner.

Freddie Mac is not a person, neither an animal, but a congressionally approved institution which resells purchased lender mortgages as securities on the secondary mortgage market. Freddie Mac is actually a truncated form of Federal Homa Loan Mortgage Corporation. It was established by the United States government to stabilize the mortgage market.

Through Freddie Mac, a lot of Americans are able to afford housing. With Freddie Mac, housing finance cost is relatively reduced. With this, housing is made affordable and easily accessible to a lot of families all over United States. Freddie Mac also increases the housing opportunities of minority families and those that have low income. Even though Freddie Mac here is not a person, you can say that it has helped an awful lot of people with regards to making home a possibility for them. So, do you want to make business with my Freddie Mac?

Okay, this is not a summary for an entire book or novel chapter, but Chapter 7 refers to a basic financial term that deal with bankruptcy. Since this is Finance 101, it is just proper that you get acquainted with Chapter 7. I know you have heard of Chapter 11, so this time around, we will talk about Chapter 11's cousin.

When facing bankruptcy, you might encounter the term Chapter 7. This refer to the elimination of unpaid loose debts. Loose debts include medical bills, personal loans and credit cards. In Chapter 7, not only can you rid yourself of bills but you also get to keep all or most of the properties you have. Chapter 7 is also known as liquidation since they convert to cash all the non-exempt assets.

Chapter 7 is perfect for someone who has a low income or do not have one at all. You can also file for Chapter 7 if you have no more money left after you have paid all your living expenses every month. Also, when you rent your house or have few or no assets at all, filing for Chapter 7 is the right thing to do. Just in case you don not qualify for Chapter 7, you can always consider Chapter 13.

Retirement is the status of a person who has ceased working. He or she may or may not semi-retire when reached a certain age for retirement out of his or her choice and needs. In most countries, retirement with a monthly pension is provided for senior citizens. They have specific systems that provide retirement benefits for seniors; this may include hospitalization, financial supports, and discounts on public utility services like transportation.

Retirement age varies depending on the law and policy of the country. But normally, a 60-year old person can be called a retiree. Retired persons can be supported through pensions, savings, or superannuation. In many countries, these benefits are provided through government assistance. Retirement doesn't mean that person will no longer participate in active social activities. He or she may engage in some social gatherings to enjoy his or her retirement age.

In many cases, savings is useful for retirement. And so, it is advisable to have retirement planning. There are several companies that provide retirement planning services. They can help in money management to save more for retirement. Retired workers can seek help from these companies to plan their retirement monies, and to retire happily.

You may probably think that since you are in bad debt, it will be hard for you to get another loan to finance your dream property. Due to great demand for more funds and flexible payment terms, there are companies that provide a personal loan for people who have neck-high debts. This means, bad debts are not really bad at all. Since there are companies that provide assistance for both good and bad credit personal loans.

Haven't heard about bad credit personal loans? It's actually like a personal loan, it's just that this loan is for people with bad credits, or "bad credit history". Repayments are determined according to the amount of loan required and the length of time for payoff.

Now with this option, even those who have bad credits can avail the services of lenders. There are financial brokers who can help people with bad debts to apply for bad debt personal loans. These financial gurus have broad knowledge on financial industry particularly on debts and repayments services. And with this credit solution, you can now start your search for the lender that provides this financial service.

If you find carrying a bag full of cash for your everyday transactions, then you may resolve in to paying with cheques. Cheques are just stamped pieces of papers, but depending on the amount written on them, they are capable of having the same monetary value as the paper money you put inside your bulging wallet. Since a single paper can bear the highest bill amount, of course only in words, payments are made easy and deals are closed with just a signature.

In actuality, cheques or checks are orders in written form that customers give their banks for payments of a quantity of money of their accounts current to the person whose name is also written on the cheque. Transactions utilizing cheques require three participants. The one who makes the orders is called the drawer. The person who will receive the payment is the payee. The participating bank is called the drawee. So you see, even though cheques are more convenient and stylish mode of exchange than paying in cold cash, they are really complicated ones.

There are, generally, two types of cheques. Firstly, the cheque settled by a participating bank to any person who bestows it is called a bearer cheque. The other one is the order cheque that needs endorsement by the payee who writes his or her name at the back part of it. Unfortunately, both types of cheques are susceptible to bounce.