Insurability
This is the determination as to whether a certain, loss type can be insured, or whether an individual or business entity can be insured.
Insurable Interest
If a person or business entity benefits financially by the continuous existence of an insured item that is not damaged or impaired, then this particular individual or business entity has insurable interest for the insured item.
Insured
This is state and/or condition of a person or business entity when it has insurance.
Intangible Asset
This is an asset that one cannot touch when such assets are in their operative states like goodwill, copyrights, patents, etc.
Integrated Plan
In the business world, an integrated plan is a plan participation of all stockholders and the respective departments.
Intellectual Capital
A business entity's intellectual capital is an intangible asset referring to the value of its employees.
Interest (1)
This is an additional charge (usually a percentage) on the amount of money lent.
Interest (2)
When invested capital earns profit, such profit is interest.
Interest Income
When referring to savings accounts and mutual funds accounts this is income that account holders receive if they keep money in such accounts for a specified amount of time.
Interest Rate
The interest rate can refer to the percentage amount, based on the amount borrowed, that a lender will charge over a specified, time period.
Internal Auditor
This is an employee of the company or corporation of which he/she examines and verifies accounts.
Internal Control
In accounting and auditing, this is the process whereby a business entity assures itself that it will achieve its objectives.
Internal Rate of Return (IRR)
This is the interest rate at which the net, present values from a business entity's cash flows relating to a project or investment equal zero.
Inventory
The is a collection of unsold merchandise that a business entity may have in its warehouse or store.
Investment
If an individual or business entity makes an investment, he/she/it outlays money to earn money from the invested property.
Investment Objective
This occurs when an investor has a financial goal.
Invoice
This is an itemized statement listing items sold or services rendered; and this statement typically requests payment for the goods sold and/or services rendered.
Irrevocable Trust
This type of trust means that it can only be changed or cancelled with the beneficiary's permission.
Joint Products
Joint products occur when manufacturers produce different products from the same manufacturing process at the same time.
Joint Tenancy
Type of shared, property ownership in which each owner has undivided interest in a property.
Journal
In accounting, a journal is an accounting record of business transactions that includes the date on which the transaction occurred, and the amount and type of transaction.
Journal Entry
This is an entry in a journal that includes the date of occurrence, type of transaction and a brief description of the transaction.
Keogh Accounts
Keogh accounts are accounts that self-employed individuals can set up.
Keogh Plan
A Keogh Plan is a qualified retirement plan from which a distribution is fully taxable.
Key Employee
A key employee has most ownership and/or most decision-making role for a business entity.
Key Person Insurance
If a business entity purchases a life insurance policy on a key employee's life, it is key person insurance.
Lapsed Policy
The declaration of a lapsed policy occurs when an insurance company cancels a policy because of nonpayment of premiums on due dates or nonpayment of premiums during grace periods
Lease
This is a contract for renting real estate, or allowing an individual or business entity to live in or conduct business in a piece of real estate.
Lease-Purchase Agreement
This is a contract given to individuals who intend to lease property so that they may have the option to purchase such property during the lease's term.
Leaseback (Sale and Leaseback)
This is a financial transaction in which an individual or business entity sells an asset, and then leases it back for a long-term period.
Leasehold Improvements
These are improvements (not repairs) on leased property that increase the value of such leased property.
Ledger
A ledger is an accounting book containing an account which has debits and credits.
Letter of Credit
A bank issues a letter of credit guaranteeing that a seller will receive a payment as long as the seller follows certain, delivery conditions.
Level Premium Term Insurance
In a term insurance policy, premiums remain level (the same amount) throughout the policy's term.
Liability
Relating to business entities, a liability is a debt.
Life Annuity
This is an annuity that has a predetermined, payout amount until the annuitant's death.
Life Cycle
When referring to a business entity, this is the period after such an entity opens to conduct business, and when it ceases to conduct business.
Life Expectancy
Insurance companies make this estimate to determine the average life span of an individual.
Life Insurance
This is insurance that a company provides to an individual in which such a company will pay monetary compensation to the insurer's beneficiary when he/she dies.
Lifetime Learning Credit
When filing an U.S. Individual Tax Return, a taxpayer may be eligible to claim this education credit if they have a filing status that is other than Married Filing Separately, and if they meet other educational qualifications.
Limited (LTD.)
This refers to a company in which its members and/or subscribers are limited to what they have invested or guaranteed to the company.
Limited Liability Company
In a limited liability company, the owners have limited, personal liability for the company's debts.
Limited Liability Corporation (LLC)
A limited liability has the same, personal, liability limits on its owners for the corporation's debts that a company has.
Limited Partnership
In a limited partnership, the limited partner is usually not responsible for the partnership's debts that exceed his/her amount of capital investment.
Liquid Asset
This is cash, or property that can easily be sold for cash.
Liquid Assets
This is several types of property, life insurance policies and securities that a business entity can easily convert to cash.
Liquidation
This is the process that a business entity takes to convert its assets to cash in order to pay debtors and/or creditors.
Liquidation Value
This is an asset's, likely value when it has insufficient time to be sold on the open market.
Liquidity
Liquidity is the degree to which an asset can be bought quickly or sold quickly without affecting its value.
Liquidity Ratio
This is a ratio used to determine if a business entity can pay its short-term, debt obligations.
Living Trust
This is an arrangement whereby a trustee holds legal title to the property of another person who is the beneficiary.
Living Will
Such a will gives directions to physicians regarding their wishes for end-of-life, medical care.
Local Tax
Municipalities and counties impose this tax on business entities.
Locking In
This can refer to declaring an unchanging percentage with regard to a discount on an item for sell.
Long-Term Care Insurance
This time of insurance is generally similar to accident and health insurance. Provisions are made and expenses are paid for chronically-ill individuals; and such a policy will not reimburse expenses that Medicare would reimburse.
Loss
A loss could refer to a piece of real estate that is completely destroyed, and from which the owner receives no compensation for its loss. A loss could also refer to the income state of a sole proprietorship when it files its taxes wherein its expenses exceeded its income.
Management Accounting
Mangers use accounting information to learn more about income, expenses and equity before deciding matters within their business organizations.
Management Buyout
This occurs when a business entity's, existing managers acquire ownership of a large part of the business entity from the parent company or from private owners.
Management Fee
Regarding investments, this is the periodic fee paid by an investment fund to the fund's, investment advisor.
Manager
This can be an individual who directs the actions of business entity's, blue-collar and white-collar workers.
Mandatory Employee Contribution
This can be a contribution that an employee must make to a retirement plan, as in the case if such an employee has a 403b plan.
Market Risk
Referring to the stock market, this is risk of loss that could occur if stock prices decline.
Market Timing
This is a strategy referring to the stock market whereby investors attempt to predict future, market prices.
Market Value
This is the price at which an asset would trade in a competitive auction.
Materiality
Materiality is an accounting and auditing concept referring to the significance of an amount, transaction or discrepancy.
Maturity
When referring to a savings bond this is the time when the owner of such a bond can redeem it for the bond's face value plus interest.
Medicaid
This is a program of federal, medical assistance that wage earners contribute to by withholding a certain amount of income from their pay.
Medicare
Medicare includes A, B and D, of which some of these plans will pay for voluntary, prescription drugs, supplemental medical insurance and in-patient care in a qualified, medical facility, etc.
Medicare Part D
In this Medicare Plan an individual who enrolled can deduct medical, expense premiums on their U.S. Income Tax Returns.
Member
A member can be an inorganic section of a business entity.
Merger
A merger occurs when a business entity absorbs another business entity to form a new business entity.
Minimum Participation Requirements
Regarding retirement plans that employers contribute to, this can be the minimum amount that they must contribute.
Minority Interest
Minority interest is the same as non-controlling interest.
Minutes
This is the official record of a business entity's meeting.
Money Market
When money becomes commodities, this market becomes a part of financial markets as it relates to short-term borrowing, short-term lending, short-term buying and short-term selling.
Monthly Housing Expenses
These are monthly expenses that an individual may have if he/she has a mortgage.
Mortality Table
This is a table that displays, according to each age, the probability that an individual will die before his/her next birthday.
Municipal Bond
Cities, towns and/or counties issue this bond.
Name Reservation
Relating to business entities, such an entity may reserve a name through its state of incorporation.
National Association of Securities Dealers Automated Quotations (NASDAQ)
U.S.-based Stock exchange which is the second largest in the world.
Net Income
This is income amount after the consideration and/or payment of liabilities.
Net Worth
This is an individual's or business entity's total assets minus its total, outside liabilities.
New York Stock Exchange (NYSE)
This is another American stock exchange which is the largest in the World.
No-Par-Value Stock
Investors determine the price they will pay for no-par-value stock.
Noncontributory Retirement Plan
This is a pension plan to which an employer contributes money that does not require contributions from his/her employees.
Nonforfeitable Benefit
This is a benefit given to employees of which employers cannot take away.
Nonqualified Plan
A key executive and a certain employee may have a nonqualified retirement plan to meet his/her specialized, retirement needs. Such a plan is not covered by ERISA guidelines.
Not-For-Profit Corporation
In such a corporation, the profits go back into organization instead of being distributed to shareholders.
Notary Public
This is a public official who attests and/or certifies certain documents like affidavits, depositions, etc.
Note Payable (Promissory Note)
A note payable requires that the business entity's officers sign a formal loan before the lender will loan money.
Note Receivable
Such a note is an asset for a business entity; and this note requires full payment over a period that is 30 days or longer.
Offering Price
This is the price at which new issues of stock are made available to the public for purchasing.
Officers
These are a business entity's employees and/or executives who have authority to sign certain, specified documents, and who have authority to perform certain, specified actions.
Old-Age, Survivors and Disability Insurance (OASDI)
This is the official name for Social Security Insurance in the United States.
Operating Agreement
A limited liability company may have an operating agreement that governs its members' financial and managerial rights.
Option
When referring to stock, this privilege sold from one individual to another gives the buyer the right, but not the obligation to buy or sell such stock at the agreement price within a certain, specified, time period.
Options
These can be several privileges sold among individual relating to choosing to buy or sell stock at agreed upon prices within specified, time periods.
Ordinary Income
An example of ordinary income from the IRS definition is a paycheck that an employee receives every two weeks.
Organizational Meeting
This is the first meeting that a business entity has after it is officially formed.
Over-the-Counter (OTC)
Referring to the stock market, over-the-counter means that no one supervises the trading between two parties.
Overhead
An overhead is an unidentified operating expense.
Owner's Equity
This is the risk interest that an owner has in a business.
PITI
Referring to a mortgage, this acronym pertains the total of monthly principal, interest, taxes and insurance.
Paid in Capital Requirements
Investors pay this capital amount during stock (common and preferred) issuances.
Paid-Up-Additions
Paid-Up additions are insurance policy riders that allow the insured to quickly accumulate a policy's' cash value.
Par Value
This is a stock's value. A corporate charter determines this value.
Par-Value
For a bond, this is the full amount of its face value.
Parent Company
A parent company has enough voting stock in another company so that it can influence or elect is board of directors.
Partnership
A proprietorship, which is a business that a single individual owns, will join with another proprietorship to combine their resources for having a better chance of success.
Pass-Through-Taxation
This type of taxation means that taxes get passed to the business owners' tax returns instead of being levied on the businesses.
Past Due
This can occur if an insured does not pay his premium on an agreed upon date.
Patent
This is an intangible asset claiming ownership of an invention and/or process.
Payable
This can refer to an asset like accounts payable which means that customers owe a company payments through installment plans.
Payroll
This is a listing of employees who have earned money by working for a business entity.
Payroll Taxes
In the U.S., these are taxes that employers must withhold from employees' wages.
Pension
This is a qualification to receive income when an individual retires.
Permanent Life Insurance
This refers to a life insurance plan that does not expire, and combines a death benefit with savings.
Personal Income Tax
This is the tax on an individual's, personal income.
Plan Administrator
This individual manages the common, regular affairs and decisions associated with a group pension plan.
Plan Sponsor
A plan sponsor is an individual or company that sets up a healthcare or retirement plan.
Policy
Referring to insurance, this is a contract between the insurer and the insured.
Policy Dividend
A company decides as to whether it will pay its profits to an employee as a dividend, or retain such profits as earnings.
Policy Exclusion
Some insurance policy will not cover the loss or damage for a certain property or certain item.
Policy Loan
This occurs when an insurance company uses as collateral the cash value of an individual's, life insurance policy.
Policy Reserves
This refers to the pro rata of the total reserve for a many policies.
Policy Rider
These is an addition to an insurance policy that provides additional benefits, but also requires that the insured pay an additional price.
Policyholder
This is the insured (individual or group) named in an insurance policy.
Portability
Referring to health insurance and retirement benefits, this is an employee's right to keep such when switching employers and/or retiring.
Portfolio
These are all of the investments that a business entity has.
Posting
This is an entry transfer from a book of original entry to the proper account in a ledger.
Power of Attorney
This is the legal authorization that an individual gives to another to manage his/her financial affairs.
Preemptive Rights
This is where current shareholders have the rights to keep the value of their fractional by buying a proportional amount of shares (common stock only) on a future date.
Preferred Stock
This stock type is more valuable than common stock.
Premature or Early Distributions
This occurs when an individual withdraws money from his/her retirement account before he/she has reached the eligible, retirement age.
Premium
This is an amount that an insured individual pays to an insurance company to keep an insurance policy active.
Premium Loan
This occurs when an insurance company gives a loan to the policyholder so that he/she can pay a due premium. The policy's cash value is security.
Prepaid
This means that an individual or business entity paid a bill or expense before its due date.
Prepayment
This is the actual act of paying a bill or expense before its due date.
Prepayment Penalty
Lenders for mortgage contracts may include this penalty to reduce the loss of income when there is a risk that the lender will refinance.
Present Value
On the date that an item is valued, this is the expected income if sold.
Price/Earnings Ratio (P/E)
This is a ratio used to value a company that is based upon its stock price in relation to its earnings per share.
Primary Beneficiary
If an insurance policy lists several beneficiaries, this is the individual who will to receive death benefits.
Prime Rate
This refers to the interest rate that commercial banks charge their customers who have the best credit.
Principal
This is an individual who have controlling authority or the leading position.
Private Letter Ruling
This is where the U.S. Internal Revenue Service responds to a taxpayer's, guidance request.
Private Mortgage Insurance (PMI)
Private insurance companies provide this mortgage insurance on conventional loans.
Professional Corporation
These are corporate business entities that have special consideration; notably, they can use attorneys, architects and other, licensed professionals.
Profit
Simply defined, this the amount of income received that exceeds an items cost.
Profit and Loss Statement
This financial statement shows a business entity's revenues and expenses for a specified period.
Profit-Sharing Plan
This is an incentive plan that a business entity may provide to its employees to directly or indirectly distribute some or all of the business entity's profits.
Progressive Tax
This is a tax in which the tax rate (percentage) increases as the taxable amount increases.
Prohibited Transaction
Relating to Individual Retirement Accounts, the IRS deems these any of these as a prohibited transaction: borrowing money from them, selling property to them, using them as security for loans, and using the money in them to buy property for personal use.
Property
This is a piece of real estate or an item or thing that an individual owns.
Property Tax
This is a monetary charge that a municipality, state and/or federal government levies on the ownership and/or use of property.
Proportional Tax
This is the opposite of a progressive tax; the tax rate is fixed.
Prospectus
For the benefit of potential buyers, this is a disclosure statement describing a business entity's financial security.
Proxy
Referring to an individual who has common stock in a U.S. corporation, this individual can vote (proxy) in-person, by phone or online.
Qualified Plan
A qualified plan has these qualities: business entities may deduct the taxes on contributions; participants do not need to pay taxes on contributions; creditors cannot take money from these plans; and earnings on contributions increase without being taxed.
Quorum
In a business meeting, a quorum is the minimum number of members needed to conduct the meeting's business.
Quotation
Regarding a service, this is the amount that an individual or business entity estimates will be the cost for performing the service.
Rate of Return
This is the loss or gain that an investment has during a specified, time period.
Rated Policy
This is an insurance policy in which the insured pays higher than normal premiums due to the insured's, risky occupation.
Ratio
This is a relationship, often percentage, between two or more amounts, sizes and/or quantities.
Real Estate Investment Trust Fund (REIT)
This is a fund that a company who owns and operates income-producing real estate has.
Recapitalization
This occurs when a corporations substantially changes its capital structure.
Receivable
A business entity makes a legally, enforceable claim for payment from a client and/or customer.
Redemption
This is the noun associated with redeeming (removing an obligation) for payment like the redemption of a U.S. Savings Bond.
Refinancing
An individual who has a home mortgage may refinance (get a newer and lower, interest rate) it.
Refund
A person who buys defective merchandise may get the money he paid for the merchandise returned (refund) from the seller if he returns the defective merchandise to the seller.
Registered Agent
This is the person designated to receive federal and state documents for a business entity.
Registered Office
This is a business entity's, official address.
Regressive Tax
The tax rate of regressive tax decreases as the taxable amount increases.
Required Minimum Distribution (RMD)
This is the minimum amount that retirees must receive from their traditional retirement, Simple IRAs and SEP plans by April 1 in the year after they reach 70½ years old.
Resolution
Referring to a business meeting, this is the formal expression of opinion or intention.
Retained Earnings
When a business entity has net income, it sometimes keeps (retains) these earnings instead of distributing this income to shareholders.
Revenue
This is the total income that a specific source produces.
Reverse Mortgage
This is a home loan requiring no monthly, mortgage payments for older homeowners who have built up the equity in their home.
Review Engagement
This occurs if a public accountant reviews a business entity's, financial information at the request of a client. Such a review consists of inquiries, analytical procedures and discussions.
Review Engagement Report
This is the formal findings from a public accountant after he/she conducts a review engagement.
Risk
In business, this is the change for loss, usually for income loss.
Risk Tolerance
This is the extent of money that an investor is willing to risk on an investment.
Rollover
One example of a rollover is transferring funds from one retirement to another retirement account without needing to pay taxes on those funds.
Roth IRA
Interest earned on the contributions in a Roth IRA, which is a specific type of retirement plan is usually not taxable.
Roth IRA Conversion
This is a rollover of contributions from a traditional IRA to a Roth IRA.
S Corporation
The IRS classifies a S Corporation as a corporation among whose shareholders share income and losses. This corporation type does not pay federal income taxes.
SIMPLE (Savings Incentive Match Plan for Employees) Plan
This plan allows employers and employees to contribute to a traditional IRA.
Salary Reduction Plan
Employers sponsor this plan for their employees, and put part of their employees' wages directly into this plan. Such a reduction can be before or after the employees' taxes.
Sales Taxes
These are taxes a seller charges to customers on the type of goods that customers purchase.
Savings Account
This is a type of bank account for an individual. Money in a savings account earns interest.
Schedule
A schedule is a special, IRS form that U.S. taxpayers use when filing their taxes. These are some of the most common schedules: A, B, SE, C, D, E, F and R.
Section 162 (Executive Bonus)
This is a nonqualified plan to which an employer pays the premiums on a permanent life insurance policy that has an employee as the insured.
Secured Card
A secured card is a credit card that an individual who has a poor credit rating can qualify for if he/she deposits the credit limit amount with the particular credit card company.
Securities and Exchange Commission (SEC)
This is an agency of the U.S. federal government that enforces security laws, proposes security rules and regulates the security industry.
Security
This is a financial asset that can be traded.
Security Deposit
An individual with a poor, credit rating interested in obtaining a credit card deposits this amount with the credit card company; and this amount is her/her credit limit.
Self-Directed IRA (SDA)
Some U.S. financial institutions provide this type of retirement account that allows alternative types of investments like limited partnerships, precious metals, etc.
Self-Employment Tax
On U.S. Income Tax Returns, this is a tax on individuals who are self-employed. The taxes go on Schedule SE.
Self-Select Pin
U.S. taxpayers choose a five-digit number to represent their signature when filing tax returns electronically.
Seller Financing
This is a loan that a seller of a property or business provides to the purchaser.
Settlement Costs
Concerning the purchase of a home, these are settlement costs: loan origination fee, appraisal fee, points, title search, insurance, survey, taxes, deed recording fee, credit report charge, etc.
Share
This is a single unit of stock.
Shareholder
This is an individual or organization that owns interest (stock) in a public or private corporation.
Simplified Employee Pension Plan (SEP)
Such a plan provides business owners with a simplified method for contributing to their employees' retirements.
Situs
This is the place where something like property exists.
Small Business Association (SBA)
This is a U.S. government agency that assists entrepreneurs and individuals to establish small businesses.
Smart Card
This is a debit card and/or credit card that has a computer chip embedded in it.
Social Security
The U.S. government established this program in 1935 to include old-age and survivors insurance.
Social Security Tax
This is a mandatory tax that employers must withhold from their employees' wages.
Sole Proprietorship
In this business type, only one person owns and operates it.
Split-Dollar Life Insurance
This is a type of life insurance policy that benefits employer and employee.
Spousal IRA
In this IRA, a working spouse can contribute to the non-working spouse's, retirement savings.
Standard & Poor's 500 Index (S&P 500)
This index lists the 500, best performing stocks.
Standard Deductions
These are amounts on Form 1040, line 40 that reduce the amount of income on which individuals are taxed if they do not choose to itemize their deductions.
State Taxes
These are taxes to which individuals and business entities must pay to U.S. state governments.
Stated Capital
This is the amount of capital that a business entity must hold to pay dividends and other payouts.
Statement
An example of a financial statement is a Profit & Loss Statement.
Statement of Changes in Financial Position
This is one of the four, main, financial statements for a business entity. The others are the balance sheet, retained earnings statement and the income statement.
Statement of Earnings
This statement verifies the beginning and ending retained earnings for a business entity relating to a specified period.
Statement of Financial Position
This is a financial balances summary for a business entity.
Statement of Retained Earnings
This statement should show retained earnings for a beginning date, plus net income, minus dividends, and then the retained earnings for an ending date.
Stock
This is the equity stake of a business entity's owners.
Stock Certificate
This is a legal document that certifies ownership of stock.
Stock Dividend
This is a payment from stock in the form of additional shares.
Stock Market
In this market shares of publicly-held companies are traded.
Stock Option
This option gives the stock buyer the right to buy or sell, but not the obligation, underlying assets on or before a specific date.
Stock Purchase Plan
In reference to a stock purchase plan for employees, such a plan gives employees the opportunity to buy its company's stock at a discounted price.
Stock Split
This occurs when a corporation divides its existing shares into multiple shares.
Stock Transfer Book
This book records the transfer of stock from one individual or business entity to another individual or business entity.
Stockholder
Such an individual or business entity can have capital interest in another business entity.
Straight-Term Mortgage
This is a mortgage loan in which the borrower only pays interest during the loan term.
Subsidiary
Such a business entity is controlled by a larger, related business entity.
Survivorship Life Insurance
In these life insurance policies, the insurance company pays death benefits when the second, insured person dies.
Tangible Asset
A tangible asset has a physical form.
Tariff Duty
This is a tax on exported items.
Tax Avoidance
A business entity may use tax avoidance to legally avoid paying taxes on income.
Tax Credit
On U.S. income tax forms, any of these can be a tax credit: Alternative Motor Vehicle Credit, Child and Dependent Care Credit, Child Tax Credit, Earned Income Credit, The Lifetime Learning Credit, Credit for the Elderly or the Disabled, Foreign Tax Credit, Mortgage Interest Credit and Residential Energy Credit.
Tax Credits
On U.S. Individual Tax Returns, tax credits can be listed on lines 64a-71 of Form 1040.
Tax Deductions
A result of expenses, this is an income reduction that can be taxed.
Tax Evasion
This is the illegal avoidance to pay taxes.
Tax Exempt
This is an item or amount which does not need to have taxes paid upon it.
Tax Liability
This is money that a business entity owes to a municipal government, state government or to the federal government.
Tax Lien
This is a legal claim to satisfy a debt such as with the failure to pay property taxes.
Tax Shelter
A business entity may use a tax shelter to reduce taxable income.
Tax Shift
If a business entity uses a tax shift, it eliminates or reduces taxes while keeping the same revenue amount.
Tax Withholdings
These are amounts (mandatory or otherwise) that employers withhold from their employees' wages.
Tax-Exempt Bond
An example of a tax-exempt bond is a municipal bond.
Tax-Sheltered Annuity
A 403(b) retirement plan is a tax-sheltered annuity.
Taxable Income
This is the base income upon which states and the federal government imposes taxes.
Taxes
These are monetary charges that governments (municipal, state or federal) charge individuals or business entities for performing public services.
Tenants by the Entirety
This is when a married couple has equal, undivided rights to a property.
Tenants in Common
If this informal method is on a title, it means that each owner owns a specific percentage of a property.
Term Certain
Referring to insurance, this means that an insurance policy guarantees a periodic payment at a specific amount for a fixed term.
Term Insurance
This insurance provides coverage at a fixed, payment rate for a limited time.
Time Horizon
This is the time period in which a business entity might make and hold for an investment before it liquidates it.
Tips
These are monetary considerations given to individuals who perform services.
Title
This is the right or claim to property ownership.
Title Insurance
In the U.S., this is insurance that insures against financial loss because of defects in real estate, property titles.
Title Search
This is a search to determine who has ownership (deed) to real estate property.
Total Disability
This means that an individual cannot work in his/her occupation, or any occupation, because he/she has a specific sickness or injury.
Total Return
Referring to an investments portfolio, a total return considers the capital appreciation and the income received.
Transaction Fee
An example of a transaction fee is the fee a broker would charge to purchase stock for an investor.
Transaction Taxes
These taxes refer to taxes on deals between foreign governments.
Treasuries
These are U.S. government obligations of which our government backs with its full faith and credit.
Treasury Bill
The U.S. government issues this short-term promissory note for regulating the money supply.
Treasury Shares
A business entity's treasury shares pay no dividends and have no voting rights.
Trial Balance
This is the next-to-final verification of financial transactions before accountants and book-keepers post such transactions in ledgers.
Triple Net Lease
In this lease type, the lessee is also a tenant who is responsible for all costs relating to the leased property.
Trust
This is confidence that a person places in a person or organization when it hands over his/her property for holding.
Trust Fund
Cash, stocks, bond and other, property types can be in a trust fund.
Trustee
This is an individual or board member who can control or administer property held in trust.
Ultra Vires
This is a legal term in Latin meaning "beyond the powers."
Unanimous Written Consent
Referring to a proposal in a board of directors meeting, all present must give written assent for the proposal to be implemented.
Underwriting
Referring to insurance, this means to sign, accept liability, and guarantee payment if loss or damage occurs for the insured.
Unemployment
The state of not earning wages from a job.
Uniform Gift to Minors Act (UGMA)
Some U.S. states have this act which allows custodians to hold securities that would benefit minors when the donors have given up possession and control.
Universal Life Insurance
A type of life insurance that has a cash value.
Unsecured Debt
A debt type that has no collateral, or has protection by a guarantor.
Valuation Day
The date on which an appraisal is made.
Variable Interest Rate
A credit card, bond and loan may have this rate in which the interest amount varies.
Variance
Relating to financial concerns, this is the spread between amounts as in several price amounts.
Vertical Equity
This equity type includes progressive taxation and proportional taxation.
Vesting
This can mean informing an employee that he/she will unconditionally receive a share or pension.
Volatility
This is the degree variation of a trading price series during a specific, time period that measures the standard deviation of returns.
Voluntary Compliance
This is an alternative for a business entity's behavior with regard to state-imposed regulations.
Voluntary Employee Contribution
This can be when an employee gives money to a charity without expecting anything in return.
Volunteer Income Tax Assistance
This program offers free, tax assistance to individuals who earn less than $53,000 per year, disabled persons, elderly persons, and individuals who have difficulty speaking English.
Waiver of Premium
This is a rider in an insurance policy that allows the insured to not pay any further premiums if he/she becomes seriously ill or disabled.
Walk-In Electronic Filing
When a U.S. taxpayer is able to electronically file his/her tax return after walking into a tax preparation company.
Whole Life Insurance
This insurance policy has a guarantee to remain in force for the insured's, entire life as long as premiums are paid.
Withholding (Pay-as-you-earn-taxation)
This type of tax payments allow individuals and business entities to pay their expected, tax liabilities in installments.
Withholding Allowance
Employees claim this allowance on Form W-4, and give this form to their employers so that such employers can withhold earnings from their wages to pay estimated, federal, income taxes.
Working Capital
This represents a business entity's ability to convert assets to cash.
Write-off
In accounting, this is the recognition of an asset's, zero value.
Yield
Financially, this is the cash amount that a security owner receives in cash percentagewise.
Yield to Maturity (YTM)
This could be a bond's, book yield or redemption yield assuming that the bond will be held until it matures.
Zero Coupon Bond
This is a bond that when purchased, the price was lower than its face value. The face value will be repaid when it matures.
Glossary
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Marina V. Painter, CPA