Categories
Investments glossary

Tax Planning

Tax planning is the analysis of a financial situation or plan from a tax perspective. The purpose of tax planning is to ensure tax efficiency. Through tax planning, all elements of the financial plan work together in the most tax-efficient manner read more

Categories
Investments glossary

Uniform Individual Accident and Sickness Policy Provisions Act

A Uniform Individual Accident and Sickness Policy Provisions Act is legislation that every U.S. state has passed into law in some form; it stipulates that individual health insurance policies must contain certain provisions in order to be valid.

Categories
Investments glossary

Bullet Repayment

A bullet repayment is a lump sum payment made for the entirety of an outstanding loan amount, usually at maturity. It can also be a single payment of principal on a bond.

Categories
Investments glossary

Revaluation Reserve

Revaluation reserve is an accounting term used when a company creates a line item on its balance sheet for the purpose of maintaining a reserve account tied to certain assets. This line item can be used when a revaluation assessment finds that the read more

Categories
Investments glossary

Operating Cash Flow Demand (OCFD)

Operating cash flow demand (OCFD) is a measure of the amount of operating cash flow needed to meet the capital costs of a company’s strategic investments. This value is used to compute the cash value added of a company’s strategic investments read more

Categories
Investments glossary

Incurred But Not Reported (IBNR)

Incurred But Not Reported (IBNR) is a type of reserve account used in the insurance industry as the provision for claims and/or events that have transpired, but have not yet been reported to an insurance company.

Categories
Investments glossary

1913 Federal Reserve Act

The 1913 Federal Reserve Act is U.S. legislation that created the current Federal Reserve System. Congress developed the Federal Reserve Act to establish economic stability in the United States by introducing a central bank to oversee monetary read more

Categories
Investments glossary

Equity Swap

An equity swap is an exchange of future cash flows between two parties that allows each party to diversify its income for a specified period of time while still holding its original assets. An equity swap is similar to an interest rate swap, but rather read more

Categories
Investments glossary

Deposit Multiplier

The term deposit multiplier refers to the amount of cash that a bank must keep in its reserve. The deposit multiplier is normally a percentage of the amount on deposit at the bank. The deposit multiplier requirement is key to maintaining an economy’s read more

Categories
Investments glossary

Letter of Credit

A letter of credit, or credit letter is a letter from a bank guaranteeing that a buyer’s payment to a seller will be received on time and for the correct amount. In the event that the buyer is unable to make a payment on the purchase, the bank read more