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Investments glossary

Buying on Margin

Buying on margin occurs when an investor buys an asset by borrowing the balance from a bank or broker. Buying on margin refers to the initial payment made to the broker for the asset—for example, 10% down and 90% financed. The investor uses the marginable read more

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Investments glossary

Inside Sales

Inside sales means the sale of products or services by personnel who reach customers through phone, email, or the internet. Other ways to define inside sales are remote sales or virtual sales.

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Investments glossary

Generally Accepted Accounting Principles (GAAP)

Generally accepted accounting principles (GAAP) refer to a common set of accounting principles, standards, and procedures issued by the Financial Accounting Standards Board (FASB). Public companies in the United States must follow GAAP when their accountants read more

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Investments glossary

Institutional Investor

An institutional investor is a company or organization that invests money on behalf of other people. Mutual funds, pensions, and insurance companies are examples. Institutional investors often buy and sell substantial blocks of stocks, bonds, or other read more

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Investments glossary

Payday Loan

A payday loan is a type of short-term borrowing where a lender will extend high interest credit based on a borrower’s income and credit profile. A payday loan’s principal is typically a portion of a borrower’s next paycheck. These loans charge read more

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Investments glossary

EBITDA/EV Multiple

The EBITDA/EV multiple is a financial valuation ratio that measures a company’s return on investment (ROI). The EBITDA/EV ratio may be preferred over other measures of return because it is normalized for differences between companies. Using EBITDA read more

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Investments glossary

Community Reinvestment Act (CRA)

The Community Reinvestment Act (CRA) is a federal law enacted in 1977 to encourage depository institutions to meet the credit needs of low- and moderate-income neighborhoods. The CRA requires federal regulators to assess how well each bank fulfills read more

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Investments glossary

American Depositary Receipt – ADR

An American depositary receipt (ADR) is a negotiable certificate issued by a U.S. depository bank representing a specified number of shares—or as little as one share—investment in a foreign company’s stock. The ADR trades on markets in the read more

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Investments glossary

Stock Screener

A stock screener is a tool that investors and traders can use to filter stocks based on user-defined metrics. Stock screeners exist either for free to a subscription price on certain websites and trading platforms. They allow users to select trading read more

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Investments glossary

Self Employment

A self-employed individual does not work for a specific employer who pays them a consistent salary or wage. Self-employed individuals, or independent contractors, earn income by contracting with a trade or business directly. In most cases, the employer read more