All > Business > Real Estate
FICO scores from 620 - 659. Factors include two 30 day late mortgage payments and two to three 30 day late installment loan payments in the last 12 months. No delinquencies over 60 days are allowed. Should be two to four years since a bankruptcy. Also referred to as Sub-Prime.
- Browse Related Terms: "A" Loan or "A" Paper, "B" Loan or "B" Paper, "C" Loan or "C" Paper, Fixed Expenses, mortgage interest, Serious Delinquency, Sub-Prime Loan, Variable Expenses
All > Business > Finance > Investment
A high-quality, short-term negotiable discount note, drawn on and accepted by banks that are obligated to pay the amount at maturity.
- Browse Related Terms: Agency Securities, BA (Banker's Acceptance), Banker’s Acceptance (BA), CDs (Certificates of Deposit), Certificates of Deposit (CD), Commercial Paper, Corporate Bond, Coupon, Federal Funds Rate, Federal Reserve Board, Maturity Date, money-market fund, Moody's Corporate Ratings, Moody's Short-term Debt Ratings, Principal, Salomon Brothers Broad Investment-Grade (BIG) Bond Index, T-Bill (Treasury Bill), Treasury bill (T-bill), Treasury Bond or Note
All > Business > Finance > Personal Finance
Bonds whose par values are less than $1,000 are often described as baby bonds, or, in the case of municipal bonds, as mini-munis.
Small companies that may not be able to attract institutional investors, such as banks and mutual fund companies, may offer baby bonds to raise cash from individual investors.
Some municipalities also use baby bonds to foster involvement in government activities by making it possible for more people to invest.
- Browse Related Terms: Baby bond, Blue sky laws, Corporate Bond, Disclosure, Investment Company, Issue, Municipal bond fund, State guaranty funds, STRIPS
All > Business > Finance > Personal Finance
Baccalaureate bonds are tax-free zero coupon bonds issued by certain states specifically to help families accumulate assets to meet college tuition costs.
The bonds are usually sold in small denominations, so that you can buy several, with maturity dates that correspond with the dates that tuition payments are due.
In some states, baccalaureate bondholders receive a small tuition discount if they use the bonds to pay for attending an in-state school.
- Browse Related Terms: 529 college savings plan, 529 Plan (Prepaid Tuition Plan), 529 prepaid tuition plan, Baccalaureate bond, Certificate of Accrual on Treasury Securities (CATS), CollegeSureî CD, Coverdell Education Savings Account, Early withdrawal, Education savings account (ESA), Hardship withdrawal, Hope scholarship credit, Investment horizon, Lifetime learning credit, Prepaid college savings plan, Prepaid college tuition plan, Tax-exempt
A sales charge levied when mutual fund units are redeemed.
- Browse Related Terms: annual and semi-annual reports, Back-end load, expense ratio, front-end load, load, management company, management expense ratio, Mutual Fund, net asset value, net asset value per share, no-load fund, open-ended fund, Redemption, Sales charge, total return
All > Business > Finance > Personal Finance
Some mutual funds impose a back-end load, or a contingent deferred sales charge, if you sell shares in the fund during the first six or seven years after you purchase them.
The charge is a percentage of the value of the assets you're selling. The percentage typically declines each year the charge applies and then is dropped.
However, the annual asset-based management fee is higher on back-end load funds, also known as Class B shares, than on front-end load funds, where you pay the sales charge at the time you purchase.
- Browse Related Terms: 12b-1 fee, Back-end load, breakpoint, Contingent deferred sales load, front-end load, Fund network, Level load, load, Load fund, Mutual Fund, No-load mutual fund, Redemption fee, Sales charge, Share class, Surrender fee
All > Business > Real Estate
A ratio that compares the total of all monthly debt payments (mortgage, real estate taxes and insurance, car loans, and other consumer loans) to gross monthly income.
- Browse Related Terms: Back End Ratio (debt ratio), Gross Income, Gross Monthly Income, housing expenses-to-income ratio, Income Property, income-to-debt ratio, Investment Property, Keogh Funds
All > Business > Real Estate
Arrangements that an owner makes to oversee the sale of one property and the purchase of another at the same time.
- Browse Related Terms: As-is Condition, Back to Back Escrow, Concession, Contingency, Counter Offer, Deposit (Earnest Money), derivative, Earnest Money Deposit, escape clause, Homeowner's Warranty (HOW), Purchase and Sale Agreement, Purchase Offer, Ratified Sales Contract, Rehabilitation, Right of First Refusal, walk-through, Walkthrough
All > Business > Finance > Personal Finance
Back-up withholding is triggered when a bank, brokerage firm, or other institution pays interest, dividends, or other income that must be reported on IRS Form 1099 to a payee who does not provide a tax identification number (TIN), typically a Social Security number, or provides an incorrect number.
While income that's reported on Form 1099 is not normally subject to withholding, in this instance, the payer must withhold 28% of the gross amount as income tax.
You can avoid back-up withholding in most cases by providing a correct TIN using IRS form W-9. But if the IRS determines you have underreported your investment income, it may require back-up withholding even if the payer has your TIN.
- Browse Related Terms: Back-up withholding, Custodial account, Estate, Estate tax, Gift tax, Income, Income in respect of a decedent, Income stock, National debt, Qualified domestic trust (QDOT), Revocable trust, Uniform Gifts to Minors Act (UGMA), Uniform Transfers to Minors Act (UTMA)
All > Business > Finance > Personal Finance > Mortgage
The lender may promise one type of loan or interest rate but, without good reason, gives you a different one. Sometimes a higher (and unaffordable) interest rate doesn't kick in until months after you have begun to pay on your loan.
- Browse Related Terms: "Bait-and-switch" schemes, Alt-A Mortgages, Balloon Payment, cash-out refinancing, Collections, Delinquency, Home improvement scams, Loan flip, Loan modification, Mortgage Modification, Prepayment penalty, Prime, Prime Mortgages, Refinance, Subprime, Subprime Mortgages
All > Business > Finance > Personal Finance > Consumer Credit > Credit Card
We put each charge on your account, including interest or fees, into a balance category. We use the different balances to calculate the correct interest charges on your account. If any type of charge has a separate interest rate, we will put it into a separate balance. This means that your account may have separate balances for purchases, cash advances, and balance transfers. It also means that if any charges are subject to an introductory or other promotional interest rate for a period, we will place such charges into a separate balance for the time period that you qualify for the special rate.
We place interest charges into the balance that generated those charges. For example, we place interest charges on purchases into your purchase balance.
We place fees that result from a specific charge into the same balance as that specific charge. For example, we place a foreign transaction fee that we assess on a cash advance into your cash advance balance. We place fees that do not result from a specific charge, such as a returned payment fee, into your purchase balance.
- Browse Related Terms: "Go-to" rate, Average daily balance method with compounding, Average daily balance method without compounding, balance, Daily balance method with compounding, Daily balance method without compounding, Daily periodic rate (DPR), Default APR, Interest-free period, Introductory APR, Penalty APR, Periodic rate, Purchase APR
Also listed in:
Record of transactions between U.S. residents and foreign residents during a given time period. Includes transactions in goods, services, income, assets, and liabilities. It is broken down into the current accounts (international), capital accounts (international), and financial accounts (international).
- Browse Related Terms: Balance of payments, BPT, Business, professional, and technical services transactions, Business, professional, and technical services transactions (BPT), Capital account (international), Capital accounts (international), Cross-border trade in services, Current account (international), Direct investment capital flows, Financial account (international), Financial accounts (international), Financial asset, Sales of services through foreign affiliates of multinational companies, Special drawing rights (SDR)
All > Business > Finance > Personal Finance
The difference between the value of a country's imports and exports during a specific period of time is called the balance of trade.
If a country exports more than it imports, it has a surplus, or favorable balance of trade. A trade deficit, or unfavorable balance, occurs when a country imports more than it exports.
- Browse Related Terms: Arbitrage, Balance of trade, Decimal pricing, Downtick, Efficient market, Moving average, Odd lot, Round lot, Xenocurrency
Record of net receipts or payments on goods, services, income, and unilateral current transfers. Current transfers include U.S. government grants to foreign countries, private remittances, and other current transfers. Related terms: Balance on goods, Balance on goods and services.
- Browse Related Terms: Balance on current account, Government current expenditures, Government current receipts, Gross operating surplus, Gross output, Net government saving, Net operating surplus, Nonfactor charges, Personal saving, Subsidy, Taxes from the rest of the world, Unilateral current transfers
Current receipts from the rest of the world less current payments to the rest of the world, formerly called "net foreign investment." Current receipts equal exports of goods and services plus income receipts from the rest of the world; current payments are the sum of imports of goods and services, income payments to the rest of the world, and current taxes and transfer payments to the rest of the world (net).
- Browse Related Terms: Balance on current account, national income and product accounts, Business current transfer payments (net), Business current transfer payments to government (net), Business current transfer payments to persons (net), Business current transfer payments to the rest of the world (net), Current payments to the rest of the world, Current receipts from the rest of the world, Current tax receipts, Current taxes and transfer payments to the rest of the world, Current transfer payments, Current transfer receipts, Income receipts on assets, Net lending or net borrowing, national income and product accounts, Own-account production, Personal current transfer payments, Personal current transfer receipts
Record of the difference between exports of goods and imports of goods. Related terms: Balance on current account, Balance on goods and services.
- Browse Related Terms: Balance on goods, Disposable personal income, Final use(s), Gross domestic product (GDP) price index, Gross domestic purchases, Gross domestic purchases price index, Net exports of goods and services, PCE, Personal consumption expenditures, Personal consumption expenditures (PCE), Personal outlays, Service
Record of the difference between exports of goods and services and imports of goods and services. In the broad sense, this balance is conceptually equal to net exports of goods and services, which is a component of gross domestic product (GDP). Related terms: Balance on current account, Balance on goods.
- Browse Related Terms: Balance on goods and services, GDI, GDP, GDP by state, GDP price index, GDP-by-industry accounts, Gross domestic income, Gross domestic income (GDI), Gross domestic product, Gross domestic product (GDP) by state, Gross domestic product price index, Gross domestic product-by-industry accounts, Gross national product (GNP), Gross state product, Implicit price deflator (IPD), NDP, Net domestic product, Net domestic product (NDP), Net gross receipts, NGR, Statistical discrepancy, Value added
A financial statement showing the nature and amount of a company's assets, liabilities and shareholders' equity.
- Browse Related Terms: balance sheet, Book value, Distribution, dividend, drips (dividend reinvestment plan), ex-dividend, guaranteed investment certificates, preferred shares, reinvestment, right, transfer agent
All > Business > Finance > Personal Finance
A balance sheet is a statement of a company's financial position at a particular moment in time. This financial report shows the two sides of a company's financial situation - what it owns and what it owes.
What the company owns, called its assets, is always equal to the combined value of what the company owes, called its liabilities, and the value of its shareholders' equity. Expressed as an equation, a company's balance sheets shows assets = liabilities + shareholder value.
If the company were to dissolve, then its debts would be paid, and any assets that remained would be distributed to the shareholders as their equity. Bankruptcy occurs in situations where there is nothing left to distribute to the shareholders, and the company balance sheet is in fact unbalanced because the company owes more than it owns.
- Browse Related Terms: balance sheet, Common Stock, Cooperative (co-op), Cumulative voting, Holding company, Minority interest, Proxy, Proxy statement, Shareholder, Statutory voting, stock, Tracking stock, Voting right
All > Business > Real Estate
A financial statement that shows the assets, liabilities and net worth of an individual or company.
A financial statement that shows assets, liabilities, and net worth as of a specific date.
- Browse Related Terms: Assessments, balance sheet, Capital or Cash Reserves, Chapter 7 Bankruptcy, General partnership, Liquid asset, Liquidity, Mutual savings bank, net worth, Nonliquid Asset, Underwriter, Uniform Residential Loan Application
All > Business > Small Business
Statement of financial position of a business at a particular point in time; lists what is owned and owed.
- Browse Related Terms: Amortization, balance sheet, Depreciation, equity, Lease, Liablities, net worth
Also listed in:
- All > Law > Bankruptcy
The process of moving an outstanding balance from one credit card to another. This is usually done to obtain a lower interest rate on the outstanding balance. Transfers are sometimes subjected to a Balance Transfer Fee.
The process of moving an outstanding balance from one credit card to another. This is usually done to obtain a lower interest rate on the outstanding balance. Transfers are sometimes subjected to a Balance Transfer Fee.
Office of the Comptroller of the Currency, U.S. Department of the Treasury - Cite This Source - This Definition- Browse Related Terms: Annual Percentage Rate (APR), Balance Transfer, Coupon Rate, Cumulative Loss, Late Charge, Loss Severity, Principal balance, Realized Loss
All > Business > Finance > Personal Finance
The process of moving an outstanding balance from one credit card to another. This transfer is usually done to obtain a lower interest rate on the outstanding balance. Transfers are sometimes subjected to a Balance Transfer Fee.
- Browse Related Terms: ATM Card, Automatic Bill Payment, Available Balance, Balance Transfer, Billing Error, Debit card, Electronic benefits transfer (EBT), Previous Balance, Residual interest
All > Business > Finance > Personal Finance > Consumer Credit > Credit Card
You make a balance transfer when you use a balance transfer check that we send you or when you contact us to transfer a balance electronically or by phone.
The act of transferring debt from one credit card account to another. Balance-transfer fees may apply.
- Browse Related Terms: Annual Percentage Rate (APR), Balance Transfer, Balance-transfer fee, Cash-advance fee, Interest rate, Membership fee, Participation fee
All > Business > Finance > Personal Finance > Consumer Credit > Credit Card
- A fee charged when you make a balance transfer. It may be a flat fee or a percentage of the transfer.
- Browse Related Terms: Annual Percentage Rate (APR), Balance Transfer, Balance-transfer fee, Cash-advance fee, Interest rate, Membership fee, Participation fee
All > Business > Finance > Personal Finance
Balanced funds are mutual funds that invest in a portfolio of common stocks, preferred stocks, and bonds to meet their investment goal of seeking a strong return while moderating risk.
Balanced funds generally produce more income than stock funds, though their total return may be less than stock fund returns in a strong stock market.
In a flat or falling stock market, however, disappointing returns on equity investments may be offset by a stronger performance from a balanced fund's fixed-income investments.
Balanced funds are sometimes described as a type of asset allocation fund, which provides the oportunity to spread your money among asset classes with one investment.
- Browse Related Terms: Asset allocation, Asset class, Balanced fund, diversification, Family of funds, Financial plan, Fund of funds (FOF), Lifecycle fund, Modern portfolio theory, Nonsystematic risk, Overweighted, portfolio, subclass, Synthetic investment, Target date fund, Target risk fund, Underweighted, White knight