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A financial services company which is one of the best known bond rating agencies in the country.
- Browse Related Terms: Fixed Income Security, Moody’s Investors Service, Present value, Present value (PV), S&P (Standard and Poor's), Standard and Poor’s (S&P)
A type of safe usually located in groups inside a bank vault and rented to customers for their use in storing valuable items.
Office of the Comptroller of the Currency, U.S. Department of the Treasury - Cite This Source - This DefinitionA type of safe usually located in groups inside a bank vault and rented to customers for their use in storing valuable items.
- Browse Related Terms: Acquiring bank, Banking day, branch, bank, branch, credit union, Business Day, check cashing service, franchise, limited branch, mobile branch, Safe (or Safety) Deposit Box, Safekeeping
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A type of safe usually located in groups inside a financial institution vault and rented to customers for their use in storing valuable items.
- Browse Related Terms: Audit, Banking day, Consumer Reporting Agency, Correspondent, custodian, Direct Dispute, Financial Accounting Standards Board (FASB), Gift, Lender, Remittance Transfers, Safe (or Safety) Deposit Box
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The Safe Drinking Water Act (SDWA) ensures that our tap water is fit to drink. Passed in 1974, SDWA sets national drinking water standards for public systems that deliver water to the tap. SDWA is used with RCRA and CERCLA to protect and cleanup groundwater by setting water quality standards.
- Browse Related Terms: Department of Defense (DOD), Department of Energy (DOE), Department of Transportation (DOT), Environmental Protection Agency (EPA), Federal Facilities Restoration and Reuse Office (FFRRO), Natural Resources Damage (NRD), Occupational Safety and Health Act (OSHA), Office of Enforcement and Compliance Assurance (OECA), Office of Pesticide Programs (OPP), Office of Solid Waste (OSW), Resource Conservation and Recovery Act (RCRA), Safe Drinking Water Act (SDWA)
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A service provided by banks where securities and valuables are protected in the vaults of the bank for customers.
: A service provided by banks where securities and valuables are protected in the vaults of the bank for customers.
Office of the Comptroller of the Currency, U.S. Department of the Treasury - Cite This Source - This Definition- Browse Related Terms: Acquiring bank, Banking day, branch, bank, branch, credit union, Business Day, check cashing service, franchise, limited branch, mobile branch, Safe (or Safety) Deposit Box, Safekeeping
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Safekeeping occurs when a broker-dealer holds securities for a client that are registered in the client's name.
The advantage from the client's perspective is that the securities are safe and the broker-dealer has them available to sell at the client's instruction.
The disadvantage from the broker-dealer's perspective is that securities held in a client's name are not fully negotiable or fungible, so they can't be used to settle trades, for example. Thus, it's a service for which many firms charge a fee.
Instead of being registered in their own names, clients' securities may be registered in the broker-dealer's name or in the name of a depository. That's known as being registered in street name or nominee name.
With this type of registration, the client's ownership rights are fully protected but the stock is fungible. The broker-dealer may use a limited portion of the holding to settle trades or for other purposes.
- Browse Related Terms: Beneficial owner, Clearance, Clearing firm, Committee on Uniform Securities Identifying Procedures (CUSIP), Continuous net settlement, Delivery date, Netting, Nominee name, Post-trade processing, Safekeeping, Street name
All > Business > Finance > Personal Finance > Income Tax
Compensation received by an employee for services performed. A salary is a fixed sum paid for a specific period of time worked, such as weekly or monthly.
- Browse Related Terms: bonus, compulsory payroll tax, earned income, employee, flat tax, Form W-4, Employee's Withholding Allowance Certificate, formal tax legislation process, income taxes, independent contractor, salary, self-employment loss, self-employment profit, tip income, wages
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A salary reduction plan is a type of employer-sponsored retirement savings plan.
Typical examples are 401(k)s, 403(b)s, 457s, and SIMPLE IRAs.
A salary reduction plan allows you, as an employee, to contribute some of your current income to a retirement account in your name and to accumulate tax-deferred earnings on those contributions. In most plans, you contribute pretax income, which reduces your current income tax, and you pay tax at withdrawal at your regular rate.
With Roth salary reduction plans, you contribute after-tax income but qualify for tax-free withdrawals if you are older than 59 1/2 and your account has been open at least five years.
Your employer may match some or all of your contribution according to a formula that applies on an equal basis to all participating employees. All salary reduction plans have an annual contribution cap that's set by Congress and allow annual catch-up contributions for participants 50 and older.
- Browse Related Terms: 401(k), 401(k) Plan, 403(b), 457, After-tax contribution, After-tax income, Automatic enrollment, CAP, Catch-up contribution, earned income, Employee stock ownership plan (ESOP), Excess contribution, Health Savings Account (HSA), High deductible health plan (HDHP), Highly compensated employees, Independent 401(k), Individual retirement account (IRA), Individual retirement annuity, individual retirement arrangement (IRA), Keogh plan, Matching contribution, Money purchase plan, Pretax contribution, Pretax income, Profit sharing, Recharacterization, Required beginning date (RBD), Roth 401(k), Roth IRA, Salary reduction plan, SIMPLE, Simplified employee pension plan (SEP), Tax-Deferred
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In a sale-leaseback arrangement - also known as a leaseback - an owner sells his or her property, and then immediately leases it back from the buyer as part of the same transaction.
This way, the seller gets the profits from the sale while keeping possession and use of the property, while the buyer is assured immediate long-term income on the property.
Sale-leaseback transactions are most commonly used in commercial real estate, but can also apply to commercial vehicles and other types of property.
- Browse Related Terms: Bearer form, Book-entry security, Buyer's agent, Fair market value, Sale-Leaseback, security, Stock certificate
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When a seller deeds property to a buyer for a payment, and the buyer simultaneously leases the property back to the seller.
A transaction in which the buyer leases the property back to the seller for a specified period of time.
- Browse Related Terms: acceptance, affidavit, Asking Price, Assumable Mortgage, Assumption Clause, Assumption Fee, Assumption of mortgage, Bona fide, Creative financing, Disclosures, Earnest Money, Fair market value, HUD-1 Settlement Statement, non-assumption clause, Offer, Owner Financing, prorate, Rescission, Sale-Leaseback, Seller Take-Back
In the case of mutual funds, these are commissions charged to purchasers of fund units, usually based on the purchase or redemption price. Sales charges are also known as "loads."
- 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
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A sales charge is the fee you pay to buy shares of a load mutual fund or other investment purchased through a financial professional.
The charge is typically figured as a percentage of the amount you invest. As the size of your investment increases, the rate at which you pay the sales charge may decrease.
Each dollar amount at which there is a corresponding reduction in the charge is known as a breakpoint. For example, the rate may drop from 4.5% to 4.25% with an investment of $25,000.
The sales charge on a mutual fund may be imposed as a front-end load when you buy (also known as a Class A share), as a back-end load when you sell (also known as a Class B share), or as a level load each year you own the fund (also known as a Class C share).
- 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
A sales finance company is any person or entity that engages in Connecticut in the business, in whole or in part, of acquiring retail instalment contracts from retail sellers, or instalment loan contracts from the holders thereof, by purchase, discount or pledge, or by loan or advance to the holder of either on the security thereof, or otherwise, but does not include a bank or credit union if so engaged.
- Browse Related Terms: bankruptcy, business opportunity, consumer collection agency, debt adjuster, field of membership, member, sales finance company, service mark, small loan company, trademark
Services sold in international markets through the channel of direct investment. From the U.S. viewpoint, it consists of sales of services to foreigners by foreign affiliates of U.S. companies and U.S. purchases of services from other countries' U.S. affiliates. It is one of two channels in the delivery of services in international markets; the other is cross-border trade in services.
- 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)
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A sales tax is a tax imposed by state and local governments on transactions that occur within their jurisdictions.
The taxing authority determines which transactions are subject to tax and the flat rate at which the tax is calculated. Some countries, though not the United States, impose a national sales tax often called a value added tax (VAT).
- Browse Related Terms: Business Day, Bylaws, Debt Elimination Scheme, Domicile, Incorporation, Limited liability company, Nonprofit, Recapture, sales tax, Sole proprietor, Tenancy-in-common
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A tax on retail products based on a set percentage of retail cost.
- Browse Related Terms: Commission, excise tax, Progressive tax, proportional tax, Regressive tax, sales tax, transaction taxes
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This corporation purchases student loans from various lenders, such as banks, and packages the loans as bonds or short-term or medium-term notes. After issue, these debt securities trade on the secondary market.
Sallie Mae guarantees repayment of the bonds and notes, and uses the money it raises through the sale of these securities to provide additional loan money for post-secondary school students. Sallie Mae also arranges financing for state student loan agencies. Its shares trade on the New York Stock Exchange (NYSE).
- Browse Related Terms: Agency bond, Fannie Mae, Freddie Mac, Government bond, Government National Mortgage Association (Ginnie Mae), Quasi-public corporation, Sallie Mae, Scripophily
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The BIG Index is a market-capitalization weighted index which includes fixed-rate Treasury, government sponsored, corporate (Baa3/BBB- or better), and mortgage securities. All issues mature in one year or more and have at least $50 million face amount outstanding for entry in the BIG Index.
The BIG Index is a market-capitalization weighted index which includes fixed-rate Treasury, government sponsored, corporate (Baa3/BBB- or better), and mortgage securities. All issues mature in one year or more and have at least $50 million face amount outstanding for entry in the BIG Index.
- 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
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Named after its main Congressional sponsors, Senator Paul Sarbanes and Representative Michael Oxley, the Sarbanes-Oxley Act of 2002 introduced new financial practices and reporting requirements, including executive certification of financial reports, plus more stringent corporate governance procedures for publicly traded US companies and added protections for whistleblowers.
Also known as the Corporate and Auditing Accountability, Responsibility, and Transparency Act, or more colloquially as SarbOx or SOX, the law was passed in response to several high-profile corporate scandals involving accounting fraud and corruption in major US corporations.
The law also created the Public Company Accounting Oversight Board (PCAOB), a private-sector, nonprofit corporation that regulates and oversees public accounting firms.
The law has seen its share of controversy, with opponents arguing that the expense and effort involved in complying with the law reduce shareholder value, and proponents arguing that increased corporate responsibility and transparency far outweigh the costs of compliance.
- Browse Related Terms: 10-k, 8-k, Acquisition, Audit committee, Closely held, Conglomerate, Depositary bank, Diluted earnings per share, Insider trading, Merger, Privatization, Retained earnings, Reverse stock split, Sarbanes-Oxley Act of 2002, Spin-off, Stock split
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The secondary part of a window which holds the glazing in place; may be operable or fixed; usually constructed of horizontal and vertical members; sash may be subdivided with muntins.
- Browse Related Terms: Casement, Details, Double hung, Frame, Glazing Bar, Gothic Sash, Meeting rail, operation, Parting strip, Rail, Sash, Segmental or Curved-Head Window, Tracery
A document issued by a mortgagee (the lender) when a mortgage is paid in full.
: A document issued by a mortgagee (the lender) when a mortgage is paid in full.
Office of the Comptroller of the Currency, U.S. Department of the Treasury - Cite This Source - This Definition- Browse Related Terms: Certificate of release, mortgage correspondent lender, mortgage lender, Mortgagee, Mortgagor, Redlining, Satisfaction of mortgage, Real Estate Owned (REO)
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A document signed by a lender indicating that a mortgage has been fully paid and all debts satisfied. The document must be filed with the County Recorder (or Recorder of Deeds) to clear the title.
- Browse Related Terms: Closing Costs, Closing Statement, Deed, Escrow, Good faith estimate, Real Estate Settlement Procedures Act (RESPA), Refund, Satisfaction of mortgage, Settlement (or Closing) Costs, Settlement agent, Title, Title Insurance, Title Search
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A savings account is a deposit account in a bank or credit union that pays interest on your balance-though some institutions require that you have at least a minimum amount in the account to qualify for earnings.
You can deposit and withdraw from savings accounts as you wish, but you can't transfer money from the account directly to other people or organizations.
While savings accounts typically pay interest at a lower rate than other bank accounts, that may not always be the case. Savings accounts are insured by the Federal Deposit Insurance Corporation (FDIC) or the National Credit Union Share Insurance Fund.
You're covered up to $100,000 in each of three different categories of account in a single bank, or up to $250,000 if an account is a self-directed retirement account (IRA). Different branches of the same bank count as one bank.
- Browse Related Terms: Annual percentage yield (APY), certificate of deposit, Certificate of deposit (CD), Compound Interest, Escheat, Eurodollar, Individual Account, Interest Rate (High/Low), Jumbo CD, Passbook, Savings account, Simple interest, Time deposit
Connecticut law allows the formation of a savings and loan association in either mutual or capital stock form. These institutions are also called "thrifts" and, traditionally, have promoted home ownership through mortgage lending. Connecticut law grants these institutions the same powers as commercial banks.
- Browse Related Terms: Bond, U.S. Savings, community bank, Index-linked Certificate of Deposit, merchant banking, money-market fund, Mutual Fund, Power of attorney, savings and loan association, savings bank, security, Uniform Commercial Code (UCC), Uniform Gift to Minors Account, Security (-ies)
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An association chartered to hold savings and make real estate loans. Active in long-term financing (mortgages) rather than construction loans.
- Browse Related Terms: American Society of Home Inspectors, Broker, Closing Date, Commission, Exclusive Listing, FSBO (For Sale by Owner), key lot, Listing Agreement, Multiple Listing Service (MLS), Open House, Real Estate Agent, Real Estate Professional, REALTOR®, Savings and loan association (S&L), Take out loan, Trade Equity, Transfer Taxes
Savings banks were initially formed in the early 1800's in the northeastern United States to promote thrift among wage earners. Mutual and capital stock savings banks in their present form, however, are a much more diverse and competitive provider of financial services. While savings banks have traditionally focused on residential and commercial mortgage lending, they have the same investment powers as bank and trust companies.
- Browse Related Terms: Bond, U.S. Savings, community bank, Index-linked Certificate of Deposit, merchant banking, money-market fund, Mutual Fund, Power of attorney, savings and loan association, savings bank, security, Uniform Commercial Code (UCC), Uniform Gift to Minors Account, Security (-ies)