Personal Finance — page 13 of 19

Personal Finance terms

1201. Oversold A stock, a market sector, or an entire market may be described as oversold if it suddenly drops sharply in price, despite the fact that the country's…
1202. Oversubscribed An initial public offering (IPO) is oversubscribed when investor demand for the shares is greater than the number of shares being issued.
1203. Overvaluation A stock whose price seems unjustifiably high based on standard measures, such as its earnings history, is considered overvalued.
1204. Overweighted When you own more of a security, an asset class, or a subclass than your target asset allocation calls for, you are said to be overweighted in that…
1205. Own-occupation policy If you purchase an own-occupation disability insurance policy, you are entitled to receive benefits if a disability prevents you from performing the…
1206. Paid-up policy A paid-up policy is a whole life insurance policy for which no additional premium payments are required to keep in force.
1207. Panel - HMDA Reporter Panel Listing The reporter panel listing is the universe of all institutions that reported under HMDA. A separate panel exists for each reporting year.
1208. Paper Short-term, unsecured debt securities that a corporation issues are often referred to as paper - for short-term commercial paper.
1209. Paper profit (or loss) If you own an asset that increases in value, any increase in value is a paper profit, or unrealized gain.
1210. Par Value The stated or face value of a stock or bond. It has little significance for common stocks, however, for bonds it specifies the payment amount at maturity.
1211. Participating Community A community for which the Federal Emergency Management Agency (FEMA) has authorized the sale of flood insurance under the National Flood Insurance Program…
1212. Participating policy When policyholders have what is called a participating policy from a mutual insurance company, they are eligible to receive dividends based on the…
1213. Participation fee See annual fee.
1214. PAS Employee A PAS Employee is one who holds a senior non-career position that requires nomination by the President and confirmation by the Senate.
1215. Pass-through security When a corporation or government agency buys loans from lenders to pool and package as securities for resale to investors, the products may be…
1216. Passbook A book in ledger form in which are recorded all deposits, withdrawals, and earnings of a customer's savings account.
1217. Passive income You collect passive income from certain businesses in which you aren't an active participant.
1218. Passive losses You have passive losses from businesses in which you aren't an active participant.
1219. Passively managed An index mutual fund or exchange traded fund is described as passively managed because the securities in its portfolio change only when the make-up of the…
1220. Past Due Item Any note or other time instrument of indebtedness that has not been paid on the due date.
1221. Payable-on-death A bank account titled payable-on-death (POD) lets you name one or more beneficiaries to whom the assets are paid when you die.
1222. Payday Loans A small-dollar, short-term loan that a borrower promises to repay out of their next paycheck or deposit of funds.
1223. Payee The person or organization to whom a check, draft, or note is made payable.
1224. Payment Cap A limit on the amount that your monthly mortgage payment on a loan may change, usually a percentage of the loan.
1225. Payment Due Date The date on which a loan or installment payment is due. It is set by a financial institution.
1226. Payment Plan A method of payment through which a member receives his retirement annuity and, depending on the plan chosen, may provide a survivor benefit to his…
1227. Payoff The complete repayment of a loan, including principal, interest, and any other amounts due.
1228. Payoff Statement A formal statement prepared when a loan payoff is contemplated. It shows the current status of the loan account, all sums due, and the daily rate of…
1229. Payor The person or organization who pays.
1230. Payout ratio A payout ratio, expressed as a percentage, is the rate at which a company distributes earnings to its shareholders in the form of dividends.
1231. payroll taxes Include Social Security and Medicare taxes.
1232. Peer Average Ratio How a credit union compares to a group of federally insured credit unions of similar asset size.
1233. Penalty APR The APR charged on new transactions if you trigger the penalty terms in your credit card contract.
1234. Penalty fees Fees charged if you violate the terms of your cardholder agreement or other requirements related to your account.
1235. Penny stock Stocks that trade for less than $1 a share are often described as penny stocks.
1236. Pension A pension is an employer plan that's designed to provide retirement income to employees who have vested - or worked enough years to qualify for the income.
1237. Pension Benefit Guaranty Corporation (PBGC) The PBGC was created to ensure that participants in defined benefit pension plans under its jurisdiction will receive at least a basic pension if the…
1238. Pension maximization Pension maximization is a strategy that begins with selecting a single life annuity for income to be paid from your retirement plan, rather than a joint…
1239. Pension Plan A defined benefit retirement annuity plan under one of the following: the South Carolina Retirement System; the Police Officers Retirement System; the…
1240. Per capita Per capita is the legal term for one of the ways that assets being transferred by your will can be distributed to the beneficiaries of your estate.
1241. Per Check Fee (If Minimum Balance is Not Maintained) The fee charged to an account holder for each check written when the balance in the account does not meet the minimum required balance.
1242. Per Check Fee (If Minimum Balance Maintained) The fee charged to an account holder for each check written when the balance in the account meets the minimum required balance.
1243. Per stirpes Per stirpes is the legal term for transferring the assets of your estate to your children and their descendants.
1244. Percentile Rankings How a credit union ranks in relation to the federally insured credit unions in its peer group in key area of financial performance.
1245. Periodic interest rate The periodic interest rate, sometimes called the nominal rate, is the interest rate a lender charges on the amount you borrow.
1246. Periodic Rate The interest rate described in relation to a specific amount of time. The monthly periodic rate, for example, is the cost of credit per month; the daily…
1247. Periodic Statement The billing summary produced and mailed at specified intervals, usually monthly.
1248. Permanent insurance Permanent insurance is a life insurance policy that provides a death benefit as long as you live, or in some cases until you turn 100, provided you…
1249. personal exemption Can be claimed for the taxpayer and spouse. Each personal exemption reduces the income subject to tax by the exemption amount.
1250. Personal Hospitality of any Individual Hospitality extended for a non-business purpose by an individual, not a corporation or organization, at the personal residence of or on property or…
1251. Personal Identification Number (PIN) (PIN) Generally a four-character number or word, the PIN is the secret code given to credit or debit cardholders enabling them to access their accounts.
1252. Personal Residence Any real property used exclusively as a private dwelling by the reporting individual or his spouse, which is not rented out during any portion of the…
1253. Personal Savings Account Any form of deposit in a bank, savings and loan association, credit union or similar financial institution (5 C.F.R. §2634.301(c)(2)).
1254. Pest Inspection Required for FHA loans in some areas to determine if there is an infestation of wood-boring insects or other pests in the home.
1255. Phantom gains Phantom gains are capital gains on which you owe tax even if your actual return on the investment is negative.
1256. Phishing When internet fraudsters impersonate a business in an attempt to trick you into giving out your personal information, such as usernames, passwords, and…
1257. Piggyback A broker who piggybacks acts illegally by buying or selling a security for his or her own account after - and presumably because - a client has authorized…
1258. Pink Sheets Pink Sheets LLC is a centralized financial information network. It provides current prices and other information in both print and electronic formats to…
1259. PITI Common acronym for principal, interest, taxes, and insurance—used when describing the monthly charges on a mortgage.
1260. Plan administrator A plan administrator is the person or company your employer selects to manage its retirement savings plan.
1261. Plan participant If you're enrolled in an employee retirement plan, such as a 401(k) or pension plan, you're a plan participant with certain rights and protections…
1262. Plan provider The plan provider of a retirement savings plan, such as a 401(k), 403(b), or 457 plan is the mutual fund company, insurance company, brokerage firm, or…
1263. Plan sponsor The plan sponsor of a retirement savings plan is an employer who offers a retirement savings plan to employees.
1264. point An amount equal to one percent of the principal amount of a mortgage. Loan discount points are a one-time charge assessed at closing by the lender to…
1265. Point of Sale (POS) (POS) 1) The location at which a transaction takes place. 2) Systems that allow bank customers to effect transfers of funds from their deposit accounts and…
1266. Points The term points can mean different things in different contexts. With regard to stock, a point represents a $1 change in market price, so if a share of…
1267. Points (also called discount points) One point is equal to 1 percent of the principal amount of a mortgage loan. For example, if a mortgage is $200,000, one point equals $2,000.
1268. Points and Origination Fees Fees paid to the lender for the loan. One point equals 1 percent of the loan amount. Points are usually paid in cash at closing.
1269. Police Officers Retirement System (PORS) The name of the retirement system covering police officers, firefighters, peace officers, probate judges, and magistrates. See PORS for more information.
1270. Policyholder or policy owner If you own an insurance contract or policy, you are a policyholder, also known as the policy owner.
1271. Portable benefits Benefits or accumulated assets that you can take with you when you leave your employer or switch jobs are described as portable.
1272. portfolio All the securities which an investment company or an individual investor owns.
1273. Portfolio manager A portfolio manager is responsible for overseeing a collection of investments, either for an institution - such as a mutual fund, brokerage firm…
1274. Portfolio turnover Portfolio turnover is the rate at which a mutual fund manager buys or sells securities in a fund, or an individual investor buys and sells securities in a…
1275. Positive yield curve A positive yield curve results when the interest rate on long-term US Treasury bonds is higher than the rate on on short-term Treasury bills.
1276. Post-trade processing Each securities transaction goes through post-trade processing during which the details of the trade are compared, cleared, and settled.
1277. Power of Attorney A written instrument which authorizes one person to act as another's agent or attorney.
1278. Pre-existing Condition A pre-existing condition is a health problem that you already have when you apply for insurance.
1279. Pre-foreclosure sale when the servicer allows the homeowner to list and sell the mortgaged property with the understanding that the net proceeds from the sale may be less…
1280. Pre-Tax Any type of contribution or compensation deducted from gross pay before earnings are taxed. Commonly referred to as deferred.
1281. Preapproval When you're preapproved for a mortgage, the lender guarantees in advance the maximum you can borrow, provided your financial situation doesn't change…
1282. Preauthorized Electronic Fund Transfers An EFT authorized in advance to recur at substantially regular intervals.
1283. Preauthorized Payment A system established by a written agreement under which a financial institution is authorized by the customer to debit the customer's account in order to…
1284. Preferred Provider Organization (PPO) (PPO) A preferred provider organization (PP0) is a network of doctors and other healthcare providers that offers discounted care to members of a sponsoring…
1285. Preferred Risk Policy (PRP) (PRP) A policy that offers fixed combinations of building/contents coverage or contents-only coverage at modest, fixed premiums.
1286. Preferred Stock Some corporations issue preferred as well as common stock. Preferred stock can be an attractive investment because it typically pays a fixed dividend on a…
1287. Premium The price charged for insurance.
1288. Premium credit card A credit card that offers high credit limits and often has additional features like product warranties, travel insurance, or emergency services.
1289. Prepaid college savings plan Prepaid savings plans are investment accounts in which an individual chooses among offered investment options, usually mutual funds.
1290. Prepaid college tuition plan An education savings account or plan operated by a state or educational institution designed to help families accrue funds for future college costs.
1291. Prepayment The payment of a debt before it actually becomes due.
1292. Prepayment Clause A clause in a mortgage allowing the mortgagor to pay off part or all of the unpaid debt before it becomes due.
1293. Prepayment Penalty A penalty imposed on a borrower for repaying the loan before its due date. (In the case of a mortgage, this applies when there is not a prepayment clause…
1294. Prepayment Penalty (Mortgages) A charge assessed by a creditor when the consumer pays off all or part of the loan before it is due.
1295. Prepayment penalty/prepayment premium A charge the mortgagor pays the mortgagee for the privilege to prepay the loan.
1296. Prequalification When you prequalify for a mortgage, the lender calculates the approximate amount you'd be able to borrow, based on your current income and debt.
1297. Prerefunding Prerefunding may occur when a corporation plans to redeem a callable bond before its maturity date.
1298. Present value The current value of a future cash flow or series of cash flows discounted at an appropriate interest rate or rates.
1299. Pretax contribution A pretax contribution is money that you agree to have subtracted from your salary and put into a retirement savings plan or other employer sponsored…
1300. Pretax income Pretax income, sometimes described as pretax dollars, is your gross income before income taxes are withheld.