Credit Service Organizationalso known as a loan/mortgage broker. Starting in late September 2005 all Credit Service Organizations will be renamed loan brokers; see loan broker.
Credit UnionA cooperative, nonprofit association, licensed under for the purposes of encouraging thrift among its members, creating a source of credit at a fair and…
Credit Union StatementPeriodically the credit union provides a statement of a member's share account.
CreditorA person or company who provides credit to another person or company functions as a creditor.
Crossed marketA market in a particular stock or option is described as crossed when a bid to buy that stock or option is higher than the offer to sell it, or when an…
Cumulative votingWith this method of voting for a corporation's board of directors, you may cast the total number of votes you're entitled to any way you choose.
CureTo bring your credit account current by paying all past due accounts.
CurrencyA form of money, something (such as coins or bills) generally accepted as a way of measuring value, as a way to trade value, and as a way to pay for goods…
Currency fluctuationA currency has value, or worth, in relation to other currencies and those values change constantly.
Currency swapIn a currency swap, the parties to the contract exchange the principal of two different currencies immediately, so that each party has the use of the…
Currency tradingThe global currency market, where roughly $1.9 trillion a day changes hands, is by far the largest financial market in the world.
Current returnCurrent return, also called current yield, is the amount of interest you earn on a bond in any given year, expressed as a percent of the current market…
Current yieldThe annual rate of return that an investor purchasing a security at its market price would realize.
Custodial accountIf you want to make investments on a minor's behalf, or transfer property you own to that person, you can open a custodial account with a bank, brokerage…
CustodianA financial institution, usually a bank or a trust company, that holds a mutual fund's securities and cash in safekeeping.
Cut-Off TimeA time of day established by a bank for receipt of deposits. After the cut-off time, deposits are considered received on the next banking day.
Cyber CrimeComputer crime, or cybercrime, refers to any crime that involves a computer and/or a network, where the computers may or may not have played an…
Cyclical stockCyclical stocks tend to rise in value during an upturn in the economy and fall during a downturn.
Daily balance method with compoundingAccording to this method, we calculate the interest charges for each balance by applying the “daily periodic rate” for that balance to the “daily…
Daily balance method without compoundingAccording to this method, we calculate the interest charges for each balance by applying the “daily periodic rate” for that balance to the “daily…
Daily periodic rate (DPR)(DPR)DPR stands for “Daily Periodic Rate.” This is a daily interest rate. The daily periodic rate or DPR for a given balance is equal to the APR on that…
Daily trading limitThe daily trading limit is the most that the price of a futures contract can rise or fall in a single session before trading in that contract is stopped…
Date of maturityThe date of maturity, or maturity date, is the day on which a bond's term ends, and its issuer repays the principal and makes the final interest payment.
Day orderAn order to buy or sell a security valid only for a limited period, normally less than a day.
Day traderWhen you continuously buy and sell investments within a very short time, perhaps a few minutes or hours, and rarely hold them overnight, you're considered…
DealerDealers, or principals, buy and sell securities for their own accounts, adding liquidity to the marketplace and seeking to profit from the spread between…
Dealer Sticker PriceDealer Sticker Price, usually on a supplemental sticker, is the Monroney sticker price plus the suggested retail price of dealer-installed options, such…
Death benefitA death benefit is money your beneficiary collects from your life insurance policy if you die while the policy is still in force.
DebarmentDisqualification of a firm or individual from contracting with the government or participating in government non-procurement transactions for a specific…
DebentureA debenture is an unsecured bond. Most bonds issued by corporations are debentures, which are backed by its reputation rather than by any collateral, such…
DebitA debit may be an account entry representing money you owe a lender or money that has been taken from your deposit account.
Debit balanceA debit balance is what you owe. It's entered as accounts receivable on the books of the lender and appears on your account statement as a liability.
Debit CardA debit card allows the account owner to access their funds electronically. Debit cards may be used to obtain cash from automated teller machines or…
DebtAn obligation to repay a sum of principal, plus interest. In corporate terms, debt often refers to bonds or similar securities.
Debt cancellation coverageCancels your debt if you become unemployed, disabled, or meet other criteria covered by your contract.
Debt CollectorAny person who regularly collects debts owed to others.
Debt Elimination SchemeA debt elimination scheme is a plan that is advertised as a way for an individual to eliminate various types of debt simply by paying someone a small fee…
Debt SecurityDebt securities are interest-paying bonds, notes, bills, or money market instruments that are issued by governments or corporations.
Debt suspension coverageStops your payments during periods of unemployment, disability, or other situations covered by your contract.
Debt-to-equity ratioA company's debt-to-equity ratio indicates the extent to which the company is leveraged, or financed by credit.
Debt-to-income (DTI)(DTI)a comparison or ratio of gross income to housing and other expenses or debts the homeowner owes.
Debt-to-Income RatioA measure of creditworthiness computed by dividing the dollar amount of monthly debts by total gross monthly income, then converting the result to a…
Debt-to-Income Ratio (DTI)(DTI)The percentage of a consumer's monthly gross income that goes toward paying debts. Generally, the higher the ratio, the higher the perceived risk.
DecedentA deceased person, ordinarily used with respect to one who has died recently.
Decimal pricingUS stocks, derivatives linked to stocks, and some bonds trade in decimals, or dollars and cents.
DeclinerStocks that have dropped, or fallen, in value over a particular period are described as decliners.
Decreasing term insuranceWith a decreasing term life insurance policy, the amount of the death benefit decreases each year of the fixed term - such as 20 years - although the…
DeductibleThe dollar amount you must pay out-of-pocket for each claim before the insurance company begins paying.
DeductionA deduction is an amount you can subtract from your gross income or adjusted gross income to lower your taxable income when you file your income tax…
DeedA deed is a written document that transfers ownership of land or other real estate from the owner, also known as the grantor, to the buyer, or grantee.
Deed-in-Lieu of Foreclosurethe process by which a homeowner may voluntarily transfer the deed to a home to the servicer when payments cannot be made.
Deep discount bondDeep discount bonds are originally issued with a par value, or face value, of $1,000.
Deep discount brokerage firmA financial services company that offers rock-bottom rates for large-volume securities transactions is sometimes described as a deep discount firm.
DefaultDefault occurs when a debtor is unable to meet the legal obligation of debt repayment, one form of which is the failure to promptly pay interest or…
Defensive securityDefensive securities tend to remain more stable in value than the overall market, especially when prices in general are falling.
Deferred AnnuityA deferred annuity contract allows you to accumulate tax-deferred earnings during the term of the contract and sometimes add assets to your contract over…
Deferred Paymentsloan payments that are authorized to be postponed as part of a workout process to avoid foreclosure.
deficitThe result of the government taking in less money than it spends.
Defined Benefit Pension PlanA pension plan by which an employer holds and invests pooled funds for all participating employees together, and the employer guarantees a fixed amount of…
Defined Benefit PlanA defined benefit plan - popularly known as a pension - provides a specific benefit for retired employees, either as a lump sum or as income for the rest…
Defined Contribution Pension PlanA pension plan by which an employer or its agent maintains a separate account for each participating employee.
Defined Contribution PlanIn a defined contribution retirement plan, the benefits - that is, what you can expect to accumulate and ultimately withdraw from the plan - are not…
DeflationA condition of decreasing prices. Deflation is generally measured by the Consumer Price Index.
Department of Veterans Affairs (VA) mortgageDepartment of Veterans Affairs (VA) mortgages enable qualifying veterans or their surviving spouses to borrow up to the annual federal limit in order to…
dependency exemptionAmount that taxpayers can claim for a "qualifying child" or "qualifying relative". Each exemption reduces the income subject to tax.
DependentA qualifying child or qualifying relative, other than the taxpayer or spouse, who entitles the taxpayer to claim a dependency exemption.
Dependent ChildWhen used with respect to any reporting individual, a son, daughter, stepson, or stepdaughter who -- (1) Is unmarried and under age 21 and is living in…
Deposit SlipAn itemized memorandum of the cash and other funds that a customer presents to the bank for credit to his or her account.
Depositary bankA US bank that holds American depositary shares (ADSs), or shares of corporations based outside the United States, and sells American depositary receipts…
Depository InstitutionA financial institution that makes loans and obtains its funds mainly through accepting deposits from the public; includes commercial banks, savings and…
Depository Trust and Clearing Corporation (DTCC)The DTCC is the world's largest securities depository, holding trillions of dollars in assets for the members of the financial industry that own the…
DepreciationThe act of lowering an item´s value due to use or wear and tear.
DepressionA depression is a severe and prolonged downturn in the economy. Prices fall, reducing purchasing power.
DerivativeDerivatives are financial products, such as futures contracts, options, and mortgage-backed securities.
Derogatory InformationData received by a creditor indicating that a credit applicant has not paid his or her accounts with other creditors according to the required terms.
Designated Agency Ethics Official (DAEO)The primary officer or employee designated by the head of an agency to administer the provisions of title I of the Ethics in Government Act of 1978 and 5…
DevaluationDevaluation is a deliberate decision by a government or central bank to reduce the value of its own currency in relation to the currencies of other…
DIAMONDsA DIAMOND is an index-based unit investment trust (UIT) that holds the 30 stocks in the Dow Jones Industrial Average (DJIA).
Diluted earnings per shareIn addition to reporting earnings per share, corporations must report diluted earnings per share.
DilutionDilution occurs when a company issues additional shares of stock, and as a result the earnings per share and the book value per share decline.
Direct DepositA payment that is electronically deposited into an individual's account at a depository institution.
Direct DisputeA dispute submitted directly to the furnisher about the accuracy of information in your consumer report that relates to an account or other relationship…
Direct investmentInvestment in which a resident of one country obtains a lasting interest in, and a degree of influence over, the management of a business enterprise in…
Direct purchase plan (DPP)Some publicly held companies offer a direct purchase plan that lets you purchase their stock directly without using a broker.
Direct RolloverThe taxable portion of a retirement plan distribution (refund) may be eligible for a tax-deferred rollover to an IRA, a 401(k) plan, a 401(a) plan, a…
direct taxA tax that cannot be shifted to others, such as the federal income tax.
Disability Determination ProviderThis provider evaluates the Retirement Systems’ disability claims and submits a recommendation to the Retirement Systems’ Medical Board.
Disability RetirementA retirement annuity under a defined benefit plan for active contributing members of the Retirement Systems who become disabled and whose disability is…
disclosureA disclosure document explains how a financial product or offering works. It also details the terms to which you must agree in order to buy it or use it…
DisclosuresCertain information that Federal and State laws require creditors to give to borrowers relative to the terms of the credit extended.
Disclosures (Credit)Certain information that federal and state laws require creditors to give to borrowers relative to the terms of the credit extended.