HaircutA haircut, in the financial industry, is a percentage discount that's applied informally to the market value of a stock or the face value of a bond in an…
Hard assetsHard assets are the tangible property of a company or partnership, such as the buildings, furniture, real estate, and other equipment it owns.
Hardship withdrawalA hardship withdrawal, also known as a hardship distribution, occurs when you take money out of your 401(k) or other qualified retirement savings plan to…
Hazard Insuranceinsurance that is generally required under mortgage contracts to pay for loss or damage to a person’s home or property.
Head of householdHead of household is an IRS filing status that you can use if you are unmarried or considered unmarried on the last day of a tax year and provide at least…
Head of Household filing statusYou must meet the following requirements: 1. You are unmarried or considered unmarried on the last day of the year. 2.
Health InsuranceHealth insurance covers some or all of the cost of treating an insured person's illnesses or injuries.
Health Savings Account (HSA)(HSA)A health savings account is designed to accumulate tax-free assets to pay current and future healthcare expenses.
Hedge fundHedge funds are private investment partnerships open to institutions and wealthy individual investors.
HedgerHedgers in the futures market try to offset potential price changes in the spot market by buying or selling a futures contract.
HedgingHedging is an investment technique designed to offset a potential loss on one investment by purchasing a second investment that you expect to perform in…
High Deductible Health Plan (HDHP)(HDHP)A high deductible health plan (HDHP) requires substantially higher than average out-of-pocket expenses before the insurance company will start paying for…
High-yield bondHigh-yield bonds are bonds whose ratings from independent rating services are below investment grade.
Highly compensated employeesHighly compensated employees are people whose on-the-job earnings are higher than the level the government has established to differentiate this category…
HoldUsed to indicate that a certain amount of a customer's balance may not be withdrawn until an item has been collected, or until a specific check or debit…
Holding companyBy acquiring enough voting stock in another company, a holding company, also called a parent company, can exert control over the way the target company is…
Holding periodA holding period is the length of time you keep an investment. In some cases, a specific holding period is required in order to qualify for some benefit.
Home Affordable Modification Program (HAMP)(HAMP)A program that provides eligible homeowners the opportunity to modify their mortgages to make them more affordable. See www.MakingHomeAffordable.gov.
Home Affordable Refinance Program (HARP)(HARP)A program that provides homeowners with loans owned or guaranteed by Fannie Mae or Freddie Mac an opportunity to refinance into more affordable monthly…
Home Affordable Unemployment Program (UP)(UP)a program that provides homeowners a temporary forbearance, which is a temporary period of time during which a regular monthly mortgage payment is reduced…
home equityThe difference between what you paid for your home and what you get when you sell.
Home Equity Line of Credit (HELOC)(HELOC)A line of credit secured by the equity in a consumer's home. It can be used for home improvements, debt consolidation, and other major purchases.
Home Equity LoanA home equity loan allows you to tap into your home's built-up equity, which is the difference between the amount that your home could be sold for and the…
Home Equity Loan (HEL)(HEL)A home equity loan allows you to tap into your home's built-up equity, which is the difference between the amount that your home could be sold for and the…
Home Improvement LoanA home improvement loan is (a) any dwelling-secured loan to be used, at least in part, for repairing, rehabilitating, remodeling, or improving a dwelling…
Home improvement scamsA contractor talks you into costly or unnecessary repairs, steers you to a high-cost mortgage lender to finance the job, and arranges for the loan…
Home InspectorYou hire and pay for this individual to analyze the home's physical condition before you buy it.
Home Owners’ Loan ActEnacted in 1933, this Act established the Home Owners’ Loan Corporation and authorized steps to: provide emergency relief with respect to home mortgage…
Home Purchase LoanA home purchase loan is any loan secured by and made for the purpose of purchasing a dwelling. See the definition of "dwelling."
Homeowner's InsuranceHomeowners insurance is a contract between an insurance company and a homeowner to cover certain types of damage to the property and its contents, theft…
HonorariumA payment of money or anything of value for an appearance, speech, or article, less any necessary travel expenses.
Hope scholarship creditYou may qualify for a Hope scholarship tax credit for money you spend on qualified educational expenses for yourself, your spouse, or a dependent child.
horizontal equityThe concept that people in the same income group should be taxed at the same rate. "Equals should be taxed equally."
Hot issueIf a newly issued security rises steeply in price after its initial public offering (IPO) because of intense investor demand, it is considered a hot issue.
Housing and Urban Development ActEnacted in 1968, this Act partitioned Fannie Mae into two separate organizations, a government-sponsored corporation (Fannie Mae) and a wholly-owned…
Housing expensethe sum of a homeowner’s mortgage payment, hazard insurance, property taxes, and homeowner association fees.
HUD-1 Uniform Settlement StatementStandard form used to disclose costs at closing. All charges imposed in the transaction, including mortgage broker fees, must be disclosed separately.
Hybrid annuityWith a hybrid annuity, you allocate part of your annuity's assets to providing fixed income payments and part to making variable income payments.
Hybrid mortgageSometimes called an intermediate ARM, a fixed-period ARM, or a multiyear mortgage, a hybrid mortgage combines aspects of fixed-rate and adjustable-rate…
HypothecationHypothecation means pledging an asset as collateral for a loan. If you use a margin account to buy on margin or sell short, for example, you pledge…
Identity TheftIdentity theft is the unauthorized use of your personal information, such as your name, address, Social Security number, or credit account information.
Immediate annuityYou buy an immediate annuity contract with a lump-sum purchase. You begin receiving income from the annuity either right away or within 13 months.
Implied GuaranteeThe assumption, prevalent in the financial markets, that the federal government will cover GSE debt obligations.
Imputed interestImputed interest is interest you are assumed to have collected even if that interest was not paid.
In-the-moneyAn option is in-the-money at any point up to expiration if the exercise price is below the market price of a call option or above the market price of a…
Inactive AccountAn account that has little or no activity; neither deposits nor withdrawals having been posted to the account for a significant period of time.
Inactive MemberA member who is no longer employed by a public or governmental entity that participates in one of the South Carolina Retirement Systems’ plans and does…
Incentive stock option (ISO)Corporate executives may be granted incentive stock options (ISOs), also called qualifying stock options.
IncomeIncludes but is not limited to the following items: earned income such as compensation for services, fees, commissions, salaries, wages and similar items…
Income annuityAn income annuity, sometimes called an immediate annuity, pays an annual income, usually in monthly installments.
Income fundAlternatively called a bond fund. Income funds are a type of mutual fund that holds debt instruments such as government bonds and corporate debentures.
Income in respect of a decedentAny income your beneficiary receives after your death that would have gone to you if you were still alive is described as income in respect of a decedent.
Income statementAn income statement, also called a profit and loss statement, shows the revenues from business operations, expenses of operating the business, and the…
Income stockStock that pays income in the form of regular dividends over an extended period is often described as income stock.
income taxesTaxes on income, both earned (salaries, wages, tips, commissions) and unearned (interest, dividends).
IncorporationWhen a business incorporates, it receives a state or federal charter to operate as a corporation.
IncumbentAn incumbent filer is an employee who has worked for more than 60 days during the previous calendar year in a position which required filing of an SF 278.
Incumbent and TerminationAn incumbent and termination filer is an employee who anticipates terminating his/her covered position employment within 90 days of the annual filing…
Indemnity insuranceAn indemnity insurance policy pays up to a fixed amount when you make a claim, often on a per day basis.
IndentureAn indenture is a written contract between a bond issuer and bond holder that is proof of the bond issuer's indebtedness and specifies the terms of the…
Independent 401(k)The independent 401(k) - also known as a solo 401(k), indy-k, or uni-k - is a variation of the 401(k) designed for people who are self-employed or operate…
independent contractorPerforms services for others. The recipients of the services do not control the means or methods the independent contractor uses to accomplish the work.
IndexStatistical measure of the state of the stock market or economy based on the performance of stocks or other components.
Index fundA mutual fund that matches its portfolio to that of a specific financial market index, with the objective of tracking the general performance of the…
Index of Leading Economic IndicatorsThis monthly composite of ten economic measurements was developed to track and help forecast changing patterns in the economy.
Index optionIndex options are puts and calls on a stock index rather than on an individual stock.
Index-linked Share Certificate (SC)(SC)An index-linked SC is a deposit obligation of the issuing credit union. Index-linked SCs provide the member the ability to participate in the…
Indexed annuityAn indexed annuity is a deferred annuity whose return is tied to the performance of a particular equity market index.
indirect taxA tax that can be shifted to others, such as business property taxes.
Individual Retirement Account (IRA)(IRA)A retirement savings program for individuals to which yearly tax-deductible contributions up to a specified limit can be made.
individual retirement arrangement (IRA)An individual retirement arrangement (IRA), which may be set up as either an account or an annuity, allows people with earned income to contribute to a…
Inefficient marketIn an inefficient market, investors may not have enough information about the securities in that market to make informed decisions about what to buy or…
infant industryA new or developing domestic industry whose costs of production are higher than those of established firms in the same industry in other countries.
InflationA condition of increasing prices. Inflation is generally measured by the Consumer Price Index.
Inflation rateThe inflation rate is a measure of changing prices, typically calculated on a month-to-month and year-to-year basis and expressed as a percentage.
Inflation-adjusted returnInflation-adjusted return is what you earn on an investment after accounting for the impact of inflation.
Inflation-protected security (TIPS)US Treasury inflation-protected securities (TIPS) adust the principal twice a year to reflect inflation or deflation measured by the Consumer Price Index…
Inherited IRAAn inherited IRA is an IRA that passes to a beneficiary at the death of the IRA owner.
Initial public offering (IPO)When a company reaches a certain stage in its growth, it may decide to issue stock, or go public, with an initial public offering (IPO).
Insider tradingIf management of a publicly held company, members of its board of directors, or anyone who holds more than 10% of the company trades its shares, it's…
Inspector General ActEnacted in 1978, this Act authorized establishment of Offices of Inspectors General, “independent and objective units” within federal agencies that…
Inspector General Reform ActEnacted in 2008, this Act amended the Inspector General Act to enhance the independence of inspectors general and to create a Council of the Inspectors…
InstinetInstinet is the world's largest agency brokerage firm. As an agency firm, it doesn't trade stock for its own account as traditional brokerage houses do.
Institutional fundAn institutional fund is a mutual fund that's available to large investors, such as pension funds and not-for-profit organizations, with substantial…
Institutional investorInstitutional investors buy and sell securities in large volume, typically 10,000 or more shares of stock, or bonds worth $200,000 or more, in a single…
Insufficient FundsWhen a depositor's checking account balance is inadequate to pay a check presented for payment.
Insurance (Hazard)Insurance to protect the homeowner and the lender against physical damage to a property from sources such as but not limited to fire, wind, or vandalism.
Insurance trustYou set up an insurance trust to own a life insurance policy on your life. When you die, the face value of the policy is paid to the trust.
Insured bondAn insured bond is a municipal bond whose interest and principal payments are guaranteed by a triple-A rated bond insurer.
Insured SharesDeposits held in federal and most state chartered credit unions that are guaranteed by the National Credit Union Share Insurance Fund (NCUSIF) against…
Integrated pension planIn an integrated pension plan, your employer counts part of your Social Security benefit in the defined benefit pension you're entitled to and takes that…
InterestThe term interest is used to describe the cost of using money, a right, share, or title in property.
interest incomeThe income a person receives from certain bank accounts or from lending money to someone else.