For questions about the meaning and usage of specific terms used in personal finance, alternative names for concepts, etc.
Questions tagged [terminology]
387 questions
173
votes
3 answers
Can someone explain a stock's "bid" vs. "ask" price relative to "current" price?
In my online brokerage account, I want to buy a particular stock and I see the following:
Bid: 13.20 x200 Ask: 13.27 x1,000
the current stock price is 13.22.
Can someone explain what the bid and ask prices mean relative to the current…
Amir
- 2,205
- 3
- 17
- 9
53
votes
3 answers
Are all current world currencies 'decimal'?
Historically, non-decimal monetary systems were common. E.g. pound / shilling.
Every currency I can think of or have ever used is 'decimal' (where a higher/lower unit of currency is either a multiple or factor of 10).
Are all currencies used by…
stevec
- 557
- 1
- 4
- 8
46
votes
9 answers
Am I a billionaire if a friend gives me $1000 for 0.0001% of my "company"?
If my friend gives me a thousand dollars for 0.0001% of my "company", am I technically a Billionaire now?
Aditya_math
- 501
- 1
- 4
- 7
34
votes
3 answers
What is it called when you sell and reinvest to pay lower taxes?
Every year or so, I sell my investments and then immediately buy them again. I do this because I'm in a low enough tax bracket that I don't have to pay capital gains on my long term investments, so I'm trying to capture as many gains as I can before…
BlackThorn
- 2,286
- 14
- 20
30
votes
3 answers
What are "preferred" stocks? How are they different from normal (common) stocks?
What are "preferred" stocks? How are they different from normal (common) stocks that you can buy on a stock exchange?
gyurisc
- 2,448
- 1
- 17
- 25
29
votes
3 answers
Are currency terms like USD, EUR, CNY used in all languages?
Currency codes like USD, EUR and CNY are well known in English. In accountancy documentation prepared in non-English languages, are these same terms used for foreign currency or are they translated?
For instance, Google Translate gives these…
Hand-E-Food
- 401
- 4
- 5
27
votes
4 answers
What is the meaning of "short selling" or "going short" a stock?
Can someone please explain the meaning of 'shorting' a stock with an example?
Amir
- 2,205
- 3
- 17
- 9
25
votes
3 answers
What is a trust? What are the different types of trusts?
What is a trust? What are the different types of trusts? Are some better than others? What are the different roles involved in a trust?
Nat_Rea
- 8,713
- 4
- 39
- 68
25
votes
1 answer
What does 'mutual' mean in mutual fund?
I am confused on the usage of 'mutual'. Is there any 'mutual benefit' or 'mutual dependence' between the participants (unit holders) in a mutual fund?
It looks more like a 'mixed fund' with diverse items (securities) placed together in a single…
Dynamic_equilibrium
- 351
- 3
- 4
25
votes
7 answers
Better terms to use to understand Puts and Calls for options trading
I've been trying to learn a little about options trading, specially puts and calls.
The term options works well for my brain because someone is buying or selling the option to buy or sell something. So far, so good.
But the terms put and call do…
Amazon Dies In Darkness
- 1,168
- 1
- 10
- 28
23
votes
2 answers
What is meant by one being in a "tax bracket"?
I've always wondered but just now asking: What is meant by one being in a "tax bracket"? Does that mean only Federal, or does it include State AND Federal? For example: I (would like to) make $100K a year. Someone tells me you're in the 38%…
Sam D
- 445
- 3
- 5
23
votes
2 answers
What's the difference between a certified check, a cashier's check, a money order, and a bank draft?
The question comes from reading this answer.
I've heard these terms used somewhat interchangeably, but I have no idea what the differences are.
What's the difference between a certified check, a cashier's check, a money order, and a bank draft?
Steve V.
- 675
- 2
- 6
- 14
22
votes
9 answers
What is the difference between "good debt" vs. "bad debt"?
This other question about home renovations makes reference to the concept of "good debt."
Could somebody explain the concepts of good debt vs. bad debt, providing examples of each?
Are there cases when borrowing for a specific kind of purchase…
user178
22
votes
7 answers
"Buy assets, not liabilities": How is it possible to buy a liability?
Some personal finance gurus such as Robert Kiyosaki claim that people should "buy assets, not liabilities". This made me wonder: is it even possible to buy a liability? From what I have observed, everything I have spent my money on is either an…
Flux
- 17,301
- 12
- 74
- 138
22
votes
9 answers
What are credit cards, debit cards, and other types of cards?
This question right here and the plethora of comments in it reminded me of something that I've found annoying for a long, long time. Seems that depending on where you come from the terms "credit card" and "debit card" can mean many wildly different…
Vilx-
- 1,157
- 1
- 10
- 16