Terms with Category Investments
- Lump Sum Payment — Definition,
- One-time single-sum payment or payout.
- An extra payment made to reduce a loan.
- Macroeconomics — Definition,
- A study of the economy as a whole, particularly the interaction of its various components.
- Margin — Definition,
- The difference between the cost and the selling price.
- Expressed as percentage points, the amount that a lender adds to an index to arrive at the final interest rate. For example, if the index is 9 percent and the margin 2.75 percent, the final interest rate is 11.75 percent.
- Market Conditions — Definition,
- Factors that affect the sales of homes in an area, such as interest rates, the unemployment rate, home appreciation, weather and time of year.
- Maturity — Definition,
- The date when the principal balance of a loan is due and payable to the lender. Also, the date when a bond pays off its principal.
- Maturity Guarantee — Definition,
- A guarantee that after a certain date a contract, such as a life insurance policy or annuity, will have a minimum dollar value.
- Meals and Entertainment (M&E) — Acronym,
- Deductible expenses in your business such as the cost of taking a client to a restaurant (meals) or a sporting event (entertainment). However, these expenses are only partially deductible (50 % in Canada).
- Microeconomics — Definition,
- Looking at the individual parts of the economy, with emphasis given to the market process and how it works.
- Mis-selling — Definition,
- The act of misleading a client into buying a product or service by deliberately misrepresenting the aforementioned product or service.
- Monetary Policy — Definition,
- The Bank of Canada's ability to influence the economy through changes in short-term interest rates and the money supply.
- Money Laundering (ML) — Acronym,
- A process used by individuals to conceal illegally acquired funds by converting them into seemingly legitimate income. The term is generally associated with organized crime and those who need to legitimize illegally earned funds.
- Money Market Account (MMA) — Acronym,
- A bank account that restricts the type and number of withdrawals. The account also earns interest similar to money market funds.
- Money Market Fund (MMF) — Acronym, Important,
- Mutual funds that invest in short-term debts or securities.
- Money Market Mutual Fund (MMMF) — Acronym,
- A mutual fund that invests in short-term debt instruments such as Treasury bills, commercial paper, and large CDs. Also referred to as money market fund (MMF).
- Mortgage-Backed Securities — Definition, Important,
- Securities backed by mortgage debt.
- Mutual Fund — Definition,
- A type of investment scheme that pools funds from multiple backers and invests them in securities such as stock or bonds.
- Needs Approach — Definition,
- A way of determining how much life insurance an individual should purchase by examining the future obligations and needs of the beneficiaries.
- Net Operating Loss (NOL) — Acronym, Very Important,
- A net loss for the tax year because of business or casualty losses. Taxpayers may use an excess loss of one year as a deduction for certain past or future years.
- Net Worth — Definition,
- The total value of all assets, such as house, car, furniture and investments, minus all debts, such as mortgages and credit card bills.
- No-Load Annuity — Definition,
- An annuity that pays the salesperson no commission and has low fees and expenses. A no-load annuity is often sold by an insurer directly.
- Non-liquid Asset — Definition,
- A possession that can't be transformed readily into cash. Stocks and bonds are liquid assets because they can be sold easily; a house is a non-liquid asset because it takes time to sell.
- Non-owner Occupant — Definition,
- A borrower who purchases a property for investment or rental purposes and will not occupy the property.
- North American Free Trade Agreement (NAFTA) — Acronym,
- An agreement between the United States, Canada, and Mexico that allows for freer trade between the three countries.
- Note — Definition,
- A legal acknowledgement of a debt and an implicit promise to repay. It includes the loan amount, interest rate and term.
- Old Age Security (OAS) — Acronym, Important,
- A Canadian pension plan for eligible Canadians over the age of 65.
- Open-end Fund — Definition,
- A mutual fund that allows investors to buy or sell shares in the fund at their net asset value each business day.
- Operating Cash Flow (OCF) — Acronym,
- The money a company generates from its business operations. This revenue excludes costs from certain investments.
- Ordinary Dividends — Definition,
- The distribution of a company's profits that are subject to full taxation.
- Other Income/Expenses — Definition,
- Any income or expenses earned or disbursed by a business that are not clearly associated to its core operations.
- Overall Liquidity Ratio — Definition,
- A method of determining how easily and quickly a company can sell off assets to pay off its debts.
7.
Lump Sum Payment -
Money Laundering
Money Laundering
