Debt Free Article

Debt Terms Glossary

Letter A

Account executive

This is what several brokerage firms use as their title for their stockholders. Some other uses for this term in the world of debt and finance are debt world are to describe a registered representative, a financial consultant, or even a financial counselor. Very common term in many financial and debt free facets.

Accrued interest

This is interest that is due but has yet to be paid. In the financial world, this type of interest is due on things such as bonds. In the world of debt, it has to do with credit card debt and other types of debt. If you purchase a bond halfway between interest payment dates, for instances, you have to pay the seller for that interest that has accrued but not paid yet. You get that money back, free of tax, when you get the interest payment for the entire period.

Alpha

This is a mathematical calculate for price unpredictability that attempts to separate the price movements of a stock or mutual fund from those of the market. For example, a stock with a high alpha is anticipated to perform very well even though the stock market could be unpredictable. See beta as well.

American depository receipts

These are certificates that are traded on the US stock exchanges or over the counter. They represent ownership of any certain amount of shares of a foreign stock.

Annual percentage rate (APR)

In the world of debt, debt consolidation and even mortgages, you will become very familiar with this term. The APR is the method of expressing the cost of credit that takes into reflection of the fact that consumers owe interest on a smaller and smaller amount as you pay down the loan, credit card debt or other type of debt. The federal Truth in Lending Act requires lenders to exercise this method.

Annuity

Any debt free advocate who invests will be familiar with this debt and financial term. It is a tax favored investment that generates a series of regular payments that are guaranteed to continue for a specific time (typically the recipient’s life time) in exchange for a single payment up front or a series of payments. Annuities come in several forms. With a deferred annuity, payments start sometime in the future. With an immediate annuity, payments begin at once. A fixed annuity pays a fixed income stream for the life of the annuity’s contract. With a variable annuity, the payments may change according to how successfully the actual money in it is invested.

ARM fund

Many of our debt free readers have Arm mortgages. ARM funds are mutual funds that invest in adjustable rate mortgages (ARMs).

Asset management account (AMA)

These accounts are given to customers of brokerage firms and banks. They pay interest and offer a full selection of services. Such services as check writing, loans, debit cards, credit cards and even security transactions are found with these types of accounts.

At the market (phrase)

This is a commonly used phrase in the world of finance and debt. It is a term used often when trading a stock or bond. For instance, when you buy or sell at the market, your broker will complete you’re your trade at the next available price offered. Your alternative to doing this is to name a certain price known as the limit order.

(563)

Back to Debt Free Articles