Debt Free Article

Debt Terms Glossary

Letter S

Sallie Mae

This is the name in which our debt free advocates know the Student loan Marketing Assoc. to go by and conducts its business. If you have a student loan and are one of our debt consolidation customers, you know about Sallie Mae. It purchases student loans from colleges and universities and other lenders and packages them into units that are actually sold to investors. So, because of this, it infuses the student loan market with new cash flow. This is very much like the way Ginnie Mae does for the mortgage market.

Secondary market

This is a debt free phrase many investors may be familiar with. It is the general name that has been given to stock exchanges, the over the counter market that is and also other marketplaces in which stocks, bonds, mortgages, and other investments are sold after they have been issued and sold the first time. Hence, the name secondary.

Short selling

This is a debt free investing technique that is used to take advantage of an anticipated decline in the price of a stock or other security by changing the direction of the usual order of events like purchasing and selling. So, in the short sale the investor borrows stock from the broker and at once they sell it. After, if they wish to and guessed the market properly, the price of the stock really declines. This way, the investor can replace the borrowed debt shares by purchasing them again at a lower cost.

Sinking fund

This is the financial reserves set aside to be used only to redeem a bond or preferred stock issue and so it would be reassured for investors. Meaning the company would be able to meet the obligation per se.

Secured credit card

Many debt free customers have this type of credit card that requires them to have a cash deposit in the equivalent of the balance available to charge. These are credit cards that are designed to rebuild bad credit into better credit in the long run. However, the interest rates are not all that good even though a deposit is on file.. Not the best way to become debt free.

Securities Investor Protection Corporation

This is a federally chartered body that offers insurance for brokerage firms’ customer accounts up to a half million dollars on its assets in stocks and bonds – even its mutual funds are protected up to that amount of cash value.

Specialists

While some of our debt consolidation article readers may think this term means many things, but in the world of debt and finances it refers to a member of the stock exchange that serves as a market marker for several different stock issues. Specialist in this way maintain and manage an inventory of certain stocks and this person additionally purchases and even sells shares as needed in order to maintain a consistency there.

Spread

Another commonly used term in the world of debt and debt free living, spread refers to the difference between the bid and asked prices of a security, which may additionally be known commonly as the broker’s fee.

Stop loss order

While investors are keen to this phrase, our debt free advocates are as well. This is the standing instruction to a broker to sell a certain stock or bond if the price should ever sink below a pre set level.

Street name

This is the debt free term many investors know to mean a description of a security that is held in the name of their brokerage company. Good investment dealing.

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