Debt Free Article

Debt Terms Glossary

Letters M-O

Margin buying

This is when our debt free readers would finance the purchase of securities partly with money they have borrowed from the brokerage firm. The limit here is 50% due to regulation. So, one of our debt free advocates could only use borrowed money to pay for half of the purchase.

Money market deposit account

Common for debt free wannabes, money market deposit accounts are also known as money market investment accounts. These types of accounts are typically ones that pay higher rates to customers (higher than regular checking accounts that is). However, your access to this type of account is limited. That is why the rates are better. Recommended to our debt free advocates who want to save and not necessarily spend the money in the account.

Money market fund

This is a mutual fund that is another common fund for many debt free advocates and investors. It is used for investing in the short term – for corporate debt and government debt investments. You are paid interest on this investment.  A great feature with this type of fund is that share value does not change. This is an ideal way to earn current market interest with a great degree of liquidity. Great debt free advocates investment.

Mutual fund

Common debt free advocates fund that is managed by a professional portfolio of stocks and bonds and or other investments that are divided up into shares. There is typically a minimum investment stake involved such as five hundred dollars. The market price of this type of funds is called net asset values. They change daily with the market trends of the securities in the actual fund itself.

Nasdaq

This was known as the National Assoc. of Securities Dealers Automated Quotation System (a mouthful yes). It was a computerized price reporting system that is used by brokers to keep an eye on over the counter securities as well as some exchange listed situations. Now, the term refers to the computerized stock market on which shares are traded each day of its operation (hundreds of million of shares each day in use actually). If you are a debt free investor – you are familiar with this.

Odd lot

This is a stock trade that involves less than one hundred shares.

Option

This is the right to buy or sell a security at a given price during a certain period of time. Many of our debt free and debt consolidation customers have this type of deal through work even. They are known as stock options.

Over the counter (OTC)

As mentioned in the term Nasdaq above, over the counter is the phrase used to describe a stock or bond transaction that takes place somewhere other than the floor of the exchange. This takes place most commonly in the Nasdaq actually.

(471)

Back to Debt Free Articles