A type of contract where the costs involved with fulfilling the terms and conditions of the contract are higher than the amount of economic benefit received…

A company that distributes and redeems securities it issues. The most common open-end management companies are mutual fund companies which sell and redeem…

A publication issued by the Options Clearing Corporation (OCC) that first-time option traders are required to read before being allowed to make any option…

An automated computer system owned by the National Association of Security Dealers (NASD) that is used to record information relating to orders, quotes…

One of the provisions of Regulation NMS that ensures that investors receive an execution price that is equivalent to what is being quoted on any other…

Expenses incurred by individuals for their business or primary employment. "Ordinary and necessary" expenses are categorized as such for income tax purposes…

An act of law reluctantly signed by former U.S. president William Howard Taft in 1913 that created the Department of Labor and the Department of Commerce…

A U.S. government agency that assists businesses looking to invest abroad. Operated out of Washington, D.C., the Overseas Private Investment Corporation…

A loan payment that has not been made as of its due date. A borrower who is past due may be subject to late fees, unless the borrower is still within…

A government license that gives the holder exclusive rights to a process, design or new invention for a designated period of time. In the United States…

A buzz word describing a clause found in financial institutions' employment contracts that would subject compensation terms to the U.S. government's approval…

An arrangement between a bank or credit union and a client that designates beneficiaries to receive all the client's assets. The immediate transfer of…

An act of legislation that makes a large number of reforms to U.S. pension plan laws and regulations. This law made several pension provisions from the…

A security interest in the collateral that is used to secure the performance of a debt that is protected from third-party claims. A perfected lien for…

A theory stating that an investment firm passing all capital gains, interest and dividends onto their customers/shareholders shouldn't be levied at the…

The risk that an investment's returns could suffer as a result of political changes or instability in a country. Instability affecting investment returns…

After Bernard Madoff's $65 billion Ponzi scheme was revealed, many new (smaller-scale) Ponzi schemers are being exposed. Ponzimonium refers to the tremendous…

Benefits that have been paid into or accrued in an employer-sponsored plan and that can be transferred to a new employer's plan or to an individual who…

The modern composite-margin requirements that must be maintained in a derivatives account containing options and/or futures contracts. Portfolio margin…

The illegal act of bidding up the value of a fund's holdings right before the end of a quarter, when the fund's performance is measured. This is done…

A will established by an individual who has already taken the necessary steps to set up a trust, so that upon the death of the individual, all of his…

A legal document giving one person (called an "agent" or "attorney-in-fact") the power to act for another person (the principal). The agent can have broad…

A legal document transferring the legal right to the attorney or agent to manage and access the principal's property in the event the principal is unable…

An illegal action performed by a group of conspiring businesses that occurs when the firms agree to artificially inflate prices in an attempt to recognize…

A market that issues new securities on an exchange. Companies, governments and other groups obtain financing through debt or equity based securities…

The state or federal regulatory agency that is the primary supervising entity of a financial institution. In most cases, this is the same agency that…

A charitable organization that, while serving a good cause, does not qualify as a public charity by government standards. A private foundation is a nonprofit…

A policy provided by private mortgage insurers to protect lenders against loss if a borrower defaults. Most lenders require PMI for loans with loan-to-value…

The legal process in which a will is reviewed to determine whether it is valid and authentic. Probate also refers to the general administering of a deceased…

A type of clause, seen most often in municipal bond indentures, which requires the issuing party to sell debt securities (often in the form of revenue…

An individual or company that, for a fee, helps raise money for some type of investment activity. Most often, promoters raise money for a company through…

Laws created by governments in regards to how individuals can control, benefit from and transfer property. Economic theory contends that government enforcement…

A process, tool, system or similar item that is the property of a business or an individual and provides some sort of benefit or advantage to the owner…

A legal clause or condition contained within a contract that requires or prevents either one or both parties to perform a particular requirement by some…

A legal document assigning the health-care decisions of an individual to another in the event the individual is unable to make the decisions for themselves…

A company that has issued securities through an initial public offering (IPO) and is traded on at least one stock exchange or in the over the counter…

A committee started to investigate the "money trust". It was formed in 1912 by Arsene Pujo, a member of the United States House of Representatives, and…

An institutional investor that has met certain qualifications to invest in securities outside its home country. The most popular QDII program comes from…

A type of court order typically found in a divorce agreement that recognizes that the ex-spouse is entitled to receive a predefined portion of the individual…

A designation of a securities issue given by the Securities and Exchange Board of India (SEBI) that allows an Indian-listed company to raise capital from…

A sale, transfer or exchange of stock obtained through a qualified stock option incentive plan, namely incentive stock option (ISO) plans and employee…

Property owned by a lender - usually a bank - after an unsuccessful sale at a foreclosure auction. This is common because most of the properties up for…

An asset designation applicable to all debts, unsettled transactions or other monetary obligations owed to a company by its debtors or customers. Receivables…

A record of real estate deeds or other land titles that is maintained by a local government official. The register of deeds will be used in conjunction…

A licensed securities dealer who is also empowered to oversee operational, compliance, trading and sales operations and the personnel who staff them…

An institution or organization that is responsible for keeping records of bondholders and shareholders. If you are the owner of a bond or a share in a…

1. The process by which a company files required documents with the Securities and Exchange Commission detailing the particulars of a proposed public…

A type of trade that is settled through the regular settlement cycle required for the particular investment being traded. The settlement cycle is the…

A regulation that permits national banks to open and operate trust departments in-house and function as fiduciaries. Regulation 9 allows national banks…

A regulation designed to address practices by banks that are perceived as unfair by consumers. Regulation AA establishes the procedures used to process…