What the H.E.L. does that Mean?
ETF is a security that is designed to track performance of a specific index, sector, commodity, or asset class and can be traded like a stock.
What is an Exchange Traded Fund?
Stock dividends are most frequently a paid at this frequency.
What is Quarterly?
This is the age at which one can generally start withdrawing from tax-deferred retirement plans without a penalty.
What is 59 1/2?
This 2-word term refers to the total dollar value of a company's outstanding shares.
What is Market Capitalization?
This regulatory term is used to describe the practice of buying and selling securities with non-public, market-moving information.
What is Insider Trading?
HNW refers to individuals or households with substantial assets, often allowing access to specialized wealth management services and investment opportunities.
What is High Net Worth?
This ratio is often used to determine if a stock is fairly valued.
What is Price / Earnings ratio?
This American College designation is designed for financial professionals who specialize in retirement income planning.
What is RICP?
This type of strategy involves using financial instruments (often options) to offset risk of adverse price movements in another asset.
What is Hedging?
This word refers to the secretive, illegal practice among rival companies of working together to influence the market in their favor (example: price-fixing).
What is Collusion?
A MEC is a type of Life Insurance policy where premiums exceed a regulated limit often having implications for taxation of benefits and policy loans.
What is a Modified Endowment Contract?
This type of analysis uses mathematical models and statistical techniques rather than qualitative factors to evaluate financial securities and investment opportunities.
What is Quantitative Analysis?
This two-word term describes the concern that a retiree may outlive his/her retirement savings and assets.
What is Longevity Risk?
This strategy involves selling investments that are in a loss position to offset capital gains tax.
What is Tax Loss Harvesting?
When a broker trades excessively in a client account in order to generate commissions, without regard to investment objectives is referred to this.
What is Churning?
DCA refers to a strategy of investing regular amounts at regular intervals regardless of market fluctuations.
What is Dollar Cost Averaging?
This category of stocks are characterized by very low prices and often represent small companies. They are usually highly speculative, and volatile.
What are Penny stocks?
This is the process of arranging and organizing your assets and affairs to ensure they are managed and distributed according to your wishes after your passing.
What is Estate Planning?
This 9-letter term refers to buying an asset in one market and selling the asset in another to take advantage of price differences between markets.
What is Arbitrage?
This practice involves a broker executing orders on a security in advance of client orders to take advantage of knowledge of pending client orders.
What is Front-Running?
HFT is an algorithmic based investing strategy which involves buying and selling securities rapidly and in large quantities.
What is High Frequency Trading?
This investment management strategy aims to match the performance of an index or sector by holding a representative sample of securities rather than actively picking individual securities thought to be undervalued.
What is Passive investing?
This term refers to mandated withdrawals from certain retirement accounts once the retiree reaches a certain age.
What are Required Minimum Distributions (RMD)?
This theory posits that a publically traded security's price reflects all available information and therefore it is impossible to consistently “beat the market” without use of inside information.
What is the Efficient Market Hypothesis?
Activities aimed at influencing the price of a stock or security such as spreading false information, creating artificial trading activity, or engaging in "pump and dump" schemes are examples of this illegal activity.
What is Market Manipulation?