Investments
An investment that represents a share of ownership in a corporation.
What is a Stock?
What are the two main types of trusts?
What are Revocable and Irrevocable?
An account at a brokerage, bank, company, or anywhere that a single person is responsible for debits and credits thereto.
What is an Individual Account?
An investment account held at a custodian that allows you to buy and sell a variety of investments, such as stocks, bonds, mutual funds, and ETFs.
What is a Brokerage Account?
An electronic money transfer across a network of banks or transfer agencies across the world.
What is a Wire Transfer?
When a market experiences prolonged price declines. It typically describes a condition in which the price of a major stock market index fall 20% or more from recent highs amid widespread pessimism and negative investor sentiment.
What is a Bear Market?
A debt security issued by a company, municipality, government, or government agency.
What is a Bond?
The individual responsible for administering the trust, managing the assets, and distributing income and/or principal to the terms of the trust.
Who is the Trustee?
A legal ownership structure involving two or more parties for any type of financial account or another asset. Each tenant has an equal right to the account's assets and is afforded survivorship rights if one of the account holder(s) dies.
What is Joint With Rights of Survivorship / JWROS?
A brokerage account that typically only holds cash and money market funds
What is a Cash Account?
A transfer between any two financial institutions on the ACH network and they can either push or pull money through the system as needed. A common example is a Moneylink which is set up to transfer cash (T+1) from a brokerage account to a client’s checking account at Schwab.
What is an ACH Transfer?
The condition of a financial market in which prices are rising or are expected to rise. Typically characterized by an increase of 20% or more in the price of a major stock market index.
What is a Bull Market?
An investment vehicle that offers investors professional money management and diversification by pooling a portfolio of securities together.
What is a Mutual Fund?
The primary person who will benefit from the trust, usually family and loved ones, but can be a charity.
Who is the Primary Beneficiary?
An arrangement in which two or more people share ownership rights in a property. Each independent owner may control an equal or different percentage of the total property. When a tenant in common dies, their share of the property passes to their estate.
What is Joint Tenancy in Common / JTIC?
A type of brokerage account in which your broker-dealer lends you cash, using the account as collateral, to purchase securities
What is a Margin Account?
Used when a physical check must be cut from the custodian.
What is a Check Request?
When a major stock market index declines more than 10%, but less than 20%.
What is a correction?
An investment company whose shares are traded intraday on a stock exchange at market-determined prices.
What is an ETF / Exchange-Traded Fund?
The beneficiaries whose interest vests after the primary beneficiary dies or their interest terminates for another reason.
Who is the Contingent Beneficiary?
An account that allows individuals to direct pre-tax income toward investments that can grow tax-deferred. The IRS assesses no capital gains or dividend income taxes until the beneficiary makes a withdrawal.
What is a Traditional IRA?
DAILY DOUBLE!!!!!!!!!!!!!!!
A portfolio of assets managed by a professional investment firm. This typically provides direct ownership of securities and great tax advantages. An example could be a tax-managed S&P 500 Strategy.
What is a Separately Managed Account (SMA)?
Same registration transfers within the same custodial platform (example- you can transfer $50,000 from a Fidelity cash account to a Fidelity brokerage account this way).
What is a Journal Transfer?
A period of temporary economic decline during which trade and industrial activity are reduced, generally identified by a fall in GDP in two successive quarters.
What is a Recession?
Lynnae/Ryan - Bring up NBER
An investment in a business that is not listed on a stock exchange. The source of capital is from either a pool of individual investors or investment funds, which either make investments in private companies or buys them out.
What is Private Equity (PE)?
Who is appointed to carry out a deceased person's wishes specified in their will. They manage and protect the estate's financial assets including distributing assets and paying off outstanding debt/expenses?
What is an executor?
An account to which you contribute after-tax dollars. While there are no current-year tax benefits, your contributions and earnings can grow tax-free, and you can withdraw them tax- and penalty-free after age 59½ and once the account has been open for five years.
What is a Roth IRA?
Investment account offering model delivery (no customization) of Pathstone’s best advice. They are used for accounts at or below $750K.
What is a Central Asset Allocation (CAA)?
Used when a client is moving assets (securities & cash) from one Custodian to another
What is a Transfer of Assets?
An investment term that describes when a market or security experiences periods of unpredictable, and sometimes sharp, price movements.
What is Market Volaility?
This financial instrument is an over the counter derivative with hybrid security features which combine payoffs from multiple ordinary securities, typically a stock or bond plus a derivative. When the product depends on a credit payoff, it is called a credit-linked note.
What is a structured note?
When the assets of an estate are elected to be valued as of six months after the date of death, this is know as...
What is the the alternate valuation date?
A business structure that can combine the pass-through taxation of a partnership or sole proprietorship with the limited liability of a corporation.
What is an LLC?
Investment delivery platform (with full customization) consolidating our best advice into one account providing trading and operational efficiencies. The types of securities that can be held in this account are stocks, bond funds, mutual funds, ETFs, and Separately Managed Accounts.
What is Pathstone Portfolio Platform or P-Cubed or Unified Managed Account (UMA)?
The act of collecting funds from a limited partner whenever the need arises.
What is a Capital Call?
The excess return of an investment relative to the return of a benchmark index.
What is Alpha?