Term Of The Day (Investment Related)

Credit Limit
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The amount of credit that a financial institution extends to
a client. Credit limit also refers to the maximum amount a
7 \  ]* P1 B4 \5 C: X7 Ucredit card company will allow someone to borrow on a single
+ U) Q5 k& U6 o: T8 M  f1 J6 X4 scard. Credit limits are usually determined based on information
contained in the application of the person seeking credit, or
& c. F6 S- x( W, Q' pthat person's credit rating.

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A debt instrument that is secured by the collateral of
specified real estate property and that the borrower is obliged
to pay back with a predetermined set of payments. Mortgages
are used by individuals and businesses to make large purchases
# D2 C) R# P2 K' s) P+ f: T0 bof real estate without paying the entire value of the purchase
up front.

" t5 p; C2 t7 h" aMortgages are also known as "liens against property" or "claims
on property".

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* x& _0 s+ Q. f( b& J  y1. A contractual agreement in which a borrower receives
something of value now and agrees to repay the lender at some
date in the future, generally with interest. The term also
4 g1 j4 M8 R0 F" v9 hrefers to the borrowing capacity of an individual or company.
1 s: F: E7 o: S- ?4 [& S; O) C+ `
) o# [9 P0 Y! Z" ~7 h2. An accounting entry that either decreases assets or increases
2 m/ Z7 x1 M2 }; Xliabilities and equity on the company's balance sheet. On the
company's income statement, a debit will reduce net income,
* r" P& B; y! o; Y9 C& ]2 Hwhile a credit will increase net income.

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The one-year period that begins on January 1 and ends on
+ M) x- }/ ]1 lDecember 31, based on the commonly used Gregorian calendar.
For individual and corporate taxation purposes, a calendar
year will generally comprise all of the year's financial
$ D( k' C- N  r- W3 v' |information used to calculate income tax payable.

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An estimation of the revenue and expenses over a specified
future period of time. A budget can be made for a person, family,
6 M# G* [4 I" u+ J) mgroup of people, business, government, country,  multinational
organization or just about anything else that makes and spends
3 [, ]& ?8 s, f6 T6 ?- b1 W. Vmoney. A budget is a  microeconomic concept that shows the
" |: C& [; {4 U- h3 j* c0 x, Atradeoff made when one good is exchanged for another.

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An investor who is willing to take on additional risk for an
7 ^! Z. v3 o; y. R4 g) |, ]investment that has a relatively low expected return. This
! h# b/ h4 e, a# l$ v5 m* J) acontrasts with the typical investor mentality - risk aversion.
; \9 J# K+ d- O( gRisk averse investors tend to take on increased risks only if
they are warranted by the potential for higher returns.

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/ H% R$ m  u! F1 d, l/ @+ ]A situation in which the supply and demand for a good or
service can vary significantly due to the price. The elasticity
1 `( \9 _" }1 n" m' W* t2 |of a good or service can vary according to the amount of close
4 v9 O0 t) E/ W5 k$ Rsubstitutes, its relative cost and the amount of time that has
  }/ R5 a* d5 H" P4 z# i5 delapsed since the price change occurred.

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! b$ T- q# _$ U" Q+ ?A working-class person historically defined by hourly rates
of pay and manual labor. A blue collar worker refers to the
fact that most manual laborers at the turn of the century wore
blue shirts, which could hold a little dirt around the collar
without standing out.
3 ?5 L: s( {* s/ `
& }- i7 w& a7 Z" pThis working class stands in contrast to white collar workers,
which historically have had the higher-paying, salaried positions
to go with their clean and pressed white shirts.

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$ ~5 c, ^" ?5 m6 ^6 jA phrase commonly used in personal finance and retirement
5 S% n, l. j# I5 wplanning literature that means to automatically route your
specified savings contribution from each paycheck at the time
( u) V8 B7 q) s  sit is received.

& u# x2 y1 \- O, @Because the savings contributions are automatically routed
from each paycheck to your investment account, this process
( y  v' Y. x: B$ L8 w. ais said to be "paying yourself first", or before you begin
paying your monthly living expenses and making discretionary
" p( h4 e: X' q# U. V5 Mpurchases.

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* ]0 b2 Q# D$ J/ B1 mThe income of an individual or group after taking into
consideration the effects of inflation on purchasing power.
For example, if you received a 2% salary rise over the previous
9 o1 p7 G3 I( w7 a' ~# tyear and inflation for the year was 1%, then your real income
only rose 1%. Conversely, if you received a 2% raise in salary
3 j1 b6 b9 M* R1 a( j. Rand inflation stood at 3%, then your real income would have
) X2 R6 h, P4 ~7 T! h. Kshrunk 1%.