Term Of The Day (Investment Related)

Credit Limit
8 p5 \; d7 T  G& U------------------------------------------------------------
The amount of credit that a financial institution extends to
' @0 w8 @5 i0 a/ Aa client. Credit limit also refers to the maximum amount a
credit card company will allow someone to borrow on a single
card. Credit limits are usually determined based on information
: U3 B. C* i! `# l! ]$ F' Lcontained in the application of the person seeking credit, or
& q  x( Q4 b3 G* Qthat person's credit rating.

------------------------------------------------------------
: u" M% u5 ?9 |# d) _1 d0 w0 Q. FA debt instrument that is secured by the collateral of
! R5 p* O" o7 l' C5 o/ K; Bspecified real estate property and that the borrower is obliged
$ J3 U9 V# f" {( uto pay back with a predetermined set of payments. Mortgages
3 m6 {, m& o0 `' Eare used by individuals and businesses to make large purchases
) X; Y! a+ [% ~" _! k. j% Nof real estate without paying the entire value of the purchase
4 I  L0 R+ g9 v  C  c$ Vup front.

Mortgages are also known as "liens against property" or "claims
on property".

------------------------------------------------------------
* g. ^  J% `% Z: d( n8 F# t  x1. A contractual agreement in which a borrower receives
something of value now and agrees to repay the lender at some
' E  R) F8 D. ]2 {" `8 k" _date in the future, generally with interest. The term also
refers to the borrowing capacity of an individual or company.

0 M. i8 v3 w) x+ r2. An accounting entry that either decreases assets or increases
  h, R) }/ P; kliabilities and equity on the company's balance sheet. On the
! o4 c  I. }2 m" l. Hcompany's income statement, a debit will reduce net income,
) [* A/ |5 o& S) {2 N+ ?while a credit will increase net income.

------------------------------------------------------------
The one-year period that begins on January 1 and ends on
% v" {0 ^  l2 `( ?5 \0 fDecember 31, based on the commonly used Gregorian calendar.
For individual and corporate taxation purposes, a calendar
4 D0 G! Y5 t+ }5 w4 H4 Hyear will generally comprise all of the year's financial
information used to calculate income tax payable.

------------------------------------------------------------
An estimation of the revenue and expenses over a specified
* P7 g1 n  W. _future period of time. A budget can be made for a person, family,
group of people, business, government, country,  multinational
+ M1 g8 c! R! c8 b' r* `5 }organization or just about anything else that makes and spends
money. A budget is a  microeconomic concept that shows the
tradeoff made when one good is exchanged for another.

------------------------------------------------------------
' e! x' Q" H3 dAn investor who is willing to take on additional risk for an
" t. O) a; ^/ u7 J3 \investment that has a relatively low expected return. This
contrasts with the typical investor mentality - risk aversion.
/ \5 Q! M2 W2 {6 Z7 |  `7 {+ IRisk averse investors tend to take on increased risks only if
they are warranted by the potential for higher returns.

------------------------------------------------------------
A situation in which the supply and demand for a good or
service can vary significantly due to the price. The elasticity
5 m) w, x" t, n0 K) fof a good or service can vary according to the amount of close
substitutes, its relative cost and the amount of time that has
3 h0 W' V' r6 v/ ]( melapsed since the price change occurred.

------------------------------------------------------------
* o2 Y$ G. O8 y% r2 W) Q- v! tA working-class person historically defined by hourly rates
of pay and manual labor. A blue collar worker refers to the
! W; a) Z1 g7 u- J* Vfact 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.
; G$ z# A1 ^. {5 k
6 l% g8 S+ X$ B. M4 GThis working class stands in contrast to white collar workers,
: X4 t' L9 P+ R% P& zwhich historically have had the higher-paying, salaried positions
+ ?3 }. ^, r" O, u( R5 Z0 Pto go with their clean and pressed white shirts.

------------------------------------------------------------
A phrase commonly used in personal finance and retirement
planning literature that means to automatically route your
specified savings contribution from each paycheck at the time
( q: t2 n$ H, [0 Q! a/ g+ jit is received.
, B: L; T& L% s  L
Because the savings contributions are automatically routed
. ?# P- k5 [+ F4 v7 A0 j+ dfrom each paycheck to your investment account, this process
+ o, q& w8 D' K( f; D# V: L. `is said to be "paying yourself first", or before you begin
* n' A" k- p( r& ^- u3 hpaying your monthly living expenses and making discretionary
2 R5 [. ?& I, Z' a! K) Vpurchases.

------------------------------------------------------------
' X, }" {' v- Z+ q: J  f- ZThe 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
year and inflation for the year was 1%, then your real income
4 h! B/ e/ N4 ]+ M: d7 [only rose 1%. Conversely, if you received a 2% raise in salary
( C7 {! {% Z6 Q) Pand inflation stood at 3%, then your real income would have
1 o' n; _/ ^$ U/ Yshrunk 1%.