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APR
The Annual Percentage Rate is the yearly amount charged by lenders for borrowing money.
CD
A type of savings certificate, CD offers a fixed interest rate on the deposit for specified period of time.
IRA
An IRA is a tax-advantaged investing option that helps investors save money for retirement.
SEC
The SEC is a federal agency that protects investors' interests by ensuring fair functioning of the securities markets.
ROI
A performance measure, return on investment evaluates the effectiveness of an investment on the basis of a ratio between the net profit and cost of investment.
APY
APY refers to the compound interest one earns on an investment over a period of year.
CAPEX
CAPEX are funds that are used by a company to acquire, upgrade, and sustain physical assets such as buildings, technology, manufacturing units, or equipment.
ETF
An ETF is a collection of securities such as bonds, stocks, and commodities that can be bought and sold via a broker.
NASDAQ
The NASDAQ is electronic stock market where stocks are traded via automated computer networks and not trading floors.
NYSE
The NYSE is located in New York City and is considered the world's most prominent equities-based exchange.
REIT
REIT allows individual investors to acquire shares in real estate that generates income.
IPO
An IPO is a process where the shares of a private corporation are offered to the public for the first time.
FX
Also known as Forex, FX is a market for currency trading.
IMF
The IMF is a global organization responsible for keeping the world economy stable by monitoring economic conditions, offering council, and granting short-term loans to its members.
FDIC
An independent federal agency, the FDIC insures deposits in national financial institutions to protect the public from any sudden monetary crisis.
GNP
GNP is an estimate of the total value of all goods and services created by a country's residents and businesses, irrespective of the location of production.
FTC
The FTC enforces consumer protection and antitrust laws to protect consumers and ensure a fair and competitive market.
ROE
ROE is a type of financial performance measure that is estimated by dividing net income by shareholders' equity.
NAV
NAV stands for an entity's (commonly a mutual fund or an ETF) net value which derived by deducting the total value of its liabilities from the total value of its assets.
MAGI
The Internal Revenue System (IRS) uses MAGI to decide whether an individual is eligible for a certain premium tax credits.
FICA
The FICA tax is deducted from every working citizen's paycheck to fund the Social Security and Medicare program for seniors.
ARM
This is a type of mortgage in which the rate of interest applied on the outstanding balance varies throughout the term of the loan.
AIR
An assumed interest rate is used to estimate the income payments of an annuity.
MMKT
A money market is where financial investments with short maturities and high liquidity are traded.
CAGR
CAGR is a useful measure of growth that lets the investor determine how much their ending balance will be if their investment has been compounding over time.
YTM
YTM is the total return expected from a bond, if it is held until it matures.
AMT
Alternative minimum tax is an alternate way of calculating tax that prevents the wealthier section of society from reducing their taxable income to bare minimum by applying all deductions under the Internal Revenue Code.
HSA
HSA is a tax-advantaged account for taxpayers who are enrolled in a high-deductible health plan (HDHP) so that they can save for future medical expenses that the HDHP doesn't cover.
PSP
Also known as a deferred profit-sharing plan, this plan allows employees to get a share in the profits made by their company.
FIFO
FIFO is a cash flow assumption that the first goods bought are also the first goods sold.
Do you know these financial acronyms?
19th June, 2019
Most of us struggle to deal with all the abbreviations associated with personal finance. However, it is essential to know what they mean, especially if you are managing your money matters by yourself. Makes you wonder how well you know personal finance jargon, right? Take this quiz and find out!
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Do you know these financial acronyms?
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