Financial Services Key Terms
Don't be caught off guard by financial services key terms; learn industry jargonThere are many aspects of financial services, including money management, credit cards, insurance and banking, but the primary goal of all such services is to help individuals and businesses make the most of their finances and monetary options. Without understanding key terms and concepts related to financial services, it is easy to become overwhelmed and confused. Without the proper educational foundation when it comes to financial services, individual may not be getting everything they need or deserve from such areas of business. Consider learning important and popular financial services key terms in order to stay in control of your money and financial future.
Negative equityNegative equity, or being "upside down," is the term used to describe a situation in which an individual's or business' property value falls lower than the amount of value taken out by the entity in the form of a mortgage or a loan to secure the purchase of the property.
Venture capitalVenture capital funds are those which have been made available to small companies. These small companies have to illustrate their potential for high growth. These investments may also be handled by managerial and technical advisers.
TrusteeA trustee can be an individual or an organization. A trustee is the entity that is charged with looking after defined assets for the benefit of another individual or organization.
HedgingHedging occurs when an individual or organization buys one security and then sells another. This is done in order to reduce risks. This being said, a perfect hedge would be one that is capable of producing a portfolio free of risks.
ReturnThe return of an investment is often measured on an annual basis. The annual return of an individual's or business' investment is expressed as a percentage when compared with the overall amount of money invested in the property, venture or opportunity.
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