Money laundering is when someone passes illegally received money through banks, businesses, or other institutions so that it appears to have been acquired legally. You launder dirty money to make it appear clean.
Archive for the ‘Daily Definition’ Category
Money Laundering is…
Tuesday, October 20th, 2009Regulation is…
Tuesday, October 20th, 2009Regulation is when government or other agencies supervise companies to control certain behaviors and activities. For example, the Environmental Protection Agency supervises companies and organizations to make sure their activities don’t negatively impact the environment through pollution or irresponsible use of resources.
Overdraft Protection is…
Tuesday, October 20th, 2009Overdraft protection is a service offered by some banks that can prevent you from bouncing checks and incurring fees (not to mention annoying anyone you write checks to). Normally, if you spend more money than you currently have in your account using a check or debit card, your check might bounce or payment might otherwise not go through and the institution you’re paying can charge you a fee (not to mention getting mad and maybe not wanting to do business with you in the future).
If you have overdraft protection, though, your bank will automatically pay the bill on your behalf (usually up to a certain limit) so the people you do business with won’t charge you or get mad. You will, of course, have to pay the bank’s fees for the service, so it’s better to know how much you have in your account before you go on any spending sprees.
A Parent Company is…
Tuesday, October 20th, 2009A parent company is a company that owns a smaller company, called a subsidiary. The parent company can exercise some control over the subsidiary but also provide it benefits, much like a parent does with their children. When you’re a kid, your parents might give you a curfew, but they also do things like buy you food and clothes. Fortunately for kids, however, parents can’t liquidate their children for cash!
A Stakeholder is…
Tuesday, October 20th, 2009A stakeholder is someone who has a financial interest in something, like a business, and is involved in the success or failure of the company.
A Check is…
Tuesday, October 20th, 2009A check is a note that is issued from one entity (like a person or business) to another for the purpose of transferring money. The check itself is a piece of paper that represents deposited money in the check-writer’s bank account, that is to be paid out when the check is “cashed” or deposited by the recipient. A checking account gets its name from the fact that funds may be transferred from the checking account to another account using checks.
Repossession is…
Tuesday, October 20th, 2009Repossession is when a creditor takes back whatever it is you bought with their loaned money because you didn’t make payments (defaulted) on your loan. If you get a loan to buy a car and don’t make the payments, the financing company can take your car without going to court or even telling you – at least until you pay your bill. And if you default on mortgage payments, the bank can repossess your house!
A Corporate Giving Program is…
Sunday, October 18th, 2009A corporate giving program is the practice of companies’ donating directly to charitable organizations from their income.
A Sin Tax is…
Sunday, October 18th, 2009A “sin” tax is a tax put on items that are considered bad for you or dangerous, like alcohol or tobacco. There is a sin tax on cigarettes because the negative health effects of cigarette smoke impose a burden on society; the idea is that by making them more expensive, people will buy fewer of them. The tax also provides the government with additional revenue to pay for programs to help people stop smoking, among other things.
A Money Market Fund is…
Sunday, October 18th, 2009A money market fund is a type of mutual fund that invests only in short term, low-risk securities like CD’s or government securities. These funds are often not insured by the FDIC, though some of the securities that they invest in are insured.