An investment adviser is someone who gives advice about securities to clients. In other words, someone who gets paid to give advice on stocks, bonds, mutual funds or other financial instruments are investment advisers.
Archive for the ‘Daily Definition’ Category
An Investment Adviser is…
Monday, August 10th, 2009Gross Income is…
Monday, August 10th, 2009Gross income is the total amount of money you make in a year before any taxes or other deductions are taken into account.
A Write-off is…
Monday, August 10th, 2009A write-off is the cancellation of an asset or debt from an account because the asset is worthless or the debt can’t be collected. For example, if you own stock in a company that goes bankrupt, that stock isn’t worth anything anymore, even though you technically still own it. So you remove the asset from your account (since it’s basically just a waste of space now), and call it a write-off.
A Warrant is…
Monday, August 10th, 2009A warrant is a right that allows an investor to buy or sell a company’s stock at a given price in the future – the price can be higher or lower than the stock’s current value. For example, if in the future a stock rises above the warranty price, then the investor could make money (he could buy the stock below market-value), but if it doesn’t then his warrant is – sadly – useless.
The Nikkei is…
Monday, August 10th, 2009The Nikkei is the price-weighted average of 225 stocks listed in the first section of the Tokyo Stock Exchange. Think Dow Jones Industrial Average… for Japan.
An Odd Lot is…
Monday, August 10th, 2009An odd lot is a trading order that consists of less than 100 shares.
A Trading Desk is…
Monday, August 10th, 2009A trading desk is a place in a bank, brokerage, or other entity that trades financial instruments. An equity desk trades stocks and a fixed income desk trades fixed income.
A Trader is…
Monday, August 10th, 2009A trader is an employee of a broker-dealer, investment company, or other financial institution who specializes in handling the purchase and sale of securities for the firm or its clients. Anyone can be an independent trader by trading their account themselves.
A Hedge is…
Monday, August 10th, 2009A hedge is a financial strategy used to neutralize the risk of a certain bet. For example, an investor might buy a security in the health-care sector while hedging his or her bet by purchasing another security in the finance sector. The reason for the difference in investments is that if the value of one security goes down, the other might still go up. In plain terms it means covering your investments.