Seed money is the first round of funds given to a startup company or nonprofit organization to pay for getting it off the ground. For companies, this money is the first investment they receive and while risky, can be highly profitable for the investor if the company does well.
Archive for the ‘Daily Definition’ Category
Seed Money is…
Tuesday, July 7th, 2009A Financial Advisor is…
Tuesday, July 7th, 2009A financial advisor is an individual who offers clients financial advice in exchange for a fee or commission. They help and advise clients on their portfolio, estate planning, and understanding of the market.
Simple Interest is…
Sunday, July 5th, 2009Simple interest is interest calculated only on an original investment amount.
The Dollar is…
Sunday, July 5th, 2009The (U.S.) dollar is the official currency of the United States.
A Mortgage is…
Sunday, July 5th, 2009A mortgage is a long-term loan for real estate that is secured by the value of the property. Basically, the mortgage secures your promise that you will repay the money you have borrowed to buy your home, and if you do not, then the property will belong to the lender.
Rate of Return is…
Sunday, July 5th, 2009Rate of return is the increase in value of an investment over a period of time – usually a year. So if your annual rate of return is 5%, your investment will increase by 5% every year (from $10,000 to $10,500, for example).
A Family Foundation is…
Sunday, July 5th, 2009A family foundation is a private organization whose funding comes from one single family.
An Asset Class is…
Thursday, July 2nd, 2009An asset class is a category used to differentiate types of assets. For example, equities, fixed income, alternative assets, and FX and commodities are all asset classes – they’re instruments of value, but each has its own unique properties.
Tax Evasion is…
Thursday, July 2nd, 2009Tax evasion is a general term for the deliberate and illegal act in which a person, company, or any other entity avoids or underpays taxes. Tax evasion includes declaring less income and more tax-deductibles than you really have to the IRS.
Microeconomics is…
Wednesday, July 1st, 2009Microeconomics is the study of the smaller aspects of the economy – people and companies – and how they interact.