Archive for the ‘Level 1’ Category

An Endowment is…

Monday, July 20th, 2009

An endowment is an income, permanent fund, or form of property attached to a person or institution in order to accomplish a specific goal. For example, many colleges have endowments their administrations can draw upon to improve themselves (to provide financial aid money, pay high salaries to attract top professors, finance new campus buildings, and so on).

A Proposal is…

Monday, July 20th, 2009

A proposal is a formal plan presented to a potential buyer or investor. Although there are many specific types of proposals, a basic business proposal might describe what you’re selling, how you plan to get it to the buyer, and anything else that seems important in addition to the cost.

A Depression is…

Friday, July 17th, 2009

A depression is a period of decline in a country or stock market that is especially long and severe. It is generally considered a decline in the GDP of 10% or more or for a period of longer than three years.

The GDP is…

Friday, July 17th, 2009

The GDP (Gross Domestic Product) is the value of all goods and services (output) produced in a country in a given year. It’s often used as a measurement of that country’s economic activity.

A Quarter is…

Friday, July 17th, 2009

A quarter is one of four three-month periods that make up a fiscal year (a “quarter” of the fiscal year, in other words).

An Audit is…

Friday, July 17th, 2009

An audit is an independent investigation of an individual’s or corporation’s accounts to make sure they are correct. For example, the IRS can conduct an audit of your records if your tax returns look suspicious.

Collateral is…

Friday, July 17th, 2009

Collateral is something of value (e.g. your house, your credit card, your firstborn) that you give to a lender until you’ve repaid your debt. If you don’t repay your debt, the lender gets to keep whatever you’ve put up as collateral. For instance, if you loan your friend $10, you can keep his sunglasses as collateral until he gives you the money back.

TARP is…

Friday, July 17th, 2009

TARP, which stands for the Troubled Asset Relief Program, is the program that started in 2008 through which the U.S. government has been buying assets and equity from struggling financial institutions to strengthen the stability of the financial sector and of the financial markets.

An Offer is…

Friday, July 17th, 2009

An offer is the price at which a person is willing to sell something of value. For example, if you are willing to sell your Microsoft (MSFT) stock at $25 per share, then your offer is $25.  It is the opposite of Bid, which is the willingness to buy at a certain price.

Real Estate is…

Friday, July 17th, 2009

Real Estate is land and anything on it like a house, an apartment, a building, a shed, etc.