Finance

What is an ABA transit number? ABA transit numbers, also known as ABA routing or transfer numbers, are used to identify specific US financial institutions and appear on standard checks. Basically, it is a nine-digit numeric address for each bank. Key points to remember An ABA transit number is a set of numbers that identifies…

What is a forward repurchase agreement? Under a forward repurchase agreement (term repo), a bank agrees to buy securities of Merchant then sell them back to the dealer shortly after at a pre-specified price. The difference between the buy and sell prices represents the implied interest paid for the deal. Forward repurchase agreements are used…

What is a trading room? A dealing room refers to a physical area in which trading activities in financial instruments, such as actions, fixed income, futures contractsand options, take place. The trading floors are located in the buildings of various stock exchanges, such as the New York Stock Exchange (NYSE) and the Chicago Chamber of…

What is a Canadian income trust? A Canadian income trust is a type of investment trust that holds stable, income-producing assets and distributes payments to unitholdersor shareholders, on a periodic basis (monthly or quarterly). Key points to remember A Canadian income trust is an investment fund that holds income-producing assets and periodically distributes payments to…

What is the nominal return? The nominal yield of a bond, represented as a percentage, is calculated by dividing the total interest paid annually by the nominal, or bybond value. Key points to remember The nominal yield of a bond, represented as a percentage, is calculated by dividing the total interest paid annually by the…

How much car insurance do you need? The answer depends on a number of factors, including where you live, the value of your car, and other assets you need to protect. Here’s what you need to know. Key points to remember Most states require you to have at least a minimum amount of insurance coverage…

What is a death alert? A death alert is a notification that credit card companies, credit rating agencies, and other financial institutions with knowledge of a person’s death. These opinions are crucial in the fight against identity theftas would-be thieves often attempt to obtain new loans using the personal information of deceased persons. Key points…

Personal debt in the United States is skyrocketing. In the last quarter of 2018, data from the Federal Reserve revealed that collective personal debt exceeded $4 trillion in America for the first time ever, and had reached over $4.5 trillion by June 2022. One of the recommended ways to pay off debt is to make…

What is the Russell Small Cap Completeness Index? The Russell Small Cap Completeness Index is a market capitalization weighted index composed of Russell 3000 stocks that are not included in the Standard & Poor’s 500 index. By constructing it this way, investors have a large basket of small- and mid-cap assets that are uncorrelated to…