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Investments glossary

National Association Of Real Estate Investment Trusts (Nareit)

The National Association of Real Estate Investment Trusts (Nareit) is a trade association that deals with real estate investment trusts (REITs) and serves as the industry’s voice to policymakers, investors and the general public. Nareit represents a diverse industry that includes commercial equity REITs, mortgage REITs, REITs traded on major stock exchanges, public non-listed REITs and private REITs, which collectively own nearly $3 trillion worth of real estate assets. Its mission is to advocate for REIT-based real estate investment with policymakers and the global investment community and ensure that everyone has the opportunity to benefit from real estate investment. read more

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Investments glossary

Bitcoin Cash Definition

Bitcoin cash is a cryptocurrency created in August 2017, from a fork of Bitcoin. Bitcoin Cash increases the size of blocks, allowing more transactions to be processed. The cryptocurrency underwent another fork in November 2018 and split into Bitcoin Cash ABC and Bitcoin Cash SV (Satoshi Vision). Bitcoin Cash is referred to as Bitcoin Cash because it uses the original Bitcoin Cash client.

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Investments glossary

Business Risk

Business risk is the exposure a company or organization has to factor(s) that will lower its profits or lead it to fail.

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Investments glossary

Series 3

The Series 3 is an exam, also known as the National Commodities Futures Examination, administered by the Financial Industry Regulatory Authority (FINRA) on behalf of the National Futures Association (NFA). Candidates who pass the exam are eligible to register with the NFA and sell commodity futures contracts and options on commodity futures contracts. The Series 3 is one of a number of exams for investment professionals administered by FINRA, including the Series 7, General Securities Representative Exam, which is required for brokers who wish to sell corporate, government, or other types of securities. read more

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Investments glossary

Stop-Loss Order

A stop-loss order is an order placed with a broker to buy or sell a security when it reaches a certain price. Stop-loss orders are designed to limit an investor’s loss on a position in a security and are different from stop-limit orders. When a stock falls below the stop price the order becomes a market order and it executes at the next available price. For example, a trader may buy a stock and places a stop-loss order 10% below the purchase price. Should the stock drop, the stop-loss order would be activated, and the stock would be sold as a market order. read more

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Investments glossary

Good Credit

Good credit is a classification for an individual’s credit history, indicating that the borrower has a relatively high credit score and is a safe credit risk.

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Investments glossary

Advanced Internal Rating-Based (AIRB)

An advanced internal rating-based (AIRB) approach to credit risk measurement is a method that requests that all risk components be calculated internally within a financial institution. Advanced internal rating-based (AIRB) can help an institution reduce its capital requirements and credit risk.

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Investments glossary

Zero Balance Account (ZBA)

A zero balance account (ZBA) is pretty much exactly what it sounds like: a checking account in which a balance of zero is maintained. When funds are needed in the ZBA, the exact amount of money required is automatically transferred from a central or master account. Similarly, deposits are swept into the master account daily. Corporations sometimes use zero balance accounts to ensure that funds are readily available throughout different departments, to eliminate excess balances in separate accounts, and to maintain greater control over the disbursement of funds. read more

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Investments glossary

Paper Money

Paper money is a country’s official, paper currency that is circulated for the transactions involved in acquiring goods and services. The printing of paper money is typically regulated by a country’s central bank or treasury in order to keep the flow of funds in line with monetary policy.

Categories
Investments glossary

Zero Balance Account (ZBA)

A zero balance account (ZBA) is pretty much exactly what it sounds like: a checking account in which a balance of zero is maintained. When funds are needed in the ZBA, the exact amount of money required is automatically transferred from a central or master account. Similarly, deposits are swept into the master account daily. Corporations sometimes use zero balance accounts to ensure that funds are readily available throughout different departments, to eliminate excess balances in separate accounts, and to maintain greater control over the disbursement of funds. read more