FinTech Glossary
Recent Terms
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Prospectus
A prospectus is defined as a legal document describing a company’s securities that have been put on sale.
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Cancellation
A broker sends a notice to his or her client informing them that an erroneous trade was made and is being rectified.
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Investment Management
Investment management is not just restricted to buying and selling assets, it also includes handling financial assets and other investments.
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Capped Fund
A capped fund is a type of investment fund which has a predetermined annual limit on the operating expenses of the fund.
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Cash Cow
Cash cow is one of the four groups within the growth matrix of the Boston Consulting Group (BCG), reflecting a company that has a large market share in a low-growth industry or a business.
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Crash
A crash refers to a sudden dramatic loss in value of the market, which can last for months or years.
Investing
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Law Of One Price
The Law Of One Price (referred to as LOOP) is an economic theory which states that the price of identical goods in various markets must be the same after taking into consideration the currency exchange, i.
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Scalability
Scalability is defined as a property of a model, system, or function that defines its capacity to cope with and operate in good condition when the workload is expanding or increasing.
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Consumer Price Index – CPI
The Consumer Price Index (CPI) is a metric that measures a basket of consumer goods and services.
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Bureaucracy
Bureaucracy refers both to a body of government officials who are not elected and to an administrative policy-making group.
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Mathematical Economics
Mathematical economics refers to an economic model that uses the principles and methods of mathematics to create economic theories and to analyse economic dilemmas.
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Human Capital
Human capital is an intangible asset or product that is not included in the balance sheet of a business.
Economy
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Warning Bulletin
A list of credit cards that are lost, stolen, or compromised in some way is known as a warning bulletin.
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Transactor
A transactor is defined as a consumer who is settling his or her full credit card balance on time when a billing cycle ends.
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Deposit Slip
A deposit slip is a small physical form that a bank customer includes when depositing money into a bank account.
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Post-Retirement Risk
The word ‘post-retirement risk’ generally points to the set of probable risks that are posed at the financial security that an individual may come across once he or she retires.
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Concurrent Insurance
Concurrent insurance is the type of insurance which includes more than two insurance policies, which cover for the same risks during the same period of time.
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Maintenance Expenses
Maintenance expenses are the expenses made to retain the property or material in good condition.
Personal Finance
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Tax Deduction
A tax deduction is a benefit that reduces the taxable income of a taxpayer upon the fulfilment of certain conditions.
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Domicile
The place where one maintains their permanent home is known as their domicile.
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Deductible
Deductible refers to tax deductions for investments and expenses a taxpayer can reduce from their taxable income.
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Tax Avoidance
Tax is a source of revenue for a government of a country through which it endeavours to provide better infrastructure, the standard of living, and security to its residents.
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Tax Credit
More commonly across the globe, a government may grant tax credits to encourage specific actions from taxpayers.
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Assessable Profit
Assessable profit is also known as the taxable profit/income.
Taxation
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Company
A company is a legal entity established by a group of individuals engaged in business—commercial or industrial—enterprise and its activity.
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Invoice Financing
Invoice financing is a method to borrow money against the invoices due from customers.
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Balanced Scorecard
A balanced scorecard is a performance measurement tool used for a comprehensive review of the business functions.
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Distribution Channel
Distribution channel refers to a network of intermediaries who enable distribution of a product from the manufacturer to the ultimate consumer.
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Quasi Contract
A quasi-contract is a retroactive agreement between two parties who have no prior contractual commitments.
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Customer Service
Customer service refers to the service rendered by the representatives of a company to the customers.
Business
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Investment Advisor
Investment advisors are referred to as stockbrokers.
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CFA Society India
The CFA Institute is a non-profit global investment professional organisation, which sets the standard for professional excellence and qualifications.
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Thomson First Call
Thomson First Call was a member of the company, Thomson Financial unit.
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Investment Objective
An investment objective is one of the few parameters that a financial advisor, asset management company, or Robo-advisor require in order to determine the assets in the portfolio of their clients.
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Human-Life Approach
The human-life method refers to a method of calculating the necessary insurance protection for loss of life.
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Certified Consumer Debt Specialist (CCDS)
Certified Consumer Debt Specialist (CCDS) refers to a degree obtained by passing the debt settlement certification program.
Financial advisor
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Full Carry
Full carry is a concept specific to the futures market.
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Swing for the Fences
Swing for the fences is a phrase that refers to the attempts to make greater gains in stock market trades with near aggressive bets.
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Transferor
When two parties agree to a transfer, one party will be the transferor, and the other party is known as the transferee.
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Negative Bond Yield
Negative bond yields are an unusual situation in which debt issuers are paid to borrow.
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Fungibility
Fungibility is the right to exchange a product or asset with other individual products or assets of the same kind.
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Relative Strength
Relative strength is a calculation of the price trend of a stock or a financial instrument in comparison to another instrument, stock, or industry.
Trading
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Accruals
To understand accruals, one has to understand the meaning of the word accrual, which is "the act of accumulating something".
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Accumulated Depreciation
Accumulated depreciation is the total amount of the depreciation expenditure allocated to a particular asset since the asset was used.
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Long-Term Debt
Any debt that has a repayment period of more than a year is known as long-term debt.
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Insurable Interest
Insurable interest refers to the interest of a person, financial, or otherwise, in obtaining insurance for a person or property.
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Corporate Debt Restructuring
Corporate debt restructuring refers to the realignment of a business entity which is under fiscal distress due to its outstanding commitments and obligations and to infuse liquidity into business operations to keep it afloat.
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Bad Debt
Bad debt is an expense incurred by a business once it is estimated that the repayment of credit previously extended to a client is uncollectable.
Corporate finance and accounting
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Gentrification
Gentrification is characterized as transforming a neighbourhood, from low to high value, contributing to a community.
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Discretionary Income
Discretionary income is the amount of money left for an individual to spend or save after paying taxes and for personal needs, such as food, lodging, and clothes.
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Encumbrance
An encumbrance is a charge by a party who is not the proprietor against a property.
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Heatmap
Heatmaps are two-dimensional (2D) visible representation of information, which uses colours.
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Drop
Drop is also referred to as the roll price.
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Vintage
Vintage is a slang term used by mortgage-backed security (MBS) traders and investors to refer to a seasoned MBS for a certain period of time.
Savings wealth management
Related Terms
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Prospectus
A prospectus is defined as a legal document describing a company’s securities that have been put on sale.
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Forfeited Share
A forfeited share is an equity share investment which is cancelled by the issuing company.
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Tax Planning
Tax planning is the process of analysing a financial plan or a situation from a tax perspective.
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Shariah-Compliant Funds
Shariah-compliant funds are funds that follow the principles of Shariah law.
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Yield
Yield or bond yield points to the returns provided and realised by an investor on his investment over a given timeframe.
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Green Levy
Green levy seeks to encourage corporations to adopt eco-friendly technologies.
Investing
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Environmental Economics
Environmental economics is a field of economics which deals with the economic-environmental relationship.
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Marginal Rate of Technical Substitution
The marginal rate of technical substitution (MRTS) is an economic theory that describes the rate at which one factor will decrease to be able to maintain the same level of efficiency when another factor rises.
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Law Of Diminishing Marginal Utility
The law of diminishing marginal utility says that everything, if not equal to consumption, will increase the marginal utility procured from every additional declined unit.
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Labour Force Participation Rate
The labour force participation rate is the portion of the working population in the 16-64 years' age group in the economy currently in employment or seeking employment.
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Supranational
A supranational entity is an international group or alliance in which member states' power and influence transcend national boundaries or interests to engage in decision-making and to vote on collective body matters.
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Business Economics
Business economics is an applied economics field that studies corporations' financial, organisational, market-related, and environmental issues.
Economy
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Cost of Funds
The cost of funds is the interest rate that financial institutions are paying on the funds they use in their business.
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Dormant Account
If you have a savings or current account and if you have not made any transactions for more than 12 months through it, the account will be listed as an inactive account.
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Real-Time Gross Settlement (RTGS)
Real-Time Gross Settlement (RTGS) is one of the processes that settle payments to the recipient on an instant basis without having to wait for some time for the settlement to happen.
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Consumption Smoothing
Consumption smoothing refers to a process of achieving a balance between spending for today's needs and saving for the future.
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Showrooming
Showrooming refers to the practice of checking out a product in a retail store before buying it from online retailers.
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Average Propensity to Consume
The average propensity to consume can be referred to as the percentage of income spent on goods and services by an individual.
Personal Finance
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Input Tax Credit
Input tax credit refers to the mechanism of claiming a reduction of tax paid on the inputs of a business or profession.
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GST Rate
Since the introduction of the Goods and Services Tax (GST) regime, there has been broad speculation about the GST rate slabs.
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GST Returns
Every law requires that the registered person file the return in a certain format and within the period specified in the specific law.
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Cascading Effect
One of the primary goals of a taxation system involves stopping the "taxation over taxes" or "cascading-effect" of incident taxes.
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Supply Under GST
Under Goods and Services Tax (GST), supply is viewed as a taxable case for tax charges.
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GST Refunds
The word "refund" means, in basic terms, a sum of money that is returned to an individual when an event occurs.
Taxation
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Sunrise Industry
Sunrise industry is an inherent concept that shows hope of a rapid boom for a developing sector or market in its infancy stage.
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Quasi Contract
A quasi-contract is a retroactive agreement between two parties who have no prior contractual commitments.
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Related-Party Transaction
A related party transaction is a two-party contract which is accompanied by a pre-existing business relationship or mutual interest.
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Marketing Mix
The marketing mix refers to a set of actions or tactics used by a company for brand promotion in the market.
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Network Marketing
Network marketing, which is also known as multi-level marketing, is a business model that includes a pyramid-structured network of individuals selling goods from a company.
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Brand
A brand is a sign, label, logo, name, word, and/or sentence which companies use to differentiate between their products and others'.
Business
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Chartered Advisor for Senior Living (CASL)
A Chartered Advisor for Senior Living (CASL) is a certification or designation given to those individuals who are going to provide advises to elderly clients to gain financial security.
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Investment Policy Statement (IPS)
Investment Policy Statements (IPS) are documents that are drafted between an investor or a client and the folio manager.
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Certified Consumer Debt Specialist (CCDS)
Certified Consumer Debt Specialist (CCDS) refers to a degree obtained by passing the debt settlement certification program.
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Currency Strategist
A currency strategist refers to a professional who works in the currency market.
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Investment Advisor
Investment advisors are referred to as stockbrokers.
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Investment Advisory Representative (IAR)
An investment advisory representative or IAR is one who gets a license to provide investment advice.
Financial advisor
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GBP
The British pound sterling is referred to as the GBP.
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Clearing Corporation of India Limited (CCIL)
The Clearing Corporation of India Ltd was established in April 2001 to render guaranteed clearing and settlement functions concerning transactions in G-Secs, money, derivative markets, and foreign exchange.
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Efficient Market Hypothesis (EMH)
The Efficient Market Hypothesis (EMH), alternatively referred to as the Efficient Market Theory, is a hypothesis where share prices reflect all information and that consistent alpha production is impossible.
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Relative Strength
Relative strength is a calculation of the price trend of a stock or a financial instrument in comparison to another instrument, stock, or industry.
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Ulcer Index (UI)
The Ulcer Index (UI) is an indicator that calculates downside risk in terms of price declines both in magnitude and length.
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Prop Shop
A prop-shop is a trading company that deploys its own resources to generate profits from trading.
Trading
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Ratio Analysis
Ratio analysis is a quantitative procedure of obtaining a look into a firm’s functional efficiency, liquidity, revenues, and profitability by analysing its financial records and statements.
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Financial Accounting
Financial accounting is a particular type of accounting that includes a method of documenting, summarising, and reporting the transactions arising from business operations for a period of time.
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Voucher
Any written documentation supporting the entries reported in the account books, indicating the transaction's accounting accuracy, can be referred to as a voucher.
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Operating Revenue
Operating revenue refers to the revenue generated by a company from its primary activities.
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Escalator Clause
An escalator clause is also known as an escalation clause, where the provision allows for an automatic increase in the wages or prices.
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Agency Problem
The agency problem is a scenario of a conflict of interest which is inherent in all relations wherein one party is anticipated to operate in the best interests of another party.
Corporate finance and accounting
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Provident Fund (PF)
A provident fund is a government-managed, mandatory retirement savings scheme used in India, Singapore, and other developing nations.
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Joint Account
A joint account is a bank account, which is shared by two or more individuals.
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Senior Citizens Saving Scheme (SCSS)
The Senior Citizens Savings Scheme (SCSS) was implemented with the main objective of providing daily income for senior citizens in the country after they hit the age of 60 years.
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Land
The land refers to a property or real estate, except buildings and facilities allocated by fixed spatial boundaries.
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Encumbrance
An encumbrance is a charge by a party who is not the proprietor against a property.
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Property
Property is any physical or virtual entity owned by an individual or jointly owned by a group of individuals.