Tag: definition

Earnest Money Definition

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What Is Earnest Money?

Earnest money is a deposit made to a seller that represents a buyer’s good faith to buy a home. The money gives the buyer extra time to get financing and conduct the title search, property appraisal, and inspections before closing. In many ways, earnest money can be considered a deposit on a home, an escrow deposit, or good faith money.

Understanding Earnest Money

In most cases, earnest money is delivered when the sales contract or purchase agreement is signed, but it can also be attached to the offer. Once deposited, the funds are typically held in an escrow account until closing, at which time the deposit is applied to the buyer’s down payment and closing costs.

Key Takeaways

  • Earnest money is essentially a deposit a seller makes on a home they want to purchase.
  • A contract is written up during the exchange of the earnest money
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At The Money (ATM) Definition

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What is At The Money (ATM)?

At the money (ATM) is a situation where an option’s strike price is identical to the price of the underlying security. Both call and put options can be simultaneously ATM. For example, if XYZ stock is trading at $75, then the XYZ 75 call option is at the money and so is the XYZ 75 put option. An ATM option has no intrinsic value, but it may still have time value prior to expiration. Options trading activity tends to be high when options are ATM. 

Understanding At The Money

At the money is one of three terms used to describe the relationship between an option’s strike price and the underlying security’s price, also called the option’s moneyness. Options can be in the money (ITM), out of the money (OTM), or at the money. ITM means the option has intrinsic value. OTM means the option

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In The Money (ITM) Definition

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What Is In The Money (ITM)?

In the money (ITM) is a term that refers to an option that possesses intrinsic value. ITM thus indicates that an option has value in a strike price that is favorable in comparison to the prevailing market price of the underlying asset:

  • An in the money call option means the option holder has the opportunity to buy the security below its current market price.
  • An in the money put option means the option holder can sell the security above its current market price.

An option that is ITM does not necessarily mean the trader is making a profit on the trade. The expense of buying the option and any commission fees must also be considered. In the money options may be contrasted with out of the money (OTM) options.

Key Takeaways

  • A call option is in the money (ITM) if the market price is
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What is a PC – Personal Computer? Webopedia Definition

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Main » TERM » P »

By Vangie Beal

There are two generally, similar and accepted meanings of the phrase personal computer (PC):

1) PC is short for personal computer or IBM PC. The first personal computer produced by IBM was called the PC, and increasingly the term PC came to mean IBM or IBM-compatible personal computers, to the exclusion of other types of personal computers, such as Macintoshes.

2) A personal computer (PC) may also refer to any small, relatively inexpensive computer designed for an individual user. In price, personal computers range anywhere from a few hundred dollars to thousands of dollars. All are based on the microprocessor technology that enables manufacturers to put an entire CPU on one chip.

In recent years, the term PC has become more and more difficult to pin down. In general, though, it applies

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Finance financial definition of Finance

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Decline was also recorded in the first quarter of this year in the income of WOM Finance to Rp 332.8 billion from Rp 355.16 billion in the same period last year.
Technology has also enabled the globalization of finance. It’s now possible to perform many of finance‘s core activities in a single, and often low-cost location–such as India or the Philippines, where labor rates are much lower than they are in, say, the U.S.
Auto finance is traceable in the beginning of the 20th century, and the manufacturers provided users paymentby instalment.
Wells Fargo Capital Finance is the trade name for certain asset-based lending services, senior secured lending services, accounts receivable and purchase order finance services, and channel finance services of Wells Fargo & Company and its subsidiaries, and provides traditional asset-based lending, specialized senior and junior secured financing, accounts receivable financing, purchase order financing and channel finance
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What is Finance? – Definition, Overview, Types of Finance

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What is Finance?

Finance is defined as the management of money and includes activities such as investing, borrowing, lending, budgeting, saving, and forecasting. There are three main types of finance: (1) personal, (2) corporate, and (3) public/government. This guide will unpack

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Finance Definition

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What Is Finance?

Finance is a term broadly describing the study and system of money, investments, and other financial instruments. Some authorities prefer to divide finance into three distinct categories: public finance, corporate finance, and personal finance. Other categories include the recently emerging area of social finance and behavioral finance, which seeks to identify the cognitive (e.g., emotional, social, and psychological) reasons behind financial decisions.

The Basics of Finance

Finance, as a distinct branch of theory and practice from economics, arose in the 1940s and 1950s with the works of Markowitz, Tobin, Sharpe, Treynor, Black, and Scholes, to name just a few. Of course, topics of finance—such as money, banking, lending, and investing—had been around since the dawn of human history in some form or another.

Today, “finance” is typically broken down into three broad categories: Public finance includes tax systems, government expenditures, budget procedures, stabilization policy and instruments, debt

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What is currency? definition and meaning

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Tokens used as money in a country. In addition to the metal coins and paper bank notes, modern currency also includes checks drawn on bank accounts, money orders, travelers checks, and will soon include electronic money or digital cash.

Types of Currency

What gives currency its value? Depending on the type of money, there are many different ways that value is assigned and handled. These are the types of currency.

Fiat Currency

Fiat currency is, at its core, money that is worth what the government and free market determine it is worth.

It gets its value through fiat. Every developed nation uses fiat currency, because the value can be controlled through monetary policies. Some examples of fiat currency include the American dollar, British pound, and Euro.
Asset Backed Currency

Sometimes, assets like gold and silver are used to guarantee the value of currency. Often, asset backed currencies are made out

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Money Supply: Definition, Quantity, and Impact

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The U.S. money supply is all the physical cash in circulation throughout the nation, as well as the money held in checking accounts and savings accounts. It does not include other forms of wealth, such as long-term investments, home equity, or physical assets that must be sold to convert to cash. It also does not include various forms of credit, such as loans, mortgages, and credit cards.

Measurement of the Money Supply

The Federal Reserve measures the U.S. money supply in three different ways: monetary base, M1, and M2.

  • Monetary base is the sum of currency in circulation and reserve balances (i.e., deposits held by banks and other depository institutions in their accounts at the Federal Reserve).
  • M1 is the sum of currency held by the public (i.e., currency outside the U.S. Treasury, Federal Reserve Banks, and the vaults of depository institutions); traveler’s checks
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Personal Jurisdiction legal definition of Personal Jurisdiction

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Personal Jurisdiction

The power of a court to hear and determine a lawsuit involving a defendant by virtue of the defendant’s having some contact with the place where the court is located.

Personal jurisdiction, also known as in personam (against the person) jurisdiction, gives a court the authority to make decisions binding on the persons involved in a civil case. Every state has personal jurisdiction over persons within its territory. Conversely, no state can exercise personal jurisdiction and authority over persons outside its territory unless the persons have manifested some contact with the state.

The authority of the court to issue orders to persons present within the territory comes from the sovereign power of the government. The court’s authority allows it to reach all residents of a state, including those who are outside the state for a short period and out-of-state residents who enter the state even briefly.

Deciding whether

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