Tag: bank

ABA Transit Number definition explanation

What is ABA Transit Number?
A unique number assigned by the American Bankers Association (ABA) that identifies a specific federal or state chartered bank or savings institution. In order to qualify for an ABA transit number, the financial institution must be eligible to hold an account at a Federal Reserve bank. ABA transit numbers are also known as ABA routing numbers, and are used to identify which bank will facilitate the payment of the check. Read more for examples and further explanation including related video clips and also comments
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Special Purpose Acquisition Company – SPAC definition explanation

What is Special Purpose Acquisition Company – SPAC?
A publicly-traded buyout company that raises money in order to pursue the acquisition of an existing company. SPACs raise blind pool money (most of which goes into a trust) from the public for an unspecified merger, sometimes in a targeted industry. Each SPAC is typically sold at $6 per unit for one share of common stock (to be publicly-traded in the future) and two warrants that can purchase additional shares. If an acquisition is not made in two years, the money is returned to the original investors.

Also known as a “”targeted acquisition company (TAC)””. Read more for examples and further explanation including related video clips and also comments
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Federal Home Loan Bank System – FHLB definition explanation

What is Federal Home Loan Bank System – FHLB?
An organization created by the Federal Home Loan Bank Act of 1932 to increase the amount of funds available for lending institutions who provide mortgages and similar loan agreements to individuals. This system was created in response to the depressive economic conditions of the era, which had impaired the U.S. banking system.

Also referred to as the “”FHL Bank System””. Read more for examples and further explanation including related video clips and also comments
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Ginnie Mae – Government National Mortgage Association – GNMA definition explanation

What is Ginnie Mae – Government National Mortgage Association – GNMA?
A U.S. government corporation within the U.S. Department of Housing and Urban Development (HUD). Ginnie May aims to:

1. Ensure liquidity for government-insured mortgages, including those insured by the Federal Housing Administration (FHA), the Veterans Administration (VA) and the Rural Housing Administration (RHA).
2. Bring investors’ capital into the market for these types of loans, so that the issuers have the means to issue more.

Most of the mortgages securitized as Ginnie Mae mortgage-backed securities (MBSs) are those guaranteed by FHA, which are typically mortgages for first-time home buyers and low-income borrowers. Read more for examples and further explanation including related video clips and also comments
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Payable On Death – POD definition explanation

What is Payable On Death – POD?
An arrangement between a bank or credit union and a client that designates beneficiaries to receive all the client’s assets. The immediate transfer of assets is triggered by the death of the client.

Also referred to as a “”totten trust.”” Read more for examples and further explanation including related video clips and also comments
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Special Situation definition explanation

What is Special Situation?
Particular circumstances involving a security that would compel investors to trade the security based on the special situation, rather than the underlying fundamentals of the security or some other investment rationale. An investment made due to a special situation is typically an attempt to profit from a change in valuation as a result of the special situation, and is generally not a long-term investment. Read more for examples and further explanation including related video clips and also comments
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Nondischargeable Debt definition explanation

What is Nondischargeable Debt?
A type of debt that cannot be eliminated through bankruptcy proceeding. Such debts include, but are not limited to, student loans, most federal, state and local taxes, money borrowed on a credit card to pay those taxes, and child support and alimony. Read more for examples and further explanation including related video clips and also comments
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In-House Financing definition explanation

What is In-House Financing?
A type of seller financing in which a firm extends customers a loan, allowing them to purchase its goods or services. In-house financing eliminates the firm’s reliance on the financial sector for providing the customer with funds to complete a transaction. Read more for examples and further explanation including related video clips and also comments
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