Tag: cd

McMansion definition explanation

What is McMansion?
Slang that describes a large, opulent house that may be generic in style and represents a good value for a homebuyer in terms of its size. This type of home is built to provide middle and/or upper middle class homeowners with the luxurious housing experience that was previously only available to high net worth individuals.

The name is derived as a play on words on McDonald’s fast food restaurants, as these homes also represent the pervasiveness and excessive consumption that critics often associate with Mcdonald’s. Read more for examples and further explanation including related video clips and also comments
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Diversity Score definition explanation

What is Diversity Score?
A measure, created by Moody’s Investors Service, to estimate the diversification in a portfolio, specifically in the context of a collateralized debt obligation (CDO). The calculation methodology for a diversification score takes into account the extent to which a portfolio is diversified by industry. Read more for examples and further explanation including related video clips and also comments
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Retail Banking definition explanation

What is Retail Banking?
Typical mass-market banking in which individual customers use local branches of larger commercial banks. Services offered include savings and checking accounts, mortgages, personal loans, debit/credit cards and certificates of deposit (CDs). Read more for examples and further explanation including related video clips and also comments
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Signal Line definition explanation

What is Signal Line?
A moving average plotted alongside a technical indicator and is used to create transaction signals. Buy signals are generally created when the indicator crosses above the signal line, while sell signals are generated when the indicator crosses below it.

A signal line is also commonly known as a “”trigger line.”” Read more for examples and further explanation including related video clips and also comments
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TSX Venture Exchange definition explanation

What is TSX Venture Exchange?
Originally called the Canadian Venture Exchange (CDNX), this was a result of the merger of the Vancouver and Alberta stock exchanges. The goal of TSX Venture Exchange is to provide venture companies with effective access to capital while protecting investors. Read more for examples and further explanation including related video clips and also comments
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Equity-Linked Security – ELKS definition explanation

What is Equity-Linked Security – ELKS?
A hybrid debt instrument that is linked to the equity markets. Equity-linked securities can be in the form of a single stock, a group of stocks or an equity-based index, such as the S&P 500.

The return on investment is dependent upon the performance of the underlying equities that are linked to the security. This type of security will often offer a guarantee of principal plus perhaps a small gain in return for a reduced payout of equity gains. Read more for examples and further explanation including related video clips and also comments
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Loose Credit definition explanation

What is Loose Credit?
The practice of making credit easy to come by, either through relaxed lending criteria or by lowering interest rates for borrowing. Loose credit often refers to central banking monetary policy and whether it is looking to expand the money supply (loose credit) or contract it (tight credit).

Loose credit environments may also be called “”accommodative monetary policy”” or “”loose monetary policy””. Read more for examples and further explanation including related video clips and also comments
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Debt Security definition explanation

What is Debt Security?
Any debt instrument that can be bought or sold between two parties and has basic terms defined, such as notional amount (amount borrowed), interest rate and maturity/renewal date. Debt securities include government bonds, corporate bonds, CDs, municipal bonds, preferred stock, collateralized securities (such as CDOs, CMOs, GNMAs) and zero-coupon securities.

The interest rate on a debt security is largely determined by the perceived repayment ability of the borrower; higher risks of payment default almost always lead to higher interest rates to borrow capital.

Also known as “”fixed-income securities.”” Read more for examples and further explanation including related video clips and also comments
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Peer-To-Peer Lending (P2P) definition explanation

What is Peer-To-Peer Lending (P2P)?
A method of debt financing that enables individuals to borrow and lend money – without the use of an official financial institution as an intermediary. Peer-to-peer lending removes the middleman from the process, but it also involves more time, effort and risk than the general brick-and-mortar lending scenarios.

Also known as “”social lending””. Read more for examples and further explanation including related video clips and also comments
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Percentage Price Oscillator – PPO definition explanation

What is Percentage Price Oscillator – PPO?
A technical momentum indicator showing the relationship between two moving averages. To calculate the PPO, subtract the 26-day exponential moving average (EMA) from the nine-day EMA, and then divide this difference by the 26-day EMA. The end result is a percentage that tells the trader where the short-term average is relative to the longer-term average.

Calculated as: Read more for examples and further explanation including related video clips and also comments
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