Tag: funds

Mutual Fund Custodian definition explanation

What is Mutual Fund Custodian?
A trust company, bank or similar financial institution responsible for holding and safeguarding the securities owned within a mutual fund. A mutual fund’s custodian may also act as the mutual fund’s transfer agent, maintaining records of shareholder transactions and balances.

Also referred to as a “”mutual fund corporation””. Read more for examples and further explanation including related video clips and also comments
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Lender Of Last Resort definition explanation

What is Lender Of Last Resort?
An institution, usually a country’s central bank, that offers loans to banks or other eligible institutions that are experiencing financial difficulty or are considered highly risky or near collapse. In the U.S. the Federal Reserve acts as the lender of last resort to institutions that do not have any other means of borrowing and whose failure to obtain credit would dramatically affect the economy. Read more for examples and further explanation including related video clips and also comments
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Financing definition explanation

What is Financing?
The act of providing funds for business activities, making purchases or investing. Financial institutions and banks are in the business of financing as they provide capital to businesses, consumers and investors to help them achieve their goals. Read more for examples and further explanation including related video clips and also comments
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Debit Card definition explanation

What is Debit Card?
An electronic card issued by a bank which allows bank clients access to their account to withdraw cash or pay for goods and services. This removes the need for bank clients to go to the bank to remove cash from their account as they can now just go to an ATM or pay electronically at merchant locations. This type of card, as a form of payment, also removes the need for checks as the debit card immediately transfers money from the client’s account to the business account. Read more for examples and further explanation including related video clips and also comments
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Batch Header Record definition explanation

What is Batch Header Record?
A standard record of information regarding the transfer of a group of data (a batch), usually within the banking field. The batch header record contains information that is crucial for the successful processing of the batch. It identifies the origin of the transaction and summarizes the debits and/or credits involved. When combined with the entry detail records, the batch header record fully describes the transaction. Read more for examples and further explanation including related video clips and also comments
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Automatic Bill Payment definition explanation

What is Automatic Bill Payment?
Routine, automated payments made from a banking, brokerage or mutual fund account to vendors. The automated function can be initiated either with the source of funds (the bank with the checking account) or the vendor to whom payment is owed. Automatic bill payments occur over an electronic payment system, such as the Automated Clearing House (ACH). Read more for examples and further explanation including related video clips and also comments
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Oil ETF definition explanation

What is Oil ETF?
A category of exchange-traded funds that invest in companies engaged in oil and gas discovery, production, distribution and retail. Some oil ETFs may be set up as commodity pools – with limited partnership interests instead of shares – and invest in derivative contracts such as futures and options.

The benchmark target for an oil ETF may be a market index of oil companies or the spot price of crude itself, and funds may be focused on just United States-based companies or invest around the world. There are even inverse ETFs for oil and other sectors that move in an equal and opposite direction to the underlying index or benchmark. Oil ETFs will attempt to track their relevant index as closely as possible, but small performance discrepancies will be found, especially over short time frames. Read more for examples and further explanation including related video clips and also comments
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