Tag: savings

Automatic Investment Plan – AIP definition explanation

What is Automatic Investment Plan – AIP?
An investment program that allows investors to contribute small amounts of money, such as $20 a month in regular intervals. Funds are automatically deducted from the investor’s checking/savings account or paycheck and invested in a retirement account or mutual fund. Read more for examples and further explanation including related video clips and also comments
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Misselling definition explanation

What is Misselling?
The ethically questionable practice of a salesperson misrepresenting or misleading an investor about the characteristics of a product or service. In an effort to make a sale to a potential customer, a financial products salesperson could leave out certain information or describe a financial product as something the investor urgently needs, even though sound financial judgment would come to the opposite conclusion. Read more for examples and further explanation including related video clips and also comments
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Opt-Out Plan definition explanation

What is Opt-Out Plan?
A type of 401(k) plan that automatically enrolls the employees of a company to save for their retirement. Eligible employees of a company with this policy are enrolled in the plan at a default contribution rate, usually around 3% of wages, and funds are directed into a default allocation. Employees can change the terms of the plan or opt out completely if they don’t want to participate. This differs from a typical 401(k) in that retirement savings will continue to accumulate without any action from the participant.

Also known as an “”automatic 401(k)””. Read more for examples and further explanation including related video clips and also comments
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Notice Of Assessment – NOA definition explanation

What is Notice Of Assessment – NOA?
An annual statement sent by revenue authorities to taxpayers detailing the amount of income tax they owe. It includes the amount of their tax refund, tax credit and income tax already paid. Read more for examples and further explanation including related video clips and also comments
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Ricardo-Barro Effect definition explanation

What is Ricardo-Barro Effect?
A macroeconomic concept that postulates that when a government runs a budget deficit, households and firms will respond by increasing their level of savings. This behavior allows the aggregate savings of an economy to remain unchanged. Read more for examples and further explanation including related video clips and also comments
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White Label Product definition explanation

What is White Label Product?
A product manufactured by one company that is packaged and sold by other companies, using varying brand names. The end product appears as though it is being made by the marketer, when in reality it is being created by the manufacturing company.

In this case, the manufacturer can concentrate on making the product or service, focusing on cost savings, and not worry about marketing, because this aspect will be handled by the companies that they sell their product to. Read more for examples and further explanation including related video clips and also comments
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Approved Participants definition explanation

What is Approved Participants?

Institutional investors who are allowed direct access to an exchange’s trading environment. Approved participant status usually affords trade execution cost savings and the right to install trading terminals in client offices. Read more for examples and further explanation including related video clips and also comments
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Negotiable Order of Withdrawal (NOW) Account definition explanation

What is Negotiable Order of Withdrawal (NOW) Account?
An interest-earning bank account with which the customer is permitted to write drafts against money held on deposit. Also known as a “”NOW account””. Read more for examples and further explanation including related video clips and also comments
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