富人的语言、词汇

Glossary

A

Accountant: Has a formal accounting education, where a bookkeeper may

not.

An

accountant

will

handle

your

day-to-day

financial

needs

including

the

preparation

of

your

financial

statements.

Accountants

can

also

prepare tax returns.

Asset:

Something

that

puts

money

in

your

pocket

whether

you

work

or

not.

Assets

include

real

estate,

businesses,

and

paper

assets

such

as

stocks,

bonds and mutual funds.

Agency bonds: The most popular and well-known are the bonds of mortgage

associations,

nicknamed

Ginnie

Mae,

Fannie

Mae

and

Freddie

Mac.

But

many

federal and state agencies also issue bonds to raise money for their

operations and projects.

Adjustable rate mortgage: A mortgage loan whose interest rate changes

periodically over the period of the loan.

Amortization:

Gradual

repayment

of

a

debt

by

periodic installments

that

cover both principal and interest.

Annual

percentage

rate

(APR):

The

effective

rate

of

interest

for

a

loan.

The

APR

reflects

all

the

costs

of

financing

-

including

points,

origination

fees,

and

other

finance

charges

-

and

is

usually

higher

than

the interest rate alone.

Amex (American Stock Exchange): The rival New York Curb Exchange was

founded in 1842. It's name said it all: trading actually took place on

the street until it moved indoors in 1921. In 1953, the Curb Exchange

became the American Stock Exchange.

Appraisal:

A

estimate

or

opinion

of

the

value

of

a

property

by

an

impartial

person skilled in the analysis and valuation of real estate.

Assumable loan: An existing loan on a property that the seller is able

to pass on to the borrower. Back to Top

B

Bonds:

May

be

tax-free

Municipal

Bonds,

U.S.

Government

issued

Treasuries

or

Corporate

Bonds

which

reflect

debt

by

the

issuing

authority

in

exchange

for interest payment to the purchaser.

Bookkeeper:

Keeps

track

of

your

bookkeeping

records.

In

most

cases

you'll

want a

them, track accounts receivable and payable, do payroll and prepare

financial statements and tax returns.

Blue chips stocks: Is a term borrowed from poker, where the blue chips

are the most valuable, and refers to the stocks of the largest, most

consistently profitable corporations. The list isn't official - and it

does change.

Book

value:

Is

the

difference

between

the

company's

assets

and

liabilities. A small or low book value from too much debt, for example,

means that the companies profits will be limited even if it does lots

of business. Sometimes a low book value means that assets are under

estimated; experts consider these kinds of companies good.

Balloon loan: Mortgage loan in which the remaining amount is fully due

and payable at a specified, predetermined date. Balloon loans may have

a better interest rate, but you will have to be prepared to pay the

remaining balance of the loan in full (or obtain a new loan) at the

specified time. Back to Top

C

Cash: Savings account, money market funds, certificates of deposit.

Cash flow: The difference between the money flowing into your pocket as

income and the money flowing out as expenses and debt. Cash flow may be

either positive or negative.

Common

stocks:

Equity

issued

by

a

company

that

gives

the

buyer

ownership

in the company. Stocks may or may not pay the buyer a dividend.

CPA (certified public accountant): Has passed a state

exam,

which

gives

them the CPA designation. There are many types of CPAs and specialties.

Not

all

CPAs

are

tax

specialists.

CPAs

may

help

you

with

management

issues

in your company (as controller or chief financial officer) audit your

financial statements for loan purposes (auditor), or help you with tax

planning. (Known as Chartered Accountant in other countries)

Call options: Buy - The right to buy the underlying item at the strike

price until the expiration date. Sell - Selling the right to buy the

underlying item from you at the strike price until the expiration date.

Known as a writing call.

Corporate bonds : Are readily available to investors as companies use

them rather than bank loans to finance expansion and other activities.

Cash-on- cash return on investment (CCR): This is the amount of annual

cash flow divided by the amount of cash you have put into the deal

(primarily the down payment). It is shown as a percentage.

Capital gain: The difference between the price at which you bought an

investment and the price at which you sold it, less improvements made

and other money in the investment.

Commodities: Resources which include gold, silver, copper and other

precious

metals

or

food

products

such

as

pork

bellies,

wheat,

corn,

etc.

Cap: The limit, expressed as a percentage, on the amount of an increase

charged

by

a

lender

under

the

terms

of

an

adjustable

rate

mortgage.

Caps

protect the borrower from large, unexpected interest rate increases.

CAP (capitalization) rate: This is the Net Operating Income divided by

the

purchase

price.

It

does

not

take

debt

into

account.

It

is

an

indicator

of the value of the property. A general rule of thumb is the higher the

CAP rate the lower the price of the property relative to its value. The

lower the CAP rate the higher the price relative to its value.

Cash on cash return (CCR): In real estate, it's a percentage figure

determined by dividing the annual cash flow of a property by the amount

of cash put into the property (typically the down payment and closing

costs.)

Closing: The process by which ownership of a property passes from the

seller to the buyer. Closing includes the delivery of a deed, financial

adjustments,

the

signing

of

notes,

and

the

disbursement

of

funds

necessary to complete the sale.

Closing

agent:

A

third- party

agent

of

your

choosing

(an

attorney,

escrow

agent, representative of the title company, or a professional closing

agent), who handles all aspects of the actual transaction.

Closing costs: The expenses incurred in the completion of a real estate

transaction.

Contingency: A condition in an offer sheet or contract that must be met

before the deal can go forward.

Cost

segregation: An

accounting strategy

which allows you

to

depreciate

your property at an accelerated rate.

Counter

offer:

A

response

to

an

offer

to

purchase

a

property

that

introduces new or different terms and conditions.

Credit

report:

An

Assessment,

provided

by

a

local

retail

credit

association, of an individual's ability to repay debt.

Commodities: Commodities are raw materials: the wheat in bread, the

silver in earrings, the oil in gasoline, and a thousand other products.

Commodity prices are based on supply and demand.

Common

stock:

Ownership

shares

in

a

corporation.

They

are

sold

initially

by the corporation and then traded among investors. Investors who buy

them

expect

to

earn

dividends

as

their

part

of

the

profits,

and

hope

that

the

price

of

the

stock

will

go

up

so

their

investment

will

be

worth

more.

Common

stocks

offer

no

performance

guarantees,

but

over

time

have

produced a better return than other investments. Back to Top

D

Debit: The mortgage or loan on a property.

Debit

Card:

A

card

used

for

making

payments

that

looks

similar

to

a

credit

card, but is more like a check in the sense that funds are withdrawn

directly from the bank account it is attached to, or from the remaining

balance on the card. Also known as a bank card or check card.

Debt or debt service: The debt or mortgage payment on a property.

Deferred maintenance: Necessary repairs and upkeep that have been left

undone by the seller. Maintenance that has been deferred can represent

an opportunity in a deal, allowing you to negotiate a lower price.

Down

payment:

Cash

paid

by

the

seller

at

closing,

representing

a

percentage of the purchase price. Different types of loans may require

different percentages of down payment.

Due diligence: A research process that provides accurate and complete

information regarding the physical, financial, and legal attributes of

a property.

Derivative: A contract whose value is based on the performance of an

underlying financial asset, index, or other investment.

Dividend: Distribution of earnings to shareholders, prorated by class

of security and paid in the form of money, stock, script, or, rarely,

company products or property.

Dividend yield: Annual percentage of return earned by an investor on a

common

or

preferred

stock.

The

yield

is

determined

by

dividing

the

amount

of annual dividends per share, called the indicated dividend, by the

current market price per share of the stock.

DJIA (Dow Jones Industrial Average): An index which measures the market

performance of it's 30 component stocks over time. Back to Top

E

Earned income: Income that you work for.

Escrow:

Money

or

property

put

into

the

custody

of

a

3rd

party

until

certain

conditions are met.

Estoppel certificate: A written statement by each tenant outlining the

amount

of

rent

being

paid

and

whether

any

concessions

have

been

promised

to the tenant during the rest of the term of the lease.

Eviction: The process of legally removing a tenant from a rental unit

or rental property. Evictions are granted for the non-payment of rent

or other breach with the terms of the lease.

Equity: The value of a real estate property less the mortgage and other

liabilities related to it.

Earnings

per

share:

Are

calculated

by

dividing

the

number

of

shares

into

profit. If earnings increase each year, the company is growing.

Equities:

Ownership

interest

processed

by

shareholders

in

a

corporation-stock as opposed to bonds. Back to Top

F

Financial statement: There are several types of financial statements.

An Income statement shows a detailed account of income and expenses for

a particular period of time. A balance sheet includes the assets and

liabilities at a particular time. A statement of cash flow details cash

coming

in

and

cash

going

out.

Individuals,

properties

and

businesses

all

have their own financial statements.

Financing

terms:

This

specifies

the

type

of

loan

(new,

seller

financing,

assumable, etc.) available, the amount to be financed, as well as an

estimated interest rate.

Fixed rate mortgage: A mortgage loan whose interest rate is fixed for

a

portion or

the entire

term of

the

loan.

The

interest

rate will

usually

be higher that of an adjustable rate mortgage.

Fixer-upper: A property that needs repairs and renovation.

Foreclosure:

A

legal

process

whereby

a

mortgage

is

terminated

and

possession of the property is taken over by the lender. Foreclosures

usually occur for failure to make payments.

FSBO: For Sale by Owner - a property being sold without contracting a

real estate agent professional's services.

Futures: Are obligations to buy or sell a specific commodity - such as

corn or gold - on a specific day for a preset price. Back to Top

G

Gross income: Stated as monthly and/or annually, this is the total of

all income from all units whether they are actually rented or not. Back

to Top

H

Hedge fund: Private investment partnership (for US investors) or an

offshore investment corporation (for non US tax exempt investors) in

which the

general partner

has

made

substantial

personal

investment, and

whose

offering

memorandum

allows

for

the

fund

to

take

both

long

and

short

positions,

use

leverage

and

derivatives,

and

invest

in

many

markets.

Back

to Top

I

Intellectual property: An original

creative

work,

such

as

an

invention,

a product or a company brand, that is tangible and can be protected by