Category: A – Definitions

 effective date of rate change on an adjustable rate mortgage(arm)

Bond issued in exchange for outstanding bonds when Recapitalizing a corporation that faces bankruptcy authorization for the exchange comes from the bondholders who consider adjustment bonds a lesser evil these bonds promise to pay interest only to the extent earned by the corporation this gives them one of the characteristics of income bonds which trade flat that is without accrued interest 

1.  income on which an individual or couple computes federal income tax AGI is determined by subtracting from gross income any unreimbursed business expenses and other allowable adjustments for example
2.  individual retirement accounts, sep and keogh payments and alimony payments
3.  other adjustments include income for a picture of Interest penalty because of premature withdrawal from a certificate of deposit Capital loss deduction up to $3,000 rent and royalty expenses 50% of self employment tax liability health insurance deductions for the self-employed and net operating losses
4.  other adjustments made include student loan interest jury duty pay turned over to your employer moving expenses health savings account contribution tuition and fees deductions and hybrid vehicle deductions AGI is the individuals or couples income before itemized deductions such as medical expenses state and local income taxes and real estate taxes 

formula for determining the position of a margin account as required under regulation T of the Federal Reserve board the adjusted balance is calculated by netting the balance owing the broker with any balance in the special miscellaneous account (sma) and any paper profits on short accounts although changes made in regulation T in 1982 diminished the significance of the ABCDs adjusted balance balance the formula is still useful in determining whether withdrawals of Casper Securities are permissible based on SMA entries 

 term used to put and call options on government National Mortgage Association Ginnie Mae contracts to make sure that all contracts trade fairly the final exercise price of the option is it Justified to take into account the coupon rate carried on all gnma government National Mortgage Association mortgages if the standard gnma mortgage carries an 8% yield for instance the price of the gnma pools with 12% mortgages in them are just it so that both instruments have the same yield to the investor

 life insurance that gives a policyholder power to change the face amount premium coverage. Or other features of the policy 

 test of the extent to which the value of an asset such as real property Securities or a contract subject to currency exchange rates is protected from potential loss either through insurance or hedging

privilege offered by some issuers of certificate of deposit CDs where by funds can be added prior to maturity and earned original interest rate at benefit in periods of declining rates

 contributions made by an employee into a tax-deferred savings account such as a 401k or 403b beyond the level at which an employer will match the investment depending on the level of contributions these may be made on a pre-tax or after-tax basis the tax law limit the total amount of money that can be contributed to such a tax-deferred amount in any case all funds so contributed accumulated without taxation until withdrawal at retirement the employee chooses the investment vehicle in which the money is invested 

 test limiting the amount of new bonds that can be issued since bonds are secured by assets or revenues of a corporate or governmental entity the underwriters of the bond must ensure that the bond issuer can meet the debt service requirements of any additional bonds the test usually set specific Financial benchmarks such as what portion of the issuer’s revenues or cash flow can be devoted to paying interest