Glossary

Your BSB is the first number in the bank account number. It identifies the bank holding your account. The purpose of a BSB and an account number is to identify an account with certainty. The combination of the numbers, along with the name of the bank, helps to make sure that a payment goes to the right place.

A pension plan that is purchased with money from a superannuation account on retirement. You can choose how much money you would like to receive each year, within a minimum and maximum set by law. Your retirement funds gradually dwindle until they are gone. For most people aged 60 and over, these pension payments are tax-free. Account-based pensions are available for individuals, couples and families.

Accumulation Fund: A type of superannuation fund where contributions are invested and grow over time, typically with the aim of providing an income in retirement.

Active Investment Management: A style of investing where managers make active decisions about which assets to buy and sell, in an attempt to outperform the market.

Actively Managed: Describes a portfolio or fund that is managed by humans rather than following a passive investment strategy.

Advance Fee Fraud: A type of fraud in which the perpetrator solicits victims by promising them a large sum of money in return for a small upfront payment. The victim pays the fee, but never receives the promised money. Advance fee frauds are also known as "419 scams", after the section of Nigerian criminal law that deals with this type of crime.

AFS Licence: A licence issued by ASIC that authorises a person or company to provide financial services. To obtain an AFS licence, applicants must demonstrate that they have adequate resources, systems and processes in place to provide financial services competently and professionally.

After-Tax Super Contribution: A contribution made to a superannuation fund from your after-tax (or take-home) pay. After-tax contributions are also known as "non-concessional" contributions.

Age Pension: A regular payment made by Centrelink to eligible Australians who have reached Age Pension age (currently 65 years). To be eligible for the Age Pension, you must meet certain residency, income and asset tests.

Agreed Value: An insurance policy where the insurer agrees to pay out a specified amount if the insured item is lost or damaged, regardless of its actual value at the time of loss or damage.

All Ordinaries Accumulation Index: An index that measures changes in the share prices of all companies listed on the ASX300 index over time. The All Ordinaries Accumulation Index is different from the All Ordinaries Index, as it takes into account dividend reinvestment and franking credits when calculating returns.

All Ordinaries Index: An index that measures changes in the share prices of all companies listed on the ASX300 index over time. Unlike the All Ordinaries Accumulation Index, it does not take into account dividend reinvestment or franking credits when calculating returns.

Allocated Pension: A type of pension paid from a superannuation fund or retirement savings account. With an allocated pension, you can choose how your pension payments are invested, and how often you receive them (monthly, quarterly etc). You can also choose to have your pension payments increase each year in line with inflation.

Amortisation: The process of spreading the cost of an intangible asset over its useful life. Amortisation is used for tax purposes to reduce the value of an asset for tax purposes.

Angel Investor: An individual who provides financial backing for a small business or startup company in exchange for equity ownership in the business. Angel investors typically invest their own personal funds, as opposed to institutional investors such as venture capitalists.

Annual Percentage Rate (APR): The annual rate of interest charged on a loan, expressed as a percentage of the loan amount. The APR includes both the interest rate and any fees charged by the lender.

Annuity: A financial product that pays out an income stream over a fixed period of time, typically in retirement. Annuities can be either fixed or variable, depending on the terms of the contract.

Approved Deposit Fund (ADF): A type of managed investment fund that invests in term deposits with banks and other financial institutions. ADFs are generally low-risk investments with relatively low returns.

ASFA Retirement Standard: The Association of Superannuation Funds of Australia's (ASFA) retirement standard defines how much money Australians need to have saved for a comfortable retirement lifestyle. The ASFA retirement standard is updated each year and takes into account factors such as inflation and changes in government benefits.

Asset: Anything that has economic value and can be owned or controlled to produce positive economic value. Assets can be either physical (e.g., land, buildings, machinery) or intangible (e.g., patents, copyrights).

Asset Allocation: The process of deciding how to allocate assets among different asset classes in order to achieve specific investment goals. Asset allocation is a key element of portfolio management.

Asset Class/sector: A group of assets with similar characteristics such as stocks, bonds, or real estate. Different asset classes/sectors tend to perform differently over time, so diversifying one's portfolio across multiple asset classes/sectors can help reduce risk.

Asset Class/sector: An asset class is a group of securities that tend to move together in the market. The three main asset classes are equities (stocks), fixed income (bonds), and cash equivalents (such as money market instruments). Sectors are groups of companies that operate in similar businesses. For example, the healthcare sector includes companies that make and sell medical products, provide medical services or conduct research related to health.

Asset Manager: An asset manager is a financial professional who helps clients choose investments and manage their portfolios. Asset managers work with individuals, families, businesses and organizations to develop investment plans that meet their goals.

Asset Mix: The asset mix is the combination of different types of investments in a portfolio. The mix can be tailored to the investor's risk tolerance, time horizon and other factors. Common asset classes include stocks, bonds, cash and real estate.

ASX200: The ASX 200 is an index made up of the 200 largest companies listed on the Australian Securities Exchange (ASX). The index covers about 80% of the total market capitalisation of the ASX.

Australian Financial Services (AFS) Licence: A company or individual must have an AFS licence to conduct a financial services business in Australia. A financial services business includes activities such as providing financial advice, dealing in a financial product or operating a managed investment scheme.

Australian Prudential Regulation Authority (APRA): APRA is responsible for prudential regulation of banks, credit unions, building societies, general insurers, life insurers, private health insurers, friendly societies and most members of the superannuation industry. APRA supervises these institutions to protect depositors, policyholders and superannuation fund members from poor governance practices, inappropriate risk-taking activities or insolvency.

Australian Securities And Investments Commission (ASIC):The Australian Securities and Investments Commission is an independent Commonwealth government body that regulates financial services and consumer protection in Australia. ASIC's role is to enforce and regulate company and financial services laws to protect consumers, investors and creditors; act as registrar for companies, managed investment schemes and other securities markets participants; and administer the licensing regime for financial advisers.

Australian Securities Exchange (ASX):The Australian Securities Exchange is the primary stock exchange in Australia, with a market capitalisation of around A$2.3 trillion as of June 2020. The ASX offers a range of products including equities, derivatives, interest rate products, exchange-traded funds (ETFs) and real estate investment trusts (REITs). It also provides trading platforms for foreign exchange (FX), fixed income and commodities.

Balanced Fund: A balanced fund is an investment fund that aims to provide both capital growth and income by investing in a mix of asset classes, typically including shares, property and fixed interest investments.

Bank Bill Swap Rate (BBSW): The Bank Bill Swap Rate (BBSW) is the rate at which banks borrow and lend funds in the wholesale money market. It is used as a benchmark for pricing a range of financial products, including loans, deposits and derivatives.

Bankruptcy: Bankruptcy is a legal process whereby a person or company is declared unable to pay their debts. Creditors may then take action to recover their money, such as seizing assets or taking legal action.

Beneficiary: A beneficiary is a person who is entitled to receive benefits under a will, insurance policy or other contract. In the case of a will, the beneficiaries are typically family members or close friends of the deceased.

Blue Chip Share: A blue chip share is a share in a large and well-established company that has a history of strong financial performance and dividend payments. Blue chip shares are considered to be relatively safe investments, but they also tend to have lower growth potential than smaller companies.

Bond: A bond is a debt security, in which the issuer owes the holders a debt and is obliged to pay them interest (coupons) or to repay the principal at a later date, termed the maturity date. Bonds are issued by public authorities, credit institutions, companies and supranational institutions in the primary markets. The bond is then traded on secondary markets.

Book To Market Ratio: The book to market ratio is a financial ratio that measures whether a stock is overvalued or undervalued relative to its book value.

Book Value: Book value is an accounting term that refers to the value of assets shown on a company's balance sheet. It is calculated by subtracting liabilities from assets.

Break Fee: A break fee is a fee charged by a lender if a borrower repays their loan early. The break fee compensates the lender for any loss they may incur as a result of the early repayment.

Bridging Finance: Bridging finance is a type of short-term loan that can be used to 'bridge' the gap between two financial transactions. For example, it can be used to fund the purchase of a property before selling another property.

Broker: A broker is an individual or firm who acts as an intermediary between buyers and sellers in order to facilitate a transaction.

Brokerage: Brokerage is the commission charged by a broker for their services in facilitating transactions between buyers and sellers.

BSB: A BSB is a unique six-digit number that identifies the branch of an Australian or New Zealand bank. The first three digits represent the financial institution, and the last three digits represent the specific branch of that institution. For example, if your BSB is 123-456, it means you're with Institution 1, Branch 456.

Building Society: A building society is a type of financial institution that offers banking services to its members, who are also its shareholders. Building societies were originally set up to provide loans for home ownership, but now offer a wide range of banking products and services including savings accounts, personal loans and credit cards.

Buy And Build: Buy and build is a strategy employed by private equity firms in which they buy small companies in order to build them into larger businesses through organic growth and acquisitions. This strategy allows private equity firms to generate higher returns than they would from simply investing in larger companies.

Buy Ins: A buy-in occurs when an investor buys shares of a company from another shareholder in order to increase their ownership stake in the company. This can be done either through open market purchases or through direct negotiations with the other shareholder(s).

Buy Outs: A buyout occurs when one shareholder buys all or most of the shares of another shareholder (or group of shareholders), thereby gaining control of the company. Private equity firms often use buyouts as a way to take public companies private.

Buyer Advocate: A buyer advocate is someone who represents buyers during real estate transactions. They work on behalf of their clients to negotiate with sellers, help secure financing, and ensure that all necessary inspections are carried out.

Call Option: A call option is an agreement that gives an investor the right, but not the obligation, to buy a stock, bond, commodity, or other asset at a predetermined price within a specific time frame.

Called Capital: Called capital refers to funds that have been pledged by shareholders to cover any potential losses incurred by the company. This capital is typically in the form of shares or equity.

Capital: Capital refers to financial investments, such as stocks, bonds, and real estate. In essence, capital represents the resources that a business can bring to bear in order to generate profits.

Capital Asset Pricing Model: The Capital Asset Pricing Model (CAPM) is a model used to determine the expected return of an investment based on its risk. The model takes into account the fact that higher-risk investments should offer higher returns in order to compensate investors for taking on additional risk.

Capital Depreciation: Capital depreciation is the gradual reduction in value of an asset over time due to wear and tear or obsolescence. This concept is important for businesses because it affects both their balance sheets and their tax liability.

Capital Gain: A capital gain occurs when you sell an asset for more than you paid for it. For example, if you bought a stock for $10 per share and then sold it later for $12 per share, you would have made a $2 per share capital gain.

Capital Gains Tax: A capital gains tax is levied on the profit realized from the sale of certain assets, such as stocks or real estate. The tax rate depends on both your marginal tax bracket and how long you held onto the asset before selling it.

Capital Growth:The increase in the value of an investment over time. Capital growth can be measured in absolute terms (the actual increase in the value of the investment) or in relative terms (as a percentage of the original investment).

Cash Advance: A cash advance is a short-term loan from a bank or alternative lender. The term also refers to a service provided by many credit card issuers allowing cardholders to withdraw a certain amount of cash. Cash advances usually come with high fees and rates, so they are not ideal for long-term borrowing needs. However, they can be helpful in emergency situations where you need access to cash quickly.

Cash Management Account: A cash management account (CMA) is a type of checking account that offers features and services beyond those found in a traditional checking account. CMA accounts are designed for customers who maintain high balances and have sophisticated banking needs such as online bill pay, mobile check deposit, and direct deposit. CMAs often offer higher interest rates than regular checking accounts and may waive monthly maintenance fees if certain balance requirements are met. They may also offer other perks such as free checks and ATM fee reimbursements.

A cash out facility allows investors to withdraw money from their investment before the maturity date. This feature is typically only available on fixed-income securities, such as bonds. It allows investors to receive their principal back early if they need access to the funds for an unexpected expense or emergency. However, there are some drawbacks to using a cash out facility. First, investors will forfeit any interest payments that would have been earned if they had held the security until maturity. Second, there may be penalties or fees associated with early withdrawal. Finally, it is important to remember that once money has been withdrawn from an investment, it cannot be reinvested until it has been repaid in full.

Cash Rate: The cash rate is the rate charged on overnight loans between banks in Australia. The cash rate is used as a benchmark for other interest rates in the economy, such as home loan and business loan rates.

Cash-On-Cash: Cash-on-cash return is a metric used to evaluate the performance of an investment property. It is calculated by dividing the annual cash flow of the property by the total amount of cash invested in the property.

Caveat: A caveat is a legal notice that is placed on a property title to protect the interests of a person or company with a financial interest in the property.

Chargeback: A chargeback is a refund of money that has been paid for goods or services that were not delivered as agreed, or were not delivered at all.

Churning: Churning is the practice of buying and selling investments rapidly in order to generate commissions for oneself rather than profits for one's clients.

Claw Back: A claw back provision allows a company to take back (or "claw back") compensation that has already been paid to an employee if certain conditions are not met.

Co-Borrower: A co-borrower is someone who takes out a loan with another person. The co-borrower is equally responsible for repaying the loan, even if they are not the primary borrower.

Co-Contribution: A co-contribution is when two people contribute money towards something, such as an investment or a purchase. Each person contributes an equal amount of money.

Cold Call: A cold call is when someone contacts you unexpectedly, usually by phone, in order to sell you something or promote their services.

Collateral: Collateral is an asset that can be used to secure a loan. If the borrower defaults on the loan, the lender can seize the collateral and sell it in order to recoup their losses.

Collateralised Debt Obligations (CDO): A collateralised debt obligation (CDO) is a type of financial product that bundles together various loans and sells them as bonds to investors. The loans are typically secured by some form of collateral, such as real estate or automobiles.

Commission: A commission is a fee that is charged in exchange for services rendered. The amount of the commission is typically based on a percentage of the total transaction value. For example, a real estate agent may charge a 5% commission on the sale of a home. commissions are also common in the insurance industry, where agents receive a percentage of the premiums paid by policyholders.

Commitment (Or Committed Capital): Committed capital refers to funds that have been pledged by investors but not yet called upon or invested. It is typically used in private equity and venture capital deals, where investors agree to commit a certain amount of money to a fund over a period of time. This allows the fund manager to have access to capital when needed without having to go through the process of raising it each time an investment opportunity arises.

Complying Fund: A complying fund is an Australian managed investment scheme that meets certain requirements set out by law. These requirements relate to things like how the fund is structured and operated, as well as what types of investments it can hold

Compound Interest:Compound interest is the interest that accrues on an investment or loan over time, where the interest is calculated based on the initial principal plus any accumulated interest from previous periods. The effect of compound interest is that the longer an investment or loan is held for, the greater the amount of total interest that will be paid.

Comprehensive Insurance:Comprehensive insurance is a type of insurance cover that provides protection against a wide range of risks, including damage to your own vehicle, damage to other people's property, theft, and personal injury. It is generally considered to be the highest level of insurance cover available, and as such can be more expensive than other types of insurance such as third party property only or third party fire and theft.

Concessional Super Contributions:Concessional super contributions are before-tax contributions made into your super fund by you or your employer. The two most common types of concessional contributions are compulsory employer contributions (such as 9.5% Superannuation Guarantee) and salary sacrifice arrangements. Concessional contributions are taxed at 15% when they enter your super fund, regardless of your marginal tax rate.

Condition of Release:A condition of release is a set of circumstances under which you are able to access your superannuation benefits. The most common conditions of release are retirement (reaching preservation age and permanently ceasing employment), reaching age 65 (regardless of employment status), terminal illness, permanent incapacity, severe financial hardship and death.

Construction Loan: A construction loan is a short-term loan used to finance the building of a home or other real estate project. The loan is typically used to cover the costs of materials and labor, and it is usually paid back within a year or two.

Consumer Lease: A consumer lease is a type of lease agreement between a retailer and a customer for the purchase of an item such as a car or appliance. The customer agrees to make regular payments over an agreed-upon period of time, and at the end of the lease, they have the option to purchase the item for its full price.

Consumer Price Index (CPI): The consumer price index (CPI) is an economic indicator that measures changes in prices for goods and services purchased by households. The CPI is used to measure inflation and can be used as a tool for making economic decisions.

Conveyancer: A conveyancer is a professional who assists in the transfer of property ownership from one person to another. Conveyancers prepare and review legal documents, conduct searches, and provide advice on property-related matters. They also liaise with other professionals such as real estate agents, mortgage brokers, and lawyers.

Cooling-Off Period: A cooling-off period is a period of time during which a contract can be cancelled without penalty. Cooling-off periods are typically found in contracts for the sale of goods or services. During this period, the buyer has time to reconsider their decision and cancel the contract if they wish.

CPI: The CPI (Consumer Price Index) measures changes in prices paid by consumers for goods and services such as food, housing, clothing and transportation. The CPI is used to measure inflationary pressures in an economy and is closely watched by central banks when setting monetary policy.

Credit Card: A credit card allows consumers to borrow money up to a certain limit in order to purchase goods or services on credit. Credit cards typically charge high interest rates on outstanding balances and can be very expensive if not used carefully. It is important to understand all the terms and conditions associated with credit cards before using one.

Credit Contract: A credit contract refers to an agreement between two parties whereby one party agrees to provide financing to another party in exchange for repayment over time plus interest charges

Credit Crunch: A credit crunch is a sudden reduction in the availability of loans or an increase in the cost of borrowing. This can lead to a decrease in spending and investment, and may cause problems for businesses that rely on borrowing to finance their operations. A credit crunch can also be caused by a reduction in the supply of money, as when banks tighten lending standards or reduce the amount of money they have available to lend.

Credit Downgrade Or Upgrade: A credit downgrade is when a lender lowers your credit score, which could make it harder to get approved for new loans or lines of credit. A credit upgrade is when a lender raises your credit score, which could make it easier to get approved for new loans or lines of credit.

Credit File: Your credit file contains information about your financial history, including any late payments, defaults, bankruptcies or other negative information. Lenders use this information to decide whether to approve you for new loans and lines of credit.

Credit Guide: A Credit Guide is a document that must be given to you before you enter into a Credit Contract with a lender. The guide contains important information about the loan, including the interest rate, fees and charges, repayment terms and conditions.

Credit Limit: Your credit limit is the maximum amount of money that you can borrow from a lender at any one time. This includes both your primary and secondary limits. Your primary limit is the maximum amount you can borrow without having to provide additional collateral (such as property). Your secondary limit is the maximum amount you can borrow if you do provide additional collateral.

Credit Rating: A credit rating is a numerical expression of an entity's creditworthiness, which provides insight into the likelihood that the entity will repay its financial obligations in full and on time. Credit ratings are used by creditors, investors and other market participants to assess the risk associated with making a loan or investing in a particular company.

Credit Report (Credit Reference): A credit report is a record of an individual's or company's credit history, including information about any late payments, defaults, bankruptcies or other adverse events. A credit reference may also contain positive information such as prompt payment history and length of time accounts have been open. Credit reports are used by lenders to help make decisions about whether to extend credit and at what terms.

Credit Reporting Agency: A credit reporting agency is a company that collects data from various sources and provides information about an individual's or company's credit history. The three major U.S. credit reporting agencies are Equifax, Experian and TransUnion.

Credit Union: A credit union is a cooperative financial institution owned and controlled by its members. Credit unions offer savings accounts, checking accounts, loans and other financial services to their members.

Creditor: A creditor is a person or entity to whom money is owed. Creditors may be banks, businesses or individuals who have extended loans or lines of credit to another party.

Death Benefit: A death benefit is a payment made by an insurance company to the beneficiaries of a life insurance policyholder upon their death. The death benefit can be used to cover funeral costs, outstanding debts, or other expenses incurred by the family of the deceased person.

Debt Agreement:A debt agreement is a legally binding agreement between a debtor and their creditors that outlines the terms of repayment for the outstanding debt. The agreement may be used to consolidate multiple debts into one single payment, or to negotiate a lower interest rate or monthly payment amount.

Debt Consolidation:Debt consolidation is the process of combining multiple debts into one single loan with a lower interest rate. This can be done by taking out a new loan to pay off existing debts, transferring balances from high-interest credit cards to low-interest cards, or working with a debt consolidation company to create a repayment plan.

Debt Investment:A debt investment is an investment in which the investor loans money to another party, typically in the form of bonds. The borrower then agrees to repay the loan over a set period of time, with interest. Debt investments are often seen as being less risky than equity investments, as there is typically a fixed schedule for repayment.

Debt Security:A debt security is a financial instrument that represents an obligation to repay a debt. Debt securities are issued by governments and corporations and can be traded in secondary markets. Common types of debt securities include bonds, notes, and bills.

Default: A default is a failure to repay a debt according to the terms of the loan agreement. In the event of a default, the lender may take legal action to recover the outstanding amount.

Default Fee: A default fee is a charge that may be levied by a lender in the event of a borrower's default on their loan repayments. The fee may be applied as a penalty or as compensation for the loss suffered by the lender.

Defensive Asset: A defensive asset is an investment that is expected to hold its value or appreciate in value during periods of economic turmoil or market volatility. Defensive assets are typically seen as safe havens for investors, and include assets such as gold, government bonds, and certain types of real estate.

Deferred Annuity: A deferred annuity is an insurance product that allows investors to defer payments until a later date. This type of annuity can be used as part of retirement planning, and can provide tax advantages for some investors.

Deferred Establishment Fee: A deferred establishment fee is a charge that may be levied by some lenders at the time when a loan agreement is first established. The fee may be payable upfront or it may be added to the loan balance and repaid over time.

Deferred Payment: A deferred payment is a type of financial arrangement in which the buyer agrees to pay for goods or services at a later date. The seller agrees to provide the goods or services now and wait to receive payment until a specified future date.

Defined Benefit Fund: A defined benefit fund is a type of superannuation fund where benefits are determined by a set formula, usually based on salary and length of service. Benefits are paid out as a lump sum or an income stream when you retire.

Dependant: A dependant is someone who relies on another person for financial support. In the context of family law, a dependant may be entitled to spousal maintenance if they cannot adequately support themselves.

Depreciation: Depreciation is the gradual decrease in value of an asset over time due to wear and tear, obsolescence or market conditions. For example, cars depreciate in value as they get older and new models are released onto the market.

Direct Debit: A direct debit is an arrangement between you and a merchant whereby payments are deducted directly from your bank account when you make purchases with that merchant. The benefit of using direct debit is that it is often cheaper and more convenient than other payment methods such as credit cards or cash.

Direct Investment: Direct investment refers to the purchase of shares in a company for the purpose of owning and controlling that company. This type of investment is different from indirect investments like mutual funds, which allow investors to pool their money and invest in a basket of stocks without taking an active role in management.

Discretionary Option: A discretionary option is an agreement between two parties that gives one party the right, but not the obligation, to buy or sell an asset at a specified price within a certain time period. The decision whether or not to exercise the option lies entirely with the party who holds the option contract.

Dispute Resolution: Dispute resolution refers to any process used to resolve disagreements between two or more parties. Common methods of dispute resolution include mediation, arbitration, and litigation.

Distressed Debt:Distressed debt is a type of debt that is typically in default or near default. This can be due to the borrower experiencing financial distress, such as bankruptcy, or due to the lender being unwilling or unable to extend additional credit. Distressed debt may also refer to bonds that have been downgraded to junk status by rating agencies.

Diversification:Diversification is an investment strategy that involves spreading out your investments across different asset classes and/or geographies in order to reduce your overall risk. By investing in a variety of assets, you are less likely to experience large losses if one particular asset class declines in value.

Diversified Option:A diversified option is an investment strategy that involves buying options on multiple underlying assets in order to diversify your portfolio and reduce your overall risk. This strategy can be used with both call options and put options.

Dividend: A dividend is a distribution of profits made by a corporation to its shareholders. Dividends are typically paid out quarterly, but they can also be paid out monthly, semi-annually, or annually. Most dividends are paid in cash, but some companies may pay dividends in stock or other forms of equity.

Draw Downs:A draw down is the act of taking money out of an investment. For example, if you have a savings account with $100 in it, and you withdraw $20, the account has a draw down of $20.

Due Diligence:Due diligence is the process of investigating a potential investment to determine whether it is suitable for your needs. This can include researching the company's financials, reviewing their products or services, and speaking to other customers or experts in the field.

Duration:Duration is a measure of how long an investment will take to mature. For example, a bond with a 10-year duration will take 10 years to mature. Duration is important because it can help you understand how sensitive your investment is to changes in interest rates.

Early Stage Financing:Early stage financing refers to the funding that a company raises in its early stages of development. This can include seed funding, angel investing, and venture capital. Early stage financing is important for companies because it allows them to get off the ground and start growing their business.

Early Termination Fee:An early termination fee (ETF) is a charge assessed by some companies when their customers cancel their contracts before they are scheduled to end. ETFs are designed to discourage customers from cancelling their contracts early and are often used in industries where there are high costs associated with terminating a contract early (such as cell phone service).

Effective Interest Rate:The effective interest rate is the actual rate of interest paid on a loan, after taking into account all fees and charges. It is also known as the "true" interest rate. The effective interest rate is important because it allows borrowers to compare different loans on a level playing field.

EFTPOS (Electronic Funds Transfer at Point of Sale): EFTPOS is an electronic payment system that allows customers to make payments using their debit cards at participating merchants' point-of-sale terminals. EFTPOS transactions are typically processed through the customer's bank, and they are typically faster than traditional credit card transactions.

Eligible Rollover Fund (ERF): An eligible rollover fund (ERF) is a superannuation fund that meets certain conditions set by law. ERFs must have at least five members, must be established for the sole purpose of providing retirement benefits, and must comply with other rules set by law.

Eligible Termination Payment (ETP): An eligible termination payment (ETP) is a payment made to an employee when they leave their job. ETPs can include severance pay, redundancy pay, unused annual leave entitlements, and unused long service leave entitlements

Emerging Market:An emerging market is a market that has been identified as having the potential to become developed markets in the future. These markets are typically characterized by high growth rates, young populations, and low levels of per capita income.

Emerging Markets:A group of countries that have been identified as having the potential to become developed markets in the future. Emerging markets are typically characterized by high growth rates, young populations, and low levels of per capita income.

Employer Share Scheme:A scheme whereby an employer provides shares or share options to employees as part of their remuneration package. The most common type of employer share scheme is an employee share ownership plan (ESOP), which is a tax-advantaged way for employees to acquire shares in the company they work for.

EPS: Earnings per share (EPS) is the portion of a company's profit allocated to each outstanding share of common stock. EPS serves as an indicator of a company's profitability. It is also a major component used to calculate the price-to-earnings ratio (P/E ratio).

Ethical Investment: Ethical investment refers to investing in companies or industries that are considered to have a positive social or environmental impact. This can include things like renewable energy, green technology or affordable housing. Ethical investments are often seen as a way to make a positive difference in the world while also earning a financial return on your investment.

Exchange-Traded Fund:An exchange-traded fund (ETF) is a type of investment fund that tracks an index, a basket of assets, or a commodity. ETFs are traded on stock exchanges and can be bought and sold like stocks. ETFs typically have lower fees than traditional mutual funds.

Expansion Capital:Capital that is used to finance the growth and expansion of a company. Expansion capital can be used to fund new products, enter new markets, or open new locations. It can come from a variety of sources, including venture capitalists, angel investors, and private equity firms.

External Dispute Resolution (EDR) Scheme:A scheme that provides an independent and impartial process for resolving disputes between consumers and businesses. EDR schemes are usually run by government agencies or non-profit organisations. They can provide mediation, conciliation, and arbitration services to help parties reach an agreement.

Fair Value:The fair value of an asset or liability is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is estimated using the best information available in the circumstances and is not necessarily indicative of future market values.

Fee For Service:A fee for service is a type of pricing arrangement whereby a professional charges a fee for each service provided, rather than charging a lump sum for all services rendered. This type of pricing can be seen in many industries, from healthcare to consulting.

Finance Broker:A finance broker is a professional who assists clients in securing financing for their business or personal needs. Finance brokers work with banks, credit unions, and other financial institutions to find the best loan products and terms for their clients. They may also provide guidance on financial planning and budgeting.

Financial Adviser:A financial adviser is a professional who provides advice on financial matters to clients. Financial advisers may work with individuals, families, or businesses. They may provide advice on investment strategies, retirement planning, estate planning, tax planning, and insurance coverage. Financial advisers may also provide guidance on budgeting and cash flow management.

Financial Claims Scheme (FCS):The Financial Claims Scheme (FCS) is an Australian Government scheme that protects deposits in authorised deposit-taking institutions (ADIs) in the event of ADI failure. The FCS covers deposits up to $250,000 per person per ADI. The scheme comes into effect when the Treasurer declares that an ADI is unable to meet its obligations to depositors.

Financial Counsellor:A financial counsellor is a professional who provides advice and assistance to people who are experiencing financial difficulties. Financial counsellors can help with budgeting, money management, and debt repayment plans. They can also negotiate with creditors on behalf of their clients

Financial engineering:Financial engineering is the process of designing and creating financial products and services to meet specific financial goals. Financial engineers use a variety of tools and techniques to achieve these goals, including financial analysis, risk management, and investment management.

Financial influencer:A financial influencer is an individual who has the ability to influence the financial decisions of others. Financial influencers may be individuals or groups, and they may use a variety of methods to influence others, including social media, personal relationships, and economic data.

Financial leverage:Financial leverage is the use of debt to finance investments. Leverage can increase the return on investment (ROI) for a given level of risk, but it can also magnify losses. Financial leverage is often used by investors to increase their potential returns.

Financial plan:A financial plan is a document that outlines an individual's or organization's long-term financial goals and how they will be achieved. A financial plan should include an assessment of current finances, a description of financial goals, and a plan for achieving those goals.

Financial planner: A financial planner is a professional who helps individuals or organizations create a financial plan. Financial planners typically have experience in investments, taxes, insurance, and retirement planning. They may also have specialized knowledge in areas such as estate planning or small business financing.

Financial Product: A financial product is a type of investment that is created to provide a specific financial outcome or return for the investor. Financial products can be traded on financial markets, and are often used by investors as a way to hedge against other investments or to speculate on future market movements.

Financial Service: A financial service is any service that helps to facilitate the transfer of money or other assets between parties. Financial services can include banking, insurance, investing, and even simple money transfers.

Financial Services Guide (FSG): A Financial Services Guide (FSG) is a document that must be provided by a financial services provider to a potential customer prior to entering into a financial product or service contract. The FSG sets out the key features of the product or service, the risks involved, and the fees and charges that may apply. It also contains important information about the provider, including their contact details and complaints handling procedures.

First Home Owners Grant: The First Home Owners Grant (FHOG) is a one-off payment made by the Australian Government to eligible first home buyers. The grant is designed to help offset some of the costs associated with buying a first home, such as stamp duty and legal fees. To be eligible for the grant, buyers must meet certain criteria, such as being an Australian citizen or permanent resident and having never owned a property before.

First Home Saver Account: A First Home Saver Account (FHSA) is a special type of savings account that offers tax benefits for first home buyers in Australia. FHSA account holders can make after-tax contributions of up to $15,000 per year ($30,000 for couples), which are then taxed at a reduced rate of 15%. The money in the account can only be used for approved purposes related to buying a first home, such as paying for stamp duty or legal fees.

Fixed Interest:An interest rate that does not change over the life of a loan or investment. A fixed interest rate is often used in order to protect investors or borrowers from fluctuations in the market. For example, if an investor has a bond with a fixed interest rate, they know exactly how much interest they will earn on their investment over time. This can be helpful in planning and budgeting. Similarly, borrowers may opt for a fixed interest rate on their home loan in order to keep their repayments stable even if market rates rise.

Fixed Interest Investment:An investment that pays a fixed rate of interest over time. Fixed interest investments are often seen as being low risk because the investor knows exactly how much they will earn in interest payments. However, this also means that the investor may miss out on potential earnings if market rates rise.

Fixed Interest Rate:The rate of interest charged on a loan or investment that does not change over time. A fixed interest rate can be helpful for borrowers or investors who want to know exactly how much they will need to pay (or earn) over the life of the loan or investment.

Fixed Rate Home Loan:A home loan with an interest rate that does not change over the life of the loan. This type of loan can be helpful for borrowers who want to know exactly how much their repayments will be each month, even if market rates rise.

Fully Franked Dividend: A fully franked dividend is a dividend that has been paid by a company out of its after-tax profits, with the full amount of imputation credits attached. This means that shareholders can receive a refund of any tax paid on the dividend from the Australian Taxation Office (ATO).

Fund Choice: Fund choice refers to the process of selecting an investment fund or funds that are suitable for your individual circumstances. There are many factors to consider when making your fund choice, including your investment goals, risk tolerance and time horizon.

Fund Manager: A fund manager is a professional who manages investment funds on behalf of investors. They are responsible for making decisions about where to invest the money in the fund, and for monitoring and reviewing the performance of investments.

GDP:Gross domestic product (GDP) is a measure of the value of all goods and services produced in a country in a given period of time. It is often used as a gauge of a country's economic health and as a way to compare the relative size of different economies.

Gearing:Gearing refers to the use of debt to finance investments. When an investor borrows money to buy assets, they are said to be "geared". The level of gearing can be expressed as a ratio, which is the proportion of debt to equity in the investment. A higher ratio means more debt and less equity, and vice versa.

General And Personal Advice:Personal advice is advice that takes into account your personal circumstances, such as your financial situation, goals and risk tolerance. General advice does not take into account your personal circumstances and is therefore less tailored to you. Both types of advice have their place, but it's important to understand the difference so you can make informed decisions about your finances.

Government Bond:A government bond is a debt security issued by a government to raise funds to finance government spending. Government bonds are typically issued with maturities of 10 years or more and are often used by investors as a way of diversifying their portfolios and earning a fixed rate of interest.

Government Co-Contribution:The Government Co-Contribution is a scheme designed to encourage Australians to make personal contributions to their superannuation. Under the scheme, the government will make a co-contribution to your super account if you make eligible contributions and meet certain income thresholds.

Gross IRR (Also See IRR):Gross IRR is the internal rate of return on an investment before taking into account taxes, fees, and other expenses. Gross IRR is useful for comparing different investments without considering the impact of taxes or other factors. However, it can be misleading because it does not take into account the true cost of an investment.

Growth Asset:A growth asset is an investment that is expected to generate capital gains over time. Growth assets include stocks, real estate, and collectibles. Growth assets are typically more volatile than income-producing assets such as bonds and cash equivalents, but they offer the potential for higher returns.

Growth fund: A growth fund is an investment fund that aims to generate capital growth by investing in companies that are expected to experience high levels of growth.

Growth investments: Growth investments are those that are expected to generate capital gains rather than income, through the purchase of shares in companies that are expected to experience high levels of growth.

Guarantor: A guarantor is a person or entity who agrees to be responsible for another person's or entity's debt or obligation if they default on it.

Hardship variation: A hardship variation is a change to the terms of a loan agreement that is made in order to help the borrower overcome financial difficulties.

Home Reversion:Home reversion is a type of equity release product that allows homeowners to sell all or part of their property in exchange for a lump sum of cash or regular income payments. The homeowner retains the right to live in the property until death, at which point the property is sold and the proceeds are used to repay the loan and any interest accrued.

Identity Fraud/Theft: The fraudulent or unauthorized use of another person's identity, usually in order to obtain financial benefits.

Imputation Credit: A tax credit that is given to shareholders in order to offset the effects of taxation on dividends.

Income Producing Asset: An asset that generates income, such as a rental property or a portfolio of stocks and bonds.

Income Protection Insurance:Income protection insurance is a type of insurance that provides you with a replacement income if you are unable to work due to illness or injury. The amount of income you receive is based on your regular earnings prior to becoming unable to work. Income protection insurance can be an important safety net for you and your family, as it can help you maintain your standard of living if you are unable to work.

Industry Superannuation:Industry superannuation is a type of superannuation fund that is set up by an employer or industry body. Industry superannuation funds are usually run by trustees who are elected by the members of the fund.

Inflation:Inflation is a measure of the rate of increase in prices for goods and services. Inflation is usually measured as an annual percentage change.

Inflation Indexed Securities:Inflation indexed securities are financial instruments whose value is linked to the rate of inflation. Inflation indexed securities are typically issued by governments in order to protect investors from the effects of inflation.

Interest:Interest is the cost of borrowing money, typically expressed as a percentage of the total loan amount. Interest is charged by lenders to borrowers as compensation for the use of their money. Interest can also be earned on deposits into savings accounts and other investments.

Interest Bearing Investments:Interest bearing investments are financial assets that earn interest over time. These assets can include savings accounts, certificates of deposit, bonds, and other fixed-income securities. Interest bearing investments typically offer higher returns than non-interest bearing assets such as cash or checking accounts.

Interest Rate:The interest rate is the percentage of interest charged on a loan or earned on an investment over a period of time. Interest rates can be fixed or variable, and they can vary based on factors such as economic conditions and inflation.

Interest-Free Deal:An interest-free deal is a type of financial arrangement in which no interest is charged on borrowed money. This can be an attractive option for borrowers who want to avoid paying interest, but it's important to understand the terms and conditions of these deals before signing up for one.

Interest-Free Period On Credit Cards:An interest-free period on a credit card is a period of time during which no interest is charged on purchases made with the card. This can be an attractive feature for cardholders who want to avoid paying interest, but it's important to understand the terms and conditions of these periods before using one.

Investment:An investment is a financial asset purchased with the intention of earning a return on the investment, either through dividends, interest payments, or capital appreciation. Investments are often made in stocks, bonds, mutual funds, real estate, and other assets.

Investment Bond:An investment bond is a debt security issued by a government or corporation that pays periodic interest payments and typically matures in 10-30 years. Investment bonds are considered to be relatively safe investments, as they are backed by the issuing entity.

Investment Grade:Investment grade refers to the creditworthiness of a borrower, as determined by their credit rating. Investment grade ratings range from AAA (the highest rating) to BBB (the lowest investment grade rating). Anything below BBB is considered to be speculative grade.

Investment Linked Fund:An investment linked fund is a type of mutual fund that invests in both stocks and bonds. The fund's performance is linked to the performance of the underlying assets in the portfolio. Investment linked funds offer investors exposure to a diversified portfolio of assets with the potential for higher returns than traditional fixed income investments.

Investment Manager:An investment manager is an individual or firm that makes decisions about how to invest money on behalf of clients. Investment managers may work with individuals, families, or institutions such as pension funds and endowments. They are responsible for selecting and managing investments in accordance with their clients' goals and risk tolerance.

Investment Platform: A digital investment platform is an online service that allows investors to buy and sell investments, including stocks, bonds, and mutual funds, using a computer or mobile device.

Lay-by: Lay-by is an agreement between a customer and a retailer whereby the customer pays for goods over time and the retailer agrees to hold onto the goods until the full amount has been paid. This type of arrangement is often used for big-ticket items such as furniture or electronics.

Lease: A lease is a contract between a landlord and a tenant that gives the tenant the right to live in or use a property for a specified period of time, usually in exchange for rent.

Life Cover: A life cover is an insurance policy that pays out a lump sum of money in the event of the policyholder's death. The money can be used to help pay for funeral costs, outstanding debts or to provide financial security for loved ones.

Life Insurance Policy: A life insurance policy is a contract between an insurer and a policyholder. The insurer agrees to pay a sum of money (the death benefit) to the policyholder's beneficiaries in the event of the policyholder's death. In exchange, the policyholder pays premiums to the insurer.

Limited Recourse Loan: A limited recourse loan is a loan in which the borrower has limited personal liability for repayment if they are unable to repay the loan. This type of loan is often used by businesses, as it allows them to borrow money without putting their personal assets at risk.

Line of Credit Loan:A line of credit loan is a type of loan that allows the borrower to access a line of credit, up to a certain limit. The borrower can then use this line of credit to make purchases or withdraw cash as needed.

Listed Asset:Listed Asset is an asset that is traded on a stock exchange or other regulated market. Listed assets include stocks, bonds, and other securities.

Listed Debt:Listed debt is a type of debt security that is traded on a stock exchange. Listed debt securities include bonds, notes, and commercial paper. Listed debt securities are typically issued by large, well-established companies with good credit ratings.

Listed Property:Listed property is a type of real estate that is listed on a stock exchange. Listed property includes office buildings, shopping centers, warehouses, and other types of income-producing real estate. Listed property trusts are a type of investment vehicle that invest in listed property.

Listed Property Trust:A listed property trust is a type of investment vehicle that invests in listed property. Listed property trusts are similar to real estate investment trusts (REITs), but they are traded on stock exchanges instead of being regulated by SEC rules.

Loan To Value Ratio (LVR):The loan-to-value ratio (LVR) is the ratio of a loan amount to the value of the asset purchased with the loan. The LVR is used to assess risk when approving loans; the higher the LVR, the higher the risk for the lender.

Long Term Investment:A long term investment is an investment that is held for more than one year. Long term investments are typically less risky than short term investments, but they also tend to have lower returns.

Low-Doc Loan:A low-doc loan is a type of loan that requires less documentation than a traditional loan. Low-doc loans are typically available to self-employed borrowers or borrowers with complex financial situations.

Managed Discretionary Account (MDA):A managed discretionary account (MDA) is an account where the investor gives the investment manager discretion over the account's assets. MDAs are typically used by investors who lack the time or expertise to manage their own investments.

Managed Fund:A managed fund is a type of investment fund that is managed by a professional money manager. Managed funds allow investors to pool their money together and access a wider range of investments than they would be able to access on their own.

Margin Loan:A margin loan is a loan that is secured by shares or other investments as collateral. The loan is used to purchase additional shares or investments, with the aim of generating higher returns than what would be possible if only using cash.

Marginal Tax Rate: The marginal tax rate is the rate of tax that applies to each additional dollar of income earned above a certain threshold. The marginal tax rate increases as income increases, so that higher-income earners pay more tax overall than lower-income earners.

Master Trust: A master trust is a type of investment fund that pools together money from many different investors and invests it in a range of assets, such as shares, property and bonds. Master trusts are often used by large institutional investors, such as pension funds, because they offer diversification and professional management at a lower cost than if each investor bought assets individually.

Maturity: Maturity is the date on which an investment will reach its end and will need to be repaid. For example, if you take out a loan with a maturity date of 30 June 2021, this means that you will need to repay the loan on or before 30 June 2021.

Medium Term Investment:An investment that is made for a period of time longer than one year but shorter than five years. Medium-term investments are usually made in order to earn a return on the invested capital, but they may also be made for other reasons such as to hedge against inflation or to take advantage of market conditions.

Money Transfer Request:A money transfer request is a document that is used to request a transfer of funds from one account to another. The request must be made by the account holder and include all relevant information about the accounts involved, as well as the amount of money to be transferred.

Mortgage:A mortgage is a loan that is used to purchase property. The property serves as collateral for the loan, which means that if the borrower defaults on the loan, the lender can seize the property. Mortgages are typically repaid over a period of 15 to 30 years, and they usually have fixed interest rates.

Mortgage Broker: A mortgage broker is a professional who helps borrowers find the best mortgage loan for their needs and circumstances. Mortgage brokers work with banks and other financial institutions to find the best mortgage products for their clients.

Mortgage Fund: A mortgage fund is a type of investment fund that invests in mortgage loans. Mortgage funds can be used by investors to diversify their portfolios and provide a steady stream of income.

Mortgage Scheme: A mortgage scheme is a government-sponsored or -regulated plan that offers financial assistance to homebuyers in the form of low-interest loans, subsidies, or tax breaks. Mortgage schemes are designed to make homeownership more affordable and accessible.

Mortgage-Backed Security: A mortgage-backed security (MBS) is a type of asset-backed security that is secured by a pool of mortgages. MBSs are created when lenders bundle together a group of mortgages and sell them to investors. The cash flows from the underlying mortgages are used to pay interest and principal to the MBS holders.

Mortgagee: The mortgagee is the lender in a mortgage loan transaction. The mortgagee has the right to foreclose on the property if the borrower defaults on the loan.

Mortgagee Sale: A mortgagee sale is a type of forced sale in which a property is sold by the mortgagee (lender) in order to recover the outstanding loan amount. The sale is usually conducted at auction and the proceeds from the sale are used to pay off the outstanding loan.

Mortgagor: A mortgagor is an individual who borrows money from a lender and uses their property as collateral for the loan.

Negative Gearing: Negative gearing is a type of investment strategy where an investor borrows money to purchase an asset, such as a property or shares, and hopes to make a profit from the difference between the interest paid on the loan and the income earned from the asset.

Net Asset Value (NAV):The net asset value (NAV) of a fund is the value of all the assets in the fund, minus all the liabilities. The NAV is calculated at the end of each day and is the price at which units in the fund are bought and sold.

Net IRR:The net internal rate of return (IRR) is the rate of return on an investment after taking into account all taxes, fees, and other expenses. It is used to compare different investments.

Net Present Value (NPV):The net present value (NPV) of an investment is the present value of all future cash flows from the investment, minus the initial investment. NPV is used to decide whether an investment should be made.

Net Worth:Net worth is a person's assets minus their liabilities. It is used to calculate whether a person can afford to make an investment.

No Negative Equity Guarantee (NNEG):A no negative equity guarantee (NNEG) protects a borrower from having to repay more than the value of their property if it falls in value. It is usually offered by lenders as part of a home loan.

No-Interest Loans Scheme (NILS):The No-Interest Loans Scheme (NILS) provides interest-free loans to people on low incomes. NILS loans can be used for essential items such as whitegoods, furniture, and medical equipment.

Nominal Interest Rate:The nominal interest rate is the rate of interest before taking into account inflation. In other words, the nominal interest rate is the "true" interest rate. The real interest rate is the nominal interest rate minus inflation. For example, if the nominal interest rate is 5% and inflation is 2%, then the real interest rate is 3%.

Non-Commutable Income Stream:A non-commutable income stream is an income stream that cannot be commuted, or converted, into a lump sum. Non-commutable income streams must be taken as an income stream for life, or for a set period of time, and they cannot be cashed out.

Non-Concessional Super Contributions:Non-concessional super contributions are contributions made to a superannuation fund that are not eligible for any tax concessions. Non-concessional contributions can be made by anyone, regardless of their age or employment status, but they must be made from after-tax income.

Non-Contributory Superannuation:Non-contributory superannuation is superannuation that is not funded by employee contributions. Non-contributory superannuation can be provided by an employer, but it is not compulsory.

Non-Recourse Loan: A non-recourse loan is a type of loan in which the borrower is not personally liable for repayment. This means that if the borrower is unable to repay the loan, the lender cannot go after the borrower's personal assets to recoup its losses. Non-recourse loans are typically used in situations where the collateral for the loan is the only thing that can be used to repay it, such as with real estate loans.

Offset Account: An offset account is a type of bank account that can be linked to a home loan. The money in the offset account is used to offset (reduce) the interest charged on the home loan. For example, if you have a $100,000 home loan with an interest rate of 5%, and you have $10,000 in your offset account, you will only be charged interest on $90,000 of your loan. This can save you a significant amount of money in interest charges over the life of your loan.

Overdraft Facility: An overdraft facility is a type of bank account that allows you to withdraw more money than you have deposited into the account. The overdraft limit is set by the bank and can vary depending on your circumstances. Overdrafts can be useful in emergency situations or if you need to make a large purchase but don't have enough money in your account at the time. However, they can also be expensive if you exceed your limit or don't repay your overdraft quickly enough.

Overdrawn Account:An account is considered overdrawn when the account holder has insufficient funds to cover their outstanding transactions. This can happen if the account holder makes a purchase or withdrawal that exceeds their available balance, or if they have outstanding checks or direct debits that have not yet been processed.If an account is overdrawn, the account holder may be charged fees by their financial institution. In some cases, the account may also be subject to interest charges. Overdraft protection plans can help account holders avoid these fees, but there may be costs associated with these plans as well.

Passively Managed:A passively managed investment is one where the portfolio manager does not make active decisions about which securities to buy or sell. Instead, the portfolio is designed to track a specific index, such as the S&P 500.Passive management can be used with any type of investment, including stocks, bonds, and mutual funds. The goal of passive management is to match the performance of the benchmark index, before fees and expenses.

Payback Period:The payback period is the length of time it takes for an investment to generate enough cash flow to cover its initial cost. The payback period is often used as a simple way to compare different investment options.The payback period begins when the investment is made and ends when the total cash inflows from the investment equal the initial cost of the investment. The payback period does not take into account any cash flows that occur after the initial investment has been repaid.

Payday Loan:A payday loan is a short-term loan typically used to cover expenses until your next payday. Payday loans are typically small-dollar loans, with terms that last two weeks or less. Interest rates on payday loans are usually very high, and fees can be expensive. As a result, payday loans can trap borrowers in a cycle of debt if they are unable to repay the loan when it comes due. Some states have laws that regulate payday loans, and other states have banned them entirely. If you are considering taking out a payday loan, you should first check to see if they are legal in your state.

Payout Ratio:The payout ratio is a measure of how much of a company's earnings are paid out in dividends to shareholders. The payout ratio can be expressed as a percentage or as a ratio. A high payout ratio may indicate that a company is mature and not growing very rapidly, while a low payout ratio may indicate that a company has room to grow its dividend payments in the future.

Pension:A pension is a regular payment made by an employer to an employee, typically after the employee retires. The purpose of a pension is to provide financial security in old age.

Personal Insolvency Agreement:A personal insolvency agreement (PIA) is a legal agreement between you and your creditors to repay your debts over a period of time. A PIA can only be made if you are unable to repay your debts in full and you have been declared bankrupt.

Personal Loan:A personal loan is a loan taken out by an individual for personal, rather than business, purposes. Personal loans can be used for a variety of purposes, including consolidating debt, financing a holiday or making home improvements. The interest rate on a personal loan is usually lower than the interest rate on a credit card.

Portfolio:A portfolio is a collection of investments held by an individual or institution. A portfolio may contain stocks, bonds, cash, and other assets. The purpose of holding a portfolio is to achieve specific investment goals.

Power of Attorney:A power of attorney is a legal document that gives someone else the authority to act on your behalf. This can be in relation to financial matters, property, or personal care and welfare. A power of attorney can be revoked at any time, as long as the person who granted it has the mental capacity to do so.

Price Earnings Ratio (P/E Ratio):The price earnings ratio (P/E ratio) is the ratio for valuing a company that measures its current share price relative to its per-share earnings. The price earnings ratio is also sometimes known as the price multiple or the earnings multiple. To calculate the P/E ratio, you divide a company's current share price by its earnings per share (EPS). For example, if Company XYZ's stock is trading at $100 per share and its EPS is $5, then its P/E ratio would be 20. Investors use the P/E ratio to determine whether a stock is overvalued or undervalued. A high P/E ratio could mean that a stock's price is too high relative to its earnings, while a low P/E ratio could indicate that a stock's price is too low relative to its earnings. However, it's important to remember that the P/E ratio is just one tool that investors can use to evaluate a stock. There are many other factors that should be considered before making an investment decision.

Primary Card Holder:The primary cardholder is the person who is responsible for paying the bill on a credit card account. The primary cardholder may also be referred to as the account holder or account owner. The primary cardholder is responsible for making sure that all payments are made on time and in full. They may also be responsible for any fees and charges associated with the account, such as annual fees, late payment fees, and cash advance fees. If you are not the primary cardholder on an account, you are typically referred to as an authorized user. Authorized users have access to use the credit card but they are not responsible for making payments on the account.

Principal:In finance, principal refers to the original sum of money borrowed in a loan or invested in an asset. It also refers to the amount of money still owed on a loan or still invested in an asset after periodic payments have been made. For example, if you take out a loan for $100,000 and make periodic payments of $1,000 per month, your principal balance would decrease by $1,000 each month. After 10 months of payments, your outstanding principal balance would be $90,000 ($100,000 - 10 x $1,000). In investments, principal refers to both the original sum of money invested and any money earned through interest or capital gains on that investment. For example, if you invest $10,000 in a bond that pays 5% interest per year, your principal balance would remain at $10,000 while your interest earned would increase each year. After 10 years, your total investment would be worth $15,000 ($10

A Product Disclosure Statement (PDS) is a document that contains information about a financial product, and is required to be provided to potential investors prior to them making a decision about whether to invest in the product. The PDS must include information about the key features of the product, the risks involved in investing in the product, and the fees and charges associated with the product. It is important that potential investors read the PDS carefully before making a decision about whether to invest, as it will contain important information that could affect their investment decision.

Proper Authority: The legal body that has the power to make decisions, give orders, or make laws.

Property: Anything that someone owns and has legal control over. Property can be physical (like land or a house) or intangible (like stocks, bonds, or copyrights).

Property Development: The process of improving land or buildings to create new property. This can involve construction, renovation, and other activities.

Property Trust: A type of legal entity that owns and manages property for the benefit of its beneficiaries. Property trusts are often used for investment purposes.

Public Trustee:A public trustee is an individual or organization that holds and manages property for the benefit of another party. The property may be real estate, financial assets, or other types of assets. The trustee may be appointed by a court, or they may be chosen by the owner of the property. The trustee has a fiduciary duty to manage the property in the best interests of the beneficiary.

Purchase multiple:A purchase multiple is a ratio used to valuation companies based on their earnings before interest, taxes, depreciation, and amortization (EBITDA). The ratio is calculated by dividing the market value of the company by its EBITDA. A high purchase multiple indicates that investors are willing to pay more for the company's earnings power.

Redraw Facility:A redraw facility is a feature of some home loans that allows borrowers to access extra repayments they have made on their loan. This can be useful if you need to make a large purchase or if you want to reduce the interest you are paying on your loan. However, it is important to remember that you will still need to make your minimum monthly repayments even if you use your redraw facility.

Refinance:Refinancing is the process of taking out a new loan to replace an existing loan. This can be done for a variety of reasons, such as to get a lower interest rate, to switch from a variable rate loan to a fixed rate loan, or to borrow additional funds. When refinancing, it is important to compare the costs of the new loan with the remaining balance of the old loan to make sure you are not paying more in fees than you need to.

Regulatory Risk:Regulatory risk is the risk that changes in government regulations will have a negative impact on a company or industry. This can include changes in tax laws, environmental regulations, or labour laws. Regulatory risk is often highest in industries that are heavily regulated, such as banking and healthcare.

Rent To Buy:Rent-to-buy schemes allow people who cannot afford to buy a property outright to rent it for a period of time with the option to buy it at the end of the lease. These schemes can be helpful for people who want to eventually own their own home but need time to save up for a deposit. However, rent-to-buy schemes can also be risky because the price of the property may increase during the lease period, meaning that the tenant could end up paying more than they would have if they had bought the property outright.

Rental Bond:A rental bond is a security deposit that a tenant pays to their landlord at the start of a tenancy. The bond is held by the relevant state or territory authority and is used to cover any damages or unpaid rent at the end of the tenancy.

Resource:A resource is anything that can be used to produce goods or services. Natural resources include land, water, air, minerals, and forests. Human resources include labor, capital, and entrepreneurship.

Responsible Entity:A responsible entity is an entity that is legally responsible for the operation of a managed investment scheme.

Retirement Savings Account:A retirement savings account (RSA) is a type of savings account that offers tax benefits to encourage Australians to save for their retirement. RSAs are offered by banks, credit unions, and other financial institutions.

Return Multiple:A return multiple is a ratio that is used to measure the performance of an investment. It is calculated by dividing the current value of the investment by the original investment amount. The higher the return multiple, the better the performance of the investment.

Reverse Mortgage:A reverse mortgage is a type of loan that allows seniors to borrow against the equity in their home. The loan does not have to be repaid until the borrower dies, sells the home, or moves out of the home. This type of loan can give seniors the extra income they need to cover expenses, such as medical bills or home repairs.

Reversionary Beneficiary:A reversionary beneficiary is someone who will receive assets from an estate after the death of the primary beneficiary. The reversionary beneficiary must be named in the will or trust agreement. If there is no named reversionary beneficiary, then the assets will go to the estate's heirs at law.

Reward Scheme:A reward scheme is a system where people are given rewards for completing certain tasks or reaching certain goals. Reward schemes can be used to motivate employees, customers, or other groups of people. Common rewards include money, gift cards, and free products or services.

Salary Sacrificing:Salary sacrificing is an arrangement between an employer and employee, where the employee agrees to forgo part of their future salary in return for benefits such as increased superannuation contributions or reduced income tax. Salary sacrificing can be a great way to boost your retirement savings, but it's important to understand how it works and how it might affect your take-home pay.

Savings Account:A savings account is a type of bank account that allows you to save money and earn interest on your balance. Savings accounts typically have higher interest rates than checking accounts, but they may also have restrictions on withdrawals and transfers. Many banks offer online savings accounts that offer competitive interest rates and easy access to your funds.

Secondary Card:A secondary card is a credit card that is linked to your primary credit card account. Secondary cards are typically issued to family members or authorized users, such as spouses or children, who can use the card for purchases but are not legally responsible for the debt. Secondary cards can be a great way to help build credit history or earn rewards points, but they can also add to your debt if not used carefully.

Secured Debt:A secured debt is a loan that is backed by collateral. The collateral can be in the form of property, such as a home or car, or it can be in the form of investments, such as stocks or bonds. If the borrower defaults on the loan, the lender can seize the collateral and sell it to recoup their losses.

Secured Loan:A secured loan is a type of loan that is backed by collateral. The collateral can be in the form of property, such as a home or car, or it can be in the form of investments, such as stocks or bonds. If the borrower defaults on the loan, the lender can seize the collateral and sell it to recoup their losses.

Secured Note:A secured note is a type of debt instrument that is backed by collateral. The collateral can be in the form of property, such as a home or car, or it can be in the form of investments, such as stocks or bonds. If the borrower defaults on the loan, the lender can seize the collateral and sell it to recoup their losses.

Security:A security is a financial instrument that is used to invest in and finance businesses and other ventures. They include stocks, bonds, and other investment vehicles.

Security For a Loan:Security for a loan is an asset that is pledged as collateral for the loan. The asset can be anything of value, such as property, cash, or investments. If the borrower defaults on the loan, the lender can seize the asset to recoup their losses.

Self-Managed Super Fund (SMSF):A self-managed super fund (SMSF) is a type of retirement savings account that allows individuals to manage their own investments. SMSFs are regulated by the Australian Taxation Office (ATO) and must comply with strict rules and regulations.

Senior Debt:Senior debt is a type of debt that has priority over other debts in the event of default. In other words, senior debt holders will be first in line to receive payments from the borrower in the event of default. Senior debt is typically issued by banks and other financial institutions.

Senior Debt Holder:A senior debt holder is an entity that holds senior debt in a company or organization. Senior debt holders have priority over other creditors in the event of default, meaning they will be first in line to receive payments from the borrower.

Settlement: The process of concluding a transaction, usually involving the exchange of money or other assets.

Shadow Credit Rating: A credit rating that is not provided by a traditional credit rating agency, but which is instead produced by a financial institution or other entity.

Share Fund: A fund that invests in shares.

Shares: Units of ownership in a company or other organization.

Short Selling:The sale of a security that is not owned by the seller, in the hope that the price will fall so that it can be bought back at a lower price to make a profit. Short selling is typically used by investors who believe that a security is overvalued and due for a price correction.

Short Term Investment: An investment with a shorter time frame than traditional investments, typically between 3 and 18 months. Short-term investments are generally made with the intention of generating income or profits within a relatively short period of time, and are often considered to be more risky than long-term investments.

Socially Responsible Investment (SRI): An investment strategy that takes into account both financial return and social or environmental impact. Socially responsible investors typically seek to invest in companies that they believe are making a positive contribution to society, while avoiding those that are involved in activities deemed harmful or unethical.

Sophisticated Investor: An investor who is considered to be experienced and knowledgeable enough to understand the risks involved in certain types of investments. In Australia, sophisticated investors must meet certain criteria set by the Australian Securities and Investments Commission (ASIC), including having an annual income of $250,000 or more, or net assets of $2.5 million or more.

Split Funding: A type of funding where the investment is split between different types of investments, in order to spread the risk.

Stamp Duty: A tax that is levied on the purchase of certain assets, such as property or shares.

Start-Up Capital: The money used to finance the initial start-up of a business. This can come from personal savings, loans, or investments from friends and family.

Stocks: A type of investment that represents ownership in a company. When you buy stocks, you become a shareholder and have a claim on the company's assets and profits.

Store Card: A credit card issued by a retail store, typically with special discounts and rewards for use at that store.

Strata Levy:A strata levy is a charge that is levied on owners of strata title properties in order to cover the costs of maintaining and repairing common property. The amount of the levy is decided by the strata corporation, and is typically based on the size of the unit or lot owned by the owner.

Strata Title:Strata title is a system of ownership of property in which each owner has a title to a specific unit or lot, as well as an undivided share in the common property. The common property includes all parts of the building or complex that are not owned by any individual unit owner, such as hallways, lobbies, gardens, and recreation facilities.

Subordinated Debt:Subordinated debt is a type of debt that ranks below other debts in terms of priority for repayment. In the event of bankruptcy, subordinated creditors are paid only after senior creditors have been paid in full. Subordinated debt is often used by companies to raise capital without incurring too much debt.

Subordinated Loan:A subordinated loan is a loan that ranks below other loans in terms of priority for repayment. In the event of bankruptcy, subordinated creditors are paid only after senior creditors have been paid in full. Subordinated loans are often used by companies to raise capital without incurring too much debt.

Subordinated Note:A subordinated note is a type of debt instrument that ranks below other debts in terms of priority for repayment. In the event of bankruptcy, holders of subordinated notes are paid only after senior creditors have been paid in full. Subordinated notes are often used by companies to raise capital without incurring too much debt.

Superannuation:Superannuation is a retirement savings scheme that is compulsory for employers to provide for their employees in Australia. The Superannuation Guarantee (SG) is the minimum amount of super that an employer must contribute to their employee's super fund. The Superannuation Guarantee Charge (SGC) is a tax that is levied on employers who do not make the required contributions to their employee's super funds. The Superannuation Trust is a government body that oversees the operation of the superannuation system in Australia. Sustainable Investing is an investment strategy that takes into account environmental, social and governance factors in order to generate long-term financial returns.

Superannuation:Superannuation, also known as super, is a retirement savings scheme designed to help Australians save for their retirement. The scheme is compulsory for employers to provide for their employees, and contributions are made by both the employer and employee. Superannuation funds are managed by trustees who invest the money on behalf of the members. The earnings from these investments are used to provide benefits to members when they retire.

Superannuation Guarantee:The Superannuation Guarantee (SG) is a government initiative that requires employers to make compulsory contributions to their employees' superannuation fund. The SG was introduced in 1992 and has been gradually increased over time. The current SG rate is 9.5% of an employee's salary, which must be paid into a complying super fund. Employers who fail to make the required contributions are liable for the Superannuation Guarantee Charge (SGC).

Superannuation Guarantee Charge:The Superannuation Guarantee Charge (SGC) is a penalty imposed on employers who fail to make the required contributions to their employees' superannuation fund. The SGC is calculated at a rate of 3% of an employee's salary, plus interest on the unpaid amount. The SGC is payable by the employer and is not tax deductible.

Superannuation Trust:A superannuation trust is a legal entity that holds and invests funds on behalf of its members. A trust is typically established by an employer or group of employers for the purpose of providing retirement benefits to employees. A trust is managed by trustees who are responsible for investing the funds and providing benefits to members when they retire. Trusts can be either open or closed, and can be either public or private.

Sustainable Investing:Sustainable investing, also known as responsible investing, is an investment approach that considers environmental, social and governance (ESG) factors in addition to financial returns. Sustainable investors seek to generate long-term financial returns while also having a positive impact on society and the environment.

Tax File Number: a unique number issued by the Australian Taxation Office to each individual taxpayer

Tax-Driven Scheme: a scheme in which tax is the primary or sole motivation for investment

Tax-Free Threshold: the income level at which taxpayers are not required to pay any income tax

Taxation Risk:The potential for a company to incur tax liabilities in excess of the amount of taxes paid. Taxation risk arises from the possibility that a company may be subject to higher tax rates than expected, or that it may be required to pay taxes on income or transactions that were previously thought to be exempt.Taxation risk can have a significant impact on a company's financial statements and bottom line. For example, if a company is required to pay higher taxes than expected, its profits will be reduced and its share price may decline. Conversely, if a company is able to reduce its tax liability, its profits will increase and its share price may rise.Taxation risk is often considered to be a type of political risk, as it is affected by changes in government policy. For example, if a new government is elected with a mandate to increase taxes on businesses, this would create a higher taxation risk for companies operating in that country.

Tenancy:A tenancy is a legal relationship between a landlord and tenant, whereby the tenant has the right to occupy and use the property owned by the landlord. The term of the tenancy can be either fixed or periodic, and will be set out in the tenancy agreement.

Tenants in Common:Tenants in common is a type of co-ownership where each owner has an undivided interest in the property. This means that each owner can sell, mortgage or gift their interest in the property without the consent of the other owners.

Term Deposit:A term deposit is a type of savings account where money is deposited for a fixed period of time, usually between one and five years. The interest rate on a term deposit is usually higher than for a regular savings account.

Terminal Value:The terminal value is the estimated value of a business or asset at the end of its useful life. The terminal value is often used as a discount rate when valuing businesses or assets with long-term cash flows.

Third Party Property Insurance:Third party property insurance is insurance that covers damage to another person's property caused by the insured person. It does not cover damage to the insured person's own property.

Third Party, Fire and Theft Insurance:This type of insurance covers damage to third party property and vehicles, as well as fire and theft of your own vehicle. It does not cover you for any damage to your own vehicle.

Today's Dollars:In Australia, a "today's deal" is a promotional offer or discount on a product or service that is only available for a limited time. These deals are often found on websites like Groupon or Living Social, and can include anything from discounted hotel stays to half-price meals at restaurants. Today's deals are a great way to save money on things that you would normally purchase anyway, and they can also be a fun way to try new experiences at a fraction of the cost.

Today's Dollars:In Australia, a "today's deal" is a promotional offer or discount on a product or service that is only available for a limited time. These deals are often found on websites like Groupon or Living Social, and can include anything from discounted hotel stays to half-price meals at restaurants. Today's deals are a great way to save money on things that you would normally purchase anyway, and they can also be a fun way to try new experiences at a fraction of the cost.

Total and Permanent Disability (TPD) Insurance:Total and Permanent Disability (TPD) insurance is a type of insurance that provides financial protection in the event that you are unable to work due to an injury or illness. The benefit can be used to cover expenses such as medical bills, mortgage repayments or living costs.

Transaction Account:A transaction account is a type of bank account that allows customers to make deposits and withdrawals, as well as transfer funds between accounts. Transaction accounts typically offer features such as online banking and direct debits.

Transaction Fees:Transaction fees are charges that may be applied when making a transaction, such as a purchase or withdrawal, from a bank account. These fees can vary depending on the type of transaction, the account being used and the financial institution.

Transfer Balance Cap:The transfer balance cap is the maximum amount of money that can be transferred from one superannuation fund to another. The cap is currently set at $1.6 million and was introduced on 1 July 2017.

Transition To Retirement Scheme:A Transition to Retirement Scheme (TTR) is a superannuation scheme that allows you to access your super while you are still working. It can be used to reduce your working hours and income, or to boost your retirement savings.

Trauma Insurance:Trauma insurance is a type of insurance that provides a lump sum payment if you suffer from a specified medical condition, such as cancer or a heart attack. The payment can be used to cover medical expenses, income replacement or any other expenses you may have.

Trust:A trust is a legal arrangement in which one person (the trustee) holds property on behalf of another person (the beneficiary). The trustee has a legal duty to manage the trust property for the benefit of the beneficiary. Trusts can be used for a variety of purposes, including estate planning, asset protection and tax minimisation.

Trust Deed:A trust deed is a legal document that sets out the terms of a trust. It includes information such as the name of the trustee, the beneficiaries and the purpose of the trust. The trust deed is an important document as it sets out the rights and duties of the parties involved in the trust.

Trustee:A trustee is a person who holds property on behalf of another person (the beneficiary). The trustee has a legal duty to manage the trust property for the benefit of the beneficiary. Trustees can be individuals or companies.

Trustee (Super Fund):A trustee is a person or organisation who manages a superannuation fund on behalf of its members. The trustee is responsible for ensuring that the fund complies with the Superannuation Industry (Supervision) Act 1993 and the regulations made under that Act.

Underinsurance:A situation where an individual or business does not have enough insurance coverage to protect themselves from potential losses. This can lead to financial difficulties if an unexpected event occurs and they are unable to cover the resulting costs.

Unit Linked Investment:A unit linked investment is an investment where the performance is linked to the performance of a specific unit, such as a stock or bond. The investor will receive returns based on the performance of the unit, which can be positive or negative.

Unit Price:The unit price is the price per unit of a particular security, commodity, or currency. This price is used to calculate the total cost of an investment, and it can fluctuate over time.

Unit Trust:A unit trust is an investment fund that is made up of units, each of which represents a certain amount of money. Unit trusts are typically managed by professional fund managers and are designed to provide investors with exposure to a wide range of assets.

Unlisted Asset:An unlisted asset is a type of asset that is not publicly traded on a stock exchange. Unlisted assets can include privately held companies, real estate, and other types of investments.

Unlisted Debt:Unlisted debt is a type of debt that is not publicly traded on a stock exchange. Unlisted debt can include bonds, loans, and other types of financial instruments that are not traded on an exchange.

Unlisted Mortgage Scheme:An unlisted mortgage scheme is a type of mortgage that is not publicly traded on a stock exchange. Unlisted mortgage schemes can include private mortgages, home equity loans, and other types of financing that are not traded on an exchange.

Unlisted Property Trust:An unlisted property trust is a type of trust that is not publicly traded on a stock exchange. Unlisted property trusts can include private real estate investment trusts (REITs), development trusts, and other types of trusts that are not traded on an exchange.

Unsecured Loan:An unsecured loan is a type of loan that is not backed by collateral. Unsecured loans can include personal loans, credit cards, and other types of financing that is not backed by an asset.

Unsecured Note: A note that is not backed by collateral. An unsecured note is also called a debenture.

Variable Interest Rate: An interest rate that fluctuates over time in response to changes in the market. Variable interest rates are often used for home loans and other types of loans.

Variable Rate Home Loan: A home loan with an interest rate that fluctuates in response to changes in the market. Variable rate home loans often have lower interest rates than fixed rate home loans, but they can also be more risky.

Vendor Finance: A type of financing provided by a company that sells goods or services. Vendor finance can be used to purchase items such as cars, appliances, or even homes.

Vested Benefit:A vested benefit is a type of employee benefit that cannot be taken away by an employer, even if the employee leaves the company. Vested benefits are typically retirement benefits, such as a pension or 401(k) plan.Employees who have vested benefits are entitled to receive these benefits even if they leave the company before they retire. The vesting period is the length of time an employee must work for the company before their benefits become fully vested.

Vintage Year:The vintage year of a wine is the year in which the grapes were harvested. The vintage year can have a significant impact on the quality and taste of the wine. Older wines are often considered to be more valuable than younger wines, as they may have had more time to develop complex flavors.

Volatility:Volatility is a measure of how much a security's price changes over time. It's calculated using standard deviation, which measures how far from the average price a security has traded over a certain period of time. A security with high volatility will see its price fluctuate more than one with low volatility.

Warrant:A warrant is a type of security that gives the holder the right to buy or sell shares of stock at a set price within a certain timeframe. Warrants are often issued by companies as part of an initial public offering (IPO) or as part of another type of securities offering.

Warranty:A warranty is a type of guarantee that promises to repair or replace products that turn out to be defective within a certain timeframe. Warranties are often offered by manufacturers as an assurance to customers that their products will meet certain standards of quality.

WDR Composite Bond Index:The WDR Composite Bond Index is a broad measure of the performance of the Australian fixed interest market. The index is made up of bonds from a range of issuers, including government, semi-government and corporate bonds. It is published by the Reserve Bank of Australia (RBA) and is used as a benchmark for pricing fixed interest securities in the Australian market.

WDR Inflation Linked Bond Index:The WDR Inflation Linked Bond Index is a measure of the performance of inflation-linked bonds in the Australian market. The index is made up of bonds from a range of issuers, including government, semi-government and corporate bonds. It is published by the Reserve Bank of Australia (RBA) and is used as a benchmark for pricing inflation-linked securities in the Australian market.

Weighting:Weighting refers to the process of assigning weights to different assets in order to create a portfolio that has a desired risk/return profile. Weighting can be done using different methods, such as equal weighting, where each asset is given an equal weight, or risk weighting, where assets are weighted according to their riskiness.

Wholesale Fund:A wholesale fund is a type of investment fund that is only available to investors who meet certain eligibility criteria, such as having a minimum investment amount. Wholesale funds are typically more risky and higher yielding than retail funds, but they also come with higher fees and charges.

Withholding Tax: Withholding tax is a tax that is deducted from an employee's wages by their employer. The amount of tax withheld depends on the employee's tax bracket.

Wrap Account: A wrap account is an investment account that allows investors to hold a variety of investments, including shares, managed funds and cash, in one place. Wrap accounts are offered by many financial institutions, including banks, stockbrokers and superannuation funds.

Write Downs: A write down is an accounting procedure where the value of an asset is reduced on the balance sheet. This can happen when the asset has lost value or is no longer needed by the company.

Yield: Yield is a measure of how much income an investment generates. It can be expressed as a percentage of the original investment or as a dollar amount.