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The tour is a key marketing tool for real estate firms targeting a highly qualified group of homebuyers working with the agents attending the broker’s open house. It’s also a smart place to network with other agents. Homes shown on a broker’s open house sell faster and for more money. There is more to this strategy than meets the eye. Definition and Examples of a Broker’s Open House A broker’s open house is a showing exclusively for real estate agents and industry professionals....

For example, say you write and send a check for $500 to your cousin Johnny for a fundraiser he’s running. He receives your check and deposits it to his bank using his cellphone. His bank may then send the check to your bank, a local clearinghouse exchange, or one of the Federal Reserve’s correspondent institutions that provide check-collection services. All of these organizations serve the same purpose—to deduct the money from your account and deposit it into Johnny’s....

Homeowners who find themselves with mortgage payments that they can no longer afford are not always able to sell their homes for enough money to cover the balance they still owe. One solution is to sign the home over to the lender if it is willing to agree to such an arrangement. This process is referred to as a “deed in lieu of foreclosure.” The lender accepts the deed, transferring ownership of the property rather than going through the time and expense of a foreclosure process....

The term “disbursement” is used to describe fund transfers to and from different entities, including lenders, governments, nonprofits, and the general public. Learn more about disbursements and how they work. Definition and Examples of Disbursement When funds are paid out from one entity to another, it’s called a disbursement. A disbursement is usually cash or the equivalent of cash, and it’s often a form of payment. You might disburse money to a company, or a company might disburse money to you—in the form of a refund, for example....

Some investors are attracted to quant funds because they take emotion out of the investing decision. Let’s go over how quant funds work, and what types are available for individual investors. Definition and Examples of a Quant Fund Quant funds are funds managed via quantitative or systematic analysis that’s based on computer models or algorithms instead of the qualitative opinion of a human manager. Some consider quant funds superior to qualitative funds because there is no emotion or bias involved in the investment management decision, while others champion an investing approach that combines quantitative and qualitative methods....

A renewal option allows a lease to be extended for a new term as agreed on by both the tenant and landlord. Alternate name: Lease renewal When someone first leases an apartment, they might sign a two-year lease with a renewal option. A renewal option does not have to repeat the same terms as the original contract. For example, the landlord may decide to only offer a month-to-month or one-year lease moving forward, or they may decide to restructure the rent pricing....

Roadshows are more accessible to the average investor now than they’ve ever been, and they can be important sources of information. Find out what roadshows tell investors, and how you can find out about them. Definition and Examples of a Roadshow Roadshows, also called “dog-and-pony” shows, are an important part of the initial public offering (IPO) process because they help companies see how much demand their offering has and what the proper price should be (“book building”)....

Typically, Roth IRA accounts follow IRS regulations that dictate the specific type of investments that can be held in them. Generally, these are a mix of bonds, stocks, cash, and mutual funds. However, these funds may not meet your investing criteria or preferences. In a self-directed Roth IRA, you can invest in a broader portfolio of assets than in a traditional or Roth IRA. However, these investments can be riskier, and self-directed Roths generally carry more risk because they can attract fraudulent schemes, high fees, and volatile performance....

A share draft account is a liquid account at a credit union that allows you to make frequent withdrawals and payments. If you’re familiar with checking accounts, share draft accounts are essentially the same. Again, the only difference is that a “share” account is at a credit union instead of a bank. How Share Accounts Work Credit unions are different from banks in that every account holder is an owner of the institution....

Alternate name: Spot price An example of a spot rate would be what you would pay to purchase a commodity today, rather than in the future through a forward rate. How Spot Rates Work Because spot rates are the price you pay for something at a specific point in time, how they work is straightforward. A commodity, security, or currency has a particular price that you’ll pay to immediately settle the transaction....

Alternate names: Savings and loan associations, thrift institutions, thrifts Thrifts are mainly concerned with lending. Historically, they have made mortgages more accessible to the working and middle classes by offering longer mortgage terms and lower interest rates than commercial banks. As many banks have consolidated, fewer traditional thrift banks are found in the U.S. today. Cleveland-based Third Federal Savings & Loan is one example. How Thrift Banks Work Thrift banks operate similarly to traditional banks: They offer consumer accounts, including checking and savings, as well as debit and credit cards, certificates of deposit, and personal and auto loans....

A V-shaped recovery usually characterizes a recovery after a recession caused by a one-time shock. As a consumer, business-owner, investor, or other participant in the economy, it helps to understand how a V-shaped recovery works. Definition and Example of a V-Shaped Recovery A V-shaped recovery is a quick, sharp improvement in an economy that occurs after a quick, sharp decline. This usually occurs after a one-time shock to the economic system, such as a terrorist attack or a natural disaster....

What Is an Assistant Vice President? An assistant vice president is typically one rung below the vice president in much of the financial services industry. It’s a relatively common role within brokerage, securities, and investment banking firms and academic institutions. The responsibilities of assistant vice presidents vary depending on the firm they’re working with. Typical duties might include screening new management hires, overseeing departmental promotions, and analyzing the performance indicators that their superiors rely on....

An exchange rate tells you the value of your currency in another currency. Think of it as the price being charged to purchase that currency. For example, in June of 2022, 1 euro was equal to 1.05 U.S. dollars, and 1 U.S. dollar was equal to 0.95 euro. Exchange rates indirectly affect many aspects of your life, from the cost of groceries to interest rates and employment opportunities. Definition and Examples of Exchange Rates When determining a particular country’s exchange rate for your currency, there are a few factors to think about....

Alternate names: driver exclusion, named driver exclusion Usually, everyone in your household who can legally drive can be included on your auto insurance, but if you have a risky or problem driver at home, having them on your plan can cause your rates to go up. Drivers who have a lot of accidents or moving violations cost insurance companies more in payouts and coverage. So it’s a bigger risk for the insurance company to cover them....

Jose Luis Pelaez Inc / Getty Images Alternate name: Mortgage margin As you’re shopping around for a mortgage, pay attention to both the index and the margin offered by each lender. Choosing a lender that offers a lower margin means you may pay less overall interest on your ARM. For example, let’s say you’re looking to take out a 30-year ARM for $300,000. If the first lender you speak with offers a margin of 2% and an index of 5%, the fully indexed rate is 7%....

How Much Is Backup Withholding and When Does It Apply? Businesses and financial institutions withhold a flat 24% of income as backup withholding for those taxpayers who are subject to the rule. It might apply to you if: You failed to provide an accurate taxpayer identification number (TIN) to the payer. This is often a Social Security number.The IRS notifies the payer that the TIN you provided isn’t correct.You under-reported interest or dividends on income tax returns in the past....

You may also be able to buy a children’s term rider with your own policy that can provide a small amount of coverage to all your children. Often, the rider can be converted to a permanent policy when the child becomes an adult. Child life insurance is usually available for children as young as 14 days old and can extend into a child’s mid-20s. As an example, a parent might add a child to their family policy under a children’s term rider....

Let’s look at how different types of insurance policies define coverage territory. What Is Coverage Territory? Many insurance policies limit coverage to events that occur in a certain geographic area. The area in which coverage applies is often called the coverage territory. This term has somewhat different meanings under general liability, commercial auto, commercial property, and workers compensation policies. How Coverage Territory Works General Liability Policies The standard Insurance Services Office (ISO) commercial general liability form (CGL) provides three coverages:...

It’s issued to people who received distributions from one of these education programs during the year, or in some cases, to account owners. Example of Form 1099-Q Let’s say that a parent set up a 529 plan for their child years ago. In 2022, the child attended college and the 529 plan made a distribution that the child used to pay for their tuition. In this case, the 529 plan administrator would issue a Form 1099-Q to the child....