On a basic level, these forks arise out of different perspectives on transaction history, which can happen due to delays in the system. As Bitcoin became more and more popular, the blockchain technology it was built on slowed down, resulting in the entire system becoming unreliable and the transaction fees getting more expensive. Because of this slowdown, Bitcoin needed to create a solution that would scale as more users bought and sold the product....
Some deposits may take more time to clear than others, especially if the originating bank is different from the receiving bank. However, once your bank has cleared the funds, they immediately become available for you to either withdraw or use. Banks and credit unions have the option to clear funds sooner than the federally stated guidelines. However, until the funds are cleared, they are considered pending. That means you will not be able to withdraw or use that money for any financial transactions while the deposit is still pending....
Is this legal? Are businesses allowed to charge a convenience fee to customers who just want to use their credit cards? In short, yes. But the specifics are governed by credit card network policies and state laws. Definition and Examples of Credit Card Convenience Fees A convenience fee is a fee that a business charges customers who use credit cards via a specific payment channel rather than a payment channel that’s standard for the business....
PhotoAlto / Getty Images Automobile companies are classic cyclical stocks. When the economy is good and people are working, car sales do well. When economic uncertainty abounds, layoffs occur, unemployment rises, and people may decide to hold off on new purchases. How Cyclical Stocks Work Businesses expand during good economic times. They buy new equipment, build new facilities, and have money to invest in research and development. Equipment sales, construction, real estate, and technology companies are cyclical stocks....
In some scenarios, friction costs can be non-monetary. For example, additional time spent to complete a transaction can be a cost. Learn what friction costs look like and how they can affect your investment decisions. Definition and Example of Friction Costs A friction cost is a cost someone pays as a part of completing a financial transaction. Friction costs can be monetary or non-monetary. In short, they include anything that interferes with a trade or completing transactions....
Alternate name: International mutual funds, international stock funds A report by Vanguard states that non-U.S. companies represent around half of the global market capitalization. International funds offer investors opportunities to diversify their portfolios and capitalize on growth in markets throughout the globe. However, they carry greater risk than most domestic investments, due to factors such as exchange rates, political unrest, and different levels of liquidity. How International Equity Funds Work Owning international equities may help boost your returns....
Alternate definition: A limited common element refers to a portion of a condominium’s common elements. It is allocated in the condo declaration, the legal document that establishes condo ownership and property rules. Limited common elements can vary, but they always will be listed in the condo declaration. Examples include balconies, parking spaces, porches, patios, or even exterior doors and windows. So, for example, all residents with units on the second and higher floors of a condo building may share the limited common element of balconies, while the ground-floor units might share a patio area....
Changes in political, economic, and even weather issues can affect the prices of commodities. Indeed they rise and fall often. There are many ways to make money on the volatility in commodities markets, but it takes a special skill. Also, only a select number of these assets can be accessed by the public for direct investment. Here you’ll learn more about what commodities are, how they are traded, and the many ways you can invest in this core market....
Learn how bank cards work, what types there are, and available alternatives. Definition and Example of a Bank Card Banks are payment cards that banks issue to customers. This type of card can include debit, ATM, and credit cards. Alternate names: Debit card, ATM card A good example of a bank card is a debit card your bank issues when you open a checking account. When you use your debit card to make a payment, the bank deducts the transaction amount from your linked account....
From the insurance company’s perspective, any driver who has committed moving violations and received tickets is a higher risk. Higher-risk drivers are more likely to file insurance claims. For example, if you have filed multiple claims for accidents where you were at fault, your insurance company might flag you as a higher risk, and as a result, it might temporarily add a surcharge to your monthly premium until you have shown that you are no longer a higher-risk customer....
Alternate names: Holiday club account, holiday savings account, Christmas savings account You can open a Christmas club account at a bank or credit union at the beginning of the year, preferably in January. You’ll then make consistent payments that can be weekly, bi-weekly, or monthly, and they can come directly from your paycheck. It all depends on your budget and preferences. Not every financial institution offers Christmas club accounts, so you may have to shop around to find one that meets your needs....
If you want to invest in cryptocurrency or non-fungible tokens (NFTs), or use any other blockchain-based service, then you need a cryptocurrency wallet. Keep reading to learn how crypto wallets work, and how you can use one to get started as a cryptocurrency investor. Definition and Example of a Cryptocurrency Wallet A cryptocurrency wallet is the digital equivalent of a physical wallet that you carry in your pocket. But instead of holding dollars and credit cards, a cryptocurrency wallet stores the information required to access digital assets like Bitcoin, Ethereum, Dogecoin, or another type of cryptocurrency....
Discover cards are widely accepted along with Visa, Mastercard, and American Express, and they consistently top consumer satisfaction surveys. Definition and Example of Discover Cards Discover Financial Services includes a digital banking segment and the processing network segment (Discover Network). “Discover card” refers to one of several consumer credit cards issued by Discover Bank, the digital banking segment. Discover cardholders can use their cards to make purchases and pay the balance off over time with interest....
The details of the task being billed for are laid out within the agreement, such as how and when the service will be paid for, when it will be performed, and when the implied contract will be terminated or deemed fulfilled. You might charge a blanket fee for the task, or by the hour for your time spent performing and completing that task. Fee for service agreements can be appropriate for non-arm’s-length transactions, according to Chuck Vander Stelt, a licensed real estate agent and broker in Valparaiso, Indiana, and founder of real estate website Quadwalls....
For example, in the state of New York, the government can freeze your bank account if you’re more than two months behind on child support, you owe more than $300, and you haven’t made any payments in the past 45 days. To unfreeze your account, you must pay the amount or file a claim proving exemption or error within 15 days. How Does a Frozen Account Work? You can still add money to a frozen account, but you can’t take money out of it until you meet all the requirements to unfreeze it....
Lessees sign an agreement with the owner—known as the lessor—that lays out the terms of the agreement to rent the property. That typically includes the cost to lease the property, how the payments will be made, how often the lessor will be paid, and the length of time the lessee will have access to the property (a start and end date). When you sign a lease with another party it becomes legally binding—you’ll need to keep whatever terms you’ve agreed to in the lease....
Generally, if a taxpayer’s activity is subject to the passive activity loss rules, they will not be permitted to deduct any loss from that activity on their tax return. Instead, that loss is considered a passive activity loss that is disallowed in the current year and is carried forward to future tax years. How Material Participation Tests Work for Trade or Business Activities In general, a taxpayer’s trade or business activity is passive and their losses in that trade or business are limited by the passive activity rules, unless the taxpayer materially participates in that activity by satisfying any one of the seven material participation tests, which we’ll review in more detail below....
Alternate definition: A person who receives and manages Social Security or Supplemental Security Income (SSI) payments on behalf of a person who is incapacitated is a representative payee. How to Identify a Payee You typically encounter payees when banking. On a check, the payee is the person or organization to whom the check is written. For online payments, you provide payee (or recipient) information when setting up automatic transfers. Paper Checks When using checks, the payee’s name goes on the line that says, “Pay to the order of....
For instance, if you take out a personal loan, some lenders will charge a one-time origination fee. This fee covers the cost of processing the loan, and the exact amount can vary depending on your lender. However, most origination fees cost between 0.5% and 1% of the entire loan amount. That means if you take out a personal loan for $20,000, you could end up paying an origination fee between $100 and $200....
How a Revocable Living Trust Works A trust is a legal entity that’s specifically created to hold an individual’s or a family’s assets and property. A living trust is an empty vessel until the trustmaker transfers ownership of those assets and property into the name of the trust and its trustee. This process is referred to as “funding” the trust. Unlike an irrevocable trust, the trustmaker reserves the right to undo or modify a revocable trust, thus the term “revocable....
