guide to lease buy invest

Early withdrawal
If you withdraw assets from a fixed-term investment, such as a certificate of deposit (CD), before it matures, or from an individual retirement account (IRA) or tax-deferred retirement savings plan before you turn 59 1/2, it is generally considered an early withdrawal.

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Earned income
Your earned income is pay you receive for work you perform, such as salaries, wages, tips, and professional fees. Your earned income is included in your adjusted gross income (AGI), along with unearned income from interest, dividends, and capital gains. If you have earned income, you're eligible to contribute to an individual retirement account (IRA).

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Earnings
From a corporate perspective, earnings are profits, or net income, after the company has paid income taxes and bond interest. In the case of an individual, earnings include salary and other compensation for work you do as well as interest, dividends, and increases in the value of your investments.

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Economic indicator
Economic indicators are statistical measurements of current business conditions. Changes in leading indicators, including those that track factory orders, stock prices, the money supply, and consumer confidence, forecast short-term economic strength or weakness. In contrast, lagging indicators, such as business spending, bank interest rates, and unemployment figures, move up or down in the wake of changes in the economy.

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Electronic communications network (ECN)
An ECN is an alternative securities trading system that collects, displays, and executes orders electronically without a middleman (such as a specialist or market maker). Trading on an ECN allows institutional and individual investors to buy and sell anonymously. Further, ECNs facilitate extended, or after-hours, trading.

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Emerging market
Countries in the process of building market-based economies are broadly referred to as emerging markets, though there are major differences among the countries included in this category. Some emerging-market countries, including Russia, have only recently relaxed restrictions on a free-market economy. Others, including Indonesia, have opened their markets more widely to overseas investors, and still others, including Mexico, are expanding industrial production. , Their combined stock market capitalization is less than 3% of the worldwide total.

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Employer sponsored retirement plan
Employers may offer their employees either defined benefit or defined contribution retirement plans, or they may make both types of plans available. Any employer may offer a defined benefit plan, but certain types of defined contribution plans are available only through specific categories of employers. For example, 403(b) plans may be offered only by tax-exempt, not-for-profit employers, 457 plans only by state and municipal governments, and and SIMPLE plans only by employers with fewer than 100 workers.

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Equity
In the broadest sense, equity means ownership. If you own stock, you have equity in, or own a portion however small of the company that issued the stock. Having equity is the opposite of owning a bond or commercial paper, which is a debt the company must repay to you.

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Equity fund
Equity mutual funds invest primarily in stocks. The stocks a fund buys whether in small, up-and-coming companies or large, well-established firms depends on the fund's investment objectives and management style. The general approach is implied by the fund's name or the category to which it belongs, such as large-cap growth or small-cap value. However, a fund's manager may have the flexibility to invest more broadly to meet the fund's objectives.

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Escrow
When someone else holds assets of yours, such as money, securities, real estate, or even a deed, until the terms of a contract or an agreement are fulfilled, your assets are said to be held in escrow. The person or organization that holds the assets is the escrow agent, and the account in which they are held is an escrow account.

Escrow | Details |

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