September 16, 2015
Fall Commercial Bank Management Section: OL1
SEC (Securities and Exchange Commission) Summary
SEC (Securities and Exchange Commission) is a government commission created by
Congress to regulate the
Personal financial advisors typically do the following:
Meet with clients in person to discuss their financial goals
Explain the types of financial services they provide to potential clients
Educate clients and answer questions about investment options an
Major Medical Insurance - This covers many out-of-hospital costs. It may also extend your
basic policy and any additional days of hospital care.
Marketing - To make goods available to buyers in a planned way which encourages people to
buy more of them.
Financial analysts typically do the following:
Recommend individual investments and collections of investments, which are known as
Evaluate current and historical data
Study economic and business trends
Study a companys financial statements to
Economic Conditions - Consumer prices (inflation), consumer spending, and interest rates.
Economic Reasoning - Making decisions by comparing costs and benefits.
Economy - Consists of the ways in which people make, distribute, and use their goods and
Career - A life-work chosen by a person to use personal talent, provide some service or goods,
earn money, and contribute to society.
Career Plan - Outlines the steps you need to take to reach your career goal.
Catastrophic Health Insurance - Often includ
Loan Management and Student Loan Consolidation
Your student loans are a serious financial obligation that must be repaid. In addition, to the
amount that you borrow (the principal); you will also be charged interest for the use of the loan
AAdvertising - To make something known generally or in public, especially in order to sell it.
Affinity Fraud - A scam that targets members of a certain demographic.
Amortization - Payment of a portion of the principle of a mortgage loan, reducing or amor
Financial managers typically do the following:
Prepare financial statements, business activity reports, and forecasts
Monitor financial details to ensure that legal requirements are met
Supervise employees who do financial reporting and budgeting
Operating assets are longlived assets that are used in normal
business operations. They are not held for resale to customers.
Investments in operating assets are essential to the success of
most businesses. There are three major categories of operating
The cost of property, plant, and equipment includes the purchase
price of the asset and all expenditures necessary to prepare the
asset for its intended use.
Land. Land purchases often involve real estate commissions,
legal fees, bank fees, title search f
Companies sometimes need cash before customers pay their
account balances. In such situations, the company may choose to
sell accounts receivable to another company that specializes in
collections. This process is called factoring, and the company that
A similar entry would be made to record amortization expense for
each type of intangible asset. The entry would include a debit to
amortization expense and a credit to the accumulated
amortization or intangible asset account.
Copyrights. Companies amortiz
Owning a business can be one of the most rewarding and
satisfying ways of meeting financial goals and ensuring that a
persons future is secure and fulfilling. Todays economy yields
many opportunities to people with different skills and strengths.
One of t
Intangible assets include patents, copyrights, trademarks, trade
names, franchise licenses, government licenses, goodwill, and
other items that lack physical substance but provide longterm
benefits to the company. Companies account for intangible assets
Tellers typically do the following:
Count the cash in their drawer at the start of their shift
Accept checks, cash, and other forms of payment from customers
Answer questions from customers about their accounts
Prepare specialized types of funds, such as
Debt the sum of money or obligations you owe
Deductible the amount that the indivual must pay before the insurance company pays its share
Defaulting on a loan not repaying a loan as promised
Donation money given to charity
Down payment a percent of the pu
stock - owning a small part of a company or a stock "share" of the company (See Wikipedia)
bond - a formal contract to repay borrowed money with interest at fixed intervals, a paper
certificate is issued much like a stock certificate (See Wikipedia)
401(k) a savings plan for retirement
APR Annual Percentage Rate for interest paid on a card
APY Annual Percentage Yeild describes interest paid to a savings account or certificate
Assets what you own or have paid for
ATM Automated Teller Machine where and
A.T.M. Automated Teller Machine; cash dispenser
Banknote-Piece of paper money.
bitcoin Digital currency which allows payments to be sent from one party to another without
going through a financial institution.
borrow Obtain money which must be returned.
Joint Account An account held between two or more individuals and grants each person who
signs the signature card all the rights and privileges attached to the account
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Checkbook Contains checks that are used for making payments in
Minimun Hourly Wage a dollar amount per hour established by the government that defines the
leastamount all employers must pay their employees
Minimum Payment the least amount you may pay each month on a credit card charge account
Mortgage a special loan
Depreciable assets are disposed of by retiring, selling, or
exchanging them. When a depreciable asset is disposed of, an
entry is made to recognize any unrecorded depreciation expense
up to the date of the disposition, and then the asset's cost and
Depreciation is the process of allocating the cost of longlived
plant assets other than land to expense over the asset's
estimated useful life. For financial reporting purposes, companies
may choose from several different depreciation methods. Before
borrow the opposite of lend
interest a monthly fee on borrowed money
debt What you have if you borrow money
credit limit the maximum you can borrow on your credit card
mortgage a house loan
ATM a cash machine
credit card VISA or MasterCard
checking A bank account you use to pay everyday expenses
teller a bank employee
gross income before you pay taxes
withdraw take money out of the bank
payment borrowed money that you pay back at a regular interval
deposit put money in the bank
Account Number Identifies a specific bank account
Signature Card Verification of the ownership of an account
Individual Account An account that has only one holder
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Joint Account An account held between t
Service Charge A fee charged by a bank for services rendered
Outstanding Check A check that has not been received by the bank
Outstanding Deposit A deposit that has not been received by the bank
Overdraft Writing a check for more money than is in your acc