Glossary

Asset:  An asset is a resource with economic value that an individual, corporation, or country owns or controls with the expectation that it will provide a future benefit.

Automated Clearing House (ACH): The Automated Clearing House (ACH) is an electronic funds-transfer system that facilitates payments in the U.S.

Blockchain: A blockchain is a distributed database or ledger that is shared among the nodes of a computer network. As a database, a blockchain stores information electronically in digital format. As new data comes in, it is entered into a fresh block. Once the block is filled with data, it is chained onto the previous block, which makes the data chained together in chronological order. Different types of information can be stored on a blockchain, but the most common use so far has been as a ledger for transactions.

Capital: The capital of a business is the money it has available to pay for its day-to-day operations and to fund its future growth. The four major types of capital include working capital, debt, equity, and trading capital. 

Due Diligence: Due diligence is a systematic way to analyze and mitigate risk from a business or investment decision. An individual investor can conduct due diligence on any stock using readily available public information. 

Fiat Money: Fiat money is a government-issued currency that is not backed by a physical commodity, such as gold or silver, but rather by the government that issued it.

Finance: Finance is a term for matters regarding the management, creation, and study of money and investments. It involves the use of credit and debt, securities, and investment to finance current projects using future income flows. Finance can be divided broadly into three distinct categories: public finance, corporate finance, and personal finance. 

Initial Public Offering (IPO): An initial public offering (IPO) refers to the process of offering shares of a private corporation to the public in a new stock issuance. IPOs provide companies with an opportunity to obtain capital by offering shares through the primary market.

Know Your Customer (KYC): Know Your Client (KYC) are standards used in the investment and financial services industry to verify customers and know their risk and financial profiles.

Prospectus: A prospectus is a formal document that provides details about an investment offering to the public. The prospectus can help investors make more informed investment decisions because it contains a host of relevant information about the investment or security.

Bid: The term bid refers to an offer made by an individual or corporation to purchase an asset. A bid also refers to the price at which a market maker is willing to buy a security. But unlike retail buyers, market makers must also display an ask price.

Ask: The ask is the price a seller is willing to accept for a security, which is often referred to as the offer price. Along with the price, the ask quote might also stipulate the amount of the security available to be sold at the stated price.