Finance Dictionary

The 25% Rule is a guideline used in real estate investing to determine the maximum amount of money that should be spent on a rental property. The rule states that…

A 457 plan is a type of non-qualified deferred compensation retirement plan that is sponsored by a state or local government, or by some non-governmental employers such as non-profit organizations.…

A 401(k) plan is a type of retirement savings plan that is sponsored by an employer. It is named after the section of the U.S. tax code that governs it.…

A 403(b) plan is a type of defined contribution retirement plan that is similar to a 401(k) plan. It is named after the section of the U.S. tax code that…

A 2-1 buydown loan is a type of mortgage loan in which the interest rate is temporarily reduced for the first two years of the loan term. This is typically…

A 412(i) plan is a type of defined benefit pension plan. It is designed for small business owners and self-employed individuals, and is named after the section of the Internal…

A 501(c) organization is a type of nonprofit organization in the United States. The name refers to the section of the Internal Revenue Code that defines these organizations and sets…

An 8-K is a form that publicly traded companies are required to file with the Securities and Exchange Commission (SEC) to disclose certain material events that may be of interest…

A 501(c)(3) organization is a type of non-profit organization that is exempt from federal income tax under section 501(c)(3) of the Internal Revenue Code. These organizations are considered to be…

"60-plus delinquencies" refers to a category of delinquent loans that are at least 60 days past due. This is a common measure of credit risk, as loans that are significantly…