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Q: what is the "retail lender"?

Category: glossary , Asked by: Julissa Q. From United States

A: A lender who lends money to individuals rather than institutions. Banks, credit unions, savings and loans institutions, and mortgage bankers are all examples of retail lenders. Retail lenders are used generally for lending money for mortgages, auto loans and consumer-finance loans. Retail lenders are either federally or state chartered and regulated as such. Retail lending sometimes comes under increased scrutiny during periods of increased borrower defaults. Some think that retail lenders should have a fiduciary responsibility to the individuals that they lend to. Others believe that borrowers should be financially educated enough to make wise borrowing decisions. Visit AVA FX

    please define the "razor - razorblade model"

    Category: glossary by Marisol G. From United States

    a "razor - razorblade model " is A business tactic involving the sale of dependent goods for different prices - one good is sold at a discount, while the second dependent good is sold at a considerably higher price. If you've ever purchased razors and their replacement blades, you know this business method well. The razors are practically free, but the replacement blades are extremely expensive. The video-game industry is another user of this pricing strategy. They sell the game consoles at a relatively low price, recouping the lost profits on the high-priced games.

    please define the "earned income credit"

    Category: glossary by L. G. From United Kingdom

    "earned income credit " is A tax credit for low-income workers. Even workers whose incomes are too small to have paid taxes can get EIC. This credit varies with family size, income and the number of children.

    please define "crummey power"

    Category: glossary by Steve S. From Klagenfurt, Austria

    A technique that enables a person to receive a gift that is not eligible for a gift-tax exclusion, and change it into one that is eligible. Crummey power is often applied to contributions in an irrevocable trust; often in respect to life insurance. In order for the Crummey power to work, the gift must be stipulated as being part of the trust when it is drafted and the gift cannot exceed $12,000 annually per beneficiary of the trust (among other requirements). This is how Crummey power works: When a donor makes a contribution to the irrevocable trust, the beneficiaries must be notified that the funds can be withdrawn within a certain time period (no less than 30 days). When the beneficiary does not withdraw the funds, they go back to the trust and are then subject to the annual gift tax exclusion. The donor will usually inform the beneficiary of his or her intentions to use the Crummey power, so that the beneficiary declines to withdraw the gift when given the opportunity. Crummey power is named after Clifford Crummey who wanted to build a trust fund for his sons, and be able to reap the yearly tax exemption benefits as well.

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    do you know what an "on-balance volume - oBV" is?
    the "on-balance volume - oBV " is A method used in technical analysis to detect momentum, the calculation of which relates volume to price change. OBV provides a running total of volume and shows whether this volume is flowing in or out of a given security. This indicator was developed by Joe Granville. OBV attempts to detect when a financial instrument (stock, bond, etc.) is being accumulated by a large number of buyers or sold by many sellers. Traders will use an upward sloping OBV to confirm an uptrend, while a downward sloping OBV is used to confirm a downtrend. Finding a downward sloping OBV while the price of an asset is trending upward can be used to suggest that the "smart" traders are starting to exit their positions and that a shift in trend may be coming. Visit Xforex

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