Finance Abbreviations MCQ questions and answers | GK Abbreviations

Annual financial statements are financial reports based on a 12 month consecutive time period. The most common set of financials are based on the calendar year, but they can also be based on a company's fiscal year.

An NCND, also called a non-circumvention/non-disclosure agreement, is used in the early stages of a business agreement. It is commonly used when the buyer and seller aren't familiar with each other but have been connected by a broker or middleman to make a transaction. An NCND agreement makes sure that the brokers or intermediaries aren't left out of the transaction. In other words, it is an agreement to protect the broker in case the buyer and seller want to pursue the deal but leave the broker out of it.

An individual retirement account (IRA) is a savings account with tax advantages that individuals can use to save and invest long term.

An exchange traded fund (ETF) is a type of security that tracks an index, sector, commodity, or other asset, but which can be purchased or sold on a stock exchange the same way a regular stock can. An ETF can be structured to track anything from the price of an individual commodity to a large and diverse collection of securities. ETFs can even be structured to track specific investment strategies.

An available-for-sale security (AFS) is a debt or equity security purchased with the intent of selling before it reaches maturity or holding it for a long period should it not have a maturity date. Accounting standards necessitate that companies classify any investments in debt or equity securities when they are purchased as held-to-maturity, held-for-trading, or available-for-sale.

An automated teller machine (ATM) or cash machine (in British English) is an electronic telecommunications device that enables customers of financial institutions to perform financial transactions, such as cash withdrawals, deposits, funds transfers, balance inquiries or account information inquiries, at any time and without the need for direct interaction with bank staff.

An authorized dealer is an individual or company authorized by a manufacturer to sell its products. This dealer has a franchise to represent a well-established brand and distribute its products.

An adjustable-rate mortgage (ARM) is a type of mortgage in which the interest rate applied on the outstanding balance varies throughout the life of the loan. With an adjustable-rate mortgage, the initial interest rate is fixed for a period of time. After that, the interest rate resets periodically, at yearly or even monthly intervals.

A tax-sheltered annuity (TSA) is a retirement savings plan that allows employees of tax-exempt organizations and self-employed people to invest pretax dollars to build retirement income. Tax-sheltered annuities are designed to provide consistent payouts over time and act as a reliable source of income in retirement.

A systematic investment plan (SIP) is a plan in which investors make regular, equal payments into a mutual fund, trading account, or retirement account such as a 401(k). SIPs allow investors to save regularly with a smaller amount of money while benefiting from the long-term advantages of dollar-cost averaging (DCA).