Glossary
Estate Tax
Federal and/or state taxes that may be levied on the assets of a deceased person upon his or her death. These taxes are paid by the deceased person’s estate rather than his or her heirs.
Exchange-Traded Funds (ETFs)
A share of an investment company that owns a block of shares selected to pursue a specific investment objective. ETFs trade like stocks and are listed on stock exchanges and sold by broker-dealers. Exchange-traded funds are sold only by prospectus. Please consider the charges, risks, expenses, and investment objectives carefully before investing. A prospectus containing this and other information about the investment company can be obtained from your financial professional. Read it carefully before you invest or send money.
Executive Bonus Plan
An executive benefit paid for by an employer.
Executor
A person named by a will or appointed by the probate court to distribute the deceased’s assets as directed by the will or, in the absence of a will, in accordance with the probate laws of the state.
Federal Income Tax Bracket
A series of income ranges within which a taxpayer’s income is taxed at a certain rate. Taxpayers pay the tax rate in a given bracket only for that portion of their overall income that falls within the bracket’s range.
Federal Reserve System (The Fed)
The United States’ central bank. The Federal Reserve System consists of a series of 12 independent banks that operate under the supervision of a seven-member, federally appointed board of governors. The Fed strives to maintain maximum employment, stable price levels, and moderate long-term interest rates. It establishes and enforces the regulations banks, savings and loans, and credit unions must follow. It also acts as a clearing house for certain financial transactions and provides banking services to the federal government.
Financial Aid
Loans, grants, scholarships, and work-study programs provided by federally and privately funded sources to enable students to attend college.
Financial Industry Regulatory Authority (FINRA)
FINRA is an independent regulator that oversees all securities firms doing business in the U.S. FINRA seeks to protect investors by making sure the securities industry operates fairly and honestly.
Financial Statement
A formal record of the financial activities of a business, person, or other entity. For a business, financial statements typically include a balance sheet, a profit and loss statement, and a cash flow statement.
First-to-Die Life Insurance
Joint life insurance taken out on the lives of two or more people that pays its death benefit when the first insured person dies.
Clarity Starts Here
Not sure what a financial term means? We’re here to answer your questions and help you make informed decisions with confidence.
