Finance Definitions

Moving forward in our definitions series, we once again look at a stock definition: return on assets. This measurement, found in your stock of choice's financial ratios page, tells you a lot about the profit of the company. Let's look at this ratio a little closer.

Return on Assets Overview

If you're in the market for a home, you might have a few questions about the ins and outs of the mortgage world. Here at MomVesting, we've covered some basic mortgage topics already, but we have not yet tackled the second mortgage. So let's take a look at this sometimes integral portion of the home-buying process.

Open-Ended and Closed-End Loans

A while back, we started to give banking and bankruptcy the MomVesting "simple does it" treatment. That is, we started to look at banking and its terms in a pared down, basic light. Today, we continue what we started, this time focusing on secured and unsecured debts. Without further adieu, here is what you'll want to know about these important banking terms.

Secured Debts

Many people live with standard ownership titles to their bank accounts, like individual accounts or joint accounts. This is often perfect for the majority of account owners, but sometimes different kinds of bank accounts may fit your needs better than others. Let’s take a look at what each account entails.


When I first started investing in a 401(k), I was really confused by all of the options. Growth, aggressive growth, equity income, balanced…argh! I didn’t know the difference between any of them, and I had to make a choice fast. Thankfully, understanding the investment models in a 401(k) does not have to be as difficult as it first appears. Let’s take a look at the many different types of models.

What is an Allocation Model

When beginning to invest, terms like Cyclical Industry Investing can be a little off-putting to the unseasoned investor. However, the big term is not actually as difficult to understand as it may seem at first glance. Let’s take a look a little more closely at cyclical industry investing.

What is a Cyclical Industry?

Bankruptcy. Just seeing the word might induce a shudder at its implications. It's a topic that might not be on the top of your list to discuss, but it makes up a significant part of our financial culture. In an effort to keep financial terms in a simple, easy-to-digest format, we'll give bankruptcy and all of its connected points the "simple does it" treatment.

Debtor and Creditor

There’s a lot of talk these days about foreclosures and short sales in our poor housing market, and it can seem at first like these two words are interchangeable. Overall, both mean that the seller cannot afford payments on the house, and the home must be sold; so it’s tempting to lump them together. However, foreclosures and short sales are actually more different than they appear. Let’s look at both definitions in more detail.


When first investing in the stock market, there are many new financial terms. So many, in fact, that sorting through all of the new-to-you definitions can seem more than a little daunting. However, with a little time and determination, you can begin to discover exactly what some of these terms mean and how they can apply to your stock research and purchase plans. Let’s look at one of these definitions: the Interest Coverage Ratio.

What is Interest Coverage Ratio?

First off, let me tell you what a vested balance is not. It isn't coordinating an outfit so that a vest and shoulder pads are balanced and symmetrical. It also isn't a phase of my life during middle school in which vests made up a large balance of my wardrobe (come on, it was the late '80s!). In fact, as disappointing as it might sound, a vested balance really has nothing to do at all with any kind of a vest that you wear (insert disappointed sigh here).

Simply Put: Vesting Defined