What Is Finality of Payment? In finance, the term “finality of payment” refers to the moment at which funds, recently transferred from one account to another, officially become the legal property of the receiving party. Key Takeaways Finality of payment is the moment at which recently transferred funds become the legal possession of the receiving
What is a Final Prospectus A final prospectus is the final version of a prospectus for a public offering of securities. This document is complete in all details concerning the offering and is referred to as a “statutory prospectus” or “offering circular.” BREAKING DOWN Final Prospectus A final prospectus is the primary source for investors
What Is a Final Return for Decedent? A final return for decedent is an income tax return that has been filed for an individual in the year of that taxpayer’s death. Taxpayers who die in any given year must have one final tax return submitted to the IRS on their behalf to account for any
What Is Finance? Finance is a term for matters regarding the management, creation, and study of money and investments. It involves the use of credit and debt, securities, and investment to finance current projects using future income flows. Because of this temporal aspect, finance is closely linked to the time value of money, interest rates
What Is a Finance Charge? A finance charge is a fee charged for the use of credit or the extension of existing credit. It may be a flat fee or a percentage of borrowings, with percentage-based finance charges being the most common. A finance charge is often an aggregated cost, including the cost of carrying
What Is a Financial Cooperative? A financial cooperative (co-op) is a type of financial institution that is owned and operated by its members. The goal of a financial cooperative is to act on behalf of a unified group to offer traditional banking services. These institutions attempt to differentiate themselves by offering above-average services along with
What Is a Financial Plan? A financial plan is a document that details a person’s current financial circumstances and their short- and long-term monetary goals. It includes strategies to achieve those goals. A financial plan can help you to establish and plan for fundamental needs, such as managing life’s risks (e.g., those involving health or
What Is the Financial Sector? The financial sector is a section of the economy made up of firms and institutions that provide financial services to commercial and retail customers. This sector comprises a broad range of industries including banks, investment companies, insurance companies, and real estate firms. Key Takeaways The financial sector is a section of the economy made
What Is Financial Accounting? Financial accounting is a specific branch of accounting involving a process of recording, summarizing, and reporting the myriad of transactions resulting from business operations over a period of time. These transactions are summarized in the preparation of financial statements, including the balance sheet, income statement and cash flow statement, that record
What Is a Financial Advisor? A financial advisor provides financial advice or guidance to customers for compensation. Financial advisors (sometimes spelled as advisers) can provide many different services, such as investment management, tax planning, and estate planning. Increasingly, financial advisors are acting as a “one-stop-shop” by providing everything from portfolio management to insurance products. Registered
