What Is an Auto Enrollment Plan? An auto-enrollment plan is a retirement savings plan in which employees are automatically enrolled to contribute a certain amount of their salary each paycheck. Auto-enrollment plans don’t require the employee to take action or to explicitly consent to participate in an employer-sponsored retirement plan, like a 401(k). In such
What Is Automated Underwriting? Automated underwriting is a technology-driven underwriting process that provides a computer generated loan decision. The lending industry is broadly migrating to the use of new technology-driven loan underwriting platforms to improve the processing time for all types of loans. Key Takeaways Underwriting is the process of evaluating the risk involved with
What Is an Automatic Savings Plan? An automatic savings plan is a type of personal savings system in which the plan contributor automatically deposits a fixed amount of funds at specified intervals into their account. The typical structure of this type is an automatic transfer from an individual’s bank account into a savings or investment
What Is an Automatic Bill Payment? An automatic bill payment is a money transfer scheduled on a predetermined date to pay a recurring bill. Automatic bill payments are routine payments made from a banking, brokerage, or mutual fund account to vendors. Automatic payments are usually set up with the company receiving the payment, though it’s
What Is At Sight? At sight is a payment due on demand where the party receiving the good or service is required to pay a certain sum immediately upon being presented with the bill of exchange. This type of payment is also known as a “sight draft” or a “sight bill.” Key Takeaways At sight is
What Is Attachment? Attachment is a legal process referring to the action of seizing property in anticipation of a favorable ruling for a plaintiff who claims to be owed money by the defendant. At the request of a creditor, a court of law may transfer specific property owned by the debtor to the creditor (or
What Is Attained Age? Attained age is the age at which the beneficiary of an insurance policy or retirement plan (or another age-dependent plan) can receive benefits or withdraw funds. Attained age can be any age at which benefits are received. In some cases, the person may have to take action when they reach the attained
What Is an Attestation Service? An attest service, or attestation service, is an independent review of a company’s financial statement conducted by a certified public accountant (CPA). The CPA delivers an attestation report with conclusions about the reliability of the data. The standards for attestation services are developed and published by a professional services group
What Is At The Money (ATM)? At the money (ATM) is a situation where an option’s strike price is identical to the current market price of the underlying security. An ATM option has a delta of ±0.50, positive if it is a call, negative for a put. Both call and put options can be simultaneously
What Is an At-the-Opening Order? An at-the-opening order is an investor’s directive to her broker or brokerage firm to buy or sell a specific security in their account at the very beginning of the trading day. If the order cannot be executed at the opening of the stock market, it will be canceled. Key Takeaways
