An account that is set up as part of your investment portfolio
that you have given your investment manager control over so they
can buy and sell securities on your behalf.
Occurs when the value of an asset falls below the
agreed loan to
valuation ratio. The lender will ask the borrower to
deposit enough money to bring the loan back to the agreed lending
The highest rate of tax a taxpayer will pay on their income.
Find out your marginal tax rate.
A statistical measure of change in the value of a market, asset
class or industry sector. The value of an index increases or
decreases with changes in the value of the underlying security or
sector it's measuring. For example, the ASX All Ordinaries Index
measures the change in the overall value of 500 largest
companies by market capitalisation listed on the Australian
A group of companies that produce or buy and sell such similar
goods that they are in competition with each other. Examples
include the mining, retail and technology sectors.
A pooled investment scheme where the value of the investment
depends on the movements of a particular market.
Allows individual investors to pool their funds so that they can
invest in a wide choice of investments, usually at wholesale
prices. Typically used by financial planners for reporting
convenience. Also known as an investment
platform or wrap account.
The date on which a debt or investment and all
outstanding interest payments must be paid in
A hybrid of debt and equity financing that is typically
used to finance the expansion of existing companies or build
development projects. It is usually debt capital that gives
the lender the right to convert to an ownership or equity interest
in the company if the loan is not paid back in time and in full.
This type of investment tends to be high risk and suitable only for
The lowest amount that must be paid each month on a debt such as
a loan or credit card.
A license, permit or lease providing rights to explore for
and/or extract minerals under the surface of an area of land.
Internet access from mobile phone providers.
A description of the services a mobile phone company will give
you, what they will charge you and how you will pay.
When one individual or entity asks another to send them money.
See also advance fee fraud.
A form of security (usually over real estate) that
is used to secure repayment of a debt (usually a home loan).
A person who matches borrowers to lenders and arranges mortgage contracts between the two
A type of investment fund where investors' money is on lent (as
mortgage loans) to a range of borrowers who use the money to buy or
develop properties. It might also be used for other investments
(for example, investing in other mortgage funds). In return the
fund manager promises to pay investors a regular income.
A scheme that invests in mortgage loans or in
companies that lend money for mortgages.
An investment in a collection of loans for which the lender
holds a mortgage over the property the loan was used to purchase.
The loans are written by a financial institution, then sold to an
intermediary, who packages (or securitises) the loans into
different groups, based on their level of risk. The packaged group
of loans is then offered to investors.
Someone who lends money in a mortgage
When a mortgagee sells a property to recoup their costs because
a mortgagor defaults on their repayments.
Someone who borrows money in a mortgage
Last updated: 29 Jul 2015