WELCOME BACK GAINERS! COMMERCEGAIN IS BACK AGAIN WITH KNOWLEDGEABLE BLOG ON “TOP 4 FINANCE TERMS THAT EVERYONE MUST KNOW!”

4. NET WORTH:

  • An individual’s net worth is just the worth that’s left after subtracting liabilities from assets.

  • Net worth is that the value of everything you own.

  • The resulting net worth number helps you’re taking the heart beat of your overall financial health.

  • Net worth acts as an indicator of your financial health.

  • Net worth is that the value of all the non-financial and financial assets owned by a private or institution.

3. REBALANCING:

  • Rebalancing may be a standard practice in any portfolio.

  • It’s the method of bringing your stocks and bonds back to your required percentages.

  • Rebalancing is that the process of reorienting the weightings of a portfolio of assets.

  • It involves periodically buying or selling of assets during a portfolio.

  • In order to take care of an ingenious or desired level of asset allocation or risk.

  • There are several intrigues for REBALANCING.

  • Like, calendar-based, corridor-based, or portfolio-insurance based.

  • Rebalancing your portfolio—buying or selling asset classes to revive your portfolio.

  • To your original target allocation—is a crucial step in controlling risk.

2. FICO SCORE:

  • It is a credit score made by the Fair Isaac Corporation (FICO).

  • Lenders use borrowers’ FICO scores along side other details on borrowers’ credit reports.

  • In order to assess credit risk and determine whether to increase credit.

  • In general FICO score range is between “300 and 850.”

  • Scores in the “670 to 739” range indicate “good” credit history.

  • Mortgagor within the 580 to 669 range may find it difficult to get financing at attractive rates.

  • Achieving a high FICO score requires having a mixture of credit accounts.

  • And also maintaining a superb payment history.

1. COMPOUND INTEREST:

  • Compound interest is interest on the quantity of cash you’ve got deposited or borrowed.

  • When you’re investing or saving, interest is earned on the quantity you deposited.

  • And, plus any interest you’ve accumulated over time.

  • However, when you’re borrowing, compound interest is charged on the original amount you were loaned.

  • And also the interest is  charged which is added to your outstanding balance over time.

  • Compound interest is that the addition of interest to the principal of a loan or deposit.

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