Page 120 - The Informed Fed--Hearn Wealth Management
P. 120
Commodity: A commodity is a physical substance such as a food or a
metal which investors buy or sell on a commodities exchange, usually via
futures contracts.
Common Stock: A security that represents ownership in a corporation.
Compounding: The computation of interest paid using the principal
plus the previously earned interest.
Conduit IRA: An individual who rolled over a total distribution from a
qualified plan into an IRA can later roll over those assets into a new
(a conduit).
Conforming loan: A mortgage loan that conforms to Federal National
Mortgage Association (FNMA) or Federal Home Loan Mortgage
Corporation (FHLMC) guidelines. Currently, conforming first
mortgages are under $275,000 ($413,000 in Alaska and Hawaii).
Consumer debt: Debt incurred for consumable or depreciating non-
investment assets. Items include credit card debt, store-financed
consumer purchases, car loans, and family loans that will be repaid.
Conventional mortgage: A conventional mortgage is not insured,
guaranteed or funded by the Veterans Administration, the Federal
Housing Administration, or Rural Economic Community Development.
Convertible Term Life Insurance: Term life insurance that can be
converted to a permanent or whole life policy without evidence of
insurability (is subject to time limitations).
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