Operational Risk Financial Glossary

What is it?

Finance Term Definition Added By: Emma

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Other Similar Finance Terms:

Financial Term Mortgage Payment Protection Insurance is (MPPI) is insurance which - depending on the type of cover requested - provides you with a means of continuing to pay your mortgage in the event of you losing your job or becoming incapable of working due to sickness or accident. This, like Income Protection Insurance, can give you peace of mind, particularly with current limited social security (DSS) support for distressed mortgage payers.

Financial Term Broker is Short for stockbroker, but can refer to any intermediary selling financial products.

Financial Term Reinsurance is The practice whereby one insurance company transfers part or all of the risk it has accepted to another insurance company (the reinsurer).

Financial Term Variable Interest Rate is Variable interest rates change over time. They are calculated by taking the published prime rate (which varies) and adding a fixed percentage or margin on top. For example, a variable rate may be the prime rate plus 3.9 percent.

Financial Term preferred stock is A type of equity or capital representing shares of ownership in a corporation. May or may not receive distributions of corporate income in the form of dividends. Has a higher priority claim to corporate earnings or assets than common stock but lower priority than corporate debt. A corporation may issue more than one class of preferred stock with differing priority status such as first or second preferred. Often preferred stock issues have a defined dividend payment rate as long as there are sufficient corporate earnings to distribute.