| Window Dressing |
| A strategy used by mutual fund and portfolio managers near the year or quarter end to improve the appearance of the portfolio/fund performance before presenting it to clients or shareholders. To window dress, the fund manager will sell stocks with large losses and purchase high flying stocks near the end of the quarter. These securities are then reported as part of the fund's holdings. |
| Sweep Account |
| A bank account that automatically transfers amounts that exceed (or fall short of) a certain level into a higher interest earning investment option at the close of each business day. Commonly, the excess cash is swept into money market funds. |
| Value Added Reseller (VAR) |
| Third-party vendor that enhances or modifies existing hardware or software, adding value to the services provided by the processor or acquirer. |
| Universal Life Insurance |
| A type of flexible permanent life insurance offering the low-cost protection of term life insurance as well as a savings element (like whole life insurance) which is invested to provide a cash value buildup. The death benefit, savings element and premiums can be reviewed and altered as a policyholder's circumstances change. In addition, unlike whole life insurance, universal life insurance allows the policyholder to use the interest from his or her accumulated savings to help pay premiums. |
| Sight Letter of Credit |
| A letter of credit that is payable once it is presented along with the necessary documents. These letter of credits require a more stringent process of verification. |
| Irrevocable Letter Of Credit |
| A letter of credit that can't be canceled. This guarantees that a buyer's payment to a seller will be received on time and for the correct amount. This is often used in international transactions. |
| Standby Letter of Credit - SLOC |
| A guarantee of payment issued by a bank on behalf of a client that is used as "payment of last resort" should the client fail to fulfill a contractual commitment with a third party. Standby letters of credit are created as a sign of good faith in business transactions, and are proof of a buyer's credit quality and repayment abilities. The bank issuing the SLOC will perform brief underwriting duties to ensure the credit quality of the party seeking the letter of credit, then send notification to the bank of the party requesting the letter of credit (typically a seller or creditor). |
