What is Money? Money refers to any verifiable record that is accepted as a medium of exchange for payment of goods and services and repayment of debts in a specific country. Throughout history, governments adopted different forms of money, such as gold, silver, coins, and banknotes. The value of money is not necessarily derived from…
What is Money Flow? Money flow is a technical indicator used to assess the future movement of prices based on demand and supply. It is used to construct the difference between uptick and downtick dollar trading volume. Money flow, whether flowing in or out, indicates the current excess supply or demand. Traders determine whether the…
What is a Home Mortgage Interest Deduction? A home mortgage interest deduction is an itemized deduction that allows homeowners to deduct any interest on loans that are used to build, improve, or purchase their primary residence, and sometimes, second homes. Taxpayers are required to itemize their deductible mortgage interest on Form 1040 to claim mortgage…
What is a Home Office Expense? A home office expense refers to the costs incurred through the performance of business activities within a primary residence. When work performed in the home office produces outside income, the Internal Revenue Service allows business owners to make a tax deduction from the annual tax return if they meet…
What is a Home Warranty? A home warranty is a contract provided to the homeowner covering repairs and replacement services for a certain period of time. Home warranty requires a house buyer to comply with the maintenance schedule verified by periodic inspection from the contract’s date. It can be compared to a home insurance contract,…
What is a Home Equity Loan? A home equity loan is a type of consumer borrowing that allows homeowners to borrow and use personal equity in residential property as collateral. Such a type of loan is also known as a second mortgage or home equity installment. The loan amount is determined by the current market…
What is Hollowing Out? Hollowing out is a phrase used to describe conditions and trends in the economies of developed nations that are the result of many middle-class, blue-collar manufacturing jobs being outsourced to developing countries. The outsourcing, or “offshoring,” of both manufacturing and low-level service jobs, is considered one of the predominant trends in…
What is Home Bias? Home bias, which might more appropriately be termed home country bias, refers to the tendency of equity investors to favor investing in domestic stocks over investing in the stocks of foreign companies. The overwhelming majority of investors exhibit a high degree of home bias, which can be seen in the high…
What is Home Equity? Home equity is the value of a homeowner’s unencumbered ownership interest in the property that is their home. Another way of expressing home equity is to say that it’s the portion of your home’s market value that is free and clear of your mortgage loan obligation. Home equity is…
What is Home Inspection? A home inspection refers to a non-invasive assessment of a property’s current conditions – often before buying it. Home inspections are typically performed by a professional home inspector who looks for malfunctions, any needed repairs, and other issues that are required to be fixed. Generally, a home inspector looks at various…
