What is Discrete Distribution? A discrete distribution is a distribution of data in statistics that has discrete values. Discrete values are countable, finite, non-negative integers, such as 1, 10, 15, etc. Understanding Discrete Distributions The two types of distributions are: Discrete distributions Continuous distributions A discrete distribution, as mentioned earlier, is a distribution of values…
What is a Discretionary Account? A discretionary account is an account for investing that allows an authorized broker to trade securities on behalf of a client without getting the client’s approval for each trade. For a discretionary account to be active, the client will sign a discretionary disclosure agreement with the designated broker…
What is Discretionary Income? Discretionary income is the money available after paying for essential expenses like housing, food, taxes, and healthcare. In other words, discretionary income is the amount of money left that can be used for saving, investing, or spending on non-essentials. Essential expenses include costs required for survival or by law, such as…
What is a Discretionary Expense? A discretionary expense is a non-essential expense that is incurred by an individual, household, or business. Another way to think of discretionary expenses is to classify them as “wants” instead of “needs.” A common example is when an individual purchases a new smartphone whenever the latest edition comes out. It…
What is a Refinanced Mortgage? In real estate, refinancing is the process of replacing a current mortgage with a new mortgage that usually extends more favorable terms to the borrower. The terms and details of the new contract can be customized by the borrower. Understanding Refinanced Mortgages A mortgage is a loan that is taken…
What is a Credit Bureau? A credit bureau refers to an organization that collects information related to credit for individuals and sells the information to creditors for informing lending decisions. What Do Credit Bureaus Do Credit bureaus are specific organizations that partner with all types of lending intuitions and creditors to help them in their…
What is Assessed Value? Assessed value is a dollar value that is assigned to a property to measure applicable taxes. A property will undergo an assessed valuation to determine its value for tax purposes. The assessed valuation will consider similar home sales and inspections. The dollar value is determined by the government and…
What is a Certificate of Deposit (CD)? A certificate of deposit (CD) refers to a financial product that is offered by financial institutions – such as banks and credit unions – that allow customers to earn a certain level of interest on their deposits, and in return, they must leave the deposit untouched for a…
What is Bitcoin Mining? Bitcoin mining refers to the process of digitally adding transaction records to the blockchain, which is a publicly distributed ledger holding the history of every bitcoin transaction. Mining is a record-keeping process executed through immense computing power. Each Bitcoin miner around the world contributes to a decentralized peer-to-peer network to ensure the…
What are Analytical Skills? Analytical skills refer to an individual’s ability to identify a problem, investigate to find out relevant facts, and find a logical solution. They are considered important skills in many different fields; however, it is especially important in finance when evaluating financial securities. Analytical skills are the ability to collect information and…
