The main difference between a certified check vs. cashier’s check is who writes the check and whose account the payment is drawn from. A certified check is generally a personal check written by the bank customer. The bank verifies the customer’s signature and confirms that sufficient money is available, then certifies the check and restricts…
The main difference between a trailing stop loss vs. trailing stop limit appears after the trailing stop price is triggered. A trailing stop loss generally becomes a market order. It prioritizes getting the trade executed, but the final price can be substantially different from the stop price in a fast or illiquid market. A trailing…
Realized and unrealized gains both describe an increase in an investment’s value, but they represent different stages of ownership. An unrealized gain exists while you still hold an asset that is worth more than its cost basis. A realized gain generally occurs when you sell or otherwise dispose of that asset for more than its…
ATM card and a debit card can both provide access to money in a bank account, but their capabilities are not always the same. A traditional ATM card is primarily designed for transactions at automated teller machines. A debit card usually works at ATMs and can also be used for purchases in stores, online, and…
Adjusted gross income and taxable income are related numbers on a federal income tax return, but they are not interchangeable. Adjusted gross income, commonly called AGI, is an intermediate total calculated after certain adjustments to income. Taxable income generally comes later, after subtracting the standard deduction or itemized deductions and any other applicable deductions. The…
When viewing a stock quote, you may see a bid price, an ask price, and a last-traded price. These numbers can be different even though they refer to the same stock. The main difference between bid vs ask prices in stocks is: The bid price is the highest price a buyer is currently willing to…
Your credit card payment due date and statement closing date are two separate dates with different purposes. The closing date is generally the final day of a billing cycle. The card issuer totals eligible transactions, payments, credits, fees, and interest to create your monthly statement. The payment due date is the deadline for making at…
Exchange-traded notes and exchange-traded funds can look almost identical in a brokerage account. Both trade on an exchange, usually track a benchmark, and can be bought or sold during market hours. Their legal structures and risks, however, are fundamentally different. The main difference between an ETN vs ETF is that an ETF is generally a…
Mortgage insurance and homeowners insurance may both appear among your homebuying expenses, but they provide completely different forms of protection. The main difference between mortgage insurance vs homeowners insurance is who and what each policy protects: Mortgage insurance primarily protects the mortgage lender if the borrower defaults. Homeowners insurance protects the home and may cover…