Two investment reports can show different returns for the same portfolio and both can be correct. The difference may come from the performance method used. The central distinction between a time weighted return vs. money weighted return is how each method treats deposits and withdrawals: Time-weighted return, or TWR, removes the effect of external cash…
An executor and an administrator can perform many of the same estate-settlement duties, but they reach the role in different ways. The main difference between an executor vs. administrator is usually selection and appointment: An executor is generally nominated in a valid will and later appointed or confirmed by a probate court. An administrator is…
Wire transfers and direct deposit both move money electronically, but they are designed for different situations. The main difference between a wire transfer vs. direct deposit is how and why the payment is sent: A wire transfer is commonly initiated for a specific, often time-sensitive payment between bank accounts. Domestic wires may arrive the same…
The main difference between a grantor vs. grantee is the direction of a property transfer. The grantor is the person or legal entity transferring an ownership interest or other right. The grantee is the person or entity receiving that interest or right. In a typical home sale, the seller is the grantor and the buyer…
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…