Words, names, and terms from the vault — one definition at a time, in the order you'd expect.
A financial advisor compensated only by a flat fee or hourly rate paid directly by the client — never by commission or a percentage of assets under management.
— A fee-only advisor has no financial stake in which specific product you choose, or whether you choose one at all.
[distinguished from "fee-based," a common and deliberately similar-sounding term that still permits commissions]
See also: fiduciary standard
A legal obligation requiring an advisor to act in a client's best interest at all times, as opposed to the weaker "suitability" standard that only requires a recommendation to be adequate, not optimal.
— Ask directly whether they are a fiduciary at all times when advising you — in writing.
[L. fiducia "trust"]
See also: fee only advisor
The Banking Act of 1933, separating commercial and investment banking in the U.S. in response to the 1929 crash; substantially repealed in 1999.
— Its repeal is frequently cited as a structural precondition for the excesses that led to 2008.
[named for Sen. Carter Glass and Rep. Henry B. Steagall]
See also: moral hazard, financial repression, seagull
A gull, especially one found near coastlines; a scavenging seabird known for opportunistic feeding and sharp downward vision.
— The seagull circled the harbor, watching for what the tide left behind.
(fig., this site) One who scavenges signal from the noise of financial markets rather than following the flock. See Manifesto.
[ME sea + gull, from Brythonic gwylan]
See also: contrarian, glass steagall act