Account balance

What is an account balance?

The amount of money a user has stored in a financial repository.

Account balance with a bank account

When you check your account balance at your bank, it will show the amount of cash you have stored with the bank.

If you have pending transactions, your account balance might be greater than the amount that is actually available to you. That is because the money needed to make those transactions has not yet been removed from your account.

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Account balance with a stockbroker

An account balance with a brokerage is likely to look different from a bank account balance. That’s because you don’t just keep cash with a broker.

Instead, the account balance that you see when you check your brokerage account will be the sum of any cash you hold and any stocks you have bought.

Because the value of stocks changes all the time, your account balance will also vary more frequently with stockbroker than a bank.

More terms

Venture Capital

A type of financing that investors provide to startups, who sometimes announce getting said financing in TechCrunch, to big fanfare.

Inflation

The increase in the prices of goods and services over time, and the process by which money loses its value.

DMO

The United Kingdom Debt Management Office. It’s an executive agency responsible for managing the government’s debt and cash needs, primarily through issuing gilts and Treasury bills.

Money weighted rate of return

Learn what Money Weighted Rate of Return or MWRR stands for in finance.

Net Asset Value (NAV)

The value of a company's assets relative to the number of shares it has.

OEIC

Unique to the UK, these funds pool together money to invest from multiple investors.

Stock Market

A place where shares of publicly listed companies are traded.

Packaged Retail and Insurance-based Investment Product (PRIIP)

An investment where, regardless of its legal form, the amount repayable to the retail investor is subject to fluctuations.

Internal Rate of Return (IRR)

A means of calculating the potential future return on an investment.

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