Home > Glossary > FACT Act (Fair And Accurate Credit Transactions Act)

Meaning / Definition of

FACT Act (Fair And Accurate Credit Transactions Act)

Categories: Finance,

Designed to help consumers check their credit reports for accuracy and detect identity theft early, the FACT Act gives every consumer the right to request a free report from each of the three major credit bureaus - Equifax, Experian, and TransUnion - once a year.To obtain your free reports, you must request them through the Annual credit report Request Service (www.annualcreditreport.com or 877-322-8228). If you request your credit report directly from one of the three credit reporting agencies or through another service, you'll pay a fee.Most experts recommend staggering your requests for the free reports - for instance, ordering one in January, the second in May, and the third in September - so that you can keep an eye on your credit throughout the year.It's also a good idea to check your report at least two months before you anticipate applying for a major loan or a job, so you can notify the credit bureau if you find any inaccuracies.You're also entitled to a free report directly from the credit reporting bureaus if you've recently been denied credit, have been turned down for a job, are on public assistance, or have reason to suspect that you're a victim of credit fraud or identity theft.

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Definition / Meaning of

Stop Order

Categories: Investing and Trading, Brokerages,

You can issue a stop order, which instructs your broker to buy or sell a security once it trades at a certain price, called the stop price. Stop orders are entered below the current price if you are selling and above the current price if you are buying. Once the stop price is reached, your order becomes a market order and is executed.For example, if you owned a stock currently trading at $35 a share that you feared might drop in price, you could issue a stop order to sell if the price dropped to $30 a share to protect yourself against a larger loss. The risk is that if the price drops very quickly, and other orders have been placed before yours, the stock could actually end up selling for less than $30. You can give a stop order as a day order or as a good 'til canceled (GTC) order. You might use a buy stop order if you have sold stock short anticipating a downward movement of market price of the security. If, instead, the price rises to the stop price, the order will be executed, limiting your loss. However, there is a risk with this type of order if the market price of the stock rises very rapidly. Other orders entered ahead of yours will be executed first, and you might buy at a price considerably higher than the stop limit, increasing your loss.

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