What is a trigger finance term?

Asked by: Dr. Carmen Morar IV  |  Last update: November 30, 2025
Score: 5/5 (59 votes)

Triggers in the context of investing are market or investment-related occurrences that may cause the system or the investor to take a certain action. An event (trigger condition) and an activity taken when the event occurs make up a basic trigger setup.

What is a trigger in finance?

A cash trigger is a condition that triggers an investor to make a trade or take a specific action, such as buying or selling a financial product such as a stock, option, futures contract, bond, or currency. Self-imposed cash triggers are most common among retail investors.

What is an example of a trigger term?

Examples of Triggering Terms

The amount of a down payment expressed as a percentage or a dollar amount (example: "5% down" or "80% financing") The amount of any payment expressed as a percentage or a dollar amount (example: "$15 per month" or "monthly payments of under $100")

What is a trigger term in banking?

It is the presence of a specific word or phrase that would “trigger” the advertisement to include additional disclosures to the consumer. The specific triggering term and related requirements are governed by the Truth in Lending Act (for loan-related products) or the Truth in Savings Act (for deposit-related products).

What is a trigger in a contract?

A trigger event is a particular situation that prompts a chain of events relating to a loan or contractual agreement to pay money in exchange for equity. Trigger event clauses are common in convertible notes, SAFEs and loan documentation.

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20 related questions found

What is a trigger in business?

A trigger in business refers to an event or action that prompts a reaction or response. For example, a company may have a trigger in their sales strategy: if a customer spends a certain amount of money, they receive a discount on their next purchase.

What is the difference between a trigger and a transaction?

A trigger is a special type of stored procedure that automatically runs when an event occurs in the database server. Transactional replication typically starts with a snapshot of the publication database objects and data.

What is a trigger in investing?

Triggers in the context of investing are market or investment-related occurrences that may cause the system or the investor to take a certain action. An event (trigger condition) and an activity taken when the event occurs make up a basic trigger setup.

Is APR a trigger term?

Finance charge amount: Mentioning the finance charge amount includes stating the dollar amount of the finance charge or any portion of it. However, disclosing the APR or stating there is no particular charge for credit (such as no closing costs) is not a triggering term.

What are triggers in banking?

Triggers tracks a consumer's credit behaviour across multiple products and send an alert whenever there's a change in a customer profile. You receive valuable knowledge about your customers swiftly, enabling you to identify your low-risk, high-value customers and take action.

What is a payment trigger?

Payment Trigger means the occurrence of a Change in Control during the term of this Agreement coincident with or followed at any time before the end of the 12th month immediately following the month in which the Change in Control occurred, by the termination of the Executive's employment with the Corporation or a ...

What is a trigger example?

Trauma triggers: Strong feelings that arise based on past trauma. Example: The sound of firecrackers can be trauma triggers for veterans of war. Symptom triggers: A physical change can trigger larger mental health issues. Example: A lack of sleep could trigger symptoms of bipolar disorder.

Is no annual fee a trigger term?

The trigger terms are those required to be disclosed under section 1026.6(b)(3) and include the APR, transaction fees, annual fee and certain other charges. This applies to trigger terms stated in the positive ($50 annual fee) and in the negative (no annual fee).

What is a trigger term in Tila?

A triggering term is a word or phrase that legally requires one or more disclosures when used in advertising. Triggering terms are defined by the Truth in Lending Act (TILA) and are designed to protect consumers from predatory lending practices.

What is a triggering event in accounting?

A triggering event is when an event happens, or a circumstance changes, that would more likely than not reduce the fair value of an asset below its carrying amount.

What is a financial crisis trigger?

Changes in international financial and economic conditions, for example, may drive prices down. The channels by which small declines in asset prices can trigger a crisis are well understood now. Given information asymmetries, for example, a small shock can lead to market freezes.

What are examples of trigger terms?

The triggering terms are:
  • The amount of the down payment, expressed either as a percentage or as a dollar amount. ...
  • The amount of any payment expressed either as a percentage or as a dollar amount. ...
  • The number of payments. ...
  • The period of repayment (the total time required to repay). ...
  • The amount of any finance charge.

Do fixed mortgages have a trigger rate?

If you have a VRM, your payment will change with Canada's prime interest rate. That means you won't have to worry about a trigger rate. If you have a fixed-rate mortgage, both your insurance rate and your payments will stay the same throughout your mortgage term, regardless of what Canada's interest rate does.

What is a triggering term in banking?

Share. Definition: used in advertising, include the following – the amount or percentage of down payment, number of payments, period (term) of repayment, amount of any payment, and the amount of any finance charges. Pronunciation: \ˈtri-g(ə-)riŋ\

What is a financial trigger?

Financial Trigger means an event arising upon the occurrence of any of a Net Worth Trigger, a Liquidity Trigger or a Leverage Debt-to-Income Trigger.

What is a trigger in layman's terms?

Someone's triggers are things that can cause them to have an extreme reaction of fear, upset, or anger, especially because they remember a traumatic experience. You need to understand what your triggers are, for example loud noises.

What is a trigger in stocks?

The trigger price is the point at which a buy or sell order becomes active for execution on the exchange servers. When the stock's price reaches the trigger price set, the order is sent to the exchange servers.

Is trigger positive or negative?

Triggers, in a psychological context, refer to stimuli that evoke a particular response or emotion. They can be both negative and positive based on the memories, experiences, or emotions they evoke.

What happens during a trigger?

Triggers typically elicit strong negative emotions such as fear, anger, or shame. People may feel unsafe or threatened and, as a result, may react by panicking, trying to escape the situation, crying, acting out, or becoming defensive.

What are money triggers?

They operate on autopilot, often causing impulsive actions without conscious thought. One of the most interesting things about money triggers is that most triggers are created unconsciously around a belief that you have about what having or doing the thing means about the person - or about you.