Finance Dictionary

Annual report filed by public companies with the SEC.

Quarterly report filed by public companies with the SEC.

U.S. tax-deferred swap of investment properties.

Standard U.S. individual income tax return form.

U.S. tax form reporting non-employee compensation and other income.

Guideline suggesting a 4% initial withdrawal is sustainable.

U.S. employer-sponsored retirement plan with tax advantages.

U.S. retirement plan for public schools and non-profits.

Independent valuation of private stock for tax rules.

Deferred compensation plan for state and local government employees.

Budget: 50% needs, 30% wants, 20% savings.

U.S. tax-advantaged education savings plan.

Filing for material events between periodic reports.

Speed at which listed homes sell in an area.

Money a business owes to suppliers.

Money owed to a business by customers.

Recognizing revenue and expenses when earned or incurred.

Expenses incurred but not yet paid.

Revenue earned but not yet billed.

Automated Clearing House; electronic network for U.S. transfers.

One company purchases another.

Statistical data used to price policies.

Professional who models insurance risk statistically.

Mortgage with a rate that adjusts periodically.

Total income minus specific adjustments.

Professional evaluating insurance claims.

American Depositary Receipt for foreign stock.

Exception allowing penalty-free 401(k) withdrawals at age 55.

Free distribution of tokens to wallets.

Reserve against expected bad debts.

Excess return of an investment vs. its benchmark, after adjusting for risk.

Erosion of an alpha strategy's effectiveness over time.

Skill-based excess returns over a benchmark.

Any cryptocurrency other than Bitcoin.

Parallel tax system limiting certain deductions.

Corrected version of a previously filed return.

Can be exercised any time before expiration.

Anti-Money Laundering rules and procedures.

Automated Market Maker; protocol pricing via a formula.

Gradual repayment of a loan through scheduled payments.

Periodic charge for intangible assets.

Table showing each payment's principal and interest split.

Threshold below which AMT does not apply.

Wealthy individual who provides capital for a startup, often in exchange for equity.

Yearly charge on a credit card or account.

Contract paying regular income over a set period or lifetime.

Annual percentage rate; yearly interest cost of borrowing.

Annual percentage yield; effective yearly interest rate with compounding.

Simultaneous purchase and sale of an asset to profit from price differences.

Lowest price a seller will accept for a security.

Value used to calculate property tax.

Fee card networks charge on transactions.

Dividing a portfolio among different asset classes.

Resources owned by a business that have economic value.

Fulfilling the obligation of a sold option.

Mortgage a buyer can take over from a seller.

Australian Securities Exchange.

Australian Taxation Office.

Government examination of a tax return.

Professional reviewing financial statements.

Coverage for vehicles and drivers.

Loan secured by a vehicle.

Default enrollment of new hires into a 401(k).

Automatic increase in 401(k) contribution rate.

Automatic bill payments to avoid late fees.

For-profit company certified for social/environmental performance.

Brazilian stock exchange in Sao Paulo.

Strategy to fund Roth IRA above income limits via conversion.

Testing a strategy on historical data.

Mandatory withholding on some payments due to missing TIN.

Futures price below expected spot price.

Estimate of uncollectible receivables.

Recapitalization by writing down creditor claims.

Government rescue of a failing institution.

Record of all economic transactions with the world.

Statement of assets, liabilities, and equity at a point in time.

Downturn driven by debt-reduction rather than demand.

Moving credit card debt to a lower-rate card.

Mortgage with a large lump-sum payment at the end.

Large lump sum owed at the end of a loan term.

Payment instrument issued by a bank.

Day banks are closed by law or emergency order.

Central bank of the United Kingdom.

Japan's central bank.

Matching bank statement with internal records.

Mass withdrawal of deposits due to loss of confidence.

Widespread bank failures or panic.

Legal process to discharge or restructure debts.

Semi-retired lifestyle covering costs with part-time work.

Central bank's benchmark interest rate.

Global banking capital and liquidity standards.

Net income divided by weighted average basic shares.

One-hundredth of a percentage point.

Trade exploiting price differences between related instruments.

A prolonged period of falling asset prices, typically 20% or more from highs.

Standard against which investment performance is measured.

Formula thresholds used to compute Social Security benefits.

Person receiving proceeds from an insurance policy.

Named recipient on an account or policy.

IRA inherited from a decedent.

Measure of a stock's volatility relative to the overall market.

Decay in leveraged ETFs from daily rebalancing.

Beta stripped of financial leverage effects.

Portfolio adjusted so total beta equals a target.

Highest price a buyer is willing to pay for a security.

Difference between highest bid and lowest ask price.

Deloitte, PwC, EY, and KPMG accounting firms.

Written order requiring payment on demand or by date.

First and largest cryptocurrency by market capitalization.

ETF tracking the price of Bitcoin.

Very large privately-negotiated trade.

Distributed ledger of records linked cryptographically.

Large, well-established, financially sound company with a history of reliable performance.

Buy Now, Pay Later; short-term installment financing at checkout.

Volatility bands placed above and below a moving average.

Madrid Stock Exchange.

Investors pushing rates up to discipline governments.

Mathematical function pricing tokens based on supply.

Accelerated first-year depreciation deduction.

Net asset value of a company on its balance sheet.

Milan-based Italian exchange.

Traditional in-person banking network.

Level of sales at which revenue equals costs.

Yield at which a bond investor recovers costs.

Market-implied inflation from TIPS vs. nominal Treasuries.

Global benchmark for oil pricing.

Brazil, Russia, India, China, South Africa emerging-economy bloc.

Protocol enabling asset transfer between chains.

Short-term loan bridging a gap between two transactions.

Real estate professional who can own an agency and hire agents.

Lowest-tier ACA health plan.

Buy, Rehab, Rent, Refinance, Repeat; real estate investing strategy.

Bank Secrecy Act; U.S. anti-money-laundering law.

Bombay Stock Exchange in India.

Italian government bond.

Splitting retirement savings by time horizon.

Plan for allocating income to expenses and savings.

Government spending exceeds revenue in a period.

Government revenue exceeds spending.

A prolonged period of rising asset prices, typically 20% or more from lows.

Loan repaid in a single lump sum at maturity.

German government bond.

Fluctuations of expansion and contraction over time.

Options strategy with three strikes.

Long-term strategy of holding investments through market cycles.

Prepaid points to lower a mortgage rate.

Company repurchases its own shares from the open market.

Real estate agent representing the buyer.

U.S. corporation taxed separately from its owners.

France's benchmark stock index.

Options strategy across different expirations.

Right to buy an asset at the strike price.

Bond issuer can redeem before maturity.

Preferred stock the issuer may redeem.

Net operating income divided by property value.

Record of capital transfers with abroad.

Bank's capital as a share of risk-weighted assets.

Model relating expected return to systematic risk (beta).

Government limits on cross-border capital movement.

Money spent on long-term assets.

Profit from selling an asset above its purchase price.

Tax on the profit from selling an asset.

Loss from selling an asset below its purchase price.

Investment goal focused on avoiding loss.

Owning a car whose costs strain your budget.

Tax on carbon emissions.

Transaction where the card is not swiped.

Borrowing low-yield currency to invest in high-yield one.

Recognizing revenue and expenses when cash changes hands.

Short-term loan drawn from a credit card.

Defined benefit plan expressed as an account balance.

Time from paying suppliers to collecting from customers.

Highly liquid short-term investments.

Difference between income and expenses over time.

Report of cash inflows and outflows over a period.

Bundle of checks sent for collection.

Liquid funds a business or bank holds.

Amount received when cancelling a permanent policy.

Savings component of a permanent life policy.

Annual pretax cash flow divided by cash invested.

Spending only cash to control impulse buying.

Check drawn on bank funds and signed by a bank officer.

Exercising options by selling some shares to fund cost.

Bond that pays coupons unless a disaster occurs.

Low-premium high-deductible health coverage.

Extra contribution allowed for age 50+.

Central Bank Digital Currency.

Strategy of staggering CDs of different maturities.

Cost of insuring against a bond default.

Institution overseeing a country's monetary policy and currency.

Time deposit paying fixed interest for a set term.

Personal check the bank guarantees funds for.

Centralized Exchange; company-run crypto trading platform.

Chartered Financial Analyst.

Certified Financial Planner.

U.S. bankruptcy for business reorganization.

U.S. bankruptcy for individuals to repay debts on a plan.

U.S. bankruptcy that liquidates assets to discharge debts.

Card requiring full balance payment each month.

Debt a creditor considers unlikely to be collected.

Reversal of a card transaction requested by a cardholder.

Rate of disputed payments to total transactions.

Deduction for donations to qualified charities.

Organized list of a business's accounts.

Illegally using float between accounts.

Bank account for everyday transactions.

Preapproved credit tied to a checking account.

Credit for taxpayers with qualifying children.

Children's Health Insurance Program.

Regulatory measure that halts trading during extreme moves.

Exchange pause during severe declines.

Request for payment under an insurance policy.

Highest quality institutional-grade real estate.

Mid-tier commercial property.

Older, lower-quality commercial property.

Process of reconciling trades before settlement.

Entity guaranteeing derivative trades.

International clearing house.

Full vesting after a set period, none before.

Vesting after a set date with none before.

Fees paid at the completion of a real estate transaction.

Point where existing savings will grow to FIRE without adding more.

U.S. law allowing continued group health coverage after job loss.

Softs commodity traded in New York and London.

Cost of Goods Sold; direct costs to produce sold goods.

Native cryptocurrency of a blockchain.

Data that moves with the economy.

Percentage of costs shared after deductible.

Offline storage of crypto assets.

Wallet stored offline for security.

Asset pledged to secure a loan.

Third-party effort to recover unpaid debt.

Auto insurance for vehicle damage from crashes.

Bank offering deposits and loans to the public.

Real estate used for business purposes.

Fee paid to real estate agents, usually a percentage of sale.

Basic good used in commerce, often traded on exchanges.

Value belonging to common shareholders.

Ordinary shares that carry voting rights and residual claim on assets.

Recent nearby sales used to value a home.

Interest calculated on principal and accumulated interest.

Auto insurance for non-collision losses like theft or hail.

Individual ownership of a unit in a larger building.

Mortgage that meets Fannie Mae/Freddie Mac limits.

Rule set for how nodes agree on the ledger.

Recognize losses early, gains late.

Combining multiple loans into a single loan.

Survey measuring consumer sentiment.

Tax based on spending rather than income.

Tap-to-pay card or phone transaction.

Spread of financial trouble across markets or countries.

Futures price above expected spot price.

Condition in a contract that must be met for it to remain valid.

Potential liability depending on future events.

Similar to land contract; buyer gets deed after payoff.

Phase of shrinking economic activity.

Policy aimed at cooling the economy.

Buying against prevailing sentiment.

Sales minus variable costs.

Mortgage not backed by a government agency.

Bond convertible into a set number of shares.

Debt convertible into equity in a startup.

Term policy convertible to permanent.

Measure of the curvature in the price-yield relationship.

Ownership of shares in a corporation owning a building.

Fixed amount paid at time of service.

Industrial metal often called 'Dr. Copper' for its economic signal.

CPI excluding food and energy.

Central, long-term portfolio position.

Major grain commodity.

Bond issued by a company.

Legal entity separate from its owners.

Statistical measure of how two assets move together (-1 to +1).

Bank providing services on behalf of another bank abroad.

Person who agrees to repay a loan if the primary borrower defaults.

Original value of an asset for tax purposes.

Amount needed to cover basic expenses in a region.

Study to accelerate depreciation on real estate.

Periodic increase to benefits based on inflation.

Softs commodity.

UK property tax on households.

Measure of how two variables move relative to each other.

U.S. education savings account with contribution limits.

Selling calls against long stock.

Certified Public Accountant.

Consumer Price Index; measure of consumer inflation.

Canada Revenue Agency.

Agency that collects and reports credit information.

Card that borrows funds up to a credit limit.

Annualized rate charged on card balances.

Advisory service for personal debt problems.

Insurance-like contract on default of a debt.

Restriction preventing new credit in your name.

Maximum amount that can be borrowed on a credit line.

Preapproved borrowing amount from a lender.

Detailed record of credit history from a credit bureau.

Numerical rating of creditworthiness (300–850 in the U.S.).

Member-owned nonprofit financial cooperative.

Ratio of credit used to total credit available.

Hedging with a related but not identical asset.