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Glossary

Financial Glossary

194+ definitions across investing, crypto, tax, banking, and more.

A

ACH TransferAirdropAlphaAlternative Minimum Tax (AMT)AMM (Automated Market Maker)APR (Annual Percentage Rate)APY (Annual Percentage Yield)Asset Allocation

B

Backdoor Roth IRABasis Point (bps)Bear MarketBenchmarkBetaBid-Ask SpreadBitcoin (BTC)Bull Market

C

Call OptionCapital Gains TaxCapital LossCapital Loss CarryforwardCash FlowCertificate of Deposit (CD)Checking AccountCirculating SupplyCold WalletCompound InterestCompound Interest (Savings)Cost BasisCovered CallCredit ScoreCredit Union

D

Day TradingDCA for CryptoDebt Avalanche MethodDebt Snowball MethodDebt-to-Income Ratio (DTI)DeFi (Decentralized Finance)DeFi LendingDepreciationDEX (Decentralized Exchange)Direct DepositDisability InsuranceDiversificationDividend YieldDollar-Cost Averaging (DCA)Dollar-Weighted Return (IRR)Dow Jones Industrial Average (DJIA)DRIP (Dividend Reinvestment Plan)

E

Earnings Per Share (EPS)Earnings SeasonEmergency FundEnvelope BudgetingEstimated Tax PaymentsETF (Exchange-Traded Fund)Ethereum (ETH)Expense RatioExpense Tracking

F

FDIC InsuranceFiduciaryFIFO (First In, First Out)Financial Independence (FI / FIRE)Flash LoanForm 1099-BForm 8949

G

Gas FeesGDP (Gross Domestic Product)Governance TokenGwei

H

HalvingHardware WalletHash RateHigh-Yield Savings AccountHome InspectionHot WalletHSA (Health Savings Account)

I

Impermanent LossImpermanent Loss (Detailed)Implied Volatility (IV)Incentive Stock Options (ISO)Index FundInflationInterest Rate (Federal Funds Rate)International Wire Transfer

L

Layer 2 (L2)Lifestyle Creep (Lifestyle Inflation)LIFO (Last In, First Out)Limit OrderLiquid StakingLiquidityLiquidity PoolLong-Term Capital GainsLump Sum Investing

M

Margin TradingMarket CapitalizationMarket CorrectionMarket MakerMarket OrderMeme StockMining (Cryptocurrency)Money Market AccountMortgageMutual Fund

N

NAV (Net Asset Value)Net Investment Income Tax (NIIT)Net WorthNFT (Non-Fungible Token)

O

Opportunity CostOptions TradingOracle (Blockchain)Order Book

P

P/E Ratio (Price-to-Earnings)Passive IncomePay Yourself FirstPenny StockPension (Defined Benefit Plan)Portfolio RebalancingPrivate KeyProof of Stake (PoS)Proof of Work (PoW)Property TaxPublic KeyPut Option

R

RecessionRefinancingREIT (Real Estate Investment Trust)Rental YieldRisk ToleranceRMD (Required Minimum Distribution)Roth IRA

S

S&P 500Savings AccountSchedule DSeed Phrase (Recovery Phrase)Self-CustodySelf-Employment TaxSharpe RatioShort SellingShort-Term Capital GainsSinking FundSlippageSmart ContractSocial SecuritySpecific IdentificationStablecoinStablecoin DepegStakingStandard DeductionStepped-Up BasisStock SplitStop-Limit OrderStop-Loss OrderSubscription Audit

T

Target-Date FundTax BracketTax LotTax-Advantaged AccountTax-Deferred AccountTax-Loss HarvestingTokenomicsTrailing StopTVL (Total Value Locked)

U

Umbrella InsuranceUS Dollar Index (DXY)

V

ValidatorValue InvestingVesting

W

Wash Sale RuleWealthTech (Wealth Technology)Wire TransferWrapped Token

Y

Yield CurveYield Farming

Z

Zero-Based Budgeting

By Category

Investing

AlphaAsset AllocationBenchmarkBetaCompound InterestDiversificationDividend YieldDollar-Cost Averaging (DCA)Dollar-Weighted Return (IRR)DRIP (Dividend Reinvestment Plan)Earnings Per Share (EPS)ETF (Exchange-Traded Fund)Expense RatioFiduciaryIndex FundLump Sum InvestingMutual FundNAV (Net Asset Value)P/E Ratio (Price-to-Earnings)Passive IncomePortfolio RebalancingRisk ToleranceSharpe RatioStock SplitUS Dollar Index (DXY)Value InvestingWealthTech (Wealth Technology)

Crypto

AirdropBitcoin (BTC)Circulating SupplyCold WalletDCA for CryptoDeFi LendingEthereum (ETH)Gas FeesGweiHalvingHardware WalletHash RateHot WalletLayer 2 (L2)Mining (Cryptocurrency)NFT (Non-Fungible Token)Private KeyProof of Stake (PoS)Proof of Work (PoW)Public KeySeed Phrase (Recovery Phrase)Self-CustodyStablecoinStakingTokenomicsValidator

Tax

Alternative Minimum Tax (AMT)Capital Gains TaxCapital LossCapital Loss CarryforwardCost BasisDepreciationEstimated Tax PaymentsFIFO (First In, First Out)Form 1099-BForm 8949Incentive Stock Options (ISO)LIFO (Last In, First Out)Long-Term Capital GainsNet Investment Income Tax (NIIT)Schedule DSelf-Employment TaxShort-Term Capital GainsSpecific IdentificationStandard DeductionStepped-Up BasisTax BracketTax LotTax-Advantaged AccountTax-Deferred AccountTax-Loss HarvestingWash Sale Rule

Trading

Bid-Ask SpreadCall OptionCovered CallDay TradingImplied Volatility (IV)Limit OrderMargin TradingMarket MakerMarket OrderMeme StockOptions TradingPenny StockPut OptionShort SellingSlippageStop-Limit OrderStop-Loss OrderTrailing Stop

Budgeting

50/30/20 RuleCash FlowDebt Avalanche MethodDebt Snowball MethodDebt-to-Income Ratio (DTI)Emergency FundEnvelope BudgetingExpense TrackingFinancial Independence (FI / FIRE)Lifestyle Creep (Lifestyle Inflation)Net WorthOpportunity CostPay Yourself FirstSinking FundSubscription AuditZero-Based Budgeting

Banking

ACH TransferAPR (Annual Percentage Rate)APY (Annual Percentage Yield)Certificate of Deposit (CD)Checking AccountCompound Interest (Savings)Credit ScoreCredit UnionDirect DepositFDIC InsuranceHigh-Yield Savings AccountInternational Wire TransferMoney Market AccountSavings AccountWire Transfer

DeFi

AMM (Automated Market Maker)DeFi (Decentralized Finance)DEX (Decentralized Exchange)Flash LoanGovernance TokenImpermanent LossImpermanent Loss (Detailed)Liquid StakingLiquidity PoolOracle (Blockchain)Smart ContractStablecoin DepegTVL (Total Value Locked)Wrapped TokenYield Farming

Markets

Basis Point (bps)Bear MarketBull MarketDow Jones Industrial Average (DJIA)Earnings SeasonGDP (Gross Domestic Product)InflationInterest Rate (Federal Funds Rate)LiquidityMarket CapitalizationMarket CorrectionOrder BookRecessionS&P 500Yield Curve

Retirement

403(b) Plan457(b) PlanBackdoor Roth IRAHSA (Health Savings Account)Pension (Defined Benefit Plan)RMD (Required Minimum Distribution)Roth IRASocial SecurityTarget-Date FundVesting

Real Estate

1031 ExchangeHome InspectionMortgageProperty TaxRefinancingREIT (Real Estate Investment Trust)Rental Yield

Insurance

Disability InsuranceUmbrella Insurance

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