Investment Terms
Investment terms can be confusing but Investing School is here to help straighten it out for you. This list of definitions is constantly being updated so remember to check back often to learn more. If there’s a specific term that you are confused about, remember to contact me and I will write a post to explain it.
0-9 Investment Terms
10-K
1099
3-6-3 Rule
401k
403(b) Plan
457 Plan
52 Week High
52 Week Low
529 Plan
90-Age Formula
A…
A/B Trust
Absolute Rate
Accounting Currency
Accounting Noise
Accounts Receivable
Accounts Payable
Accrual of Discount
Accrual Rate
Accrued Benefit
Accumulation Phase
Across the Board
Actual Deferral Percentage/Actual Contribution Percentage Test (ADP/ACP Test)
Actuarial Balance
Actuarial Deficit
Acquisition
Active Investing
Active Participant Status
Adjustable Peg
Adjustable Rate
Administration Bond
Affluenza
Agency Automatic Contributions
Agency Matching Contributions
Aggregate Demand
Aggregate Supply
Aggregate Risk
Alimony
Alligator Property
Alligator Spread
Allocated Benefits
Allocation of Plan Assets on Termination
Alpha
Alternative Risk Financing Facilities
American Depositary Receipt (ADR)
Amortization
Amortization Schedule
Amplitude
Angel Bonds
Angelina Jolie Stock Index
Annual Report
Annuitization Method
Annuitization Phase
Annuity
Annuity Certain
Annuity Contract
Annuity Factor Method
Annuity Ladder
Arbitrage Trading
Arrearages
Assessed Value
Asset
Asset Bubble
Ask Price
Automatic Rollover
B…
Badwill
Balance Sheet
Balance Transfer
Balanced Fund
Balloon Loan
Balloon Mortgage
Bailout
Bank
Bank Draft
Bank Trust Custodial Account
Bankruptcy
Base Currency
Bear Market
Bear Market Rally
Bear Trap
Beating the Gun
Benefit Offset
Best of Breed
Beta
Bid Ask Spread
Bid Price
Bill of Exchange
Black Market
Black Swan
Blackout Period
Blocked Currency
Book Value
Book Value of Equity Per Share
Bond
Bond Fund
Bracketed Order
Buck the Trend
Budget
Bull Market
Bull Put Spread
Bulldog Market
Business Process Redesign (BPR)
Buyout
Buy and Hold
C…
C Corporation
Cafeteria Plan
Call Auction
Call Option
Call Swaption
Callable Common Stock
Canada Pension Plan (CPP)
Capital
Capital Commitment
Capital Gain
Capital Lease
Capital Loss
Capital Shares
Capital Surplus
Capitalism
Case Shiller Home Price Index
Cash Account
Cash Balance Pension Plan
Cash Cow
Cash Flow
Cash On Delivery
Cash Or Deferred Arrangement (CODA)
Cashier’s Check
Catch Up Contribution
Central Provident Fund (CPF)
Certain and Continuous Annuity (C&C Annuity)
Certified Employee Benefit Specialist
Certified Financial Analyst (CFA)
Certified Financial Planner (CFP)
Certified Senior Consultant (CSC)
Certificate of Deposit
Chameleon Option
Chapter 11
Child Tax Credit
Choice Market
Churn Rate
Circular Trading
Clawback
Cliff Vesting
Closed Fund
Closing Bell
CNBC
Collar
Commodity
Commodity Futures Trading Commission (CFTC)
Commodity Trading Advisor (CTA)
Common Stock
Competitive Advantage
Compound Annual Growth Rate (CAGR)
Conduit IRA
Corporate Pension Plan
Consumer Price Index (CPI)
Contract
Consumer
Contingent Beneficiary
Contingent Order
Conversion Rate
Convertibles
Cookie Jar Accounting
Core Competency
Core Holding
Core Inflation
Corner the Market
Corporate Bond
Corporation
Cost of Goods Sold
Cost of Sale
Coverage Ratio
Coverdell ESA
Covered Call
Covered Earnings
Crawling Peg
Credit Agency
Credit Score
Critical Mass
Crummey Power
Curb Trading
Current Ratio
Custodial Account
D…
Day Trader
Death Benefit
Death Taxes
Debenture
Debit Card
Debt
Debt Consolidation
Debt Equity Ratio
Debt to Income Ratio
Debt Service Coverage Ratio (DSCR)
Deed in Lieu
Deer Market
Deferment Period
Deferred Annuity
Deferred Income Tax
Deferred Profit Sharing Plan (DPSP)
Deferred Revenue
Defined-Benefit Plan
Defined Contribution Plan
Delayed Annuity
Delayed Perpetuity
Demand
Department of Labor (DOL)
Designated Beneficiary
Designated Roth Account
Determination Letter
Direct Marketing
Direct Rollover
Disclosure Statement
Distress Termination
Dividend Aristocrats
Dividend Yield
Dogs of the Dow
Dow Jones Industrial Average
Down Volume
Dually Employed with Kids (DEWK)
Dwarf
E…
E-file
Earned Income Credit (EIC)
Earnest Money
Earnings Per Share
EBITDA
Economy of Scale
Education IRA
Effective Date
Elective Deferral Contribution
Elevator Pitch
Eligible Rollover Distribution
Employee Contribution Plan
Employee Retirement Income Security Act (ERISA)
Employee Stock Options
Employee Stock Purchase Plan (ESPP)
Enhanced Indexing
Equity
Equity Market
Escrow
Estate Tax
Excess Accumulation Penalty
Exchange Traded Funds
Extended IRA
F…
Face Value
Factoring
Fallen Angel Bond
Federal Employee Retirement System (FERS)
Federal Reserve
Fiduciary
Filing Extension
First Call
First Time Home Buyer Tax Credit
Fixed Amortization Method
Fixed Annuitization Method
Fixed Asset
Fixed Cost
Fixed Income
Flash Price
Flat Benefit Formula
Float
FOB (Freight on Board)
Forced Retirement
Forensic Accounting
Forex
Forward Averaging
Four Percent Rule
Fractional Share
Franchise
Futures
G…
General Fund
Generally Accepted Accounting Principles (GAAP)
Globalization
Golden Boot
Golden Handshake
Government Sponsored Retirement Arrangement (GSRA)
Graded Vesting
Graduated Vesting
Grantor Retained Annuity Trust (GRAT)
Green Investing
Gridlock
Gross Domestic Product (GDP)
Gross Margin
Gross Profit
Gross Spread
Growth Stock
Guaranteed Investment Fund
GUST Restatement
H…
Hang Seng Index
Health Savings Account (HSA)
Hedge Fund
Home Equity Line of Credit (HELOC)
Hot Money
House Rules
I…
Iceberg Order
Income Shares
Index Funds
Inflation
Initial Public Offering (IPO)
Insider Trading
Interest Rate
Intrapreneur
Investment Incentive
Irrevocable Trust
J – K
Key Performance Indicators (KPI)
L…
Leading Economic Indicators
Letter of Credit
Letter of Commitment
Leverage
Leveraged Buy Out (LBO)
Leverage Ratio
Liability
Life Cycle Fund
Life Option
Life Settlement
Limit Order
Listing Requirement
LLC (Limited Liability Company)
London Interbank Offered Rate (LIBOR)
London International Financial Futures and Options Exchange (LIFFE)
Long-Run Average Total Cost (LRATC)
M…
Margin
Margin Call
Marker Order
Market Capitalization
Market Indicators
Market Linked Certificate of Deposit (MLCD)
Marriage Penalty
Mergers and Acquisitions (M&A)
Modified Adjusted Gross Income (MAGI)
Mondustrial Policy
Monetary Base
Monetary Reserve
Monetary Supply
Money Orders
Monopoly
Mortgage
Mortgage Backed Securities (MBS)
Mutual Fund
N…
Naked Position
Naked Put
Narrow Moat
NASDAQ
Negotiable
Net Income
Net Profit
Net Working Capital
Net Worth
New York Stock Exchange (NYSE)
No Load Fund
Nonconvertible Currency
Nonrenewable Resource
Numismatics
NYSE AMEX Composite Index
O…
One Cancels All Order
One Triggers All Order
One Triggers OCO Order
Online Broker
Open-End Effects
Operating Income
Operating Profit
Opportunity Cost
Options Trading
Oracle of Omaha
Overvalued
P…
Payout
Peer to Peer Lending
Pension Benefit Guaranty Corporation (PBGC)
Preferred Stock (Preferred Shares)
Price to Earnings
Profit and Loss Statement
Probability Distribution
Public Company
Put Option
Q…
R…
Ramp Up
Reaganomics
Real Estate Investment Trust (REIT)
Realized Gain
Realized Loss
Recession
Relative Strength Index (RSI)
Return on Equity (ROE)
Return on Investment (ROI)
Revenue
Reverse Mortgage
Reverse Stock Split
Revocable Trust
Risk-Free Return
Roth IRA Conversion
Roth Option
Round Trip Trading
Rubinomics
Rule of 72
S…
S Corporation
Safe Harbor
Secular Market
Securities
Securities and Exchange Commission (SEC)
Sector Rotation
Seed Capital
Self Directed 401k
SEP IRA
Shanghai Stock Exchange
Share Buyback
Share Repurchase
Short Covering
Short Selling
Silent Partner
Single Euro Payment Area (SEPA)
SIPC
Socialism
Sole Proprietorship
Spread
Spread Indicator
Straight Through Processing
Stock Exchange
Stock Split
Stop Order
Stretch IRA
Surety Bond
Supercede
T…
Tax Deferred
Tax Deferred Savings Plan
Technical Analysis
Tender Offer
Time Deposit
Toronto Stock Exchange (TSX)
Trading Floor
Trailing Stop Order
Treasury Bills
Treasury Bonds
Treasury Notes
Treasury Securities
Trigger Line
Triple Net Lease
Turnover
U…
Undervalued
Unrealized Gain
Unrealized Loss
V…
Value at Risk
Value Stocks
Variable Cost
Venture Capital
Vested Interest
Vesting
Voluntary Contribution
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