Digital Finance Glossary

The first decentralized cryptocurrency, created in 2009. It operates on a peer-to-peer network, allowing users to send a…

A decentralized, open-source blockchain with smart contract functionality. It is the foundation for thousands of decentr…

A distributed, immutable digital ledger that records transactions in blocks. Each block is cryptographically linked to t…

A self-executing contract with the terms of the agreement directly written into code. They run on a blockchain and autom…

An ecosystem of financial applications built on blockchain technology, aiming to recreate traditional financial systems …

A unique digital asset that represents ownership of a specific item or piece of content. Each NFT is one-of-a-kind and c…

Any cryptocurrency other than Bitcoin. Examples include Ethereum, Ripple (XRP), and Litecoin.

A cryptocurrency designed to have a stable value by being pegged to a real-world asset, like the U.S. Dollar (e.g., USDC…

The process by which new cryptocurrency coins are created and new transactions are verified and added to a blockchain.

The process of participating in a proof-of-stake (PoS) blockchain by holding funds in a wallet to support the network's …

An organization represented by rules encoded as a computer program that is transparent, controlled by the members, and n…

The fee required to successfully conduct a transaction or execute a contract on the Ethereum blockchain.

Storing cryptocurrency completely offline to protect it from unauthorized access, hacks, and other online vulnerabilitie…

A cryptocurrency wallet that is connected to the internet, allowing for faster transactions but with a higher risk of th…

A consensus mechanism used by blockchains like Bitcoin to verify transactions and add new blocks, requiring significant …

A consensus mechanism where block creators are chosen based on the number of coins they hold (their 'stake'), which is m…

An event in Bitcoin's code that cuts the reward for mining new blocks in half, which happens approximately every four ye…

The practice of staking or lending crypto assets in order to generate high returns or rewards in the form of additional …

A secondary framework or protocol built on top of an existing blockchain (Layer 1) to improve its scalability and effici…

A peer-to-peer marketplace where cryptocurrency traders make transactions directly with one another without a central in…

A marketing stunt that involves sending free coins or tokens to wallet addresses in order to promote awareness of a new …

A fundraising method used by crypto projects to raise capital by selling a new cryptocurrency token to investors.

An individual or entity that holds a large amount of a specific cryptocurrency, enough to potentially manipulate the mar…

A database partitioning technique used by blockchains to spread the processing load, increasing transaction speed and sc…

The study of the economics of a crypto token, including its supply, allocation, and the incentives that give it value.

A radical change to a network's protocol that makes previously invalid blocks/transactions valid, requiring all nodes to…

A backward-compatible upgrade to a blockchain's protocol. Old nodes can still recognize new blocks.

A collection of tokens locked in a smart contract, used to facilitate trading on a decentralized exchange (DEX).

The total market value of a cryptocurrency's circulating supply. It's calculated by multiplying the price by the circula…

Third-party services that provide smart contracts with external, real-world information.

The difference between the expected price of a trade and the price at which the trade is executed. Common in volatile ma…

An authoritative report or guide that informs readers concisely about a complex issue, often used by crypto projects to …

A series of words generated by your cryptocurrency wallet that gives you access to the crypto associated with that walle…

The maximum amount of gas a user is willing to spend on a transaction.

A fully developed and deployed blockchain protocol that is live and operational, meaning transactions are being broadcas…

An alternative blockchain, to be used for testing, that runs in parallel to a mainnet.

A smart contract technology that enables the exchange of one cryptocurrency for another without using centralized interm…

An online tool for searching and exploring the data on a blockchain, including transactions, addresses, and blocks.

A long-term holding strategy in the crypto community, originally a misspelling of 'hold' that became shorthand for buy-a…

A temporary loss of funds experienced by liquidity providers due to price volatility in a trading pair.

The ability of different blockchain networks to exchange and make use of data.

A cryptocurrency node's 'memory pool' of all the unconfirmed transactions waiting to be included in a block.

A cryptocurrency that obscures transactions to provide anonymity and untraceability (e.g., Monero, Zcash).

The smallest unit of a bitcoin, equivalent to 100 millionth of a bitcoin.

The vision of a decentralized internet built on blockchain technology, where users own their data and digital assets wit…

An application that runs on a decentralized blockchain network rather than a single server, enabling trustless and censo…

A unique alphanumeric string that identifies a destination for a cryptocurrency payment, similar to an email address but…

A cryptographic code that lets users receive cryptocurrencies into their wallet. It can be shared openly with anyone wis…

A secret cryptographic code that proves ownership of a crypto wallet and authorizes transactions. Must be kept secure — …

An individual or entity that deposits crypto assets into a liquidity pool on a DEX, earning a share of the trading fees …

A set of rules that allows different software applications to communicate with each other. Key to connecting banks with …

The process of offering loans online, using technology to automate underwriting, origination, and servicing. It allows b…

A system where banks open up their APIs, allowing third parties to access financial information to develop new apps and …

An automated platform that provides algorithm-driven financial planning and investment management with minimal human int…

The use of technology and innovation to make the insurance industry more efficient, from underwriting to claims processi…

The use of technology to help businesses comply with regulations efficiently and cost-effectively.

A type of direct bank that operates exclusively online without traditional physical branch networks.

A method of debt financing that enables individuals to borrow and lend money directly with each other without a financia…

An electronic device or online service that allows an individual to make electronic transactions.

A merchant service provided by an e-commerce application service provider that authorizes credit card or direct payments…

The practice of funding a project or venture by raising small amounts of money from a large number of people, typically …

The process of converting a sensitive piece of data, such as a credit card number, into a unique, non-sensitive equivale…

A model where licensed banks integrate their digital banking services directly into the products of other non-bank busin…

Trading that uses computer programs to enter trade orders with the computer algorithm deciding on aspects of the order s…

A safe, controlled environment, typically run by regulators, that allows fintech startups to test their innovations with…

A process that financial institutions and other regulated companies use to verify the identity of their clients.

A set of laws, regulations, and procedures intended to prevent criminals from disguising illegally obtained funds as leg…

A security process that relies on the unique biological characteristics of an individual to verify their identity (e.g.,…

A secure method for consumers to purchase products or services using a debit, credit, or smartcard by tapping the card n…

The integration of financial services, like lending or payment processing, into non-financial businesses' websites and a…

The statistical analysis performed by lenders and financial institutions to determine the creditworthiness of a person o…

A type of algorithmic trading characterized by high speeds, high turnover rates, and high order-to-trade ratios.

The place where your customer makes a payment for products or services at your store. Modern POS systems are often digit…

A transfer of money, often by a foreign worker to an individual in their home country.

The process through which an individual or institution takes on financial risk for a fee, common in insurance and bankin…

A segment of fintech that focuses on enhancing wealth management and investment services through technology.

A bank or financial institution that processes credit or debit card payments on behalf of a merchant.

Information used to determine creditworthiness outside of traditional sources, such as social media activity or utility …

A demand by a credit-card provider for a retailer to make good the loss on a fraudulent or disputed transaction.

An intermediary between buyers and sellers of financial instruments. It is a separate corporation responsible for settli…

A private forum for trading securities, derivatives, and other financial instruments, away from public exchanges.

The process of acquiring new customers through remote, digital channels rather than face-to-face interaction.

An innovation that significantly alters the way that consumers, industries, or businesses operate.

The buying and selling of goods or services using the internet, and the transfer of money and data to execute these tran…

The pursuit of making financial services accessible at affordable costs to all individuals and businesses, irrespective …

The application of game-design elements and game principles in non-game contexts, often used in personal finance apps to…

A labor market characterized by the prevalence of short-term contracts or freelance work as opposed to permanent jobs.

The bank that offers payment cards (credit or debit) to consumers on behalf of the card networks (e.g., Visa, Mastercard…

A branch of artificial intelligence (AI) focused on building systems that can learn from data, identify patterns, and ma…

The practice of investing very small amounts of money on a regular basis.

The act of making financial transactions on a mobile device (cell phone, tablet, etc.).

A model that provides customers with a seamless and consistent banking experience across all channels, from physical bra…

A payment network that moves money from a payer to a payee. Examples include card networks, ACH, and wire transfers.

Tailoring a service or a product to accommodate specific individuals, sometimes tied to groups or segments of individual…

An electronic payment system that enables the immediate transfer of money between bank accounts.

A software licensing and delivery model in which software is licensed on a subscription basis and is centrally hosted.

An investment strategy that uses alternative index construction rules instead of the typical market-capitalization-based…

An automated process done purely through electronic software without any manual intervention.

Adults who do not have their own bank accounts.

Individuals who have a bank account but still rely on alternative and often more expensive financial services.

A form of private equity financing that is provided by venture capital firms or funds to startups, early-stage, and emer…

An estimate of income and expenditure for a set period of time. A foundational tool for managing your money.

Money set aside to cover unexpected financial emergencies, typically 3-6 months' worth of living expenses.

A number between 300-850 that depicts a consumer's creditworthiness. The higher the score, the better a borrower looks t…

Interest calculated on the initial principal, which also includes all of the accumulated interest from previous periods …

The value of the assets a person or corporation owns, minus the liabilities they owe. (Assets - Liabilities = Net Worth)…

A resource with economic value that an individual, corporation, or country owns or controls with the expectation that it…

A financial obligation or debt owed to another person or company.

A type of credit score created by the Fair Isaac Corporation (FICO). Lenders use borrowers' FICO scores to assess credit…

A personal finance measure that compares an individual's monthly debt payment to their monthly gross income.

A professional who provides financial guidance to clients based on their needs and goals.

A person or organization that acts on behalf of another person or persons, putting their clients' interest ahead of thei…

The process of anticipating and arranging during your life for how your wealth will be managed and transferred after dea…

A legal document that expresses a person's wishes as to how their property is to be distributed after their death.

A legal arrangement in which a 'trustee' holds title to property on behalf of a 'beneficiary' according to terms the gra…

A tax-advantaged savings plan designed to encourage saving for future education costs.

The original sum of money borrowed in a loan, or put into an investment.

The process of spreading out a loan into a series of fixed payments over time.

The annual rate of interest charged to borrowers and paid to investors.

The amount of money needed to cover basic expenses such as housing, food, taxes, and healthcare in a certain place and t…

The status of having enough income or assets to cover your living expenses without needing employment.

The discipline of spending intentionally and economically — using money to maximise long-term value rather than short-te…

The net amount of money moving in and out of your accounts. Positive cash flow means income exceeds expenses.

A savings bucket set aside for a specific upcoming expense, funded by regular contributions so the cost is covered when …

A budgeting philosophy of automatically routing savings or investments out of every paycheck before paying any other bil…

A budgeting method that assigns every dollar of income a specific job — spending, saving, or investing — so income minus…

A simple budgeting guideline that allocates 50% of after-tax income to needs, 30% to wants, and 20% to savings and debt …

A debt-payoff strategy of clearing balances from smallest to largest, using the momentum of quick wins to stay motivated…

A debt-payoff strategy of clearing balances from highest to lowest interest rate, minimising total interest paid.

Your take-home pay — the amount that lands in your account after taxes, retirement contributions, and other deductions.

Total earnings before any taxes or deductions are taken out.

A legal document authorising a designated person to act on your behalf in financial or medical matters.

The percentage of your available credit you're currently using. Keeping it under 30% generally helps maintain a healthy …

A detailed record of your borrowing and repayment history compiled by credit bureaus and used by lenders to assess your …

A legal document that specifies your medical preferences if you become unable to make decisions for yourself.

A direct instruction on financial accounts (retirement, insurance, etc.) naming who receives the assets when you pass aw…

A security that represents ownership of a fraction of a corporation. Stockholders may benefit from price appreciation an…

A fixed-income instrument representing a loan made by an investor to a borrower (typically corporate or governmental).

A financial vehicle that pools money from many investors to buy a diversified portfolio of stocks, bonds, or other asset…

A type of mutual fund or ETF designed to match the performance of a market index like the S&P 500. Low cost and broadly …

A basket of securities that trades on an exchange like a single stock. Most ETFs track an index and have low expense rat…

Spreading investments across different assets, sectors, and geographies to reduce the impact of any single holding under…

How an investor splits a portfolio across asset classes — typically stocks, bonds, and cash — based on goals, risk toler…

The ease with which an asset can be converted to cash without significantly affecting its market price.

The increase in value of a capital asset, realised when the asset is sold for more than its purchase price.

A distribution of company earnings paid to shareholders, typically on a quarterly basis. A consistent source of investme…

A market environment characterised by declining prices, typically defined as a 20% drop from recent highs.

A market environment characterised by rising prices and investor optimism — typically a 20% rally from recent lows.

A statistical measure of how much an asset's price swings over time. Higher volatility implies higher short-term risk an…

A stock market index tracking the performance of 500 large U.S. publicly traded companies — the most-cited proxy for the…

An investment strategy of contributing a fixed dollar amount on a regular schedule regardless of price — smoothing out m…

An investing approach focused on buying securities trading below their intrinsic value. Popularised by Benjamin Graham a…

An approach focused on companies expected to grow earnings faster than the market average, typically reinvesting profits…

A long-term investment strategy of buying securities and holding them through market cycles, ignoring short-term fluctua…

Periodically adjusting a portfolio back to its target asset allocation by selling overweight holdings and buying underwe…

The rise in the price of an asset over time. One of two primary ways investors earn returns (the other being income, e.g…

The full return on an investment over a period, combining price appreciation and any income (dividends, interest) receiv…

A measure of risk-adjusted return that compares an investment's excess return over the risk-free rate to its volatility.…

A measure of a stock's volatility relative to the broader market. A beta of 1 moves with the market; above 1 is more vol…

The excess return of an investment above the return predicted by its risk profile. Positive alpha means the investment b…

A valuation ratio comparing a company's share price to its earnings per share. A common shorthand for whether a stock is…

The accounting value of a company's assets minus liabilities, as reported on the balance sheet. Used to gauge whether a …

A company's net profit divided by the number of outstanding shares. The most-watched line item in quarterly earnings rep…

An instruction to buy or sell a security immediately at the best available current price.

An instruction to buy or sell a security only at a specified price or better, giving the investor price control at the c…

An investment account opened with a broker through which an investor buys and holds securities like stocks, bonds, and f…

A company that owns or finances income-producing real estate, allowing investors to gain real estate exposure without ow…

A long-term, government-issued debt security backed by the full faith and credit of the U.S. government. Considered virt…

A debt security issued by states, cities, or counties to fund public projects. Interest is often exempt from federal inc…

An employer-sponsored retirement plan that lets workers contribute pre-tax dollars from their paycheck, often with an em…

A tax-advantaged investing account anyone with earned income can open, used to save for retirement.

An IRA funded with after-tax dollars, so qualified withdrawals in retirement — including all investment growth — are tax…

An insurance contract that converts a lump sum or stream of payments into guaranteed income, typically used to supplemen…

The minimum amount the IRS requires you to withdraw annually from most retirement accounts starting at age 73, calculate…

A U.S. federal program that provides retirement, disability, and survivor benefits, funded by FICA payroll taxes.

An employer-funded retirement plan that pays a defined benefit — typically a percentage of salary — for life after retir…

A Simplified Employee Pension IRA that lets self-employed individuals and small businesses contribute up to 25% of compe…

A retirement plan for small businesses with 100 or fewer employees. Lower contribution limits than a 401(k) but simpler …

A 401(k) plan for self-employed individuals with no employees, allowing both employer and employee contributions for hig…

Moving funds from a traditional IRA or 401(k) into a Roth IRA, paying income tax now in exchange for tax-free withdrawal…

An additional retirement contribution allowed for workers age 50+ to help accelerate savings closer to retirement.

The process by which an employee gains ownership of employer contributions to their retirement plan over time, typically…

A retirement plan where the employer promises a specific monthly benefit at retirement, calculated by formula. Tradition…

A retirement plan where contributions are defined but the eventual benefit depends on investment performance. 401(k)s ar…

A retirement fund that automatically shifts from aggressive (more stocks) to conservative (more bonds) as the target ret…

The percentage of a retirement portfolio you can withdraw annually without running out of money, classically estimated a…

A retirement guideline suggesting you can withdraw 4% of your initial portfolio in year one, then adjust for inflation e…

A movement focused on aggressive saving and investing (often 50%+ of income) to retire decades earlier than traditional …

A milestone where you've invested enough that compound growth alone — with no further contributions — will fund a tradit…

Taking the entire value of a retirement account as a single payment instead of monthly installments. Often triggers imme…

An IRA that receives funds rolled over from an employer-sponsored retirement plan, typically after leaving a job.

The age at which a worker can claim Social Security retirement benefits in full — currently 66 to 67 depending on year o…

An IRA funded for a non-working spouse using the working spouse's earned income, doubling household retirement savings c…

A strategy of contributing to a traditional IRA then converting it to a Roth, used by high earners who exceed Roth incom…

A strategy of contributing after-tax dollars to a 401(k) (above the standard limit) then converting them to a Roth, dram…

A type of deferred annuity that delays income to as late as age 85, used to insure against outliving retirement savings.

The deadline (April 1 of the year after turning 73) by which RMDs must begin from most retirement accounts.

Also known as the Saver's Credit, a federal tax credit for low-to-moderate-income workers who contribute to retirement a…

Converting a lump sum (like an annuity contract) into a guaranteed stream of regular payments, often for life.

The effective annual rate of return on a deposit account, accounting for the effect of compounding interest.

A deposit account designed for frequent transactions — paying bills, debit-card purchases, direct deposits — typically w…

A deposit account that earns interest on stored funds, designed for cash you don't need to spend immediately.

A hybrid of checking and savings — earns higher interest than a basic savings account and allows limited check writing o…

A time deposit that locks money up for a fixed term (months to years) in exchange for a guaranteed interest rate higher …

A savings account that pays significantly higher interest than traditional savings, typically offered by online banks wi…

An electronic bank-to-bank money transfer routed through the Automated Clearing House network. Slower than wire but typi…

A near-instant electronic transfer of funds between bank accounts, often used for large or time-sensitive payments. Usua…

The international messaging network banks use to send payment instructions globally. Required for most international wir…

A nine-digit code identifying a U.S. bank or credit union for ACH and wire transfers. Different from your account number…

The unique number identifying your specific account at a bank, used for direct deposits, transfers, and wire receipts.

An electronic transfer of funds (typically a paycheck) directly into a recipient's bank account, eliminating physical ch…

The central banking system of the United States, responsible for setting monetary policy, regulating banks, and stabilis…

Federal Deposit Insurance Corporation coverage that protects bank deposits up to $250,000 per depositor, per insured ban…

The National Credit Union Administration, which insures credit union deposits up to $250,000 — the credit-union equivale…

A member-owned, not-for-profit financial cooperative that offers banking services. Often pays higher rates and charges l…

A financial institution that accepts deposits, offers checking and savings accounts, and provides loans to individuals a…

A financial institution that helps companies raise capital, underwrites securities, and facilitates mergers and acquisit…

A national-level financial institution that controls a country's money supply, sets interest rates, and oversees the ban…

The minimum amount of cash banks must hold (typically as reserves at the central bank) against customer deposits.

International Bank Account Number — a standardised format for bank account numbers used across most countries for intern…

A bank or investment account shared by two or more people, where each owner has full access to the funds and responsibil…

A check guaranteed by a bank, drawn on the bank's own funds and signed by a bank officer. More secure than a personal ch…

A person named to receive the funds in a Payable-on-Death or Transfer-on-Death account when the owner passes away, bypas…

An account that automatically transfers (sweeps) cash above a threshold into a higher-yielding investment vehicle.

A loan used to purchase or refinance real estate, secured by the property itself. Typically repaid over 15 to 30 years.

The upfront cash a buyer pays toward a property purchase, with the remainder financed by a mortgage. Typically 5–20% of …

Replacing an existing mortgage with a new loan, typically to capture a lower interest rate, change loan terms, or tap ho…

The fees paid at the close of a real estate transaction — loan origination, title insurance, taxes, etc. — typically 2–5…

A neutral third-party account that holds funds or documents during a real estate transaction until both parties' conditi…

Insurance protecting the buyer (and lender) against losses from defects in a property's title, such as undisclosed liens…

The legal document that transfers ownership of real property from seller to buyer, recorded in public records to evidenc…

A legal right granting someone limited use of another's property, typically for access, utilities, or shared driveways.

A home loan where the interest rate stays the same for the full term, giving the borrower predictable monthly payments.

A home loan where the interest rate is fixed for an initial period (e.g. 5 years) then adjusts periodically based on a b…

Insurance required on conventional mortgages when the down payment is less than 20%, protecting the lender if the borrow…

A revolving credit line secured by your home's equity, working like a credit card with a variable rate and a draw period…

A lump-sum loan secured by your home's equity, repaid in fixed installments at a fixed rate. Sometimes called a second m…

An independent professional estimate of a property's market value, typically required by lenders before closing on a mor…

A buyer-commissioned examination of a property's condition before closing — covering structure, systems, and major compo…

A real estate investment metric: net operating income divided by property price. Higher cap rates suggest higher returns…

The annual pre-tax cash flow from a rental property divided by the total cash invested. Measures the return on actual do…

A quick valuation ratio: property price divided by annual gross rental income. Lower numbers generally indicate better d…

Buy, Rehab, Rent, Refinance, Repeat — a real estate investing strategy of recycling capital by refinancing improved prop…

A tax-deferred swap of one investment property for another of like kind, allowing investors to defer capital gains taxes…

Living in part of a property (a multi-unit or rented spare rooms) while tenants effectively cover the mortgage.

Annual rental income as a percentage of property value or purchase price. A core metric for evaluating rental property r…

An annual tax levied by local governments on real property, typically calculated as a percentage of assessed value.

An organisation in many planned communities that maintains common areas and enforces rules, funded by mandatory member d…

A good-faith deposit a buyer puts down with an offer, showing serious intent to purchase. Typically credited toward clos…

Your total income minus specific deductions (like retirement contributions and student-loan interest). The starting poin…

A range of income taxed at a particular rate. The U.S. uses a progressive system with brackets that rise as income incre…

The tax rate applied to your next dollar of income — your top bracket. Often higher than your effective rate.

Total tax paid divided by total income. The true average rate, typically lower than your marginal rate.

A fixed deduction from taxable income that taxpayers can take without itemising. Roughly $14k single / $29k married fili…

Listing specific eligible expenses (mortgage interest, charitable gifts, SALT, etc.) to reduce taxable income — used whe…

A dollar-for-dollar reduction of tax owed (e.g. Child Tax Credit). More valuable than a deduction of the same amount.

An expense subtracted from taxable income before tax is calculated. Worth your marginal tax rate × the deduction amount.

A loss realised when an investment is sold for less than its purchase price. Can offset capital gains and up to $3,000 o…

An IRS rule disallowing the loss deduction if you buy back a 'substantially identical' security within 30 days before or…

Intentionally selling losing investments to realise losses that offset taxable gains, then reinvesting in similar (but n…

Quarterly tax payments self-employed individuals and others without withholding must make to avoid underpayment penaltie…

A form employers send employees and the IRS each year reporting wages paid and taxes withheld. The basis for most W-2 wo…

A family of IRS forms (1099-NEC, 1099-INT, 1099-DIV, etc.) reporting income from non-employer sources like freelancing, …

The IRS form sole proprietors and single-member LLCs use to report business income and expenses on their personal tax re…

The IRS form used to report capital gains and losses from selling investments, real estate, and other capital assets.

A business structure (LLC, S-corp, partnership) where income passes through to owners' personal returns rather than bein…

Money returned by the government when you've overpaid taxes through withholding or estimated payments. Essentially an in…

The portion of an employee's paycheck the employer sends directly to the IRS as advance payment toward annual taxes.

Federal Insurance Contributions Act — the payroll tax funding Social Security (6.2%) and Medicare (1.45%), matched by yo…

State and Local Tax deduction. Currently capped at $10,000 per year under the Tax Cuts and Jobs Act, limiting itemised r…

Dividends taxed at the lower long-term capital gains rate (0%, 15%, or 20%) rather than as ordinary income, if specific …

A contract that provides financial protection against specific risks in exchange for regular premium payments.

The recurring amount paid to an insurance company to maintain coverage. Typically billed monthly, semi-annually, or annu…

The amount you pay out of pocket before insurance coverage kicks in. Higher deductibles usually mean lower premiums.

A triple-tax-advantaged account paired with a high-deductible health plan: tax-deductible contributions, tax-free growth…

Pure life insurance that pays a death benefit if you die within a set term (10, 20, 30 years). No cash value. Inexpensiv…

Permanent life insurance combining a death benefit with a tax-deferred cash-value savings component. More expensive than…

A flexible form of permanent life insurance allowing adjustable premiums and death benefits, with a cash-value component…

The person or entity who owns the insurance policy and is responsible for paying premiums.

A fixed dollar amount the insured pays for a covered service (e.g. $25 for a doctor visit), with insurance covering the …

The percentage of a covered medical bill you pay after meeting your deductible — typically 10–30% — until you hit your o…

The most you'll pay in a plan year for covered services. Once reached, the insurer covers 100% for the rest of the year.

Liability insurance that kicks in above the limits of your home and auto policies, providing extra protection against la…

Insurance covering services not typically covered by health insurance — nursing homes, assisted living, in-home care — f…

Income-replacement insurance that pays a portion of your salary if you become unable to work due to illness or injury.

Coverage required in most U.S. states protecting against financial loss from accidents, theft, and liability while opera…

Insurance protecting your home and belongings against damage from fire, theft, weather, and certain disasters — and prov…

Affordable insurance covering a renter's personal belongings and providing liability protection in a rented home or apar…

An employer-sponsored, pre-tax account for medical or dependent-care expenses. Use-it-or-lose-it within the plan year (w…

A health plan that limits coverage to a specific network of providers, typically requires a primary-care referral, and h…

A health plan offering more flexibility — see any provider without a referral, with lower costs for in-network care and …

Earnings Before Interest, Taxes, Depreciation, and Amortization. A proxy for a company's operating profitability before …

Revenue minus cost of goods sold, expressed as a percentage of revenue. Measures direct profitability before operating e…

Net income as a percentage of revenue. The most comprehensive profitability metric, showing what percent of every dollar…

Current assets minus current liabilities. Measures a company's short-term financial health and ability to fund day-to-da…

A financial statement showing how cash moves through a business across operating, investing, and financing activities.

A financial statement summarising revenue, expenses, and net profit over a specific period. Also called the P&L (profit …

A snapshot of a company's assets, liabilities, and equity at a single point in time. Must always balance: Assets = Liabi…

Money owed to a business by customers for goods or services delivered but not yet paid for. An asset on the balance shee…

Money a business owes to suppliers and vendors for goods or services received but not yet paid. A liability on the balan…

The rate at which a startup spends its cash reserves, typically expressed in dollars per month. A core metric for early-…

How long a company can operate at its current burn rate before running out of cash, typically measured in months.

Raising capital by selling ownership stakes in the company to investors. No repayment obligation but dilutes existing ow…

Raising capital by borrowing money that must be repaid with interest. Doesn't dilute ownership but creates fixed obligat…

A startup's first significant institutional funding round, typically led by venture capital firms after the company has …

A capitalisation table — a spreadsheet showing every shareholder's stake in a company, including founders, employees, an…

The reduction in existing shareholders' ownership percentage when a company issues new shares (typically during a fundra…

An early-stage investment instrument that converts to equity at a future priced round. Created by Y Combinator to simpli…

A short-term debt instrument that converts into equity (usually during a later fundraise) at a discount or with a valuat…

A non-binding document outlining the key terms of an investment deal, used as the basis for definitive legal agreements.

The investigation an investor or acquirer conducts before closing a deal — reviewing financials, legal, operations, and …

The process of determining what a company is worth, using methods like discounted cash flow, comparable company analysis…

A founder's or investor's planned method for realising returns on a business investment — typically acquisition, IPO, or…

The general rise in prices over time, reducing the purchasing power of money. Measured by indices like CPI.

A general fall in the price level of goods and services. Less common than inflation; can signal weak demand or economic …

The total monetary value of all goods and services produced within a country over a period. The most-cited measure of ec…

A measure of the average change in prices paid by consumers for a basket of goods and services. The headline U.S. inflat…

A measure of price changes from the perspective of domestic producers selling their goods. An early indicator of consume…

The interest rate at which banks lend reserves to each other overnight. Set by the Federal Reserve and the primary lever…

Central-bank actions to manage money supply and interest rates to achieve goals like price stability and maximum employm…

Government use of taxation and spending to influence the economy — distinct from monetary policy, which is controlled by…

A monetary policy where a central bank buys large quantities of government bonds and other securities to inject money in…

The reverse of QE — the central bank reduces its balance sheet by letting bonds mature without reinvestment, removing mo…

Measures of the total amount of money in circulation. M1 includes cash and checking deposits; M2 adds savings, money mar…

A line plotting interest rates of bonds with equal credit quality but different maturities. Normally upward-sloping; sha…

When short-term interest rates exceed long-term rates. Historically a leading indicator of recession, though not infalli…

An economic concept describing the inverse relationship between inflation and unemployment — though the trade-off has we…

The percentage of the labour force actively seeking work but not employed. Reported monthly by the Bureau of Labor Stati…

The percentage of the working-age population either working or actively seeking work. Provides context for the headline …

The difference between a country's exports and imports. A surplus means exports exceed imports; a deficit means the reve…

The price of one currency expressed in terms of another. Floating exchange rates fluctuate constantly based on supply an…

A theory comparing different countries' currencies using the cost of a common basket of goods, used to compare living st…

Nominal values are in current dollars; real values are inflation-adjusted. Real comparisons are more meaningful across t…

The natural rise and fall of economic activity over time, typically described in phases: expansion, peak, contraction, t…

An economic scenario where a central bank slows growth enough to control inflation without triggering a recession. The r…

A simultaneous combination of stagnant economic growth, high unemployment, and rising inflation — historically rare and …

A monthly survey of how consumers feel about the economy and their personal finances. Leading indicator for consumer spe…

A significant decline in economic activity lasting more than a few months, typically marked by falling GDP, employment, …

Buying and selling financial instruments within the same trading day to profit from short-term price moves. Positions ar…

A strategy of holding positions for several days to weeks, aiming to capture price 'swings' in trending or ranging marke…

An ultra-short-term trading strategy that aims to profit from small price changes, with positions held for seconds to mi…

Evaluating securities by analyzing statistical trends from trading activity — primarily price and volume — using charts …

Evaluating a security's intrinsic value by examining financial statements, industry conditions, and macroeconomic factor…

A price chart where each 'candle' shows the open, high, low, and close for a time period. Body color indicates whether p…

An indicator that smooths price data by calculating the average price over a specified period — commonly 50-day, 100-day…

A momentum oscillator (0-100) measuring the speed and magnitude of price changes. Above 70 suggests overbought; below 30…

A trend-following momentum indicator that shows the relationship between two moving averages. Signal crossovers suggest …

Volatility bands placed above and below a moving average. Price near the upper band suggests overbought; near the lower …

Key price levels where buying (support) or selling (resistance) historically emerges. Traders watch for bounces or break…

A pre-set order to sell a position if it falls to a specified price, limiting potential losses on a trade. A core risk-m…

A pre-set order to close a position when it reaches a target price, locking in gains automatically. Often used alongside…

An order to buy or sell at a specified price or better. Guarantees price but not execution — the order may go unfilled i…

An order to buy or sell immediately at the best available price. Guarantees execution but not price — useful when speed …

The difference between the highest price a buyer will pay (bid) and the lowest price a seller will accept (ask). Narrowe…

The number of shares or contracts traded in a security over a given period. High volume often confirms the strength of a…

How easily an asset can be bought or sold without significantly affecting its price. Major stocks, ETFs, and currency pa…

The degree of price variation for a security over time. Higher volatility means larger price swings and generally higher…

Borrowed capital used to amplify a trade's potential returns. Magnifies both gains and losses — 10:1 leverage means a 10…

Trading with borrowed funds from a broker, increasing buying power. Subject to margin calls if losses exceed the mainten…

Selling borrowed securities with the intent to buy them back later at a lower price. Profits from a decline in the asset…

A US SEC designation for traders who execute four or more day trades within five business days in a margin account. Requ…

Trading contracts that give the right (but not obligation) to buy or sell an asset at a set price by an expiration date.…

A standardized agreement to buy or sell an asset at a specified price and date in the future. Used for hedging or specul…

Determining the amount of capital to allocate to a single trade based on account size and risk tolerance — typically 1-2…

The ratio of potential loss to potential gain on a trade. A 1:3 ratio means risking $1 to potentially make $3 — generall…