Finance glossary
All 486 words, A–Z
Markets, banking and economics in plain English.
0–9
A
- Accounts Payable
- Accounts Receivable
- Accredited Investor
- Accrual Accounting
- Accrued Interest
- Acquisition
- After-Hours Trading
- Airdrop
- Algorithmic Trading
- Alpha
- Altcoin
- Alternative Investment
- Alternative Minimum Tax (AMT)
- Amortization
- Anchoring Bias
- Angel Investor
- Annuity
- APR
- APY
- Arbitrage
- Asset Allocation
- Asset Bubble
- Asset Class
- Assets
- At the Money
- Audit
- Availability Bias
B
- Backwardation
- Bad Debt Expense
- Balance of Payments
- Balance Sheet
- Bank Run
- Basel III
- Basis Point
- Bear Market
- Bear Trap
- Behavioral Finance
- Beneficiary
- Beta
- Bid-Ask Spread
- Bitcoin
- Black Swan
- Black-Scholes Model
- Block Trade
- Blockchain
- Blue Chip Stock
- Bollinger Bands
- Bond
- Bond Ladder
- Book Value
- Break-Even Point
- Breakout
- Bridge (Crypto)
- Budget
- Bull Market
- Bullet Bond
- Burn Rate
- Business Cycle
C
- CAGR
- Call Option
- Callable Bond
- Candlestick Chart
- Cap and Trade
- Cap Table
- Capital Expenditure (CapEx)
- Capital Gain
- Capital Loss
- Capital Structure
- Capitalization Rate
- CAPM
- Carry Trade
- Cash Flow Statement
- CBDC
- Central Bank
- Certificate of Deposit (CD)
- Circuit Breaker
- Cold Storage
- Collar
- Collateral
- Commercial Paper
- Common Stock
- Comparable Company Analysis
- Comparative Advantage
- Compound Interest
- Concentration Risk
- Confirmation Bias
- Consumer Confidence Index
- Contagion
- Contango
- Contra Account
- Convertible Bond
- Convertible Note
- Convexity
- Corporate Bond
- Correlation
- Correspondent Banking
- Cosigner
- Cost of Capital
- Cost of Living
- Counterparty Risk
- Coupon Rate
- Covered Call
- CPI
- Creative Destruction
- Credit Default Swap
- Credit Rating
- Credit Score
- Credit Spread
- Credit Utilization
- Crowding Out
- Currency Peg
- Current Account
- Current Yield
D
- Dark Pool
- Day Trading
- Days Payable Outstanding
- Days Sales Outstanding
- DCF
- Deadweight Loss
- Debt Avalanche
- Debt Snowball
- Debt-to-Equity Ratio
- Decentralized Exchange (DEX)
- Deductible
- Default Risk
- Deferred Revenue
- DeFi
- Deflation
- Delta
- Depreciation
- Depreciation Recapture
- Derivative
- Devaluation
- Dilution
- Diminishing Returns
- Disability Insurance
- Discount Rate
- Discount Window
- Disinflation
- Disposition Effect
- Diversification
- Dividend
- Dividend Aristocrat
- Dividend Yield
- Dollar-Cost Averaging
- Double-Entry Bookkeeping
- Dovish
- Dow Jones Industrial Average
- Down Round
- Drawdown
- Due Diligence
- Duration
E
F
- Face Value
- FDIC Insurance
- Federal Funds Rate
- Fibonacci Retracement
- FICA
- Fiduciary
- FIFO
- Financial Independence
- FIRE (Financial Independence, Retire Early)
- Fiscal Policy
- Floating Rate Note
- FOMO
- Foreclosure
- Forward Contract
- Fractional Reserve Banking
- Framing Effect
- Free Cash Flow
- Free Trade
- Front Running
- Futures Contract
G
H
I
- Impairment
- Impermanent Loss
- Implied Volatility
- In the Money
- Income Statement
- Index Fund
- Individual Retirement Account (IRA)
- Inflation
- Inflation-Adjusted Return
- Insider Trading
- Interbank Rate
- Interest Coverage Ratio
- Interest Rate Swap
- Internal Rate of Return (IRR)
- Intrinsic Value
- Investment Grade
- Invisible Hand
- IPO
- Iron Butterfly
- Iron Condor
- Itemized Deduction
J
K
L
M
- MACD
- Margin
- Margin Call
- Margin of Safety
- Marginal Tax Rate
- Marginal Utility
- Market Cap
- Market Cap (Crypto)
- Market Maker
- Market Order
- Maturity
- Mean Reversion
- Mental Accounting
- Merger
- Mining (Crypto)
- Modern Portfolio Theory
- Momentum Investing
- Monetary Policy
- Money Supply
- Moral Hazard
- Mortgage
- Mortgage-Backed Security
- Moving Average
- Municipal Bond
- Mutual Fund
N
O
P
- P/E Ratio
- Passive Income
- Payout Ratio
- PCE
- PEG Ratio
- Penny Stock
- Pension
- Perpetual Bond
- Phillips Curve
- Poison Pill
- Position Sizing
- PPI
- Pre-Market Trading
- Preferred Stock
- Present Bias
- Price Ceiling
- Price-to-Book Ratio
- Price-to-Sales Ratio
- Primary Market
- Prime Rate
- Principal
- Private Equity
- Private Key
- Progressive Tax
- Proof of Stake
- Proof of Work
- Property Tax
- Prospect Theory
- Prospectus
- Protectionism
- Protective Put
- Public Good
- Pump and Dump
- Purchasing Power Parity
- Put Option
Q
R
- R-Squared
- Rebalancing
- Recency Bias
- Recession
- Refinancing
- Reinvestment Risk
- REIT
- Relative Strength Index (RSI)
- Rent Seeking
- Repurchase Agreement (Repo)
- Reserve Requirement
- Restricted Stock Unit (RSU)
- Retained Earnings
- Return on Assets (ROA)
- Return on Invested Capital (ROIC)
- Revenue
- Reverse Stock Split
- Risk Premium
- Risk Tolerance
- Risk-Free Rate
- Robo-Advisor
- ROE
- Roth IRA
- Rug Pull
- Rule of 72
- Runway
- Russell 2000
S
- S&P 500
- SAFE Note
- Scalping
- Secondary Market
- Secured Loan
- Seed Phrase
- Shadow Banking
- Share Buyback
- Shareholders Equity
- Sharpe Ratio
- Short Selling
- Short Squeeze
- Simple Interest
- Sinking Fund
- Slippage
- Smart Contract
- SOFR
- Soft Landing
- Sortino Ratio
- Sovereign Debt
- Sovereign Wealth Fund
- Spin-Off
- Spot Price
- Spread
- Stablecoin
- Stagflation
- Staking
- Standard Deduction
- Standard Deviation
- Status Quo Bias
- Step-Up Basis
- Stock Split
- Stop Loss
- Stop-Limit Order
- Straddle
- Straight-Line Depreciation
- Strangle
- Stress Test
- Strike Price
- Sum-of-the-Parts Valuation
- Sunk Cost
- Supply and Demand
- Supply-Side Economics
- Support and Resistance
- Survivorship Bias
- Swap
- Swing Trading
- Synergy
- Systematic Risk
T
- Tail Risk
- Take-Home Pay
- Target-Date Fund
- Tariff
- Tax Bracket
- Tax Credit
- Tax Deduction
- Tax Deferral
- Tax-Loss Harvesting
- Tender Offer
- Term Life Insurance
- Term Sheet
- Terminal Value
- Theta
- Tick
- Time Value
- Time Value of Money
- TIPS
- Tokenomics
- Tracking Error
- Trade Deficit
- Trailing Stop
- Treasury Bill
- Treasury Bond
- Treasury Note
- Treasury Stock
- Trial Balance
- Triple Witching
- Twin Deficits