Education
Advanced Trustee Skills - Estate Planning Basics, Foundations of Tax, Personal Finance Fundamentals
Estate Planning Basics

Estate Planning Basics

Lessons

13
Duration

4 Hours

Instructors

Kirby Rosplock (Ph.D.)

Born into a very successful enterprising family, Kirby learned family wealth basics the way most affluent offspring do (or don’t) Read More

About Course

Estate Planning Basics reviews the five estate planning phases and the five basic goals of the iterative estate planning process. Triggering events that impact estate planning, either anticipated or unanticipated, are discussed. Read More

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Overview

Learning Objectives

2 Minutes

Film

The Descendants

5 Minutes
Homework I - The Descendants

2 Hours 30 Minutes

Goals, Phases, and Process

Estate Planning Goals

1 Minute
Estate Planning Phases

1 Minute
An Iterative Process

15 Minutes
Triggering Events

30 Minutes

Influences on an Estate Plan

Outside Influences

5 Minutes
Family Culture

2 Minutes
Ruling from the Grave

1 Minute

A Modern Case Study

Anderson Cooper

4 Minutes
Homework II - Estate Planning Reflection: Personal and Family Influences

34 Minutes

Conclusion

Wrap Up

30 Seconds

Test Your Knowledge

Quiz Locked

What should I understand about estate planning before focusing on documents and technical structures?

Estate Planning Basics (formerly Estate Planing Basics Module 1) introduces estate planning as a dynamic process shaped by goals, family circumstances, values, triggering events, and outside influences. Using The Descendants as a case study, learners explore how estate-planning decisions can affect not only asset transfer but also family identity, fiduciary responsibility, communication, legacy, and stewardship across generations. The module helps learners move from viewing estate planning as a one-time legal task to recognizing it as an ongoing process requiring reflection, review, and informed engagement.

What You’ll Be Able to Do on the Other Side

Identify the core goals of an estate plan beyond asset transfer, including legacy, values, family dynamics, and administrative efficiency.
Recognize major life events, triggering events, and outside influences that may require an estate plan to be reviewed or updated.
Evaluate how family culture, communication patterns, and beneficiary readiness can shape estate planning decisions.
Use The Descendants as a case study to analyze how trust structures, fiduciary responsibility, and family legacy can create lasting consequences.
Prepare more informed questions for advisors or family members about how an estate plan reflects both practical needs and broader intentions.

The Experience

This module combines self-paced reading, film-based case analysis, reflection questions, podcast learning, and applied prompts. Learners engage with The Descendants as a practical lens for examining fiduciary responsibility, family trust decisions, dynastic wealth, cultural context, and the unintended consequences of planning choices over time.

The experience is supported by articles, book excerpts, interviews, and podcast resources that connect estate planning concepts to real family dynamics and lived examples. Resources include Chapter 2 of Estate and Trust Administration for Dummies, Jeffrey Condon’s Beyond the Grave, Matt Wesley’s “Culture Does Indeed Eat Structure for Breakfast,” reporting on Anderson Cooper and Gloria Vanderbilt’s estate, Howard Stern’s interview with Anderson Cooper, and Olivia Summerhill’s podcast on prenups, postnups, divorce, and UHNW marriage. Together, these materials help learners reflect on how estate plans are shaped by family culture, communication, changing circumstances, and the tension between intention and impact.

Estimated Completion Time: 3 hours

Featured Resources:

Estate and Trust Administration for Dummies,2nd Ed Chapter 2, “Exploring the Ins and Outs of Estate Planning” by Margaret Atkins Munro, EA & Katheryn A. Murphy, Esq.
Beyond the Grave, Revised and Updated Edition: The Right Way and the Wrong Way of Leaving Money to Your Children (and Others) by Jeffery L. Condon, Esq.
Podcast by Oliva Summerhill entitled, Prenups, Postnups, and Divorce: Navigating the UHNW Marriage

Customers Review

5.0 out of 5

3 customer ratings

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Rebecca K.

Dec 06, 2023

Loved it. Helpful to see the Descendants through this lense.

Amy S.

Nov 22, 2023

I am enjoying the opportunity to review the basic building blocks of estate planning and this is a concise easy to read format.

Ramia A.

Feb 23, 2021

a great experience

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0X PROTOCOL - A protocol on Ethereum that facilitated peer-to-peer exchange of tokenized assets; after 2023 CFTC enforcement against ZeroEx, Inc., activity around the project diminished.

1%/10 NET 30 - An invoice term offering a 1% discount if paid within 10 days; otherwise the full amount is due in 30 days.

100% EQUITIES STRATEGY - An investment approach that allocates essentially all assets to stocks, forgoing bonds and other asset classes.

10-K - The SEC’s comprehensive annual report that public companies must file, detailing their business, financials, and risks.

10-K WRAP - A company’s shareholder report that ‘wraps’ narrative and graphics around key parts of the 10-K, emphasizing highlights without replacing the statutory filing.

10-Q SEC FORM - A quarterly SEC filing providing unaudited financial statements and updates on material events between annual 10-Ks.

10-YEAR TREASURY NOTE - A U.S. Treasury debt security maturing in 10 years that serves as a key benchmark for interest rates and risk appetite.

11TH DISTRICT COST OF FUNDS INDEX (COFI) - An index of the average interest paid by savings institutions in the U.S. 11th Federal Home Loan Bank District, historically used to set ARM rates.

125% LOAN - A mortgage allowing borrowing up to 125% of a home’s value, popular in the late 1990s but largely extinct due to risk.

12B-1 FEE - A mutual fund marketing and distribution fee charged against fund assets and disclosed in the expense ratio.

12B-1 FUND - A mutual fund that charges a 12b-1 fee to cover distribution or shareholder-service costs.

12B-1 PLAN - A mutual fund’s formal plan authorizing it to use 12b-1 fees for distribution and related expenses.

130-30 STRATEGY - A long-short equity strategy that goes 130% long and 30% short to seek alpha while maintaining 100% net market exposure.

183-DAY RULE - A commonly used threshold (e.g., in the U.S. substantial presence test) for determining tax residency based on days spent in a country.

2000 INVESTOR LIMIT - The SEC threshold (with asset and investor-type conditions) at which certain private companies must begin Exchange Act reporting.

2011 U.S. DEBT CEILING CRISIS - A political standoff over raising the federal debt limit that roiled markets and led to the U.S.’s first credit rating downgrade.

2-1 BUYDOWN - A temporary mortgage financing arrangement that reduces the interest rate by 2% in year one and 1% in year two before reverting to the note rate.

2-2-8 ADJUSTABLE-RATE MORTGAGE (2/28 ARM) - A subprime ARM with a fixed teaser rate for two years followed by 28 years of adjustable rates that often reset sharply higher.

25% RULE - A rule of thumb referring either to municipal debt prudence (debt ≤ 25% of budget) or to a heuristic royalty rate of 25% of IP-related gross profits.

3(C)(7) EXEMPTION - An Investment Company Act exemption for funds owned solely by qualified purchasers, allowing more investors than 3(c)(1) but with higher wealth thresholds.

3/27 ARM - An adjustable-rate mortgage fixed for three years and then adjustable for the remaining 27 years.

30-YEAR TREASURY - A U.S. Treasury bond with a 30-year maturity used as a reference for long-term interest rates and pricing of fixed-income assets.

3-2-1 BUYDOWN MORTGAGE - A temporary mortgage buydown that lowers the rate by 3% in year one, 2% in year two, and 1% in year three before reverting.

340B DRUG PRICING PROGRAM - A federal program that allows eligible health entities to buy outpatient drugs at discounted prices.

341 MEETING - A bankruptcy ‘meeting of creditors’ where the debtor is examined under oath by the trustee and creditors may ask questions.

3-6-3 RULE - An old banking adage: pay 3% on deposits, lend at 6%, and be on the golf course by 3 o’clock—shorthand for traditional bank spreads.

3C1 - The Investment Company Act §3(c)(1) exemption allowing certain private funds with ≤100 investors (or qualifying VC funds ≤250) to avoid SEC registration.

401(A) PLAN - An employer-sponsored retirement plan for public or nonprofit entities with contributions typically set by the employer.

401(K) - An employer-sponsored defined contribution retirement plan that employees can contribute to and employers may also make matching contributions. 401-K contributions are taxed when withdrawn.

403(B) PLAN - A retirement plan for public schools and certain nonprofits, similar to a 401(k), often using annuities or mutual funds.

408(K) PLAN - A SEP-IRA arrangement allowing small employers to make deductible contributions to employees’ individual retirement accounts.

412(I) PLAN - A fully insured defined benefit plan funded exclusively with annuity and/or life insurance contracts meeting strict IRS rules.

457 PLAN - A deferred compensation plan for state/local government and certain tax-exempt employees, allowing pre-tax salary deferrals.

48-HOUR RULE - In TBA mortgage-backed securities trading, the requirement that sellers disclose pool details to buyers at least 48 hours before settlement.

500-SHAREHOLDER THRESHOLD - A historical ‘holders of record’ threshold that once triggered public reporting; modern rules under the JOBS Act increased limits in many cases.

501(C) - A section of the Internal Revenue Code listing categories of organizations eligible for federal tax-exempt status.

501(C)(3) ORGANIZATIONS - Charitable and certain other nonprofits exempt from federal income tax under IRC 501(c)(3), to which donations may be tax-deductible.

51% ATTACK - A blockchain attack where a single actor or group controls a majority of mining/validation power and can manipulate transactions.

529 PLAN - A tax-advantaged investment vehicle in the U.S. designed to encourage saving for the future higher education expenses of a designated beneficiary.

529 SAVINGS PLAN - The investment-account type of 529 plan that allocates contributions to portfolios (e.g., age-based funds) for future education costs.

52-WEEK HIGH/LOW - The highest and lowest trading prices of a security over the previous 52 weeks, often used as reference points by investors.

52-WEEK RANGE - The span between a security’s 52-week high and 52-week low prices.

60-PLUS DELINQUENCIES - Loans or accounts with payments that are 60 days or more past due—a key credit-risk metric for lenders.

8(A) FIRM - A small business certified in the SBA’s 8(a) program for socially and economically disadvantaged owners, eligible for set-asides and support.

80-10-10 MORTGAGE - A ‘piggyback’ structure using an 80% first mortgage, 10% second mortgage, and 10% down payment to avoid PMI.

80-20 RULE - Also called the Pareto Principle: roughly 80% of outcomes often come from 20% of causes or inputs.

83(B) ELECTION - An IRC election to recognize income at grant (rather than vesting) on restricted stock, potentially lowering tax if the value later rises.

8-K - An SEC current report that public companies file to disclose major events between periodic reports.

90/10 STRATEGY - An investing allocation commonly described as 90% in a broad stock index fund and 10% in short-term government bonds.

90-DAY LETTER - An IRS notice of deficiency giving taxpayers 90 days to petition the U.S. Tax Court before assessment proceeds.

AAA - The highest credit rating assigned by ratings agencies, indicating an issuer’s extremely strong capacity to meet financial commitments.

AARP - A U.S. nonprofit interest group focused on issues affecting people aged 50 and over, including retirement and healthcare.

A-B TRUST - A trust that divides into two upon the death of the first spouse. Formed with each spouse placing assets in the trust and naming the beneficiary any person except the other spouse. It splits into two upon the first spouse's death – trust A or the survivor's trust, and trust B or the decedent's trust.

ABATEMENT - The reduction in assets transferring to a legatee because the estate has insufficient assets to satisfy all of the legatees.

ABC TRUST ARRANGEMENT - A common trust arrangement that utilizes a bypass trust (the B Trust), a GPOA Trust (the A Trust), and a QTIP Trust (the C Trust) to provide the necessary support to a surviving spouse while maximizing the use of the decedent’s applicable estate tax credit and providing the decedent the ability to determine the ultimate beneficiary of most of his assets at the death of the surviving spouse.

ABENOMICS - Japan’s multi-pronged economic program under Shinzo Abe, emphasizing monetary easing, fiscal stimulus, and structural reforms.

ABILITY-TO-PAY TAXATION - A tax principle that suggests taxes should be levied according to a taxpayer’s capacity to pay, often implying progressive rates.

ABLE ACCOUNTS - Accounts for disabled individuals that provide some of the benefits of special needs trusts without the complexities typically associated with those trusts.

ABNORMAL RETURN - The difference between an asset’s actual return and the expected return given its risk or benchmark.

ABSOLUTE ADVANTAGE - A country’s or producer’s ability to make a good using fewer resources than another.

ABSOLUTE RETURN - Investment performance measured as a raw gain or loss, without reference to a benchmark.

ABSORPTION COSTING - An accounting method that assigns all manufacturing costs—fixed and variable—to units of product.

ABSORPTION RATE - A measure of how quickly available homes are sold in a real estate market during a given time period.

ACADEMY OF PROFESSIONAL FAMILY MEDIATORS (APFM) - A professional organization focused on family mediation, including public education about mediation and promoting professionalism among family mediators.

ACCELERATED DEATH BENEFIT - A reduced payment of the death benefit of a life insurance policy paid to the insured during the insured’s lifetime in return for a surrender of the life insurance contract.

ACCELERATED DEPRECIATION - Any method of depreciation used for accounting or income tax purposes that allows greater depreciation expenses in the early years of the life of an asset.

ACCELERATION CLAUSE - A loan provision allowing a lender to demand early repayment when certain conditions are breached.

ACCEPTABLE QUALITY LEVEL (AQL) - In quality control, the maximum number of defective units considered acceptable in a sample.

ACCEPTING RISK - A risk management response where a firm acknowledges a risk and chooses not to mitigate it further.

ACCIDENTAL DEATH AND DISMEMBERMENT INSURANCE (AD&D) - A life insurance rider that pays benefits if the insured dies or loses a limb or certain functions due to an accident.

ACCIDENTAL DEATH BENEFITS - Extra insurance proceeds paid when death results from an accident, as specified in a policy rider.

ACCIDENT-ONLY INSURANCE - Coverage that pays benefits only for injuries from accidents; typically an excepted benefit.

ACCOUNT BALANCE - The amount of money in a financial account at a given point in time.

ACCOUNT IN TRUST - An account managed by one party for the benefit of another, such as a custodial or trust account.

ACCOUNTABLE CARE ORGANIZATION (ACO) - A group of providers that coordinate patient care to improve quality and lower costs; payment is tied to performance.

ACCOUNTING CONSERVATISM - A principle that favors recognizing expenses and liabilities sooner and revenues later to avoid overstating financial health.

ACCOUNTING RATE OF RETURN (ARR) - Average annual accounting profit from an investment divided by its average investment.

ACCOUNTING RATIO - Any ratio derived from financial statements to evaluate liquidity, profitability, leverage, or efficiency.

ACCOUNTING STANDARD - Authoritative guidance that prescribes how to recognize, measure, present, and disclose items in financial statements.

ACCOUNTING THEORY - The conceptual framework and principles that underpin accounting practices and standards.

ACCOUNTS PAYABLE TURNOVER RATIO - A metric that shows how quickly a company pays suppliers; calculated as purchases or COGS relative to average accounts payable.

ACCOUNTS RECEIVABLE AGING - A report that groups receivables by how long invoices have been outstanding to assess collection risk.

ACCOUNTS RECEIVABLE FINANCING - Borrowing arrangements that use outstanding invoices as collateral for cash.

ACCREDITATION - Independent review showing a plan or facility meets quality standards.

ACCREDITED ASSET MANAGEMENT SPECIALIST (AAMS) - A professional designation for advisors who complete coursework in asset management and meet experience/ethics requirements.

ACCREDITED HIGH-NET-WORTH INDIVIDUAL - In the U.S., one must have $1,000,000, excluding the value of one’s primary residence, or $200,000 income for the past two years ($300,000 if married) and expect this income to continue into the future.

ACCREDITED IN BUSINESS VALUATION (ABV) - An AICPA credential for CPAs who demonstrate expertise in business valuation.

ACCREDITED INVESTOR - An individual or entity that meets income, net worth, or other thresholds allowing participation in certain private offerings.

ACCRETION - An increase in an asset’s value over time, or the gradual recognition of a discount on a bond as interest income.

ACCRETION OF DISCOUNT - The systematic recognition of the difference between a bond’s purchase price below par and its value as it approaches maturity.

ACCRETIVE - Describes an acquisition or action that increases a company’s per-share metrics, such as EPS.

ACCRUAL ACCOUNTING - An accounting method where revenue or expenses are recorded when a transaction occurs rather than when payment is received or made. The method follows the matching principle, which says that revenues and expenses should be recognized in the same period.

ACCRUED INCOME - Income earned but not yet received in cash by the end of an accounting period.

ACCRUED LIABILITY - An obligation recognized before payment is made, such as wages payable or taxes payable.

ACCUMULATED DEPRECIATION - The total amount a company depreciates its assets or the total amount of a company's cost that has been allocated to depreciation expense since the asset was put into use. A running total of depreciation expense reported on the balance sheet.

ACID-TEST RATIO - A liquidity ratio—also called the quick ratio—that gauges whether a company can meet short-term obligations using quick assets (excluding inventory).

ACQUISITION ACCOUNTING - The method under which the acquirer recognizes identifiable assets and liabilities of a target at fair value.

ACQUISITION COST - The total cost to acquire an asset, including purchase price and necessary costs to place it in service.

ACQUISITION PREMIUM - The amount offered above a target’s current market value to complete a takeover.

ACTIVE INCOME - A service is performed for a payment.

ACTUAL CASH VALUE (ACV) - Claim settlement basis that pays the depreciated value of damaged property (replacement cost minus depreciation).

ACTUAL CONTRIBUTION RULE - The value of a decedent’s joint interest in property is based on the actual percentage of the original purchase price contributed by the decedent—-not the decedent’s ownership percentage.

ACTUARIAL VALUE - A measure of plan generosity, estimating the average share of costs the plan will pay for a standard population.

ACTUARY - A professional who analyzes insurance risk and costs using math and statistics to help set justified premiums and reserves

ADEMPTION - Extinction of a legacy because an asset, specifically bequeathed to a legatee, has been disposed of prior to death.

ADJUSTABLE TAXABLE GIFT - The total amount of taxable gifts made by the decedent after 12/31/1976 other than those gifts that must be included in the gross estate.

ADJUSTED GROSS ESTATE - Is equal to the gross estate less any deductions for Funeral expenses, last medical expenses, administrative expenses, debts, and losses during the administration of the estate.

ADJUSTED GROSS INCOME (AGI) - Annual gross income minus certain adjustments that the IRS uses to determine a persons or companies income tax liability for the year.

ADMINISTRATION EXPENSES - All the expenses connected with settling an estate, including executor’s or administrator’s fees, attorney’s and accountant’s fees, court fees, and the expenses related to estate property

ADMINISTRATOR - A person, usually a relative of the deceased, appointed by the probate court to oversee the probate process when an executor is not named in the will.

ADVANCE DIRECTIVE - A legal document stating what medical care you do or don’t want and/or naming someone to decide for you if you can’t

ADVANCE HEALTHCARE DIRECTIVE - Legal document expressing an individual's last wishes regarding life-sustaining treatment.

ADVANCE PREMIUM TAX CREDIT (APTC) - A health insurance premium subsidy paid in advance to your insurer during the year, reconciled on your tax return

ADVANCED EXPLANATION OF BENEFITS (AEOB) - A disclosure that will estimate costs for scheduled services in advance; implementation timelines are evolving.

ADVANCEMENT - An amount given to an heir by the deceased during his lifetime intended as an “advance” against the heir’s share under the will

AFFORDABLE CARE ACT (ACA) - The 2010 law that created the Marketplace, expanded coverage, and set consumer protections like preexisting-condition rules.

AFFORDABLE COVERAGE - Employer coverage considered affordable when the employee’s share of the premium for self-only coverage does not exceed a set percentage of household income.

AGE RATING - Premium variation based on age within regulatory bands, commonly up to a 3:1 ratio for adults.

AGGREGATE DEDUCTIBLE - A family deductible design where the total family deductible must be met before any member’s services are paid beyond the deductible.

ALGORITHMIC TRADING - The use of computer algorithms to automatically execute trades based on predefined rules, models, or signals.

ALLOWED AMOUNT - The maximum a plan will pay for a covered service (sometimes called eligible expense, payment allowance, or negotiated rate).

ALPHA - Excess return of an investment over a benchmark after adjusting for risk.

ALTERNATE VALUATION DATE - An alternate date, other than the date of death, to value a decedent’s gross estate. The alternate valuation date is either six months after the date of death, or if the asset is disposed of within six months of the date of death, the asset’s disposition date. Wasting assets do not qualify to use the alternative valuation date.

ALTERNATIVE INVESTMENTS - A financial asset that does not fall into one of the conventional equity, income, cash categories. Examples include private equities, real property, hedge funds, and commodities.

AMBULATORY CARE - Care provided without an overnight hospital stay (e.g., office visits, same‑day procedures, imaging, therapies)

AMBULATORY SURGERY CENTER (ASC) - A facility where surgeries not requiring hospital admission are performed.

AMERICAN ACADEMY OF MATRIMONIAL LAWYERS (AAML) - An elected professional membership association of highly recognized family law/matrimonial attorneys; founded to promote professionalism and excellence in family law practice.

AMERICAN DEPOSITARY RECEIPT (ADR) - A U.S.-traded certificate representing shares in a foreign company, allowing U.S. investors to own and trade foreign stocks more easily.

AMERICAN TAXPAYER RELIEF ACT (ATRA 2012) - Tax act signed by President Barack Obama in January of 2012. The act reunified estate and gift tax with a $5,000,000 exemption and a 40 percent marginal rate (2013).

AMORTIZATION - In loan terms, it’s the process of repaying a loan through regular installments that cover both principal and interest. In accounting, it refers to spreading the cost of an intangible asset over time, reflecting its declining value or usefulness.

AMORTIZATION SCHEDULE - A table showing each loan payment over time, breaking out the portions applied to interest and to principal until the balance is repaid.

ANCILLARY ADMINISTRATION - Additional probate proceedings that must be carried out when the deceased owned property in a state or states other than that where he had his principal residence

ANCILLARY PROBATE - A probate process conducted in a state other than the state of the decedent's domicile.

ANNUAL EXCLUSION - A rule that lets you give a certain amount of money or assets each year to someone without paying gift tax, as long as it qualifies as a present interest gift and stays within the annual limit.

ANNUAL PERCENTAGE RATE (APR) - The yearly cost of borrowing expressed as a percentage, including fees and interest.

ANNUAL PERCENTAGE YIELD (APY) - The effective annual rate of return accounting for compounding.

ANNUITY - A series of equal payments made at regular intervals; also a contract that provides such payments.

ANNUITY GIFT - A pecuniary gift that is payable periodically.

ANY-OCCUPATION - A stricter disability definition paying benefits only if you cannot work in any reasonable occupation suited to your training and experience.

APPEALS AND EXTERNAL REVIEW - The process allowing you to challenge plan decisions and have an independent reviewer evaluate your appeal if the plan upholds its denial.

APPLICABLE EXCLUSION AMOUNT - The total amount exempted from gift and/or estate tax.

APPLICABLE FEDERAL RATE (AFR) - The minimum interest rate you must charge on a loan in order for it to be considered fair market rate for the loan to be considered a taxable event and not a gift by the IRS.

APPLICABLE RATE - The maximum estate tax rate in effect at the date of the GST multiplied by the inclusion ratio.

APPOINTMENT OF EXECUTOR CLAUSE - A clause in a will that identifies the executor and any successor executor. This clause may also define the extent of the executor's powers and may grant specific or general powers.

ARBITRAGE - Simultaneous buying and selling of the same or equivalent asset to profit from price differences across markets.

ARBITRAGE PRICING THEORY (APT) - A multi-factor asset-pricing model that explains expected returns using sensitivities to several systematic risk factors.

ARM’S-LENGTH TRANSACTION - A transfer generally between unrelated parties in the form of a sale, an installment sale, or an exchange.

ASCERTAINABLE STANDARD - An objective standard for allowing distributions defined in the Internal Revenue Code as distributions for health, education, maintenance, or support (HEMS).

A-SHARES - A class of shares—often mutual fund shares—that typically carry a front-end sales load; for companies, A-shares may carry different voting rights.

ASSET ALLOCATION - The mix of asset classes in a portfolio, a key driver of risk and return.

ASSET CLASSES - A group of financial instruments with similar characteristics and behaviors in the marketplace.

ASSET PROTECTION TRUST - A trust, domestic or offshore, that is designed to protect the assets of the settlor while at the same time allowing the settlor to be a beneficiary

ASSET-BACKED SECURITY - A bond-like security backed by a pool of income-generating assets—such as loans, leases, or receivables—that pays investors over time.

ASSOCIATION HEALTH PLAN (AHP) - Group coverage offered through an association of small employers to access large‑group‑like buying power under certain rules

AT THE MONEY (ATM) - Options whose strike price is equal (or very close) to the current price of the underlying asset.

ATTESTATION CLAUSE - Witness clause stating that the testator is of sound mind and that he signed the document in the witness' presence.

ATTORNEY-IN-FACT - Agent or power holder of a power of attorney. The person named to act as legal agent for the person who gives the power of attorney.

AUDIT - An independent examination of financial statements and related records to assess accuracy, compliance, and fairness.

AUDIT COMMITTEE - A small group of board members responsible for overseeing the company’s financial reporting, internal controls, and relationship with external auditors.

AUSTERITY - Policies aimed at reducing government deficits through spending cuts and/or tax increases.

AUTHORIZED REPRESENTATIVE - A person you allow to act for you with the Marketplace or insurer, such as to file an application or appeal.

AUTOCORRELATION - The correlation of a time series with its own past values.

AVAILABLE-FOR-SALE SECURITY - A debt or equity security not classified as trading or held to maturity, measured at fair value with unrealized gains/losses in OCI.

AVERAGE ANNUAL GROWTH RATE (AAGR) - The average yearly increase of a metric over a period.

AVERAGE DAILY TRADING VOLUME (ADTV) - The average number of shares or contracts traded per day over a set period.

AVERAGE DIRECTIONAL INDEX (ADX) - A technical indicator that measures trend strength.

AVERAGE LIFE - The weighted‑average time to receive principal repayments from a security.

AVERAGE SELLING PRICE (ASP) - The average price at which a product or service is sold.

AVERAGE TRUE RANGE (ATR) - A technical analysis indicator that measures market volatility using a moving average of true ranges.

BACKTESTING - Testing a strategy on historical data to assess performance and risk.

BACKWARDATION - A futures market condition where near-term contracts trade above longer-dated prices.

BALANCE BILLING - When an out‑of‑network provider bills you the difference between their charge and the plan’s allowed amount; protections apply in certain settings

BALANCE OF PAYMENTS - A record of all economic transactions between residents of a country and the rest of the world.

BALANCE SHEET - A financial statement that reports a company's assets, liabilities and shareholders' equity at a specific point in time, and provides a basis for computing rates of return and evaluating its capital structure. It provides a snapshot of what a company owns and owes, as well as the amount invested by shareholders.

BALANCED BUDGET - A budget in which revenues equal or exceed expenditures over a period.

BALANCED FUND - A mutual fund that invests in a mix of stocks and bonds to balance risk and return.

BALANCED INVESTMENT STRATEGY - An asset allocation approach blending equities and fixed income for moderate risk and return.

BALANCED SCORECARD - A management framework that tracks performance across financial and nonfinancial perspectives.

BALLOON LOAN - A loan with small periodic payments and a large final lump-sum due at maturity.

BALLOON PAYMENT - The large, lump-sum payment due at the end of a balloon loan.

BALLPARK FIGURE - An approximate estimate used for planning when precise numbers are unavailable.

BALTIC DRY INDEX - A benchmark index tracking shipping rates for bulk raw materials.

BANCASSURANCE - A partnership model where banks sell insurance products to their customers.

BANDWAGON EFFECT - A bias where people adopt beliefs or behaviors because many others do.

BANK BILL SWAP RATE (BBSW) - An Australian benchmark rate for bank-accepted bills and certificates of deposit.

BANK CAPITAL - A bank’s equity and retained earnings that absorb losses and support operations.

BANK CONFIRMATION LETTER (BCL) - A letter from a bank confirming a client’s financial status or funding availability, often used in trade or project finance.

BANK CREDIT - The total amount of credit extended by banks to borrowers, including loans and credit lines.

BANK DRAFT - A payment instrument issued by a bank, guaranteeing funds to the payee.

BANK GUARANTEE - A promise by a bank to cover a debtor’s liability if the debtor fails to fulfill contractual obligations.

BANK IDENTIFICATION NUMBER (BIN) - The initial digits of a payment card number that identify the issuing institution.

BANK RATING - An assessment of a bank’s creditworthiness by rating agencies or regulators.

BANK RECONCILIATION - The process of matching a company’s cash records to its bank statement, identifying differences and adjustments.

BANK RESERVE - Cash and deposit balances that banks must hold to meet withdrawals and regulatory requirements.

BANK STATEMENT - A periodic summary of account transactions and balances provided by a bank to an account holder.

BANK STRESS TEST - A regulatory exercise that evaluates a bank’s ability to withstand adverse economic scenarios.

BANKER'S ACCEPTANCE - A short-term, bank-guaranteed time draft used to finance trade transactions.

BANK-OWNED LIFE INSURANCE (BOLI) - Life insurance policies purchased by banks on key employees to help fund employee benefits and manage costs.

BANKRUPTCY - A legal process that provides debt relief for borrowers who cannot repay, often involving liquidation or court-approved repayment plans.

BANNER ADVERTISING - Graphic display ads appearing on websites or apps, typically linking to an advertiser’s landing page.

BAPTISM BY FIRE - An initiation into a difficult task or environment under intense pressure or real-world conditions.

BAR CHART - A price chart displaying each period’s high, low, open, and close.

BARBELL INVESTMENT STRATEGY - An investment strategy where half of the holdings are short-term, and half are long-term. Short-term investments are ultrasafe, cash, T-bills and government bonds that may pay a modest level of interest, easily accessed, but likely will not lose their value. Long-term investments are more higher risk investments, from operating businesses, direct investments, private equity, and equities.

BARE TRUST - A trust in which the beneficiary has an immediate and absolute right to the trust’s assets.

BARRELS OF OIL EQUIVALENT PER DAY (BOE/D) - A production rate measuring the volume of energy produced daily, expressed in BOE.

BARRIER OPTION - An option whose payoff depends on whether the underlying hits a specified price barrier.

BARRIERS TO ENTRY - Obstacles that make it difficult for new competitors to enter a market.

BARTER - The direct exchange of goods or services without using money.

BASE EFFECT - Distortion in growth rates caused by unusually high or low values in the comparison period.

BASE PAY - An employee’s standard rate of compensation, excluding bonuses and benefits.

BASE YEAR - The reference year used to calculate index values and real versus nominal comparisons.

BASEL ACCORDS - A set of international banking regulations (Basel I, II, III) designed to strengthen bank capital and risk management.

BASEL I - The first Basel Accord, establishing minimum capital requirements for banks.

BASEL II - An expanded Basel framework emphasizing risk-sensitive capital, supervisory review, and market discipline.

BASEL III - The latest major Basel standard, raising capital, leverage, and liquidity requirements for banks.

BASELINE - An initial reference point used for comparison in analysis or measurement.

BASIC EARNINGS PER SHARE - Earnings per share calculated using weighted-average common shares, excluding dilutive securities.

BASIC MATERIALS - A sector comprising companies that produce raw materials such as metals, chemicals, and paper.

BASIS - The acquisition cost of any asset.

BASIS POINT (BPS) - A unit equal to 0.01% used to measure interest-rate and yield changes.

BASIS RISK - The risk that a hedge will not move in tandem with the underlying exposure.

BASKET OF GOODS - A set of items used to track price changes for inflation measurement.

BASKET TRADE - The simultaneous buying or selling of a group of securities as a package.

BAT STOCKS - A nickname for Chinese tech giants Baidu, Alibaba, and Tencent.

BATCH PROCESSING - Running jobs or transactions in groups without manual intervention, often after hours.

BAYES' THEOREM - A probability formula that updates the likelihood of an event based on new information.

BCG GROWTH-SHARE MATRIX - A portfolio tool that classifies business units into Stars, Cash Cows, Dogs, and Question Marks.

BEACON SCORE - A legacy brand name for a FICO credit score used by some lenders.

BEAR CALL SPREAD - An options strategy combining a short call and a long call at a higher strike to profit from limited downside.

BEAR MARKET - A prolonged market decline, commonly defined as a drop of about 20% or more from recent highs.

BEAR PUT SPREAD - An options strategy using a long put and a short put at a lower strike to profit from a moderate decline.

BEAR SPREAD - Any options spread constructed to benefit from a price decline.

BEAR STEARNS - A former U.S. investment bank that collapsed during the 2008 financial crisis and was acquired by JPMorgan Chase.

BEAR TRAP - A false signal suggesting a reversal to a downtrend, trapping short sellers.

BEARER BOND - A bond payable to whoever holds the physical certificate, with coupons detached for interest.

BEARER SHARE - Equity ownership represented by physical certificates that grant rights to the holder.

BEARISH ENGULFING PATTERN - A bearish reversal candlestick where a large down candle engulfs the prior up candle.

BEHAVIORAL ECONOMICS - A field that integrates psychology into economic models to explain decision-making.

BEHAVIORAL FINANCE - The study of how cognitive biases influence investor behavior and markets.

BELL CURVE - The normal distribution curve commonly used in statistics.

BELOW-THE-LINE ADVERTISING - Targeted promotional activities outside mass media, such as direct mail or in-store promotions.

BEN BERNANKE - Former Federal Reserve Chair (2006–2014) known for crisis-era monetary policy.

BENCHMARK PLAN - The second‑lowest‑cost Silver plan (SLCSP) in your area for ACA; also refers to a state’s selected plan that defines essential health benefits

BENEFICIAL OWNER - The person who enjoys the benefits of ownership even if assets are held in another name.

BENEFICIARY - The person(s) who hold(s) the beneficial title to a trust's assets.

BENEFICIARY DEFECTIVE INHERITOR’S TRUST (BDIT) - An irrevocable trust that freezes the value of assets for gift and estate tax purposes when such assets are sold to the trust by a beneficiary (“beneficiary-seller”), who has the added benefit of being eligible to receive future discretionary distributions from the trust.

BENEFIT PERIOD - The period during which plan benefits apply—often a calendar year in individual plans.

BENEFIT PERIOD (DISABILITY) - How long disability benefits are payable (e.g., 2 years, 5 years, to age 65).

BENEFIT YEAR - The 12-month period when plan benefits apply—often the calendar year for individual market plans.

BENEFIT-COST RATIO - A metric that compares a project’s total expected benefits to its total costs.

BENJAMIN GRAHAM - Investor and author known as the father of value investing.

BEQUEST - A gift of money or other property under a will or trust

BEQUEST CLAUSE - Directs the distribution of property, whether cash, tangible property, intangible property, or real property.

BERHAD (BHD) - A Malay term indicating a public limited company in Malaysia.

BERMUDA OPTION - An option exercisable on specific dates, more flexible than European but less than American options.

BESPOKE CDO - A customized collateralized debt obligation tailored to investor demand.

BEST ALTERNATIVE TO A NEGOTIATED AGREEMENT (BATNA) - The best outcome a party can achieve if negotiations fail.

BEST ENDEAVORS - A contractual standard requiring reasonable, diligent efforts to achieve an outcome.

BEST PRACTICES - Established methods widely accepted as superior to alternatives.

BETA - A measure of a stock’s volatility in relation to the overall market. It is used with the capital asset pricing model, which describes the relationship between systemic risk and expected return for assets.

BETTER BUSINESS BUREAU (BBB) - A nonprofit organization that rates and accredits businesses on trust and performance.

BICAMERAL SYSTEM - A legislature consisting of two chambers or houses.

BID BOND - A surety bond guaranteeing that a bidder will undertake the contract if selected.

BID PRICE - The monetary amount of the current highest bid for a security.

BID SIZE - The number of shares or contracts a buyer is willing to purchase at the bid price.

BID-ASK SPREAD - The difference between the highest price buyers are willing to pay (bid) and the lowest price sellers will accept (ask); a key measure of trading costs and liquidity.

BIG DATA - Extremely large datasets requiring specialized tools for storage, processing, and analysis.

BILATERAL CONTRACT - An agreement involving mutual promises between two parties.

BILATERAL TRADE - Trade conducted directly between two countries or parties.

BILL AUCTION - A U.S. Treasury auction that issues short-term T-bills to investors.

BILL OF EXCHANGE - A written order binding one party to pay a fixed sum to another at a future date.

BILL OF LADING - A legal document issued by a carrier acknowledging receipt of cargo and terms of shipment.

BILLING CYCLE - The interval between billing statements for credit or services.

BILLS OF MATERIALS (BOM) - A detailed list of parts and components required to build a product.

BINANCE COIN (BNB) - A cryptocurrency used in the Binance ecosystem for fees, trading, and utilities.

BINARY OPTION - A derivative that pays a fixed amount if a condition is met and nothing otherwise.

BINDER PAYMENT - The first premium payment required to activate a newly selected Marketplace plan.

BINOMIAL DISTRIBUTION - A probability distribution describing the number of successes in fixed independent trials.

BINOMIAL OPTION PRICING - A lattice-based method for valuing options over discrete time steps.

BIOREMEDIATION - The use of living organisms to break down or remove contaminants from the environment.

BIRD IN HAND - A dividend policy theory that investors prefer certain dividends over uncertain capital gains.

BITCOIN - A decentralized digital currency using blockchain and proof-of-work consensus.

BITCOIN MINING - The process of validating transactions and securing the Bitcoin network by solving cryptographic puzzles.

BITCOIN MISERY INDEX - A sentiment index for Bitcoin based on price momentum and volatility.

BITCOIN WALLET - Software or hardware that stores private keys and enables cryptocurrency transactions.

BLACK BOX MODEL - A model whose internal workings are not transparent to the user.

BLACK FRIDAY - The retail sales day after U.S. Thanksgiving, associated with heavy discounting.

BLACK MARKET - Illegal trade of goods or services in violation of price controls or regulations.

BLACK MONDAY - Monday, Oct. 19, 1987, when global stock markets experienced a historic crash.

BLACK MONEY - Income earned illicitly or not reported for tax purposes.

BLACK SCHOLES MODEL - A formula that estimates the fair value of European options using inputs like volatility and time.

BLACK SWAN - A rare, unpredictable event with severe consequences.

BLACK TUESDAY - October 29, 1929, a day of massive stock market declines during the Wall Street Crash.

BLACK-SCHOLES MODEL - An options pricing model that estimates fair value using factors like volatility and time.

BLENDED RATE - A weighted-average rate that combines two or more interest or pricing rates—commonly used when refinancing or averaging labor rates.

BLIND TRUST - A revocable trust whereby an individual transfers property to the trust for management purposes when self-management of the assets might be deemed to be a conflict of interest. The beneficiaries have no knowledge of the holdings and the trustee has full discretion.

BLOCK TRADE - A large, privately negotiated trade of securities executed outside the open market to minimize price impact.

BLOCKAGE DISCOUNT - A reduction in the fair market value of a large block of stock because the transfer of a large block of stock is less marketable than other transfers of smaller amounts of stock.

BLOCKCHAIN WALLET - A software or hardware application that stores cryptocurrency keys and enables sending and receiving digital assets.

BLOCKCHAIN-AS-A-SERVICE (BAAS) - Cloud-based services that provide managed blockchain infrastructure and tooling so firms can build and run blockchain apps.

BLOTTER - An internal record of trades executed by a desk or firm, used for compliance and reconciliation.

BLUE BOOK - A reference guide that lists typical values—often used for vehicle pricing or industry standards.

BLUE CHIP - Stock of a large, established, financially sound company with a history of reliable performance.

BLUE OCEAN - A market-space strategy focused on creating uncontested demand rather than competing in crowded markets.

BLUE SKY LAWS - State securities laws designed to protect investors against fraud by requiring registration and disclosures.

BLUE-CHIP STOCK - Shares issued by a blue-chip company, generally considered lower risk and steady performers.

BOARD OF DIRECTORS - A group elected to represent shareholders and oversee corporate governance.

BOARD OF GOVERNORS - A governing body—often referring to the U.S. Federal Reserve Board—that sets policy and oversees operations.

BOARD OF TRUSTEES - A governing group that manages assets or affairs of an organization such as a trust, fund, or nonprofit.

BOILER ROOM - A high-pressure sales operation that uses aggressive or deceptive tactics to sell investments.

BOILERPLATE - Standardized language or provisions reused in multiple documents or contracts.

BOLLINGER BAND - A technical indicator of volatility consisting of a moving average with upper and lower bands set by standard deviations.

BOLLINGER BANDS - A moving average with bands set by standard deviations to indicate volatility and extremes.

BOMBAY STOCK EXCHANGE (BSE) - One of India’s major stock exchanges, based in Mumbai, known for the Sensex index.

BOND - A fixed income investment in which an investor loans money to an entity that borrows the funds for a defined period at a fixed interest rate

BOND COVENANT - A contractual clause in a bond indenture that protects lenders by restricting issuer behavior.

BOND DISCOUNT - The amount by which a bond’s price is below par; arises when coupon is below market yields.

BOND EQUIVALENT YIELD (BEY) - A method to annualize yields on short-term discount instruments for comparison with coupon-bearing bonds.

BOND ETF - An exchange-traded fund that holds a portfolio of bonds and trades on an exchange like a stock.

BOND FUND - Invests primarily in bonds with the primary goal of generating monthly income for investors. Provides instant diversification for investors.

BOND FUTURES - Futures contracts that obligate delivery of a government or other bond at a set price and date.

BOND LADDER - A portfolio of bonds with staggered maturities to manage reinvestment and interest-rate risk.

BOND MARKET - The global marketplace where debt securities are issued and traded.

BOND QUOTE - A bond’s current market price and yield information, typically shown as a percentage of par.

BOND RATING - A credit quality assessment of a bond or issuer by a rating agency.

BOND RATING AGENCIES - Firms such as S&P, Moody’s, and Fitch that assign credit ratings to issuers and securities.

BOND VALUATION - The process of determining a bond’s fair price based on cash flows and required return.

BOND YIELD - The return earned on a bond from coupon income and price changes.

BONDHOLDER - An investor who owns a bond and is entitled to coupon payments and repayment of principal.

BONUS - Additional compensation paid to employees or management based on performance or incentives.

BONUS DEPRECIATION - A tax incentive that allows a business to immediately deduct a large percentage of the purchase price of eligible assets.

BONUS ISSUE - A stock dividend paid in additional shares rather than cash, increasing shares outstanding.

BOOK BUILDING - The process by which underwriters gauge investor demand to set the price for a new securities issue.

BOOK INCOME - A company’s financial income before tax adjustments which is reported to investors or shareholders.

BOOK RUNNERS - Lead underwriters responsible for managing the offering and allocating shares in a new issue.

BOOK VALUE - A company’s net asset value—assets minus liabilities—often expressed on a per-share basis.

BOOK VALUE OF EQUITY PER SHARE (BVPS) - Book value attributable to common shareholders divided by shares outstanding.

BOOK VALUE PER COMMON SHARE - An equity-per-share measure similar to BVPS that excludes preferred equity if applicable.

BOOKIE - A person who takes bets and pays winnings—short for bookmaker.

BOOK-TO-BILL - A ratio comparing new orders received to shipments billed—used to gauge demand trends.

BOOK-TO-MARKET RATIO - A valuation metric comparing a company’s book value to its market value.

BOOM AND BUST CYCLE - Economic expansions followed by contractions, often driven by credit cycles and sentiment.

BOOTSTRAP - (1) A statistical resampling method; (2) In startups, building a business with minimal external funding.

BORROWING BASE - The maximum loan amount a lender will extend, based on a percentage of eligible collateral.

BOTH-TO-BLAME COLLISION CLAUSE - A marine insurance clause apportioning liability when both vessels are at fault in a collision.

BOTTLENECK - A point of congestion that limits throughput in a process or system.

BOTTOM LINE - Net income; colloquially, the most important or final result.

BOTTOM-UP INVESTING - An approach focusing on individual company fundamentals rather than macro trends.

BOUNCED CHECK - A check returned unpaid due to insufficient funds or other issues.

BOUNDARY CONDITIONS - Constraints or values specified at the limits of a model or system, used in math and finance modeling.

BOX SPREAD - An options arbitrage strategy combining a bull call spread and bear put spread with the same strikes.

BRAIN DRAIN - Emigration of skilled workers from one region or country to another.

BRANCH ACCOUNTING - Accounting that tracks financial results for separate branches or locations.

BRANCH BANKING - A banking model where a bank operates multiple branches to serve customers.

BRANCH MANAGER - The executive responsible for operations and performance of a bank or firm’s branch.

BRAND AWARENESS - The extent to which consumers recognize or recall a brand.

BRAND EQUITY - The added value a brand contributes to a product or company, reflected in loyalty and pricing power.

BRAND EXTENSION - Using an established brand name to introduce new products or categories.

BRAND IDENTITY - The visual and verbal elements that convey a brand’s personality and promise.

BRAND LOYALTY - A consumer’s tendency to repeatedly choose the same brand over alternatives.

BRAND MANAGEMENT - The discipline of building, maintaining, and improving brand equity and perception.

BRAND PERSONALITY - Human-like characteristics associated with a brand that influence consumer perception.

BRAND RECOGNITION - The ability of consumers to identify a brand by its attributes such as logo or packaging.

BRAZIL, RUSSIA, INDIA AND CHINA (BRIC) - An acronym for four large emerging economies: Brazil, Russia, India, and China.

BRAZIL, RUSSIA, INDIA, CHINA AND SOUTH AFRICA (BRICS) - An expanded grouping of major emerging economies adding South Africa to BRIC.

BREADTH INDICATOR - A market breadth metric that measures the number of advancing vs. declining securities.

BREAK-EVEN ANALYSIS - A technique that determines the point where total revenue equals total costs.

BREAKEVEN POINT - The output or sales level where revenue equals costs—no profit or loss.

BREAK-EVEN PRICE - The price at which an investment or project recovers its total costs and begins to generate profit.

BRETTON WOODS AGREEMENT - The 1944 accord that created a fixed exchange‑rate system and institutions like the IMF and World Bank.

BREXIT - The United Kingdom’s withdrawal from the European Union, formally completed in 2020.

BRICK AND MORTAR - Businesses with physical retail locations, as opposed to purely online operations.

BRIDGE FINANCING - Interim funding used until longer-term financing is arranged or an asset is sold.

BRIDGE LOAN - A short-term loan providing liquidity until permanent financing or sale occurs.

BROAD MONEY - A measure of money supply that includes cash, checking, savings, and other liquid assets.

BROKER - An intermediary that executes trades for clients, often for a commission or fee.

BROKERAGE ACCOUNT - An investment account enabling the purchase and sale of securities.

BROKERAGE COMPANY - A firm that offers brokerage services such as trading, custody, and research.

BROKERAGE FEE - A charge levied by a broker for executing trades or providing services.

BROKER-DEALER - A firm that acts as both broker (agent) and dealer (principal) in securities transactions.

BRONZE PLAN - Marketplace metal level with typically the lowest premiums and highest costs when you get care.

BROWNFIELD INVESTMENT - Investment in an existing facility or operation rather than building new (greenfield).

BSE - One of India’s major stock exchanges, based in Mumbai, known for the Sensex index.

BUBBLE - A rapid rise in asset prices to unsustainable levels followed by a sharp decline.

BUDGET DEFICIT - When expenditures exceed revenues during a period.

BUDGET SURPLUS - The excess that occurs when revenue exceeds expenses in a budget period.

BUDGET VARIANCE - The difference between planned (budgeted) and actual results.

BUILD AMERICA BONDS (BABS) - Taxable municipal bonds with federal subsidies on interest costs, issued in 2009–2010.

BUILD-OPERATE-TRANSFER CONTRACT - A project structure where a private party builds and operates an asset before transferring it to the government.

BULL CALL SPREAD - An options strategy using a long call and a short call at a higher strike to profit from moderate upside.

BULL PUT SPREAD - An options strategy combining a short put and a long put at a lower strike to profit from limited upside and time decay.

BULL SPREAD - Any options spread constructed to benefit from a price increase.

BULL TRAP - A false signal suggesting an upward reversal that quickly fails.

BULLET BOND - A bond that pays coupons and returns principal in a single lump sum at maturity (no amortization).

BULLET REPAYMENT - A single large principal payment due at maturity of a loan or bond.

BUNDLED PAYMENT - Single payment that covers a group of services for an episode of care.

BUREAU OF LABOR STATISTICS (BLS) - A U.S. federal agency that produces labor market data such as CPI and employment reports.

BUREAUCRACY - Administrative structures and processes that govern organizations or states; often associated with rules and hierarchy.

BURN RATE - The rate at which a company uses up cash—often measured monthly for startups.

BUSINESS ACTIVITIES - Operating, investing, and financing actions that a company undertakes to run its business.

BUSINESS ASSET - A resource owned by a business—tangible or intangible—that has economic value.

BUSINESS CONTINUITY PLANNING (BCP) - Preparation to ensure critical operations can continue during and after disruptions.

BUSINESS DEVELOPMENT COMPANIES (BDCS) - Closed-end investment companies that provide capital to small and mid-sized businesses.

BUSINESS ECOSYSTEMS - Networks of firms, suppliers, customers, and partners that coevolve to deliver value.

BUSINESS EXIT STRATEGY - A plan for how owners will transfer or liquidate their interest, such as sale, IPO, or liquidation.

BUSINESS INSURANCE - Insurance coverages that protect a company from operational risks and liabilities.

BUSINESS INTELLIGENCE (BI) - Technologies and practices for collecting and analyzing data to support decisions.

BUSINESS INTEREST - The involvement of an individual or their family members in a business or profession or the direct interest they may have in a company providing goods or services.

BUSINESS MODELS - Frameworks describing how a company creates, delivers, and captures value.

BUSINESS OWNER’S POLICY (BOP) - A package policy bundling general liability, commercial property, and business interruption for small to mid-sized businesses.

BUSINESS PLAN - A document detailing a company’s strategy, market, operations, and financial projections.

BUSINESS PROCESS OUTSOURCING - Contracting standard business processes to third-party providers to reduce cost or improve focus.

BUSINESS RISK - The uncertainty of income due to factors other than financial leverage (e.g., competition, demand).

BUSINESS TO CONSUMER (B2C) - Commercial transactions where firms sell directly to individual consumers.

BUSINESS TO GOVERNMENT (B2G) - Transactions in which businesses provide goods or services to government entities.

BUSINESS VALUATIONS - Methods used to estimate the economic value of a business or ownership interest.

BUSINESS-TO-BUSINESS (B2B) - Commercial transactions between businesses rather than with consumers.

BUTTERFLY SPREAD - An options strategy that combines bull and bear spreads to profit from low volatility around a target price.

BUY AND HOLD - An investment strategy of purchasing securities and holding them long term through cycles.

BUY AND SELL AGREEMENT - A contract among owners detailing how interests are transferred upon events like death or exit.

BUY LIMIT ORDER - An order to purchase a security at or below a specified price.

BUY STOP ORDER - An order to buy once price rises to a specified stop level, often to enter on momentum or protect shorts.

BUY THE DIPS - A strategy of purchasing assets after short-term price declines.

BUY TO COVER - A buy order used to close out an existing short position.

BUY TO OPEN - An order that opens a new long options position.

BUYBACK - A company’s repurchase of its own shares from the market, reducing shares outstanding.

BUYER’S MARKET - Market conditions where supply exceeds demand, giving buyers more negotiating power.

BUY-IN MANAGEMENT BUYOUT (BIMBO) - A transaction combining a management buy-in by external managers with a buyout by existing managers.

BUYING ON MARGIN - Purchasing securities with borrowed funds from a broker, using the securities as collateral.

BUYING POWER - The cash and margin available to an investor to make purchases.

BUYOUT - The acquisition of a controlling interest in a company—e.g., management or leveraged buyout.

BUY-SIDE - The segment of the market comprising asset managers, hedge funds, and institutional investors that buy securities.

BYPASS TRUST - A trust created to ensure that an individual makes use of his applicable estate tax credit. Also known as a B Trust or Credit Shelter Trust

CAFETERIA PLAN - An employer benefit plan that lets employees choose among two or more benefits, including pre-tax options.

CALL OPTION - An option giving the holder the right to buy the underlying asset at a specified strike price within a set time.

CALLABLE BOND - A bond that allows the issuer to redeem it before maturity on prearranged terms, typically when interest rates fall.

CANDLESTICK - A price plot that shows an asset’s open, high, low, and close for a period; patterns are used in technical analysis.

CAPITAL ACCOUNT - Part of the balance of payments recording financial flows like investments and loans.

CAPITAL ASSET PRICING MODEL (CAPM) - Estimates expected return based on the risk‑free rate, beta, and market risk premium.

CAPITAL GAIN PROPERTY - Property that, when sold, results in either capital gain or Section l23l gain.

CAPITAL GAINS TAX - An income tax paid on the profit from the sale of capital assets, such as stocks, real estate, or business interests. The tax is typically based on the difference between the asset’s sale price and its cost basis.

CAPITAL GOODS - Durable goods used to produce other goods and services, such as machinery and tools.

CAPITAL GROWTH - An increase in the value of an asset or investment overtime.

CAPITAL IMPROVEMENT - A permanent enhancement to property that increases its value or extends its useful life.

CAPITAL INVESTMENT - Money committed to acquire or upgrade long‑term productive assets or ownership stakes in businesses.

CAPITAL IQ - A financial data and analytics platform from S&P Global used for research, screening, and modeling.

CAPITAL LEASE - A lease treated as a purchase for accounting purposes (finance lease), recognizing an asset and liability on the balance sheet.

CAPITAL LOSS - The loss incurred when a capital asset decreases in value and is recognized with the asset is sold for a price lower than the original purchase.

CAPITAL LOSS CARRYOVER - Unutilized capital losses that can be carried forward to offset future capital gains for tax purposes.

CAPITAL MARKET LINE (CML) - In modern portfolio theory, the line showing risk‑return tradeoffs of efficient portfolios combining the risk‑free asset and the market portfolio.

CAPITAL MARKETS - Markets where long‑term debt and equity securities are issued and traded.

CAPITAL PROJECT - A long‑term investment initiative to build, improve, or maintain a capital asset.

CAPITAL STACK - The total shares authorized and issued by a corporation, representing ownership that defines who has the rights (and in what order) to the income and profits generated upon sale. Debt holders are paid prior to equity holders.

CAPITAL STRUCTURE - The mix of debt and equity a company uses to finance its operations and growth.

CAPITALISM - An economic system in which private individuals and firms own the means of production and operate for profit in competitive markets.

CAPITALIZATION - (1) Recording a cost as an asset to be expensed over time; (2) The market value of a company’s equity (market cap).

CAPITALIZATION RATE - A real estate valuation metric equal to a property’s net operating income divided by its current market value.

CAPITALIZATION TABLE - A table showing a company’s ownership structure—equity classes, share counts, and investor stakes.

CAPITALIZE - To record an expenditure as an asset rather than an immediate expense.

CAPITALIZED COST - The total amount recorded as an asset, including purchase price and necessary costs to place it into service.

CAPITALIZED INTEREST - Interest incurred during construction that is added to the cost basis of a long‑term asset rather than expensed.

CAPITATION - A payment model where providers are paid a set amount per member per period to deliver defined services.

CAPITULATION - A market event where investors give up on holding positions—often selling en masse near a bottom.

CARBON CREDIT - A tradable permit representing the right to emit a specified amount of greenhouse gases.

CARDING - Illicit trafficking and use of stolen credit card data.

CARRIED INTEREST - A share of investment profits paid to fund managers as compensation, typically above a hurdle rate.

CARRY TRADE - A strategy of borrowing in a low-yield currency to invest in a higher-yield currency.

CARVE-OUT - A transaction where a company sells a minority stake in a subsidiary or business unit, often via IPO or spin‑off.

CASH ACCOUNTING - An accounting method that records revenue and expenses when cash is received or paid.

CASH ADVANCE - A short‑term loan from a credit card issuer or lender, often carrying higher fees and interest.

CASH AND CASH EQUIVALENTS (CCE) - Highly liquid assets including cash, bank deposits, and short‑term investments readily convertible to cash.

CASH BACK - A credit card feature or rebate program that returns a percentage of purchases to the cardholder.

CASH BALANCE PENSION PLAN - A defined benefit plan that defines promised benefits in terms of a stated account balance.

CASH BASIS ACCOUNTING - An accounting method that recognizes revenues and expenses at the time cash is received or paid out. This contrasts accrual accounting, which recognizes income at the time the revenue is earned and records expenses when liabilities are incurred regardless of when cash is received or paid.

CASH BUDGET - A projection of cash inflows and outflows over a period to manage liquidity.

CASH CONVERSION CYCLE (CCC) - A working‑capital metric measuring days to convert inventory and receivables into cash, net of payables.

CASH COW - A business unit that generates steady, excess cash relative to reinvestment needs.

CASH DIVIDEND - A distribution of cash to shareholders, typically from retained earnings.

CASH EQUIVALENTS - Short‑term, highly liquid investments with minimal risk, such as T‑bills and money market funds.

CASH FLOW - The net amount of cash and cash‑equivalents moving into and out of a business during a period.

CASH FLOW FROM FINANCING ACTIVITIES (CFF) - Statement of cash flows section showing cash from issuing/repaying debt and equity and paying dividends.

CASH FLOW FROM INVESTING ACTIVITIES - Cash flows from buying or selling long‑term assets and investments.

CASH FLOW FROM OPERATING ACTIVITIES - Cash generated by a company’s core operations, typically starting with net income and adjusting for noncash items and working capital.

CASH FLOW STATEMENT - A financial statement that provides aggregate data regarding all cash inflows a company receives from its ongoing operations and external investment sources. It also includes all cash outflows that pay for business activities and investments during a given period.

CASH MANAGEMENT - Practices and systems used to collect, manage, and invest cash efficiently.

CASH ON DELIVERY (COD) - A payment term where goods are paid for at the time of delivery.

CASH RATIO - A conservative liquidity ratio equal to (cash + cash equivalents) ÷ current liabilities.

CASH SURRENDER VALUE - The amount a policyholder receives if a life insurance policy is surrendered before maturity or death.

CASH VALUE LIFE INSURANCE - Permanent life insurance with a savings component that accumulates cash value tax‑deferred.

CASH-AND-CARRY ARBITRAGE - A strategy that exploits pricing differences between spot and futures by buying the asset and selling the futures, holding until convergence.

CASH-ON-CASH RETURN - A real estate metric measuring annual pre‑tax cash flow as a percentage of the cash invested.

CASH-OUT REFINANCE - A refinancing in which a homeowner replaces an existing mortgage with a larger one and takes the difference in cash.

CATALOG OF FEDERAL DOMESTIC ASSISTANCE (CFDA) - A former federal compendium of assistance programs; replaced by SAM.gov’s Assistance Listings.

CATASTROPHIC COVERAGE - Coverage that protects primarily against very high costs, often after a large deductible is met.

CATASTROPHIC HEALTH PLAN - Marketplace plan with very high deductible and low premiums available to people under 30 or with hardship exemptions.

CAVEAT EMPTOR - A principle that places responsibility on buyers to perform due diligence before purchase (Buyer Beware).

C-CORPORATION - A type of legal structure for a corporation in which the owners, or shareholders, are taxed separately from the entity

CENTERS FOR MEDICARE & MEDICAID SERVICES (CMS) - The federal agency that runs Medicare and oversees Medicaid, CHIP, and the Marketplace.

CENTRAL COUNTERPARTY CLEARING HOUSE (CCP) - A financial institution that stands between b uyers and sellers in a trade, reducing counterparty risk through netting and margining.

CENTRAL LIMIT THEOREM - A statistical result stating that the distribution of sample means approaches normal as sample size grows, regardless of population distribution.

CENTRALLY PLANNED ECONOMY - An economic system in which the state makes production and allocation decisions rather than markets.

CERTAINTY EQUIVALENT - The guaranteed amount an investor would accept instead of a risky payoff with higher expected value.

CERTIFICATE OF DEPOSIT (CD) - A product offered by banks and credit unions that provides an interest rate premium in exchange for a lump sum deposit untouched for a specific period.

CERTIFICATE OF INSURANCE (COI) - A document that summarizes key details of an insurance policy for third‑party verification.

CERTIFICATE OF ORIGIN (CO) - Trade document certifying the country where goods were manufactured, used for customs and tariffs.

CERTIFIED FINANCIAL PLANNER (CFP) - Professional designation attained by a person who has successfully completed the requirement of the Certified Financial Planner Board.

CERTIFIED INFORMATION SYSTEMS AUDITOR (CISA) - An ISACA credential for professionals who audit, control, monitor, and assess IT and business systems.

CERTIFIED MANAGEMENT ACCOUNTANT (CMA) - An IMA credential demonstrating expertise in financial planning, analysis, control, and decision support.

CERTIFIED PUBLIC ACCOUNTANT (CPA) - A state-licensed accounting professional who meets education, exam, and experience requirements and upholds ethical standards.

CETERIS PARIBUS - Latin for “all else equal,” used to analyze the effect of one variable while holding others constant.

CHAIRMAN - The leader of a board of directors who sets agendas, facilitates meetings, and oversees governance matters.

CHANNEL STUFFING - A revenue‑inflating practice of shipping excess product to distributors ahead of demand, often unsustainable.

CHAPTER 11 BANKRUPTCY - A U.S. bankruptcy process that allows a business to reorganize debts and continue operations under court supervision.

CHARITABLE LEAD ANNUITY TRUST (CLAT) - A trust that makes a fixed number of annual payments, calculated as a percentage of the asset value as of the date of the grantor’s gift into the trust, to charity. At the end of the lead period, the remaining assets are distributed to non-charitable remaindermen.

CHARITABLE LEAD TRUST (CLT) - An irrevocable trust designed to provide financial support to one or more charities for a period of time, with the remaining assets eventually going to family members or other beneficiaries. They are often considered to be the inverse of a charitable remainder trust.

CHARITABLE LEAD UNITRUST (CLUT) - A trust that makes a fixed number of annual payments to charity, calculated on a percentage of the assets valued on the second business day of each year. At the end of the lead period, the remaining assets are distributed to non-charitable remaindermen.

CHARITABLE REMAINDER ANNUITY TRUST (CRAT) - A trust that provides a fixed annuity to the donor (usually for life) for an amount that is greater than or equal to 5% of the initial net fair market value of the property contributed to the trust. The remainder interest of the trust passes to a named charitable organization.

CHARITABLE REMAINDER TRUST (CRT) - A trust in which a noncharitable beneficiary receives the income interest and a charitable organization receives the remainder interest.

CHARITABLE REMAINDER UNITRUST (CRUT) - A trust that provides a payment to the donor (usually for life) equal to a fixed percentage of the trust assets as valued annually. The remainder interest of the trust passes to a named charitable organization.

CHART OF ACCOUNTS (COA) - An organized list of account names and numbers used to record transactions in the general ledger.

CHARTERED ACCOUNTANT (CA) - An international accounting designation for professionals with advanced training and certification in accounting and auditing.

CHARTERED FINANCIAL ANALYST (CFA) - A professional credential awarded by CFA Institute demonstrating mastery of investment analysis and portfolio management.

CHARTERED RETIREMENT PLANNING COUNSELOR (CRPC) - A designation for advisors specializing in retirement needs assessment and planning.

CHATTEL MORTGAGE - A loan secured by movable personal property rather than real estate.

CHEAPEST TO DELIVER (CTD) - In bond futures, the specific bond that minimizes the cost to the short when fulfilling delivery obligations.

CHECKING ACCOUNT - A deposit account designed for frequent transactions such as deposits, withdrawals, and payments.

CHECKS AND BALANCES - A governance framework in which branches of government can limit each other’s powers to prevent abuse; used metaphorically in organizations.

CHILDREN’S HEALTH INSURANCE PROGRAM (CHIP) - Low-cost coverage for eligible children and, in some states, pregnant people in families who earn too much for Medicaid.

CHRONIC DISEASE MANAGEMENT - Coordinated care and services that help people manage ongoing health conditions.

CHRONICALLY ILL INDIVIDUAL - A person who has been certified by a licensed health care provider as being unable to perform, without assistance, at least two activities of daily living for at least 90 days, or a person with a similar level of disability.

CHURN - to buy and sell securities frequently with the sole intention of earning more commissions.

CIRCUIT BREAKER - Trading halts or limits triggered by large market declines to maintain orderly markets.

CLEARINGHOUSE - An intermediary that guarantees trades and manages counterparty risk.

CLOSED-END FUND - A portfolio of pooled assets that raises a fixed amount of capital through an initial public offering and then lists shares for trade on a stock exchange.

COBRA QUALIFYING EVENT - An event like job loss or reduced hours that causes loss of group coverage and may trigger COBRA continuation rights.

CODE OF CONDUCT - A policy that a family develops to outline the expected behavior, decorum, values to be upheld, and/or how to act in private or public forums.

CODICIL - A document that amends a will. A codicil is prepared subsequent to and separate from the will to modify or explain the will.

COINSURANCE - The percentage of costs a patient pays for medical expenses – such as a hospital stay, office visit, medical device, or prescription drug

COINSURANCE (HEALTH) - The percentage of covered healthcare costs you pay after meeting your deductible, until you reach the out-of-pocket maximum.

COLLATERAL - Assets pledged to secure a loan and subject to seizure upon default.

COLLISION COVERAGE - Pays to repair or replace your vehicle after a collision with another vehicle or object.

COMBINED SINGLE LIMIT (CSL) - A single liability limit that applies to both bodily injury and property damage per accident.

COMMERCIAL TRUST COMPANY - A professional corporate trustee; an entity that provides trust and fiduciary services to multiple, unrelated clients.

COMMON DISASTER - Where two or more people, including the testator and a beneficiary, die in the same accident and it is impossible to tell who died first

COMMON EQUITY TIER 1 (CET1) - The core measure of a bank’s highest-quality capital—primarily common shares and retained earnings—relative to risk-weighted assets.

COMMON LAW - Law deriving from court decisions and ancient usages and customs, as opposed to statutory law, created by legislatures.

COMMON SIZE FINANCIAL STATEMENT - A financial statement that expresses each line item as a percentage of a base figure to aid comparison across time or firms.

COMMON SIZE INCOME STATEMENT - An income statement where each item is shown as a percentage of net sales (revenue) to analyze margins and cost structure.

COMMON STOCK - Equity that represents ownership in a corporation with residual claims on profits and assets and voting rights in many cases.

COMMUNISM - An economic and political ideology advocating common ownership of the means of production and the absence of social classes and money.

COMMUNITY FOUNDATION - A publicly supported philanthropic institution composed primarily of permanent funds established for long-term charitable benefit.

COMMUNITY PROPERTY - Generally, assets (and often income/debt) acquired during marriage that are treated as belonging to both spouses under community property law.

COMMUNITY PROPERTY STATE - A state whose marital property regime applies community property rules—typically treating most property acquired during marriage as jointly owned and (often) divided equally upon divorce (subject to exceptions and agreements like prenups).

COMMUNITY RATING - A rule that generally prohibits insurers from using health status to set premiums, relying on limited factors like age and location instead.

COMMUNITY REINVESTMENT ACT (CRA) - A U.S. law encouraging banks to meet the credit needs of all segments of their communities, including low- and moderate-income neighborhoods.

COMPARABLE COMPANY ANALYSIS (CCA) - A valuation method that estimates a company’s value using trading multiples of similar publicly traded firms.

COMPARATIVE ADVANTAGE - The economic principle that countries (or parties) should specialize in producing goods for which they have the lowest opportunity cost.

COMPARATIVE MARKET ANALYSIS - A real estate valuation technique that estimates a property’s value by comparing recent sales of similar properties.

COMPENSATORY DAMAGES - Monetary awards intended to compensate an injured party for actual losses suffered.

COMPETITIVE ADVANTAGE - Attributes that allow a firm to produce goods or services better or more cheaply than rivals, creating superior value.

COMPETITIVE INTELLIGENCE - The systematic collection and analysis of information about competitors, markets, and technologies to support decisions.

COMPLEX TRUST - A type of trust that does not distribute all of its income annually, may retain income, make charitable contributions, or distribute principal. Unlike a simple trust, it has greater flexibility in how and when it distributes funds, and it is subject to specific tax rules.

COMPLIANCE OFFICER - A professional responsible for ensuring that an organization adheres to laws, regulations, and internal policies.

COMPLICATION OF PREGNANCY - Conditions due to pregnancy that require medical care to prevent serious harm and aren’t part of a normal delivery.

COMPOUND ANNUAL GROWTH RATE (CAGR) - The constant annual growth rate that would take an initial value to a final value over a period, assuming compounding.

COMPOUND INTEREST - Interest calculated on the initial principle which also includes all accumulated interest from previous periods on a deposit or loan.

COMPOUNDING - The process by which an investment’s earnings generate additional earnings over time.

COMPREHENSIVE COVERAGE - Pays for non-collision damage to your vehicle (e.g., theft, vandalism, fire, hail, animal strikes).

COMPREHENSIVE INCOME - A broad measure of company performance that includes net income and other comprehensive income items bypassing the income statement.

COMPS - Comparable companies or properties used as references for valuation or benchmarking.

CONCURRENT REVIEW - Ongoing review of care during treatment to determine if continued services are medically necessary.

CONDITIONAL PROBABILITY - The probability of an event occurring given that another event has occurred.

CONDITIONAL VALUE AT RISK (CVAR) - A risk metric estimating the average loss beyond a specified Value at Risk threshold over a time horizon.

CONDITIONAL VAR (CVAR) - Expected loss given that the loss exceeds the VaR threshold; also called expected shortfall.

CONFIDENCE INTERVAL - A range of values derived from sample data that likely contains the true population parameter at a stated confidence level.

CONFLICT OF INTEREST - Occurs when an individual's personal interests – family, friendships, financial, or social factors – could compromise his or her judgment, decisions, or actions in the workplace. Government agencies take conflicts of interest so seriously that they are regulated.

CONFLICT RESOLUTION POLICY - This policy provides guidance on how the family will resolve conflict or differences.

CONFLICT THEORY - A sociological perspective emphasizing power struggles and resource conflicts as drivers of social and economic outcomes.

CONGLOMERATE - A corporation composed of several different, often unrelated businesses under one corporate group.

CONSERVATOR - Similar to a guardian, but with less-restrictive rules.

CONSIGNMENT - A sales arrangement where goods are delivered to a seller who pays the owner only when the goods are sold.

CONSOLIDATE - To combine financial statements or entities; or to strengthen a position by reducing the number of holdings.

CONSOLIDATED OMNIBUS BUDGET RECONCILIATION ACT (COBRA) - Allows some people to continue employer group coverage for a limited time after qualifying events if they pay the full premium (plus fee).

CONSOLIDATION - In markets, a period of range-bound trading; in accounting, combining the financials of a parent and its subsidiaries.

CONSTRUCTION LOAN - A short-term, often interest-only loan used to finance building a property, replaced by permanent financing when completed.

CONSUMER CREDIT - Debt used by individuals to purchase goods and services, excluding mortgages.

CONSUMER DISCRETIONARY - An equity sector comprising companies that sell non-essential goods and services sensitive to economic cycles.

CONSUMER GOODS - Products purchased by end users for personal consumption rather than for producing other goods.

CONSUMER PRICE INDEX (CPI) - An index measuring average price changes for a basket of consumer goods and services.

CONSUMER STAPLES - A sector including companies that sell essential goods with relatively stable demand, such as food and household products.

CONSUMER SURPLUS - The difference between what consumers are willing to pay and what they actually pay for a good or service.

CONSUMERISM - A social and economic emphasis on the acquisition of goods and services; also, advocacy for consumer rights.

CONSUMPTION FUNCTION - An economic theory describing the relationship between disposable income and consumer spending.

CONTANGO - A futures market condition where longer-dated contracts trade above near-term prices.

CONTESTABILITY PERIOD - Typically the first two years of a life insurance policy when the insurer may investigate and deny claims for material misrepresentation.

CONTINGENCY - A potential event or condition that may or may not happen and is accounted for by reserves or plans.

CONTINGENT ASSET - A possible asset that may arise from past events but whose existence will be confirmed only by uncertain future events.

CONTINGENT BENEFICIARY - The person or entity who will receive proceeds if the primary beneficiary is deceased, unable to be located, or refuses the inheritance at the time the proceeds are to be paid.

CONTINGENT CONVERTIBLE - A debt instrument (often a bank bond) that converts to equity upon a trigger event, such as a capital ratio falling below a threshold.

CONTINGENT LEGATEE - An individual who would be the alternate inheritor of the bequest.

CONTINGENT LEGATEE CLAUSE - A clause in a will that names a secondary person to inherit if the original legatee is dead or disclaims the property.

CONTINGENT LIABILITY - A potential obligation dependent on the outcome of a future event; recorded if probable and estimable.

CONTINGENT VALUE RIGHTS (CVR) - Securities granting holders additional consideration if specified future milestones are met, often used in M&A.

CONTINUITY OF CARE (NSA) - Requirements that allow certain patients to continue seeing a provider for a limited time after network changes.

CONTINUOUS COMPOUNDING - Compounding that occurs an infinite number of times per period, producing e^(rt) growth for rate r over time t.

CONTRA ACCOUNT - An account that offsets a related account on the financial statements, such as accumulated depreciation against fixed assets.

CONTRACT FOR DIFFERENCES (CFD) - A derivative contract in which parties exchange the difference between the entry and exit prices of an underlying asset.

CONTRACTIONARY POLICY - A macroeconomic policy—monetary or fiscal—designed to slow economic activity and reduce inflation, typically by raising interest rates or reducing government spending.

CONTRARIAN - An investor or strategy that goes against prevailing market sentiment, buying unpopular assets and selling popular ones.

CONTRIBUTED CAPITAL - Equity capital that shareholders have invested in a company, including common stock and additional paid-in capital.

CONTRIBUTION MARGIN - Revenue minus variable costs; the amount available to cover fixed costs and contribute to profit.

CONTROLLER - A senior accounting officer responsible for financial reporting, internal controls, and accounting operations.

CONVENIENCE ACCOUNT - An account—usually a bank account— that has been opened in joint names but only for the convenience of one of the joint owners and not with the intent that the noncontributing owner receive the balance in the account. As a result, the account could be part of a deceased owner’s probate estate

CONVENTIONAL MORTGAGE - A home loan that is not insured or guaranteed by a government agency; typically conforms to private underwriting standards.

CONVERTIBLE BOND - A bond that can be converted into a predetermined number of the issuer’s common shares.

CONVERTIBLE PREFERRED STOCK - Preferred shares that the holder may convert into a specified number of common shares.

CONVEXITY - A measure of how a bond’s duration changes as yields change; captures curvature in the price–yield relationship.

COOK THE BOOKS - To manipulate accounting records to present a misleading picture of a company’s financial position or performance.

COORDINATION OF BENEFITS (COB) - Rules that decide which insurer pays first when you have coverage under more than one plan.

COPAY ACCUMULATOR PROGRAM - A policy where manufacturer copay assistance does not count toward the member’s deductible or out-of-pocket maximum.

COPAY MAXIMIZER PROGRAM - A program that spreads copay assistance across the year and may reduce the member’s own cost sharing while capturing assistance funds.

COPAYMENT - A set dollar amount you pay for a covered service (for example, an office visit or a prescription).

COPYRIGHT - Legal protection granting creators exclusive rights to reproduce and distribute their original works for a limited time.

CORE COMPETENCIES - A firm’s unique capabilities that create competitive advantage and are difficult for rivals to imitate.

CORPORATE BOND - A debt issued by a company in order for it to raise capital. An investor is effectively lending money to the company in return for interest payments, but they may also be traded on the secondary market.

CORPORATE CHARTER - A legal document filed with a state that establishes a corporation and sets out its basic governance details.

CORPORATE CITIZENSHIP - A company’s responsibilities and contributions to society, including ethical behavior and community involvement.

CORPORATE CULTURE - The shared values, norms, and behaviors that characterize how a company’s people work together.

CORPORATE FINANCE - The area of finance dealing with capital structure, financing, investment decisions, and shareholder value.

CORPORATE GOVERNANCE - The system of rules, practices, and processes by which a company is directed and controlled.

CORPORATE HIERARCHY - The organizational structure that defines reporting relationships and levels of authority within a company.

CORPORATE SOCIAL RESPONSIBILITY (CSR) - A business approach that integrates social and environmental concerns into operations and stakeholder interactions.

CORPORATE TAX - A tax levied on a corporation’s profits by a national or subnational government.

CORPORATE TRUSTEE - A corporation authorized by law to act in a fiduciary capacity for individuals and other corporations.

CORPORATION - A legal entity separate from its owners, offering limited liability and perpetual existence.

CORPUS - The principal of the trust, the entire amount of the trust not including the income it generates.

CORRELATION - A statistic that measures the degree to which two securities move in relation to each other.

CORRELATION COEFFICIENT - A statistic, typically denoted r, that quantifies the strength and direction of a linear relationship between two variables.

CORRESPONDENT BANK - A financial institution that provides services on behalf of another bank, often cross-border payments and settlements.

COST ACCOUNTING - Accounting focused on measuring, analyzing, and controlling costs to aid managerial decision-making.

COST AND FREIGHT (CFR) - An Incoterms rule where the seller pays costs and freight to a named port, while risk transfers to the buyer when goods are onboard the vessel.

COST BASIS - The original value of an asset for tax purposes, usually the purchase price, adjusted for stock splits, dividends, and return of capital distributions.

COST CONTROL - Processes and actions to monitor and reduce business expenses while maintaining quality and output.

COST OF CAPITAL - A company’s weighted average required return from debt and equity investors used to evaluate projects.

COST OF DEBT - The effective rate a company pays on its borrowings, net of the tax shield from interest deductions.

COST OF EQUITY - The required return that equity investors demand for investing in a company’s stock.

COST OF GOODS SOLD (COGS) - The direct costs of producing the goods sold by a company which includes materials and labor.

COST OF LABOR - Total compensation costs of employees, including wages, benefits, and payroll taxes.

COST OF LIVING - The amount of money needed to cover basic expenses such as housing, food, taxes, and healthcare in a place and time.

COST OF REVENUE - Direct costs associated with producing and delivering a company’s products or services.

COST PER CLICK (CPC) - An online advertising pricing model where advertisers pay each time a user clicks an ad.

COST PER THOUSAND (CPM) - An advertising metric representing the cost to deliver one thousand ad impressions.

COST SHARING - Your share of costs for covered services (deductibles, copayments, and coinsurance).

COST, INSURANCE AND FREIGHT (CIF) - An Incoterms rule where the seller covers cost, insurance, and freight to a named port; risk transfers once goods are onboard.

COST-BENEFIT ANALYSIS - A decision framework that compares the total expected costs and benefits of an action to determine net value.

COST-OF-LIVING ADJUSTMENT (COLA) - A periodic increase in wages or benefits intended to offset inflation.

COST-PLUS CONTRACT - A contract where the buyer agrees to pay actual costs plus a fee or profit margin to the seller.

COST-PUSH INFLATION - Inflation driven by rising production costs—such as wages or input prices—that firms pass on to consumers.

COST-SHARING REDUCTION (CSR) - Income-based savings that lower deductibles, copays, and coinsurance on Silver Marketplace plans.

COST-VOLUME-PROFIT (CVP) - A tool analyzing how changes in costs and volume affect a company’s profit.

CO-TENANCY - When two or more parties own the same property at the same time and the property remains undivided

CO-TENANT - One of the owners under a co-tenancy

CO-TRUSTEE - Another person, often a family member, who serves with the trustee in helping to make decisions concerning the trust

COTTAGE INDUSTRY - Small-scale, often home-based production of goods or services.

COUNTEROFFER - A response to an initial offer that alters terms and constitutes a new offer.

COUNTERPARTY - The other party to a financial transaction or contract.

COUNTERPARTY RISK - The risk that the other party in a transaction will default on its obligations.

COUNTERTRADE - International trade in which goods or services are exchanged partly or wholly for other goods or services rather than for money.

COUPON - The annual interest rate paid on a bond, expressed as a percentage of the face value, also referred to as the coupon rate

COUPON RATE - A bond’s annual interest payment as a percentage of its face value.

COUSIN CONSORTIUM - Often in a third generation where there is a number of different cousins who have ownership in the business.

COVARIANCE - A measure of how two variables vary together; sign indicates direction of co-movement.

COVENANT - A clause in a loan or bond agreement that imposes conditions or restrictions on the borrower.

COVERAGE RATIO - A measure of a company’s ability to meet its obligations, such as interest coverage or fixed-charge coverage.

COVERED CALL - A strategy of selling call options against a long stock position to generate income.

COVERED INTEREST RATE PARITY - A no-arbitrage condition stating that interest rate differentials are offset by forward exchange rate premiums/discounts when currency risk is hedged.

CREDIT SHELTER TRUST - A type of irrevocable trust used by married couples to reduce estate taxes by taking full advantage of state and federal estate tax exemptions. It will be formed upon the death of one of the spouses, leaving the maximum tax-exempt amount to children and/or grandchildren, while giving the surviving spouse access to the income from the transferred property without adding it to his or her estate.

CREDITABLE COVERAGE - Prior health coverage that can satisfy waiting periods or other requirements under certain rules.

CREDITABLE PRESCRIPTION DRUG COVERAGE - Drug coverage expected to pay, on average, at least as much as a standard Medicare Part D plan.

CRUMMEY NOTICE - Used to transform what would otherwise be a future gift into a present gift.

CRUMMEY POWER - Used to transform a transfer in trust into a present interest that qualifies for the annual exclusion, even though the holders of such powers rarely exercise the power of withdrawal.

CRUMMEY PROVISION - The explicit right of a trust beneficiary to withdraw some or all of any contribution to a trust for a limited period of time after the contribution. A Crummey provision converts what otherwise would have been a gift of a future interest (net eligible for the annual exclusion) to a gift of a present interest, eligible for the annual exclusion.

CRUMMEY TRUST - A trust that contains Crummey powers, although otherwise it could be any type of trust

C-SUITE - Collective term for a company’s top executives whose titles typically begin with “Chief,” such as CEO, CFO, and COO.

CURRENCY - Money in the form of paper or coins used in a country.

CURRENT LIABILITIES - A company’s short-term financial obligations that are due within one year or within a normal operating cycle.

CURRENT RATIO - A liquidity ratio that measures whether a firm has enough resources to meet its short-term obligations comparing a firm's current assets to its current liabilities. The ratio is an indication of a firm's liquidity.

CURTESY - The right of a widower, under common law, to a life estate in the decedent’s real estate. Abolished in many states.

CUSIP NUMBER - The nine-digit identifier for a marketable security, issued by the Committee on Uniform Security Identification Procedures.

CUSTODIAN - A financial institution that holds the securities for safekeeping to prevent them from being stolen or lost.

CUSTODIAN - A financial institution that safeguards a client’s securities and cash.

CYBER INSURANCE - Covers costs from data breaches, ransomware, and other cyber incidents, including notification, legal, and recovery expenses.

DATA SNOOPING - Overfitting models to historical data by excessive searching for patterns.

DEATH TAX - Also known as the estate tax; 13 states levy an estate tax at the state level. The estate tax is also levied at the Federal level.

DEBT FUND - Invests primarily in bonds with the primary goal of generating monthly income for investors. Provides instant diversification for investors.

DEBT-TO-EQUITY - A measure of how much debt a company uses relative to the capital invested by its owners. It shows the proportion of financing that comes from creditors versus shareholders.

DEBT-TO-EQUITY RATIO (D/E) - The ratio is calculated by dividing a company's total liabilities by its shareholder equity; indicates financial leverage. These numbers are available on the balance sheet of a company's financial statements.

DEBT-TO-INCOME (DTI) - A borrower’s monthly debt payments divided by gross monthly income.

DECANTING - The act of distributing assets from one trust to a new trust with different terms or a different situs.

DECEDENT - A legal term used by tax, estate planning, and law arenas for a deceased person. When a decedent is a legitimate taxpayer, all of his possessions become part of his estate, and he becomes denoted as a decedent, or deceased.

DECEDENT’S ESTATE - The property owned by the decedent on his or her date of death. Has different meanings for both probate and estate tax purposes.

DECENTRALIZED FINANCE (DEFI) - Financial services built on public blockchains that operate without centralized intermediaries.

DECLARATION CLAUSE - Clause in a will which states this is the last will and testament of the testator, revoking all previously made wills and codicils, and that the testator is not under duress or undue influence to make the will.

DECLARATION DATE - The date a corporation declares (announces) it will be paying a dividend.

DELIVERY INSTRUCTIONS - The specific routing and account numbers necessary to send cash and/or securities from one bank or brokerage to another.

DELTA - Sensitivity of an option’s price to a $1 change in the underlying asset.

DEMONSTRATIVE GIFT - A general gift that specifies where the asset is coming from.

DENTAL COVERAGE - Benefits for dental care; Marketplace medical plans may include it or you can buy stand-alone dental plans.

DEPENDENT COVERAGE - Coverage extended to eligible family members of the primary subscriber.

DEPRECIATION - The monetary value of an asset decreases over their useful lifetime due to use, wear and tear or obsolescence. This decrease is measured as depreciation. Machinery, equipment, currency are some examples

DEPRECIATION EXPENSE - The amount that a company's assets are depreciated for a single period. It is reported on the income statement as any other normal business expense.

DERIVATIVE - A financial contract whose value is derived from an underlying asset, index, rate, or event.

DEVISE - Term describing how real property is left by will.

DIRECT SKIP - A transfer of property directly to A skip person

DISCLAIM - to refuse to accept a bequest or devise before it’s received.

DISCLAIMER CLAUSE - An heir or legatee's refusal to accept a gift or bequest. The disclaimer allows assets to pass to other heirs or legatees without additional transfer tax.

DISCOUNT BOND - A bond that issues for less than its par or face Value

DISCRETIONARY - Denoting or relating to investment funds placed with a broker or manager who has discretion to invest them on the client's behalf.

DISCRETIONARY TRUST - A trust set up for the benefit of one or more beneficiaries, but the trustee is given full discretion as to when and what funds are given to the beneficiaries.

DISPOSITION OF PROPERTY - An individual's legal right to control what happens to their assets and possessions. This includes making gifts, selling assets, or transferring property during life, as well as determining who inherits their property through wills, trusts, and other estate planning instruments after death.

DISTRIBUTABLE NET INCOME (DNI) - A tax concept that allocates taxable income between the trust and beneficiaries to ensure the trust income is subject to only one level of tax.

DISTRIBUTION - A payment or transfer of assets—such as cash, dividends, or securities—from a fund, account, or individual investment to an investor or beneficiary.

DIVERSIFICATION - Reducing risk by holding a variety of assets whose returns are not perfectly correlated.

DIVIDEND - Distribution of some of a company’s earning to a class of its shareholders.

DIVIDEND PAYOUT RATIO - The share of earnings paid out as dividends to shareholders.

DIVIDEND YIELD - Annual dividends per share divided by the stock price; an income return measure.

DOLLAR-COST AVERAGING (DCA) - Investing fixed amounts at regular intervals regardless of price to reduce timing risk.

DOMICILE - Where one lives and intends to remain. The location of one's home.

DONEE - The person or entity that receives a gift or money

DONOR - A person or entity that donates or gifts assets or money to another person or entity

DONOR ADVISED FUND - Charitable giving accounts that allow you to make an irrevocable contribution of cash or assets to a sponsoring public charity, claim an immediate tax deduction, invest the funds tax-free, and recommend grants to qualified nonprofits over time.

DOWER - A provision of state law in some states that gives a widow (and sometimes a widower) a life estate in a portion of the real estate owned by the decedent, based in common law.

DUAL ELIGIBLE - An individual enrolled in both Medicare and Medicaid.

DURABLE FEATURE - Allows a power of attorney to survive incapacity and/or disability.

DURABLE MEDICAL EQUIPMENT (DME) - Equipment and supplies ordered by a health care provider for everyday or extended use.

DURABLE POWER OF ATTORNEY - A written document enabling one individual, the principal, to designate another person(s) to act as his attorney-in-fact. A durable power of attorney survives the incapacity and/or disability of the principal.

DWELLING (COVERAGE A) - Covers the main structure of the home, including attachments and built-in fixtures.

DYNASTY TRUST - An irrevocable trust that is designed to last for very long periods of time, preferably forever, taking advantage of states that have abolished laws against perpetuities. The advantage of these trusts is the ability to avoid estate tax at the transfer of wealth to each subsequent generation in the family.

EARLY AND PERIODIC SCREENING, DIAGNOSTIC, AND TREATMENT (EPSDT) - A Medicaid benefit for people under 21 that includes comprehensive and preventive services.

EARNINGS PER SHARE (EPS) - An important financial measure, which indicates the profitability of a company. It is calculated by dividing the company's net income with its total number of outstanding shares. The higher the EPS of a company, the better is its profitability.

EBIT - Earnings before interest and taxes—operating profit excluding financing and tax effects.

EBITDA - Earnings before interest, taxes, depreciation, and amortization, is a measure of a company's overall financial performance and is used as an alternative to net income in some circumstances. EBITDA, however, can be misleading because it strips out the cost of capital investments like property, plant, and equipment.

EBITDA MARGIN - EBITDA as a percentage of revenue; gauges operating profitability.

ECONOMIES OF SCALE - The cost advantages companies experience when production becomes efficient, as costs can be spread.

EDUCATIONAL TRAINING POLICIES - Guidelines that govern family’s learning goals, expectations and skills at different ages and stages. Often these policies have more basic expectations for children under 16, with increasingly more defined and measure goals as children reach college and beyond.

EFFECTIVE DATE OF COVERAGE - The day your health plan begins to pay for covered services if premiums are paid and eligibility is met.

EFFECTIVE TRANSFER - A transfer of a person's assets to the individual or institution intended by that person.

EFFICIENT FRONTIER - The set of portfolios that offer the highest expected return for a given level of risk.

EFFICIENT MARKET HYPOTHESIS (EMH) - Theory that asset prices reflect available information, making consistent outperformance difficult.

EFFICIENT TRANSFER - A transfer in which costs of the transfer are minimized consistent with the greatest assurance of effectiveness.

ELECTING SMALL BUSINESS TRUST (ESBT) - A trust that may make an election in order to own stock in a S corporation.

ELECTRONIC COMMUNICATION NETWORK (ECN) - An automated system that matches buy and sell orders for securities.

ELIGIBLE IMMIGRATION STATUS - A legal status that can qualify an individual to buy coverage and receive savings through the Marketplace.

ELIMINATION PERIOD (DISABILITY) - The waiting period before disability benefits start, analogous to a deductible measured in time.

EMBEDDED DEDUCTIBLE - A plan design where individual deductibles are embedded in a family deductible so a single member who meets the individual deductible can trigger cost sharing before the family deductible is met.

EMERGENCY MEDICAL CONDITION - A serious condition that would jeopardize health without immediate care; plans must cover emergency services without prior authorization.

EMERGENCY SERVICES - Evaluation and treatment of emergency medical conditions; plans must cover emergency services without prior authorization.

EMPLOYEE HANDBOOK - A compilation of policies, procedures, working conditions, and behavioral expectations that guide employee actions in a particular workplace.

EMPLOYEE RETIREMENT INCOME SECURITY ACT (ERISA) - Federal law that sets standards for most employer-sponsored benefit plans, including health plans.

EMPLOYER SHARED RESPONSIBILITY PAYMENT (ESRP) - A payment some Applicable Large Employers may owe if they don’t offer affordable, minimum-value coverage and a full-time employee gets APTC.

ENROLLED AGENTS - Tax professionals licensed by U.S. Department of the Treasury.

ENTERPRISE VALUE (EV) - A company’s total value: market cap plus debt minus cash and cash equivalents.

ENTITLITIS - Life philosophy whereby individuals believe that the world and others owe them something and that respect is a mandate vs. earned.

ENTREPRENEUR - An individual who creates a new business, bearing most of the risks and enjoying most of the rewards.

ENTREPRENEURSHIP - The activity of setting up a business or businesses, taking on financial risks in the hope of profit. Entrepreneurship is high risk-risk, but also can be high reward as it serves to generate economic wealth, growth, and innovation.

ENVIRONMENTAL, SOCIAL, AND GOVERNANCE (ESG) - Criteria or a set of standards for a company’s operations that socially conscious investors use to screen potential investments.

EQUITIES - Refers to a stock as ownership in a company.

EQUITY - The residual value of a company after liabilities are subtracted from assets; also the ownership interest represented by shares.

ESCHEAT - The reversion of an heirless, intestate decedent's property to the state.

ESSENTIAL COMMUNITY PROVIDER (ECP) - A provider that serves predominantly low-income or medically underserved populations and must be included to meet Marketplace network standards.

ESSENTIAL HEALTH BENEFITS (EHB) - Ten categories of care that most non-grandfathered individual and small-group plans must cover, like hospitalization, drugs, and maternity care.

ESTATE FREEZE - A series of steps that are taken to set or “freeze” the value of at the current fair market value (FMV) of the shares so that other family members can buy new future growth shares at a nominal amount

ESTATE PLAN - A document that sets out an estate owner's instructions for the disposition and administration of his or her property upon death, incapacity, or total disability.

ESTATE PLANNING - The process of accumulation, management, conservation, and transfer of wealth considering legal, tax, and personal objectives.

ESTATE RECOVERY - States may recover certain Medicaid payments from estates of deceased beneficiaries as required by federal law.

ESTATE TAX - The federal tax applies to inherited assets that exceed a certain threshold in value at the time of death. In addition to the federal tax, twelve states (plus DC) also impose their own estate tax at the state level.

ESTATE TRUST - A trust which grants the surviving spouse a testamentary general power of appointment over the trust assets. Because of the spouse's general power of appointment over the trust's assets, the fair market value of 'the trust will be eligible for the unlimited marital deduction at the death of the first-to-die spouse.

ETHEREUM - A blockchain platform with smart contract functionality and native currency Ether (ETH).

EXCESS APTC REPAYMENT - The amount of advance premium tax credit you must repay at tax filing if your final income is higher than estimated.

EXCHANGE (MARKETPLACE) - The federal or state platform where people compare plans, enroll in coverage, and find out about savings.

EXCHANGE RATE - The price of one currency in terms of another.

EXCHANGE TRADED FUND (ETF) - A type of security that involves a collection of securities (e.g. stocks) that often tracks an underlying index, although they can invest in any number of industry sectors or use various strategies.

EXCLUDED SERVICES (EXCLUSIONS) - Items or services that your plan does not cover.

EXCLUSIVE PROVIDER ORGANIZATION (EPO) - A managed care plan that covers services only if you use in-network providers (except emergencies) typically without referrals..

EXECUTOR - Estate representative designated in the will by the decedent. An executor may serve without bond if the bond is waived by the decedent.

EXECUTOR’S BOND - A written promise to faithfully carry out the executor’s duties.

EXPLANATION OF BENEFITS (EOB) - A statement from your insurance company showing what was billed, what the plan paid, and what you may owe.

EXPONENTIAL MOVING AVERAGE (EMA) - A moving average that weights recent prices more heavily than older data.

EXTENDED REPLACEMENT COST - Provision that increases dwelling limit by a stated percentage (e.g., +25%) if rebuilding exceeds policy limits.

EXTERNAL REVIEW - An independent review of a denied claim after you’ve completed the plan’s internal appeals process.

FACE AMOUNT - Amount of money a bond issuer pays a lender at maturity.

FACTOR INVESTING - Tilting portfolios toward characteristics like value, size, momentum, or quality to seek excess returns.

FACTS AND CIRCUMSTANCES TEST - A subjective test that measures both financial and nonfinancial factors. The objective portion of this test mandates that public support must be at least 10% and that the organization be able to attract public support.

FAMILY ASSEMBLIES - Periodic gathering of family members (typically annual). Topics may include the state of the family business, the direction of the company and learning relevant skills such as reading financial statements.

FAMILY BOARD OF DIRECTORS - The most formal form of family governance, a family board of directors will have set terms, compensate its members, and bring diverse expertise to augment the leadership, owner and/or company executive expertise.

FAMILY BUSINESS MISSION - A description of a company's function, markets, and competitive advantages; a short statement of business goals and philosophies. A mission defines what an organization is, why it exists, its reason for being.

FAMILY COMMITTEE - A group within a family that serves as a structured platform for communication, decision-making, and governance

FAMILY CONSTITUTION - An overarching document designed to capture legacies and guiding principles for the family for current and future generations. It documents the governance framework of the family, providing continuity between generations.

FAMILY COUNCIL - The governing body that represents the family. For the benefit of the greater family, the family council acts as a decision making and rule-making body, directs family communication, and is responsible for planning.

FAMILY DEDUCTIBLE - The combined deductible that applies to all covered family members under a plan.

FAMILY FOUNDATION - A type of private foundation whose funding is derived from a single family.

FAMILY GOVERNANCE - The authorized oversight of family activities, including but not limited to its businesses, wealth, and opportunities. It should leverage human capital within the family and plan for succession and continuity in family decision-making.

FAMILY MEMBER EMPLOYMENT POLICIES - Guidelines for employment expectations such as gaining experience outside the family business. For example, some families require 3-5 years of related experience before being eligible for a leadership tracked position in the family business, while others ascribe that no family may ascend to a leadership position until they have accomplished experience working in x number of strategic business units for x number of years to demonstrate their knowledge and commitment.

FAMILY MISSION - A declaration of a family's core purpose and focus that normally remains unchanged over time.

FAMILY OFFICE - An entity designed to prepare family members to collectively manage, sustain, and grow their wealth across multiple generations.

FAMILY OFFICE RULE - SEC definition of the family office as any type of qualifying entity that provides investment advice to a single family including traditional family offices and private trust companies.

FAMILY SYSTEMS THEORY - Theory developed by Dr. Murray Bowen, which states that the family is an emotional unit and any change in the emotional functioning of one member of the family/emotional unit is predictably and automatically compensated for by changes in the emotional functioning of other members of that family/emotional unit; also known as Bowen theory.

FAMILY VALUES - A declaration that informs the family about top priorities and what its core beliefs are.

FEDERAL INCOME TAX - A tax levied by the federal government on the annual earnings of individuals, corporations, trusts, and other legal entities. It is based on income level and filing status, with rates that increase as income rises.

FEDERAL INSURANCE CONTRIBUTIONS ACT (FICA) - A federal payroll contribution from employees and employers to fund Social Security and Medicare.

FEDERAL POVERTY LEVEL (FPL) - An income measure used to determine eligibility for programs and savings; varies by household size and is updated annually.

FEDERALLY QUALIFIED HEALTH CENTER (FQHC) - Community-based health centers that provide primary care in underserved areas regardless of ability to pay.

FEE SIMPLE - A complete individual ownership of property with all the rights associated with out-right ownership.

FEE-FOR-SERVICE (FFS) - A payment model where providers are paid for each service rendered.

FELONIOUS HOMICIDE STATUTE - Statute that prevents heirs who feloniously participated in the decedent's death from inheriting via the will or state intestacy laws.

FICO SCORE - A widely used credit score that summarizes credit risk based on credit report data.

FIDELITY CLAUSE - A “lifestyle” provision in a marital agreement (prenup/postnup) that attempts to define infidelity/adultery and set agreed financial consequences (or other consequences) if infidelity occurs; enforceability varies by jurisdiction and drafting.

FIDUCIARY - A person who has a legal duty to act in the best interest of another as a result of holding a position of trust and confidence.

FIDUCIARY (ERISA) - A person or entity that has discretionary authority over a plan and must act solely in the interest of participants.

FIDUCIARY COMMITTEE - A committee that has a legal duty to act in the best interest of another/others as a result of holding a position of trust and confidence.

FIDUCIARY COUNCIL - A group charged with shared responsibility for a fiduciary, typically established and governed by a trust agreement or family constitution.

FIDUCIARY DUTY - a fiduciary duty is a legal term describing the relationship between two parties that obligates one to act solely in the interest of the other.

FIDUCIARY OVERSIGHT - As the fiduciary of the organization, the board as a body and each individual board member must always act for the good of the nonprofit. ... The board is expected to exercise due diligence while overseeing that the organization is well-managed and its financial situation remains sound.

FIDUCIARY STANDARD OF CARE - The fiduciary standard of care requires that a financial adviser act solely in the client’s best interest when offering personalized financial advice.

FINANCIAL ASSET - A liquid asset that gets its value from a contractual right or ownership claim. Cash, stocks, bonds, mutual funds, and bank deposits are examples.

FINANCIAL DISCLOSURE - The process/documentation by which a spouse/party provides information about their assets, liabilities, income, and expenses to the other party (commonly required in divorce proceedings and often relevant to marital agreements).

FINANCIAL INDUSTRY REGULATORY AUTHORITY (FINRA) - An independent, nongovernmental organization that writes and enforces the rules governing registered brokers and broker-dealer firms in the United States.

FINANCIAL POSITION - A document that provides a snapshot of one’s financial position at a point in time and lists assets, liabilities, and net worth.

FINANCIAL SERVICES PROFESSIONAL - A person who works with clients on financial planning and investment strategies.

FINANCING ACTIVITIES - Reports debt and equity transactions, such as the issuance and retirement of debt and equity positions, e.g. stock; dividend payments are also reported here.

FISCAL POLICY - Government decisions on taxation and spending to influence the economy.

FIXED INCOME MUTUAL FUND - Invests primarily in bonds with the primary goal of generating monthly income for investors. Provides instant diversification for investors.

FIXED INDEMNITY INSURANCE - A policy that pays a set cash amount per day or service regardless of actual charges; considered an excepted benefit when structured properly.

FLEXIBLE SPENDING ACCOUNT (FSA) - A tax-advantaged account maintained by employers where employees can set aside a portion of each paycheck to pay for out-of-pocket medical expenses

FLOOD ZONE X - FEMA zone indicating moderate- to low-risk areas outside the Special Flood Hazard Area.

FORCED HEIRSHIP - A state requirement that a certain portion of the decedent's estate be transferred to a spouse and, in some instances, children.

FORM 1040 - The standard federal income tax form people use to report their income to the IRS, claim tax deductions and credits, and calculate the amount of their tax refund or tax bill for the year.

FORM 1040A - A now-obsolete simplified individual income tax return that was replaced when the IRS redesigned Form 1040.

FORM 1040EZ - A discontinued ultra-short individual tax return formerly for simple filings; replaced by the redesigned Form 1040.

FORM 1095-A - IRS form you receive if you had Marketplace coverage; shows months covered and any APTC to reconcile on your tax return.

FORM 1099 - Records income received by independent contractors. Independent contractors may receive multiple 1099 forms, depending upon the number of clients they have.

FORM 1099-R - Reports retirement income distributions such as from pensions, annuities, IRAs, retirement or profit-sharing plans, etc.

FORM 4868 - The Application for Automatic Extension of Time to File U.S. Income Tax Return. If you are unable to file your federal individual income tax return (IRS Form 1040) by the due date, you can apply for an automatic 6-month extension of time to file.

FORM 5500 - An annual report many ERISA plans must file with federal agencies; summarizes plan financial and compliance information.

FORM 8962 - IRS form used to reconcile the premium tax credit with your actual annual income.

FORMULARY - The list of prescription drugs a plan covers, often arranged in tiers.

FORMULARY EXCEPTION - A plan process to cover a non-formulary drug or provide it at a lower cost sharing when medically necessary.

FORMULARY TIER - A level within a drug list that determines member cost sharing for a medication.

FORWARD CONTRACT - A customized agreement to buy or sell an asset at a future date for a price agreed today.

FREE CASH FLOW (FCF) - The cash a company produces through its operations, less the cost of expenditures on assets. The cash left over after a company pays for its operating expenses and capital expenditures.

FUND MANAGER - The entity responsible for implementing a fund’s investing strategy and managing its portfolio trading activities.

FUNDING - The transfer of property to a trust

FUTURE INTEREST - In property law and real estate, a future interest is a legal right to property ownership that does not include the right to present possession or enjoyment of the property. A form of property ownership in which the owner can transfer that interest or sell it or will it to another person or have a creditor seize it.

FUTURE VALUE - The projected future value of a current sum of money or of a projected cash flow stream, calculated using a known or estimated rate of return and a known or estimated time period between the present and the future date(s).

FUTURES - Standardized contracts obligating the buyer to purchase and the seller to deliver an asset at a future date and price.

GAG CLAUSE PROHIBITION - Federal rule (CAA 2021) that bans contracts from restricting disclosure of price and quality information; plans must attest compliance.

GAMMA - Rate of change of delta with respect to the underlying price; second-order sensitivity.

GENERAL GIFT - A transfer of an asset that does not provide specific details of the gift.

GENERAL LEDGER - The main ledger in an accounting system, which includes all accounts that are being accounted for.

GENERAL LIABILITY - Covers third-party bodily injury, property damage, and personal/advertising injury claims against a business.

GENERAL POWER OF APPOINTMENT - The power of the trust beneficiary to appoint all or any of the trust property to anyone he or she chooses, including himself or herself, or his or her estate, at any time during his or her lifetime, or upon his or her death.

GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP) - A set of accounting principles set forth by the FASB that U.S. companies must follow when putting together financial statements.

GENERATION SKIPPING TRUST (GST) - A type of legally binding trust agreement in which the contributed assets are passed down to the grantor's grandchildren, thus 'skipping' the next generation, the grantor's children.

GENERATION-SKIPPING TRANSFER TAX (GSTT) - Property transfer from a grandparent directly to a grandchild or great grandchild

GENOGRAM - Family tree.

GIFT TAX - A tax that applies to transfers made while a person is living

GIFT TAX EXCLUSION - The amount of a gift that is not subject to a gift tax, usually measured or allowed on an annual basis

GOLD PLAN - Marketplace metal level with higher premiums and lower costs when you get care.

GOODS AND SERVICES TAX (GST) - A value-added tax levied on most goods and services sold for domestic consumption. It is paid by consumers, but sent to the government by the businesses selling the goods and services.

GRACE PERIOD - Extra time to pay premiums after the due date to avoid cancellation, subject to plan and subsidy status.

GRANDFATHERED HEALTH PLAN - A plan that existed on March 23, 2010 and avoided certain changes; exempt from some ACA rules but can lose status if changed significantly.

GRANDMOTHERED PLAN - A transitional plan sold after 2010 but before 2014 that isn’t fully ACA-compliant; allowed to continue in some states.

GRANTOR - The person who creates and initially funds a trust. The grantor is also known as the settlor or creator.

GRANTOR RETAINED ANNUITY TRUST (GRAT) - A financial instrument used to minimize taxes on large financial gifts to family members. An irrevocable trust is created for a certain term or period of time. The grantor pays a tax when the trust is established.

GRANTOR RETAINED INCOME TRUST (GRIT) - A trust in which the grantor retains an income or use interest in the trust.

GRANTOR RETAINED UNITRUST (GRUT) - A GRAT where the income fluctuates and is not a set amount.

GRANTOR TRUST - A type of living trust in which the grantor retains control over the trust’s income and assets.

GROSS DOMESTIC PRODUCT (GDP) - The total market value of all final goods and services produced within a country in a period.

GROSS ESTATE - The total dollar value of an individual’s assets at the time of their death, which does not consider debts owed and liabilities.

GROSS MARGIN - An indicator of a company's profitability and efficiency in managing production costs. It is calculated by: (Revenue - COGS) / Revenue. A higher gross margin suggests better cost management and pricing strategies, providing more funds to cover operating expenses and generate net profit.

GROSS PROFIT - Profit a company makes after deducting the costs associated with making and selling its products or services.

GROUP HEALTH PLAN - Coverage offered by an employer or employee organization to employees and dependents.

GROWING PERPETUITY - A perpetuity where cash flows grow at a constant rate each period.

GUARANTEED ISSUE - Requires insurers to offer coverage to any eligible applicant in a market, regardless of health status.

GUARANTEED RENEWABILITY - Lets you renew coverage at your option, with limited exceptions.

GUARANTEED REPLACEMENT COST - Provision that pays whatever it costs to rebuild the dwelling after a covered loss, with fewer or no caps.

GUARDIAN - A guardian is an individual who has been given the legal responsibility to care for a child or adult who does not have the capacity for self-care.

GUARDIAN AD LITEM - A representative (usually an attorney) appointed by the court to represent the interest of a minor or incompetent person

GUARDIANSHIP - A legal relationship created when a person or institution named in a will or assigned by the court to take care of minor children or incompetent adults.

GUARDIANSHIP CLAUSE - A clause in a will which allows the testator to identify an individual(s) to raise any minor children.

HABILITATIVE SERVICES - Services that help a person keep, learn, or improve skills and functioning for daily living.

HARMONIZED SALES TAX (HST) - A consumption tax paid by local consumers and businesses. It combines the Canada's federal goods and services tax and various provincial sales taxes.

HDHP - High-Deductible Health Plan featuring lower premiums, higher deductibles, and HSA eligibility.

HEALTH MAINTENANCE ORGANIZATION (HMO) - A health plan with lower premiums that generally only covers care from in-network providers and often requires referrals from a primary care doctor.

HEALTH REIMBURSEMENT ARRANGEMENT (HRA) - An employer-funded arrangement that reimburses eligible medical expenses.

HEALTH SAVINGS ACCOUNT (HSA) - A tax-deductible savings account that’s used in conjunction with a qualified high-deductible health insurance plan

HEDGE FUND - A pooled investment vehicle for accredited investors using a wide range of strategies, often with performance‑based fees.

HEIR - One who inherits under state law.

HEIRS-AT-LAW - Persons who inherit a decedent’s estate under state statutes of descent and distribution if the decedent died intestate.

HIGH-DEDUCTIBLE HEALTH PLAN (HDHP) - A type of health insurance coverage with a high deductible. To contribute to a HSA, a person must have coverage under an HDHP. HDHPs require policyholders to pay more out-of-pocket expenses before the health plan starts to pay for medical services.

HIGH-YIELD BOND - Debt that has been given a low credit rating, below investment grade. These are riskier because there is a higher chance of default. Investors are compensated with higher interest rates which is why these are also called high-yield bonds.

HIPAA SPECIAL ENROLLMENT RIGHTS - Rights that allow mid-year enrollment in a group plan after certain life events such as marriage, birth, or loss of other coverage.

HIPAA-ELIGIBLE INDIVIDUAL - A person with prior creditable coverage who qualified for certain protections under pre-ACA individual-market rules.

HO-3 - The most common homeowners policy form, covering the dwelling and other structures on an open-perils basis and personal property on a named-perils basis, with standard exclusions like flood and earthquake.

HO-5 - A premium homeowners form that extends open-perils coverage to personal property and typically includes higher sublimits and fewer exclusions than HO-3.

HO-6 - A condo unit-owners policy that generally covers interior 'walls-in' property and personal belongings, plus liability.

HOLOGRAPHIC WILL - Handwritten will.

HORIZONTAL ANALYSIS - Compares historical data, such as ratios, or line items, over a number of accounting periods.

HOSPITAL OUTPATIENT CARE - Care in a hospital that doesn’t require an overnight stay.

HURDLE RATE - The minimum acceptable rate of return for an investment or project.

ILLIQUID - Securities or assets that cannot be sold or exchanged easily for cash without a significant loss in value

IMPACT INVESTING - The practice of making investments in companies, organizations, and funds with the intention of generating measurable social and environmental impact alongside a financial return.

IMPLIED VOLATILITY (IV) - The market’s forecast of a security’s future volatility inferred from option prices.

INCIDENTS OF OWNERSHIP - Having the right to name or change the beneficiary of a life insurance policy, to assign the policy to another or revoke the assignment, to surrender or cancel the policy, and to pledge the policy as collateral for a loan, or to obtain a loan against the surrender value.

INCOME BENEFICIARY - The person or entity who has the current right to income from a trust, or the right to use the trust assets.

INCOME STATEMENT - One of the three financial statements used for reporting a company's financial performance over a specific accounting period. Also known as the profit and loss statement or the statement of revenue and expense.

INCOME TAX - A type of tax that governments impose on income generated by businesses and individuals.

INDEMNITY - A principle stating insurance restores you to your financial position prior to a loss, without profit.

INDEPENDENT REVIEW ORGANIZATION (IRO) - An outside entity that conducts external reviews of denied claims after internal appeals are exhausted.

INDEPENDENT TRUSTEE - A trustee who is not related to the beneficiary of the trust and does not stand to inherit any property under the trust.

INDEXED UNIVERSAL LIFE (IUL) - A form of universal life where credited interest is linked to an equity index, subject to caps and floors.

INDIVIDUAL COVERAGE HEALTH REIMBURSEMENT ARRANGEMENTS (ICHRA) - A type of employer-funded health benefit plan that allows an employer to reimburse employees for qualified medical expenses, including some or all of the premiums for individual-market health insurance coverage, as well as the cost of out-of-pocket medical expenses

INDIVIDUAL COVERAGE HRA (ICHRA) - An employer-funded HRA employees can use to buy individual-market coverage and be reimbursed for premiums and qualified expenses.

INFLATION - A quantitative measure of the rate at which the overall prices of goods and services increase over time, which reduces the purchasing power of money.

INFORMATION RATIO - Average active return divided by tracking error; gauges manager skill per unit of risk.

INFORMATION SECURITY POLICY - Guidelines for how family members are to secure information, how they are to set-up, maintain and use mobile devices and/or computers, what firewalls, internet safety software and protection measures to thwart cyber hackers, trolls, predators and perpetrators.

INHERITANCE TAX - Tax on the amount inherited by a particular beneficiary rather than the estate as a whole.

INITIAL COIN OFFERING (ICO) - A fundraising method where new crypto tokens are sold to investors.

INITIAL MARGIN - The minimum equity required to open a leveraged position.

INITIAL PUBLIC OFFERING (IPO) - The process of offering shares of a private corporation to the public in a new stock issuance.

INLAND MARINE - Property insurance for movable or specialized property (e.g., equipment, fine art) often in transit or off premises.

IN-NETWORK - Providers and facilities that contract with your plan; using them typically lowers your costs.

INPATIENT CARE - Care in a hospital that requires admission and an overnight stay.

INSTITUTIONAL INVESTORS - A company or organization that invests money on behalf of other people. Examples include mutual funds and insurance companies.

INSURABLE INTEREST - A requirement that the policyholder would suffer a financial loss if the insured event occurs.

INTANGIBLE PERSONAL PROPERTY - Property other than real estate and other than property that can be “touched” e.g. stocks, bonds, bank accounts, copyrights, patents, etc. as they all represent the right to receive something of value.

INTANGIBLES - Assets that you can’t readily hold in your hand, such as stocks and bonds.

INTANGIBLES TAX - A tax on certain intangible assets.

INTENTIONALLY DEFECTIVE GRANTOR TRUST (IDGT) - An estate-planning tool used to freeze certain assets of an individual for estate-tax purposes, but not for income-tax purposes. It is effectively a grantor trust with a purposeful flaw that ensures the individual continues to pay income taxes.

INTER VIVOS TRUST - A trust created during a lifetime and refers to trusts created during a person's lifetime as compared to testamentary trusts which are created in a will and come into effect on the testator's / testatrix's death.

INTEREST EXPENSE - Relates to the cost of borrowing money. It is the price that a lender charges a borrower for the use of the lender’s money.

INTEREST RATE - The amount charged, expressed as a percentage of the principal, by a lender to a borrower for the use of assets

INTEREST RATE SWAP - A derivative in which counterparties exchange interest payment streams, typically fixed for floating.

INTERNAL APPEAL - The first level of review by the health plan when you challenge a denied claim or coverage decision.

INTERNAL RATE OF RETURN (IRR) - The discount rate that sets a project’s NPV to zero; its break‑even return.

IN-TERROREM CLAUSE - A statement in a will or trust providing that any beneficiary who contests the document or in any way interferes with its operation will forfeit his share. Binding in most states

INTESTATE - To die without having a valid will or to die with a will that does not distribute all property.

INTRAPRENEURSHIP - A system that allows an employee to act like an entrepreneur within an organization. They are self-motivated, proactive, and action-oriented people who take the initiative to pursue the development of innovative products or services. These employees do not have a personal cost of failure, like entrepreneurs, since the organization absorbs losses.

INTRODUCTORY CLAUSE - A clause in a will which identifies the testator.

INVESTING ACTIVITIES - Reports the purchase and sale of long-term investments and fixed assets, such as equipment.

INVESTMENT ADVISOR - A person that makes investment recommendations or conducts securities analysis in return for a fee, whether through direct management of clients' assets or by way of written publications.

INVESTMENT POLICY - A customized document for an investor that articulates their tailored investment objectives, risk tolerance, preferences, time horizon(s), strategy, and or approaches.

INVESTMENT POLICY STATEMENT - A customized document for an investor that articulates their tailored investment objectives, risk tolerance, preferences, time horizon(s), strategy, and or approaches.

IRREVOCABLE LIFE INSURANCE TRUST (ILIT) - An irrevocable trust that owns and holds life insurance on its grantor's life. An ILIT is also known as a wealth replacement trust (WRT).

IRREVOCABLE TRUSTS - A trust created by a granter that cannot be revoked or that cannot become irrevocable upon the grantor's death.

ISSUE - Lineal descendants of a person, i.e. children, grandchildren, greatgrandchildren, etc.

ITEMIZED DEDUCTION - A form of income tax that is paid on the gain from capital assets, including securities, retail properties, and business interests.

JENSEN’S ALPHA - A portfolio’s excess return over that predicted by CAPM given its beta.

JOINT OWNERSHIP - When two or more people own the same property at the same time, generally in equal shares, with the understanding that on the death of any one, the survivor(s) will own the whole

JOINT PROPERTY - Any property in joint ownership form (not just real estate)

JOINT TENANCY (WITH RIGHT OF SURVIVORSHIP) - An undivided interest in property held by two or more related or unrelated persons, generally includes a right of survivorship.

JOINT WILL - One will executed by two or more individuals jointly that transfers their common interest in property.

JUNK BOND - Debt that has been given a low credit rating, below investment grade. These are riskier because there is a higher chance of default. Investors are compensated with higher interest rates which is why these are also called high-yield bonds.

K-1 - Lists taxable income for types of business entities. Two groups of taxpayers need to file a Schedule K-1 with their taxes: 1) owners of pass-through business entities such as S-Corps, partnerships, and LLCs taxed as an S-Corp or partnership, and 2) beneficiaries of trusts or estates.

KIDDIE TAX - The income tax imposed on the unearned income (dividends, interest) in excess of an annual exemption, on a child under age fourteen. The tax on the excess income is imposed at the parent’s highest tax rate

KIDNAP AND RANSOM POLICIES - Guidelines and protocols should situations arise where a family member is kidnapped including ransom negotiation and private security details. High profile families or those living in 2nd and 3rd world countries may have a policy to address contingency plans when/if a family member should be kidnapped. For example, a South American family had a policy to convene a group of family business owners from around South America when/if a family member was kidnapped, and to have this elder council negotiate with the kidnappers, rather than solely relying on local, state or federal officials, whom they feared may be corrupt. Other families have private security details, former CIA/FBI operatives, and/or other intelligence protocols to activate should a family member be taken hostage and held for ransom.

LAPSED GIFT - A gift or bequest that is not paid to the named beneficiary because he or she is deceased and the will did not provide for the bequest to be paid to another

LARGE GROUP HEALTH PLAN - Coverage offered by an employer that meets the definition of a large group under federal or state law.

LEGATEE - Individuals who would be the inheritors of the bequest under a will.

LETTER OF WISHES - A non-binding document written by the creator of a discretionary trust to share personal thoughts and perspectives with those who will be serving over the years as trustees. Commonly contained are posthumous expressions of thanks or love to the objects of the trust.

LETTERS OF ADMINISTRATION - The official document given by the court authorizing the executor or administrator to act. Also known as letters testamentary

LEVERAGE - Using borrowed capital or derivatives to increase potential returns—also increases potential losses.

LIABILITIES - Usually a sum of money that a person (or company) owes. Examples include loans, mortgages, accounts payable, and deferred revenues.

LIABILITY LIMITS (SPLIT) - Auto liability limits shown as three numbers (e.g., 100/300/100) for per-person BI, per-accident BI, and PD.

LIFE ESTATE - The right to the use of property during one’s lifetime only, after which the property belongs to the “remaindermen” outright

LIFE TENANT - A person who has a life estate

LIFETIME GIFT TAX EXEMPTION - If you give more than the annual gift tax exclusion to one person in a year, the extra amount counts against your lifetime gift and estate tax exemption—meaning it could reduce the amount you can transfer tax-free later on.

LIFETIME LIMIT - A maximum on benefits over a lifetime; ACA prohibits lifetime dollar limits on essential health benefits in most plans.

LIMIT ORDER - An instruction to buy or sell only at a specified price or better.

LIMITED POWER OF APPOINTMENT - The right of a trust beneficiary to designate, from a group of specified appointees (usually the grantor’s children and grandchildren, or charities), who may receive trust assets either at any time or after the death or other termination of the beneficiary’s interest.

LIMITED-SCOPE DENTAL OR VISION - Standalone dental or vision coverage that is treated as an excepted benefit and is not subject to many ACA rules.

LIQUID ASSET - Any asset that can be easily converted into cash without having a significance on its value

LIQUID INVESTMENT - Any investment that can be easily converted into cash without having a significance on its value

LIQUIDITY - The ease in which an individual or company can quickly convert an asset into cash at a price close to its fair value.

LIQUIDITY EVENT - A transaction that converts a business or asset into cash or readily marketable securities, such as the sale of a company, an IPO, or a major asset sale. It often results in significant proceeds for owners, investors, or stakeholders.

LIQUIDITY RISK - The risk of being unable to meet obligations or convert assets to cash without significant loss.

LIVING TRUST - A trust created during the lifetime of the person who created it

LIVING TRUST AGREEMENT - A living trust, specifically a revocable living trust, is a legal document that places your assets—investments, bank accounts, real estate, vehicles and valuable personal property—in trust for your benefit during your lifetime, and spells out where you'd like these things to go upon your death.

LIVING WILL - Legal document expressing an individual's specific last wishes regarding life-sustaining treatment.

LOAD - Sales charges paid by investors to purchase mutual fund shares.

LOAN-TO-VALUE (LTV) - Loan amount divided by the appraised value of the collateral property.

LOCAL TAX - A levy imposed by a non-federal jurisdiction, such as a city, county, school district, or municipality. The revenue is used to fund local public services and infrastructure that directly benefit the community.

LOOK-AHEAD BIAS - Using information in a backtest that would not have been available at the time decisions were made.

LOSS OF USE (COVERAGE D) - Pays additional living expenses if a covered loss makes your home uninhabitable.

MAIL-ORDER PHARMACY - A service that delivers maintenance medications by mail, often at lower cost.

MAINTENANCE MARGIN - The minimum equity that must be maintained in a margin account to keep positions open.

MARGIN ACCOUNT - A brokerage account that allows borrowing against securities to trade on margin or sell short.

MARGIN CALL - A broker’s demand for additional funds when account equity falls below maintenance requirements.

MARITAL DEDUCTION - A deduction for estate and gift tax purposes for the amount of property that passes to a spouse from the other spouse

MARITAL DEDUCTION TRUST - A trust established to receive an amount on behalf of the surviving spouse that qualifies for the marital deduction

MARITAL PROPERTY - Property (and sometimes debt) treated as belonging to the marital estate—commonly assets acquired during the marriage and subject to division at divorce under the state’s property-division system (community property or equitable distribution).

MARITAL TRUST - A type of trust used by married couples to reduce estate taxes. It will be formed upon the death of one of the spouses, often in conjunction with a credit shelter trust. Since there is no estate tax related to death transfers made to a surviving spouse, assets that are not being left to children or grandchildren to fully utilize estate tax exemptions will be transferred to this trust for the benefit of the surviving spouse.

MARKET CAPITALIZATION - The total market value of a company’s outstanding shares (price × shares outstanding).

MARKET MAKER - A firm that quotes bid and ask prices and stands ready to buy or sell a security.

MARKET ORDER - An instruction to buy or sell immediately at the best available price.

MARKET VALUE OF EQUITY - Another term for market capitalization—the total market value of equity.

MATURITY - The finite time period at the end of which the financial instrument will cease to exist and the principal is repaid with interest

MAXIMUM ALLOWABLE COST (MAC) - A pharmacy reimbursement limit for multi-source drugs used by plans or PBMs.

MEDICAID - A joint federal-state program that provides coverage to eligible low-income people, children, pregnant people, seniors, and some with disabilities.

MEDICAID EXPANSION - State option under the ACA to expand Medicaid eligibility to certain low-income adults.

MEDICAL LOSS RATIO (MLR) - The share of premium dollars spent on claims and quality improvement versus administration and profit; rebates may apply if thresholds aren’t met.

MEDICAL NECESSITY - Health care services or supplies needed to diagnose or treat an illness, injury, condition, disease, or its symptoms and that meet accepted standards of medicine.

MEDICAL PAYMENTS (MEDPAY) - Auto coverage that pays medical expenses for you and passengers regardless of fault; typically with lower limits than PIP.

MEDICAL UNDERWRITING - Using health information to decide whether to offer coverage and at what price; generally prohibited for ACA-compliant major medical plans.

MEDICALLY NEEDY - A Medicaid pathway where people with high medical expenses can qualify by spending down income to eligibility levels.

MEDICARE - Federal government levies a tax on individual’s wages for federal health insurance, which may be claimed by individual’s once they reach retirement or for people with disabilities.

MEDICARE ADVANTAGE (PART C) - A type of Medicare health plan offered by private companies that contract with Medicare to provide Part A and Part B benefits, often including extra benefits.

MEDICARE PART D - Prescription drug coverage for Medicare enrollees offered through stand-alone drug plans or Medicare Advantage plans with drug coverage.

MEDICARE SAVINGS PROGRAM (MSP) - State programs that help low-income Medicare beneficiaries pay premiums and sometimes cost sharing.

MEDIGAP - Private insurance that helps pay some costs not covered by Original Medicare, such as deductibles and coinsurance (Medicare Supplement Insurance).

MENTAL HEALTH PARITY AND ADDICTION EQUITY ACT (MHPAEA) - Federal law requiring parity between mental health/substance use benefits and medical/surgical benefits.

MILLER TRUST - A “safe harbor” trust under the Medicaid rules, allowing a trust to be funded with the income of a Medicaid beneficiary in an “income-cap” state, so that the beneficiary may qualify for Medicaid

MINIMUM ESSENTIAL COVERAGE (MEC) - The type of coverage an individual must have to meet the Affordable Care Act’s coverage requirement.

MINIMUM VALUE (MV) - A standard indicating that an employer plan pays at least 60% of total allowed costs of benefits.

MIRROR WILL - Two or more identical wills that leave all assets to the reciprocal party.

MODERN PORTFOLIO THEORY (MPT) - A theory on how risk-averse investors can construct their investment portfolios to maximize expected return based on a given level of market risk. Harry Markowitz pioneered the theory in 1953.

MODERN PORTFOLIO THEORY (MPT) - A framework that optimizes portfolio diversification based on risk and return trade-offs.

MODIFIED ADJUSTED GROSS INCOME (MAGI) - AGI with specific nontaxable income added back; used for Marketplace subsidies and for Medicaid/CHIP eligibility for most adults.

MONETARY POLICY - Central bank actions that influence money supply and interest rates to achieve macroeconomic goals.

MONEY MARKET - An interest-bearing account at a bank or credit union.

MONTE CARLO SIMULATION - A method that uses random sampling to model uncertain outcomes and probability distributions.

MONTE CARLO SIMULATION - A statistical technique that allows financial advisors to model various investment scenarios to assess the probability of different outcomes, thereby aiding in risk management and decision-making

MOVING AVERAGE (MA) - A smoothed average of past prices that helps identify trends by reducing short‑term noise.

MOVING AVERAGE CONVERGENCE/DIVERGENCE (MACD) - Uses EMAs to identify momentum shifts via MACD and signal line crossovers.

MULTI-FAMILY OFFICE - Commercialized operations that support multiple, typically unrelated families with a suite of family office services.

MUNICIPAL BOND - A debt security issued by a state, municipality or county to finance its capital expenditures, including the construction of highways, bridges or schools.

MUTUAL FUND - A type of financial vehicle made up of a pool of money from many investors to invest in securities like stocks, bonds, and other assets.

MUTUAL WILL - A legal document created by two or more individuals, typically a couple, that outlines how their assets will be distributed after their deaths. It is essentially two separate wills that are either identical or very similar in content and are created within a single document as part of an agreement where the surviving party agrees not to alter their will after the first death.

NAMED PERILS - Coverage only for causes of loss explicitly listed in the policy (e.g., fire, theft, wind).

NARROW NETWORK - A plan network with a smaller selection of providers in exchange for lower premiums or better quality control.

NET ASSET VALUE (NAV) - The net value of an entity. Calculated as the total value of the entity’s assets minus the total value of its liabilities. The per share/unit price of the fund on a specific date or time.

NET INCOME - The residual amount of earnings after all expenses have been deducted from sales which reflects a company’s profit.

NET INVESTMENT INCOME TAX - A 3.8% tax on investment income (interest, dividends, capital gains, rents, royalties, and annuities) if an individual’s income is above a certain threshold.

NET MARGIN - Net margin measures net income as a percentage of revenue. It reflects how much profit the company retains from each dollar of sales after all expenses, including operating costs, interest, and taxes.

NET PRESENT VALUE (NPV) - The present value of cash inflows minus the present value of cash outflows for a project or investment.

NET PROFIT MARGIN - Net income divided by revenue; overall profitability after all expenses.

NETWORK ADEQUACY - A standard requiring plans to provide reasonable access to a sufficient number and type of providers.

NETWORK PLAN - A health plan that contracts with a network of providers and may limit coverage to them for non-emergency care.

NFIP - The National Flood Insurance Program, a federal program providing flood insurance in participating communities.

NO SURPRISES ACT - A federal law that took effect January 1, 2022, to restrict many instances of "surprise" medical bills.

NO SURPRISES ACT INDEPENDENT DISPUTE RESOLUTION (IDR) - A process for settling certain out-of-network billing disputes between plans and providers.

NO SURPRISES ACT PROTECTIONS - Federal protections that limit surprise medical bills for certain out-of-network services like emergency care and air ambulance.

NO-CONTEST CLAUSE - A clause in a will that discourages heirs from contesting the will by substantially decreasing or eliminating bequests to them if they file a formal legal contest to the will.

NOMINEE TRUST - A special purpose trust, originally designed to hold real estate and thus sometimes called a “realty trust,” where the identity of the beneficiaries is contained in a document separate from the rest of the trust to keep his or her name off the property deed, out of the local Registry of Deeds, and out of public view.

NONFORMULARY DRUG - A medication that is not included on a plan’s drug list and may not be covered unless an exception is approved.

NON-PREFERRED DRUG - A formulary drug on a higher tier that usually has higher cost sharing than preferred drugs.

NON-PREFERRED PROVIDER - A provider not in a plan’s preferred tier; using them usually costs more.

NONPROBATE PROPERTY - Property owned or partially owned by the deceased but which does not pass through his probate estate, such as jointly held property or property in a living trust

NON-QUANTITATIVE TREATMENT LIMITATION (NQTL) - A non-numerical limit on benefits (e.g., prior authorization criteria) that must satisfy parity rules under MHPAEA.

NUNCUPATIVE WILL - An oral will, allowed only in extreme cases (and not in all states) such as where the testator faces imminent death consisting of dying declarations.

OFFSHORE TRUST - A trust that is settled and governed by the laws of a jurisdiction other than the United States. In the vernacular, generally one that is literally offshore, such as Gibraltar, the Cook Islands, the Bahamas, etc., and generally used for asset protection purposes. (See Asset protection trusts)

OPEN ENROLLMENT PERIOD (OEP) - The yearly period when you can enroll in a health insurance plan.

OPEN PERILS - Coverage against all causes of loss except those specifically excluded in the policy.

OPEN-END FUND - A diversified portfolio of pooled investor money that can issue an unlimited number of shares. The fund sponsor sells shares directly to investors and redeems them as well. These shares are priced daily, based on their current net asset value. Some mutual funds, hedge funds, and exchange-traded funds are types of open-end funds.

OPERATING ACTIVITIES - Reports how much cash the business generated or used in running its core operations during the period, after accounting for the difference between accounting profit and actual cash movement.

OPERATING AGREEMENTS - A legal document that outlines the ownership and member duties of an LLC and allows for setting out the financial and working relations among business owners (“members”) and between members and managers.

OPERATING EXPENSE - The ongoing cost of running a product, business, or system.

OPERATING INCOME - The profit a company generates from its core business operations after deducting cost of goods sold and operating expenses such as wages and depreciation. It reflects how well the business performs before interest and taxes.

OPERATING MARGIN - Operating income divided by revenue; core profitability before interest and taxes.

OPTIONS CONTRACT - The standardized agreement specifying the underlying, strike, expiration, and rights/obligations of the parties.

ORDINANCE OR LAW (COVERAGE A/B/C) - Specifies whether code-upgrade costs apply to dwelling, other structures, and/or personal property after a covered loss.

ORDINARY INCOME - Income from wages, interest, and rental income

ORIGINAL MEDICARE - Fee-for-service Medicare (Parts A and B) provided by the federal government, not Medicare Advantage.

ORIGINAL WILL - The only signed copy of a will at any given time.

OTHER STRUCTURES (COVERAGE B) - Covers detached structures on the residence premises (e.g., sheds, fences, detached garages).

OUT-OF-NETWORK - Providers and facilities that don’t contract with your plan; you’ll usually pay more.

OUT-OF-POCKET COSTS - Expenses for medical care that aren’t reimbursed by insurance, including deductibles, copayments, and coinsurance.

OUT-OF-POCKET MAXIMUM - The most you will pay for covered healthcare in a plan year; after reaching it, the plan pays 100% of covered costs.

OUT-OF-POCKET MAXIMUM (OOP MAX) - The most you’ll pay in a plan year for in-network covered services; after you reach it, the plan pays 100% of covered costs for the rest of the year.

OUTSOURCED CIO - Chief Investment Officer who works as a fiduciary with legal accountability to protect your assets and to advise objectively about the risks and opportunities associated with investments.

OVERQUALIFIED - A decedent's taxable estate is less than the applicable estate tax credit equivalency, usually the result when too many assets pass to a surviving spouse.

OVER‑THE‑COUNTER (OTC) - Trading that occurs via dealer networks rather than centralized exchanges.

OWN-OCCUPATION - A disability definition that pays benefits if you can’t perform the substantial duties of your specific occupation.

PAID-UP POLICY - A life insurance policy on which all the premiums have been paid. The policy remains in force until the insured’s death.

PAR VALUE STOCK - Have a minimum value per share, set by the company that issues it.

PASSIVE INCOME - A stream of income that requires very little work on behalf of the owner.

PASS-THROUGH ENTITIY - A business whose profits and losses pass through to the owners’ personal tax returns, rather than being taxed at the business level.

PATIENT CAPITAL - Also known as long-term capital in which the investor does not expect to make a quick profit.

PATIENT-CENTERED OUTCOMES RESEARCH INSTITUTE (PCORI) - A fee that funds clinical effectiveness research; certain group health plans must pay it annually.

PAYABLE ON DEATH (POD) ACCOUNT - See Totten Trust payment date:

PAYBACK PERIOD - Time required for an investment’s cumulative cash flows to recover the initial outlay.

PAYMENT RATE - An installment loan with an interest rate that cannot be changed for the life of the loan

PAYROLL TAX - Federal payroll tax is 7.65%; payroll tax is imposed equally on the employee and employer on annual wages

PECUNIARY GIFT - A gift of a specific sum of money.

PEG RATIO - Price/earnings ratio divided by earnings growth; used to assess valuation relative to growth.

PENSION - A retirement plan that requires an employer to make contributions to a pool of funds set aside for a worker’s future benefit.

PER CAPITA - A method to pass on wealth by family member head count (E.g., Testator passes $100 to 10 surviving children and grandchildren. Each receives $10.).

PER STIRPES - A method to pass on wealth by family branch. (E.g. Testator passes $100 to four surviving children. All four children receive $25 per branch regardless of the number of grandchildren in each branch.)

PERPETUITY - A stream of equal cash flows that continues indefinitely.

PERSONAL ARTICLES FLOATER - A separate policy or endorsement providing all-risk coverage for valuable personal items, often worldwide.

PERSONAL BALANCE SHEET - Provides an overall snapshot of wealth at a specific period in time. It is a summary of assets (own), liabilities (owe), and net worth (assets-liabilities).

PERSONAL INCOME TAX - A tax imposed by the government on the income of individuals. The tax is levied on various types of earnings and is a primary source of government revenue used to fund public services.

PERSONAL INJURY PROTECTION (PIP) - No-fault auto coverage paying medical expenses and often lost wages, regardless of fault, in certain states.

PERSONAL PROPERTY - Any tangible property that can be physically moved.

PERSONAL PROPERTY (COVERAGE C) - Covers contents of the home (e.g., furniture, clothing, electronics) up to policy limits.

PERSONAL REPRESENTATIVE - A personal representative is the executor or administrator for the estate of a deceased person and serves as a fiduciary of the estate's beneficiaries.

PERSONAL RESIDENCE TRUST (PRT) - An irrevocable trust to which a grantor may transfer a personal residence (one per trust, maximum two trusts) and retain the right to live there for a specified term of years, after which, if the grantor survives the term, the residence escapes tax in the grantor’s estate

PHYSICIAN ORDERS FOR LIFE-SUSTAINING TREATMENT - A document, constituting a physician's order, detailing the types of medical treatments an individual wishes to receive when they are within a year or so of death. The POLST is part of the patient's medical record and is used to minimize the potential for medical errors in providing treatment.

PLAN ADMINISTRATOR - The person or entity responsible for managing a group health plan’s day-to-day operations and compliance duties.

PLAN SPONSOR - The employer or employee organization that establishes and maintains a group health plan.

PLATINUM PLAN - Marketplace metal level with the highest premiums and the lowest costs when you get care.

POINT OF SERVICE (POS) - A hybrid plan combining HMO and PPO features that usually requires a primary care doctor and referrals, with some out-of-network coverage at lower benefit levels.

POLICY LIMIT - The maximum your plan pays toward covered care for a period or benefit; ACA plans can’t set annual or lifetime dollar limits on essential health benefits.

POOLED TRUST - An exception that resulted from the Omnibus Budget and Reconciliation Act of 1993; managed by a nonprofit association. While each beneficiary will have their own account, the assets will generally be pooled and managed together.

POSTNUPTIAL AGREEMENT - A legal contract between spouses entered into after they are married that outlines how assets (and related issues) will be handled if the marriage ends (e.g., divorce).

POT TRUST - Trust where the trustee has discretion to distribute income and (in accordance with the terms of the trust) principal to any or all of the named beneficiaries — typically the decedent’s spouse and descendants.

POUR-OVER PROVISION - A provision in a will that usually gives the bulk of the estate to a living trust created by the testator before or at the time the will is signed

POUR-OVER TRUST - A trust that receives assets that pour into it from another source, generally the grantor's estate at the grantor's death.

POUR-OVER WILL - A pour-over will pours all of a decedent’s assets into a trust that was established prior to death.

POWER OF ATTORNEY - Legal document that authorizes an agent to act on a principal's behalf.

POWER OF ATTORNEY FOR PROPERTY - A special Power of Attorney designed for a specific purpose.

POWER TO REVOKE - The ability to alter, amend, or terminate a legal document or the enjoyment of property transferred.

PREEXISTING CONDITION - A health condition you had before the date new health coverage starts.

PREFERRED PROVIDER - A network provider with negotiated lower rates; members typically pay less when using preferred providers.

PREFERRED PROVIDER ORGANIZATION (PPO) - A plan with a network of participating providers offering broader provider choice and out-of-network coverage at higher cost. You pay less in-network but can use out-of-network providers at a higher cost.

PREFERRED RETURN - The threshold return that the limited partners of a private equity fund must receive prior to the PE firm receiving its carried interest.

PREMARITAL AGREEMENT POLICIES - An agreement entered into prior to marriage as a means of maintaining family ownership, asset protection, and to help maintain ownership along lineal descendants, while also serving to protect new spouses as they must often clarify what to expect in the tragic event of divorce.

PREMIUM - The fixed amount you pay to keep your health plan active, usually each month.

PREMIUM BOND - A bond trading above its face value

PREMIUM TAX CREDIT - A refundable credit that helps eligible individuals and families afford health insurance purchased through the Marketplace.

PRENUPTIAL AGREEMENT - A contract entered into before marriage that sets terms (often financial/property-related) that apply if the marriage ends (e.g., separation/divorce).

PRESENT INTEREST - A gift in which the donee has all immediate rights to the use, possession, and enjoyment of the property and income from the property. The annual exclusion does not apply to a future interest gift.

PRESENT VALUE - The discounted current value of a future sum of money or of a future cash flow stream, calculated using a known or estimated rate of return and a known or estimated time period between the present and the future event(s).

PRETERMITTED HEIR - A child or other lineal descendant who has been improperly omitted from the will

PREVENTIVE SERVICES - Routine care like screenings and check-ups meant to prevent illness; many are covered without cost-sharing.

PRICE‑TO‑BOOK RATIO - Market price per share divided by book value per share; compares market value to net assets.

PRICE‑TO‑EARNINGS RATIO - Share price divided by earnings per share; a valuation multiple.

PRICE‑TO‑SALES RATIO - Market capitalization divided by revenue (or price per share divided by sales per share).

PRIMARY CARE PROVIDER (PCP) - A doctor, nurse practitioner, or clinic that provides, coordinates, or helps you access a range of health care services.

PRIMARY MARKET - Where new securities are issued and sold to investors for the first time.

PRIME BROKERAGE - Bundled services—financing, custody, and trade support—provided to hedge funds and other institutional clients.

PRINCIPAL - The grantor or giver of a power of attorney.

PRINCIPAL BENEFICIARY - The person who is to receive a portion of the estate after all gifts and valuables are distributed.

PRIOR AUTHORIZATION - Approval your plan may require before certain services, treatments, or prescriptions are covered.

PRIVATE COLLECTION - Investments in personal collections of fine art, jewelry, memorabilia, etc.

PRIVATE COMPANY - A firm held under private ownership

PRIVATE EQUITY - An alternative investment class where investors invest directly in private companies.

PRIVATE FOUNDATION - An independent legal entity set up solely for charitable purposes and whose funding is derived from a single individual, family, or corporation.

PRIVATE OPERATING FOUNDATION - A private foundation that spends at least 85% of its adjusted net income or its minimum investment return, whichever is less, on charitable services or to run charitable programs of their own. They make few, if any, grants to outside organizations.

PRIVATE TRUST COMPANY (PTC) - Also known as a family trust company, is an entity that provides trust and fiduciary services to a single-family group. It is a state-chartered, regulated entity and, as such, is prohibited from doing business with the general public.

PROBATE - The legal proceeding that serves to prove the validity of existing wills, supervise the orderly distribution of decedent’s assets to the heirs, and protect auditors by ensuring that valid debts of the estate are paid.

PROBATE PROPERTY - Property that may be transferred only through the probate procedure and would therefore include property or proceeds payable to the estate of the deceased, as well as property titled in the deceased’s name alone or as a tenant in common

PRODUCER PRICE INDEX (PPI) - An index tracking average changes in selling prices received by domestic producers.

PROFESSIONAL LIABILITY (E&O) - Covers claims arising from professional services errors or omissions that cause client financial loss.

PROFIT AND LOSS STATEMENT (P&L) - A financial statement that summarizes revenues, costs, and expenses in a given time period.

PROGRESSIVE TAX - A tax system where the tax rate increases as the taxable income or wealth of an individual or entity rises

PROOF OF STAKE (POS) - A consensus mechanism where validators are chosen based on staked holdings to propose/validate blocks.

PROOF OF WORK (POW) - A consensus mechanism where miners solve computational puzzles to validate blocks.

PROPERTY SUBJECT TO CLAIMS - Assets available to pay the decedent’s creditors.

PROPERTY TAX - an annually collected tax levied by local governments, such as counties, cities, and school districts, on real estate and sometimes other tangible personal property.

PROPORTIONAL TAX - Federal government levies a tax on individual’s wages for Medicare, which may be claimed by individual’s once they reach retirement.

PROSPECTUS - A brochure created by every mutual fund that details the fund’s governing rules and lists a sample investment portfolio for the fund.

PROTECTIVE PUT - Buying a put option to hedge downside risk on a long stock position.

PROTECTOR - A person or entity other than a trustee who is given certain powers over the trust, such as the power to veto trust distributions, change trustees, etc.

PROVIDER DIRECTORY - A list of in-network providers and facilities associated with a health plan.

PROVINCIAL SALES TAX (PST) - A form of direct consumption taxation imposed by several of the Canadian provinces.

PROXIMATE CAUSE - The primary cause of loss that sets coverage in motion within a chain of events.

PRUDENT MAN RULE - A rule which requires a trustee, as a fiduciary, to act in the same manner that a prudent person would act if the prudent person were acting for his own benefit.

PUBLIC CHARITY - An independent legal entity set up solely for charitable purposes and whose funding is derived from the general public.

PUBLIC COMPANY - A company whose ownership is distributed among general public shareholders through publicly traded stock shares

PURCHASING POWER PARITY (PPP) - Theory that exchange rates adjust so identical goods cost the same across countries.

PURPOSE TRUST - A trust that is established for a purpose (e.g. furtherance of a business, maintenance of a building, care of a pet) rather than for specified beneficiaries. Not recognized in every state, but recognized in most offshore jurisdictions.

PUT OPTION - An option giving the holder the right to sell the underlying asset at a specified strike price within a set time.

QTIP TRUST - A trust that grants the surviving spouse a lifetime right to the income of the trust while transferring the remainder interest to an individual(s) of the grantor's choosing, typically created at the death of the first spouse to die.

QUALIFIED DOMESTIC TRUST (QDOT) - A trust that is used if the surviving spouse is not a US citizen. If a QDOT is not used in such a case the marital deduction is lost.

QUALIFIED HEALTH PLAN (QHP) - A health plan certified by the Marketplace that provides essential health benefits, follows established limits on cost sharing, and meets other requirements.

QUALIFIED HEIRS - Certain close family members, defined by state statute.

QUALIFIED PERSONAL RESIDENCE TRUST (QPRT) - A specific type of irrevocable trust that allows its creator to remove a personal home from his or her estate for the purpose of reducing the amount of gift tax that is incurred when transferring assets to a beneficiary.

QUALIFIED SMALL EMPLOYER HRA (QSEHRA) - Allows certain small employers that don’t offer a group plan to reimburse employees for qualified medical expenses and premiums.

QUALIFIED SUBCHAPTER S-CORP TRUST (QSST) - A trust that is allowed to own stock in S-Corporations.

QUALIFYING LIFE EVENT (QLE) - A change like losing coverage, moving, marriage, or birth that triggers a Special Enrollment Period.

QUALIFYING PAYMENT AMOUNT (QPA) - A statutorily defined median in-network rate used in No Surprises Act payment disputes.

QUANTITATIVE EASING (QE) - Central bank purchases of securities to inject liquidity and lower long-term interest rates.

QUANTITY LIMIT - A pharmacy coverage rule that limits the amount of a medication you can receive at one time.

QUASI-COMMUNITY PROPERTY - Property acquired by either spouse in a non-community property state that would have been community property had the couple resided in a community-property state.

QUICK RATIO - A measure of how easily a company can pay its short-term bills using its most liquid assets, such as cash and receivables. A quick ratio below 1.0 suggests the company may not have enough readily available assets to cover its current liabilities. It is calculated by dividing liquid assets (excluding inventory) by current liabilities.

QUILT MAP - Provide the annual returns of various asset classes in one chart.

RAINY DAY FUND - Reserve funds set aside for the unexpected

RATE REVIEW - Regulators review proposed premium changes to ensure they’re justified before they take effect.

RATING AREA - A geographic area used to set premiums for individual and small-group plans.

REAL ESTATE INVESTMENT TRUST (REIT) - A company that owns, operates or finances income-producing real estate. REITs provide all investors the chance to own valuable real estate, present the opportunity to access dividend-based income and total returns, and help communities grow, thrive, and revitalize.

REAL ESTATE TAX - A tax on property -- usually real estate -- as determined by an assessor. For example, if the property tax rate is 4% and your house's assessed value is $200,000, then your property tax liability equals (.04 x $200,000) or $8,000. The assessed value is often computed by incorporating the purchases and sales of similar properties in nearby areas.

REALIZED GAIN - Proceeds less the original cost basis plus adjustments.

REBALANCING - Adjusting portfolio holdings to maintain target asset weights.

RECIPROCAL WILL - Two or more identical wills that leave all assets to the reciprocal party.

RECORD DATE - Day on which stockholders must own shares to receive a dividend.

REFERENCE-BASED PRICING (RBP) - A plan design that sets a maximum payable amount for certain services based on a reference price.

REGISTERED INVESTMENT ADVISOR (RIA) - Manages the assets of high-net-worth individuals and institutional investors and sits on the buy-side of the investment field. They must register with the SEC and any states in which they operate. Most RIAs are partnerships or corporations, but individuals can also register as RIAs.

REGRESSIVE TAX - The Federal Insurance Contributions Act is a federal payroll contribution from employees and employers to fund Social Security and Medicare.

REHABILITATIVE AND HABILITATIVE SERVICES - Services and devices that help people gain or recover mental and physical skills after injury, disability, or onset of a health condition.

RELATIVE STRENGTH INDEX (RSI) - A momentum oscillator (0–100) measuring the speed of price changes to flag overbought/oversold conditions.

RELEASE - The document that the executor, administrator, or trustee will ask the beneficiaries to sign before receiving their bequest, releasing the estate or trust from further liability

REMAINDER BENEFICIARY - The individual or entity entitled to receive the assets that remain in the trust at the date of the trust's termination.

REMAINDER PERSON - The individual or entity entitled to receive the assets that remain in the trust at the date of the trust's termination.

REMAINDERMAN - The individual or entity entitled to receive the assets that remain in the trust at the date of the trust's termination.

REPLACEMENT COST VALUE (RCV) - Claim settlement basis that pays the cost to repair or replace damaged property with new materials of like kind and quality, without depreciation.

RESCISSION - Retroactive cancellation of coverage; generally prohibited except for fraud or intentional misrepresentation.

RESIDUARY CLAUSE - A clause in a will which directs the transfer of the balance of any assets not previously bequeathed or distributed.

RESIDUARY DEVISEE - A person or entity named to receive all the real property not specifically devised.

RESIDUARY ESTATE - Whatever remains of the estate after payment of debts, expenses, taxes, and specific bequests. In a “pourover” will, the residuary estate is left to a living trust

RESIDUARY GIFT - What is left after any specific or pecuniary gifts have been made from the estate and all expenses and taxes have been paid.

RESIDUARY LEGATEE - A person or entity named to receive all the personal property not specifically bequeathed.

RESTATEMENTS OF THE LAW - A series of legal treatises that set out basic U.S. law on a variety of subjects, written and updated by legal scholars and published by the American Law Institutes. While not having the force of statutes or court rulings, the Restatements are prestigious and can carry some weight in a legal argument.

RETAINED INTEREST - Typically in a trust, whether revocable or irrevocable, where the settlor has retained some part or interest, such as an income stream, in the property transferred to the trust

RETAINER - An upfront deposit of funds that attorneys charge their hourly fees to on a monthly or quarterly basis.

RETENTION RATIO - The portion of earnings retained and reinvested in the business.

RETROACTIVE COVERAGE - Coverage that begins on a date in the past, often used for newborns or during special enrollment fixes.

RETURN DISPERSION - A range of possible returns on an investment, also used to measure the risk inherent in a particular security or investment portfolio.

RETURN OF CAPITAL - When payment is received that reduces an asset’s acquisition costs because some part of what was originally owned no longer exists.

RETURN ON EQUITY (ROE) - A measure of financial performance calculated by dividing net income by shareholders’ equity. Shareholders’ equity is equal to a company’s assets minus its debt, Therefore, ROE can be thought of as the return on net assets.

RETURN ON INVESTMENT (ROI) - Profit relative to investment cost, usually expressed as a percentage.

REVERSIONARY INTEREST - The interest that a person has in a property when a preceding estate ceases to exist.

REVOCABLE LIVING TRUST - A revocable trust that is managed by the granter and is for the benefit of the granter during his lifetime. The property transferred to the trust avoids the individual's probate estate but is included in the individual's gross estate.

RIDER - A policy amendment that adds, limits, or excludes coverage.

RIGHT OF SEVERANCE - The right of a co-tenant to separate or divide commonly held property under a joint tenancy or a tenancy in common

RIGHT OF SURVIVORSHIP - The right of a joint tenant (but not a tenant in common) to take the whole of the jointly held property if he survives the other joint tenant(s)

RISK ADJUSTMENT - A program that transfers funds among insurers to account for differences in enrollees’ health risks.

RISK POOL - The group of enrollees whose premiums fund claims; costs are spread across the pool.

ROLL YIELD - Gain or loss from rolling a futures position as contracts approach expiration.

ROTH IRA - An individual retirement account that allows qualified withdrawals on a tax-free basis. Roth IRAs are funded with after-tax dollars

RULE AGAINST PERPETUITIES - A common law rule which requires that all interests in a trust must vest within 21 years after the lifetimes of those living when the interest was created.

RULE OF 72 - A quick, useful formula that is popularly used to estimate the number of years required to double the invested money at a given annual rate of return.

RULE OF LAW - the rulers are subject to the law, there is a system of law, and each person will be treated the same.

SAVINGS ACCOUNT - An interest-bearing account at a bank or credit union.

SCENARIO ANALYSIS - Evaluating results under different sets of assumptions (best, base, worst).

SCHEDULE C - Reports self-employment income. This schedule is completed by filers to report their income or losses as a sole proprietor.

SCHEDULE D - Reports capital gains and losses that result from the sale of certain property including stocks and bonds, collectibles, artwork, cars, and homes, during a given year. This form is part of the individual income tax return.

SCHEDULE E - Reports supplemental income or loss from various types of business and real estate activity, such as rental real estate and royalties. Business owners file this form as part of their personal tax return.

SCHEDULE K-1 - Lists taxable income for types of business entities. Two groups of taxpayers need to file a Schedule K-1 with their taxes: 1) owners of pass-through business entities such as S-Corps, partnerships, and LLCs taxed as an S-Corp or partnership, and 2) beneficiaries of trusts or estates.

SCHEDULED PERSONAL PROPERTY - An endorsement that lists specific high-value items (e.g., jewelry, art) with stated values and broader coverage.

SCHEDULED VALUABLE ARTICLES - Coverage listing specific high-value personal property with stated amounts and broader protection.

S-CORPORATION - A type of legal structure for a corporation with 100 shareholders or less that elect to pass corporate income, losses, deductions, and credits through to their shareholders for federal tax purposes to avoid double taxation.

SEC RELEASE IA-1092 - A 1987 interpretive release clarifying who qualifies as an investment adviser (e.g., financial planners, pension consultants) under the Investment Advisers Act of 1940.

SECONDARIES INTEREST - The financial instruments such as stock, bonds, options, and futures bought and sold on the secondary market.

SECONDARY MARKET - Where existing securities trade among investors after issuance.

SECURED LOAN - A loan backed by collateral, reducing lender risk.

SEE-THROUGH TRUST - A trust that is the beneficiary of a custodial IRA. It provides for more control over the distribution of IRA assets after the owner's death, as well as providing increased creditor protection for the beneficiaries of the trust.

SELF PROVING CLAUSE - A clause in a will which involves the notary signing a notarized declaration that he/she witnessed the testator and witnesses sign the will.

SELF-INSURED PLAN - An employer plan where the employer pays claims out of its own funds instead of buying insurance from a carrier.

SELF-SETTLED TRUST - A trust where the beneficiary is also the granter of the trust.

SENIOR DEBT - Is money owed by a company that has first claims on the company's cash flows. These assets play a key part in the financial planning and analysis of a company's operations and future expenditures in the event that the company fails to fulfill its repayment obligations.

SENIOR NOTE - Is money owed by a company that has first claims on the company's cash flows. These assets play a key part in the financial planning and analysis of a company's operations and future expenditures in the event that the company fails to fulfill its repayment obligations.

SENSITIVITY ANALYSIS - Assessing how changes in key inputs affect an outcome like NPV.

SETTLEMENT CYCLE - Standard period between the trade date and settlement for many securities markets (T+2).

SETTLORS - The person who creates and initially funds a trust. The settlor is also known as the grantor or creator.

SEVERABILITY CLAUSE - A contract provision stating that if one part of the agreement is held invalid/unenforceable, the rest remains in effect.

SG&A - The operating costs of running a business that are not directly tied to making the product.

SHAREHOLDER AGREEMENT - An arrangement among a company's shareholders that describes how the company should be operated and outlines shareholders' rights and obligations. The agreement also includes information on the management of the company and privileges and protection of shareholders.

SHAREHOLDER EQUITY - The portion of a company that belongs to its owners/shareholders if the company sold everything and paid off all its debts.

SHARPE RATIO - Risk‑adjusted return calculated as excess return over the risk‑free rate divided by volatility.

SHORT SELLING - Selling borrowed securities with the intent to buy them back later at a lower price.

SHORT-TERM HEALTH PLAN - A limited-duration policy that doesn’t have to meet many ACA standards and can exclude preexisting conditions; availability varies by state.

SIBLING PARTNERSHIP - Second stage leaders in a family business, typically next generation siblings (or half siblings), who work in collaboration with one another.

SIDE INSTRUCTION LETTER - Also known as a personal instruction letter, details the testator's wishes regarding the disposition of tangible possessions (household goods), the disposition of the decedent's body, and funeral arrangements. A side instruction letter is not legally binding but generally followed.

SILVER PLAN - Marketplace metal level with moderate premiums and moderate costs; the only tier that can include cost-sharing reductions if you qualify.

SIMPLE IRA - Small businesses with 100 or fewer employees can use this retirement savings plan which allows employees and employers to contribute to traditional IRAs set up for employees.

SIMPLE MOVING AVERAGE (SMA) - An average of prices over a set number of periods with equal weighting.

SIMPLE TRUST - A trust that requires all of the trust income to be distributed on an annual basis to the beneficiaries and does not have a charitable organization as one of its beneficiaries.

SIMULTANEOUS DEATH CLAUSE - A clause in a will that establishes a presumption of which person died first in simultaneous death situations.

SITUS - The place, generally referring to the state, where property is located.

SKIP PERSON - A person in a generation two or more generations below the transferor’s generation

SLIPPAGE - The difference between expected transaction price and the executed price due to market movement or liquidity.

SMALL BUSINESS HEALTH OPTIONS PROGRAM (SHOP) - Marketplace for small employers to buy coverage; may qualify for a small business tax credit.

SMART CONTRACT - Self-executing code on a blockchain that enforces agreements automatically.

SOCIAL MEDIA POLICY - Developed to institute the rules for how family members will conduct themselves on social media, what may be permissible to share publicly or privately online (or not), what sites the family allows family members to view or have profiles, and how to secure their online profiles and data.

SOCIAL SAFETY NET - A system of government programs, policies, and services designed to protect vulnerable individuals and families from poverty and hardship. It helps people manage economic risks and volatility by providing benefits such as cash transfers, in-kind aid like food assistance, and public services to ensure a minimum standard of living.

SOCIAL SECURITY - Federal government levies a tax on individual’s wages for social security, which may be claimed by individual’s once they reach retirement.

SOCIALLY RESPONSIBLE INVESTING - An investment strategy that integrates social or environmental criteria into financial analysis.

SOLE PROPRIETORSHIPS - The simplest form of business structure where one person owns and operates the business and there is no legal distinction between the owner and the business

SORTINO RATIO - Risk-adjusted return using downside deviation instead of total volatility.

SOUND MIND - A person's mental capacity being sufficient.

SPECIAL ENROLLMENT PERIOD (SEP) - A time outside OEP when you can enroll due to certain life events like marriage, birth, or loss of other coverage.

SPECIAL NEEDS TRUST (SNT) - A specific type of trust that is used to provide benefits to persons or beneficiaries with special needs.

SPECIAL NEEDS TRUSTS UNDER 42 - Considered to be self-settled in nature, are typically established by the special needs person's parent, grandparent, legal guardian or by a court and will avoid disqualification of Medicaid and SSI benefits.

SPECIAL POWER OF APPOINTMENT - Any power that can’t be exercised in the manner described for a general power of appointment.

SPECIALTY DRUG - High-cost medications that may require special handling or monitoring; often placed on higher formulary tiers.

SPECIALTY TIER COST SHARING - Higher member cost sharing that applies to high-cost specialty medications.

SPECIFIC DEVISEE - A person or entity named to receive specific real property under a will.

SPECIFIC GIFT - A specific identifiable item or group of items, such as for example a family heirloom, transferred to a specific person or group of people.

SPECIFIC LEGATEE - A person or entity named to receive designated personal property under a will.

SPENDTHRIFT CLAUSE - A clause in a trust document which does not allow the beneficiary to anticipate distributions from the trust, assign, pledge, hypothecate, or otherwise promise to give distributions from the trust to anyone. If such a promise is made, it is void and may not be enforced against the trust.

SPENDTHRIFT PROVISION - The provision in a trust agreement that allows the donor to place the share of the beneficiary out of reach of the beneficiary’s creditors. The funds of this particular beneficiary (other than the donor), while in the trust, cannot be attached or recovered by someone suing the beneficiary. (See also Asset protection trust)

SPENDTHRIFT TRUST - A trust that gives absolute control of the income and principal to the trustee to prevent the beneficiary from squandering money.

SPLIT INTEREST CHARITABLE TRUST - A trust where the grantor retains either a lead or remainder interest in the trust property, with the opposite interest (lead or remainder) going to charity.

SPOT PRICE - The current price for immediate delivery of a commodity or currency.

SPRAY PROVISION - A provision in a trust giving the trustee the discretion to make unequal distributions among the beneficiaries. Also known as sprinkle provision.

SPRINGING POWER - The agent's power springs into existence upon some defined event or determination.

SSA 1099 - Reports benefits received by the Social Security Administration. These benefits include retirement, disability, and others in a given year.

STABLECOIN - A cryptocurrency designed to maintain a stable value by pegging to an asset like the U.S. dollar.

STAND-ALONE DENTAL PLAN - A separate dental insurance policy you can purchase in the Marketplace.

STANDARD DEDUCTION - A fixed dollar amount that reduces your taxable income, available to most taxpayers who do not itemize deductions. The amount varies based on filing status and is adjusted periodically for inflation.

STANDARD DEVIATION - Square root of variance; a common volatility measure.

STANDBY TRUST - A trust created during the grantor's lifetime that is either unfunded or minimally funded. A standby trust is also known as a contingent trust.

STATE CONTINUATION (MINI-COBRA) - State laws that let some workers keep employer coverage for a limited time when federal COBRA doesn’t apply.

STATE INCOME TAX RATES - Not all states have an income tax, but there are nine states including Alaska, Florida, Nevada, Tennessee, South Dakota, Texas, Washington, New Hampshire, and Wyoming that charge no income tax at all. The remaining states have an income tax rate between zero and 13%.

STATE INSURANCE DEPARTMENT - The state agency that regulates insurers and assists consumers with complaints and rate information.

STATE TAX - A mandatory payment collected by an individual state government to fund its public services and operations.

STATUTORY SHARE - The share an heir is entitled to under state law if the decedent left no valid will.

STATUTORY WILL - A will meeting state statutes generally drawn up by an attorney and signed in the presence of witnesses.

STEP THERAPY - A coverage rule requiring you to try lower-cost drugs that are effective for most people before the plan covers a more expensive drug.

STEPPED-UP BASIS - This reflects the changed tax basis/cost to the value on date of death of an inherited asset.

STOCK - Represent ownership, or equity, in a company. When a company issues stock, it allows investors to buy a share of the company and potentially benefit from its growth and profits.

STOCK DIVIDEND - A dividend paid in additional shares instead of cash, increasing the number of shares held.

STOP ORDER - An order activated when a stop price is reached, used to limit losses or enter positions on breakouts.

STOP‑LOSS ORDER - An order that triggers a sale or purchase once a stop price is reached to limit losses or protect gains.

STRADDLE - Buying or selling a call and put with the same strike and expiration to bet on volatility.

STRAIGHT LINE DEPRECIATION - The most commonly used method of calculating depreciation and amortization. The value of an asset is reduced uniformly over each period until it reaches its salvage value. It is calculated by dividing the cost of an asset, less its salvage value, by the useful life of the asset.

STRANGLE - Buying or selling a call and a put with different strikes but same expiration to trade volatility.

STREET NAME SECURITIES - Ownership records of marketable securities maintained by brokerage firms rather than by individual corporations. Owners receive regular statements of their holdings rather than individual certificates.

STRESS TESTING - Evaluating performance under extreme but plausible adverse scenarios.

STRUCTURED SETTLEMENT TRUST - A trust that is funded with payments to be received over a period of time as the result of a settlement in a personal-injury lawsuit

SUB-LEDGER - Ledgers that account for areas with a subset of transactions that are summarized and transferred to the general ledger in total but not in detail.

SUBORDINATED DEBT - An unsecured loan or bond that ranks below other, more senior loans or securities with respect to claims on assets or earnings. Also known as junior securities. In the case of borrower default, creditors who own subordinated debt will not be paid out until after senior bondholders are paid in full.

SUBROGATION - Insurer’s right to pursue a responsible third party after paying a claim to recover its costs.

SUBSIDIZED COVERAGE - Coverage partly paid with public funds, such as APTC and cost-sharing reductions in the Marketplace.

SUCCESSION POLICY - Typically addresses leadership succession and the process whereby the family leader may step aside (down) to an emeritus role prior to retirement. In other cases, family may have leadership policies for shadow leadership with the incumbent prior to transitioning authority/control, or in other cases, families may institute bridging leadership policies, when they may be seeking transition leadership or agency-leadership or non-family during periods when family members are being groomed or trained up.

SUCCESSOR EXECUTOR - A person named in a will to replace the first-named executor if for any reason he is not able to serve

SUCCESSOR TRUSTEE - The person who assumes control of the trust after the initial trustee dies or becomes unable to continue with his or her responsibilities. Once the successor trustee has assumed control, he or she is responsible to ensure that the grantor’s property is distributed to the beneficiaries according to the terms of the trust.

SUITABILITY STANDARD OF CARE - Requires that a financial advisor make recommendations that are suitable based on a client’s personal situation but does not require the advice to be in their best interest.

SUMMARY OF BENEFITS AND COVERAGE (SBC) - A standardized, easy-to-read summary that lets you compare key costs and coverage across plans.

SUMMARY OF MATERIAL MODIFICATIONS (SMM) - An ERISA notice describing significant plan changes issued between SPDs or to update the SPD.

SUMMARY PLAN DESCRIPTION (SPD) - A required ERISA document that explains plan benefits and participant rights in plain language.

SUPERVISORY OR ADVISORY BOARD - A board devised by a family to act in an advisory capacity to family owners and /or their family board of directors. It will have set terms, compensate its members, and bring diverse expertise to augment the leadership, owner, and/or company executive expertise.

SUPPLEMENTAL NEEDS TRUST - A special trust established for a person who is receiving or who may be receiving benefits under a welfare benefit program where the trust provides benefits that are over and above (supplemental to) the person’s basic needs for food, clothing, and shelter. The assets in a properly drafted supplemental needs trust will not affect the person’s eligibility for government benefits. This type of trust may or may not be the same as a special needs trust, depending on the respective terms

SURVIVORSHIP BIAS - A distortion from focusing on entities that made it past a selection process, ignoring those that failed.

SURVIVORSHIP CLAUSE - A clause in a will requiring that the legatee survives for a specific period in order to inherit under the will. The bequest will qualify for the marital deduction if the property transfers to the surviving spouse and the time period of the survivorship clause is six months or less.

SWEETHEART WILL - Two wills executed by spouses that leave all assets to the other spouse.

TAKING AGAINST THE WILL - Surviving spouse’s election to receive a share of estate as determined by state spousal share laws rather than by decedent’s last will.

TANGIBLE PERSONAL PROPERTY - Property other than real estate that has inherent value and can be touched, such as jewelry, furniture, clothing, automobiles, boats, machinery, etc

TAX ACCOUNTING - A structure of accounting methods focused on taxes rather than the appearance of public financial statements. Tax accounting is governed by the Internal Revenue Code, which dictates the specific rules that companies and individuals must follow when preparing their tax returns.

TAXABLE DISTRIBUTION - When a distribution is made from A trust to A skip person.

TAXABLE ESTATE - Once liabilities, charitable donations, funeral and administrative expenses, and transfers to spouse are deducted from the gross estate value, the remaining sum represents the estate’s net taxable estate.

TAXABLE TERMINATION - Termination of a property interest, triggered by a release of power, by death or by a lapse of time, held in a trust

TAX-APPOINTMENT CLAUSE - A clause in a will directing which assets will bear the payment of any debts and estate taxes.

T-BILL - A short-term U.S. government debt obligation backed by the Treasury Department with a maturity of one year or less.

TELEHEALTH (TELEMEDICINE) - The use of telecommunications technology to deliver health care services and information remotely.

TENANCY BY THE ENTIRETY - A joint tenants with right of survivorship that can only occur between a married couple.

TENANCY IN COMMON - An undivided interest in property held by two or more related or unrelated persons.

TERM LIFE INSURANCE - Life insurance providing coverage for a set period with a level death benefit and no lifetime cash value. The premium generally increases with age.

TERM PREMIUM - The extra compensation investors require for holding longer-maturity bonds.

TERMINATION FOR NONPAYMENT - Cancellation of coverage when premiums aren’t paid by the end of the grace period, subject to program rules.

TESTAMENTARY TRUST - A trust created after the death of the grantor. The grantor's will generally includes all of the trust provisions.

TESTATE - When a decedent dies with a valid will.

TESTATOR - Writer of a will.

THETA - Sensitivity of an option’s price to the passage of time (time decay).

THIRD PARTY SPECIAL NEEDS TRUST - Sometimes referred to as a family trust because the trust is a receptacle for funds from a parent, guardian or other family member. The assets of these trusts, if properly structured, are not counted or considered for purposes of available benefits for the beneficiary, thus making possible federal, state, and local funds.

TIER EXCEPTION - A request to reduce cost sharing for a drug by moving it to a lower formulary tier based on medical necessity.

TIERED NETWORK - A network design that groups providers into tiers by cost or quality; your cost sharing varies by tier.

TIME VALUE OF MONEY - Concept that a dollar today is worth more than a dollar in the future due to its earning potential.

TOBACCO RATING - An allowable premium variation that charges tobacco users higher premiums within limits set by law.

TOTTEN TRUST - Not a trust, but rather a bank account with a beneficiary clause.

TRACKING ERROR - The volatility of the difference between portfolio returns and its benchmark.

TRANSFER COSTS - Includes the gift and estate taxes and the costs of avoiding taxes, such as the cost of documents, planning, trusts, and other professional fees.

TRANSPARENCY IN COVERAGE (TIC) RULE - Regulation requiring plan price-transparency tools and public machine-readable files for negotiated rates and allowed amounts.

TRAVEL POLICIES - Are for families may include having specific requirements for what modes of transportation (private aviation vs. commercial) are acceptable for different travel purposes. Some families, for example, will not allow two trustees or key owners to fly together due to key person risk as a policy.

TREASURY BILL - A short-term U.S. government debt obligation backed by the Treasury Department with a maturity of one year or less.

TREASURY BOND (T-BOND) - A fixed-rate U.S. government debt securities with a maturity range between 10 and 30 years. It pays semiannual interest payments until maturity, when the face value of the bond is paid.

TREASURY INFLATION PROTECTED SECURITIES (TIPS) - A Treasury bond that is indexed to an inflationary gauge to protect investors from the decline in the purchasing power of their money. Value rises as inflation rises while the interest payment varies with the adjusted principal value of the bond.

TREASURY NOTE (T-NOTE) - A U.S. government debt security with a fixed interest rate and a maturity between one and 10 years.

TREYNOR RATIO - Excess return over risk-free rate per unit of beta risk.

TRICARE - A health program for uniformed service members, retirees, and their families.

TRUST ADMINISTRATION - The trustee’s management of trust property according to the trust document’s terms and for the benefit of the beneficiaries after the death of the settlor.

TRUST AGREEMENT - A trust agreement is a document that spells out the rules that you want followed for property held in trust for your beneficiaries. Common objectives for trusts are to reduce the estate tax liability, to protect property in your estate, and to avoid probate.

TRUST FUND - A legal entity that holds property or assets on behalf of another person, group or organization. It is an estate planning tool that keeps your assets in a trust managed by a neutral third party, or trustee. A trust fund can include money, property, stock, a business or a combination of these.

TRUST INSTRUMENT - The legal document (other than the Last Will) created by the grantor during life that contains all the provisions of the trust.

TRUST PROTECTOR - A person who is appointed to watch over a trust that will be in effect for a long time and ensure that it is not adversely affected by any changes in the law or circumstances.

TRUST RESIDENCY - The state in which the trust “lives,” which determines how the trust will be taxed. Also known as Trust Situs

TRUSTEE - The individual or entity responsible for managing the trust assets and carrying out the directions of the grantor that are formally expressed in the trust instrument.

TRUSTEED IRAS - A trust established within the United States that holds IRA assets, which is an alternative to a custodial IRA. It allows for ultimate control over the distribution of the IRA assets by the owner after his or her death and provides creditor protection for the beneficiaries.

TRUSTSCAPE - Coined by Hartley Goldstone, author of Family Trusts, A Guide for Beneficiaries, Trustees, Trust Protectors, and Trust Creators, a Trustscape is a subsystem of a larger family system. The Trustscape is populated by all those touched by trusts - the trust creator, the beneficiaries, the trustee, a trust protector, and a trust committee, and each of the cadres of legal, financial, accounting, and other advisors.

U.S. TREASURY OBLIGATIONS - Loans issued by the U.S. Treasury in the form of bills, notes, or bonds. Interest is taxed federally but exempt in every state.

UMBRELLA LIABILITY - Excess liability policy that sits above auto/home liability limits to provide additional protection against large claims.

UNAUTHORIZED PRACTICE OF LAW - The proffering of legal advice or services by one who is not a licensed attorney.

UNDER 65 TRUST - A “safe harbor” trust under the Medicaid laws, allowing a discretionary trust to be established for a person who is under the age of sixty-five and allowing the assets in such a trust to be ignored for Medicaid eligibility purposes, if the trust provides for reimbursement to the state on the death of the beneficiary

UNDERWRITING - The process insurers use to assess risk and determine coverage terms and pricing.

UNDIVIDED INTEREST - A share of property that has not been physically set aside or divided, such as a joint interest in a home or a tenancy in common in stocks

UNDUE INFLUENCE - Persuasion meant to overcome the judgement of another, such as flattery, trickery, or deception.

UNIFIED CREDIT - The credit that is given to a person, allowing him or her to gift up to a cumulative $11,580,000 tax-free to any one individual during the donor’s lifetime. This number does not include the gift tax annual exclusion or tuition payments or qualified medical expenses. This amount increases each year, indexed for inflation.

UNIFORM PREMARITAL AGREEMENT ACT (UPAA) - A later Uniform Law Commission uniform act addressing both premarital and marital (including postnuptial) agreements, aiming to reduce inconsistent standards and uncertainty about enforcement across jurisdictions

UNIFORM STATUTORY RULE AGAINST PERPETUITIES - A legislatively created alternative to the Common Law RAP that typically sets the perpetuities period at 90 years.

UNINSURED/UNDERINSURED MOTORIST (UM/UIM) - Auto coverages that pay for injuries (and sometimes property damage) when an at-fault driver has no or insufficient insurance.

UNIVERSAL LIFE - Flexible-premium permanent life insurance that separates the cost of insurance from cash value accumulation.

UNLIMITED MARITAL TRUST - A trust set up for the benefit of the surviving spouse, who receives the net income plus whatever principal he or she desires, and over which he or she may have a general power of appointment.

UNSECURED LOAN - A loan not backed by collateral; approval relies on creditworthiness.

URGENT CARE - Care for an illness, injury, or condition serious enough for immediate attention but not an emergency.

USUAL, CUSTOMARY, AND REASONABLE (UCR) - The amount paid for a medical service in a geographic area based on what providers in the area usually charge.

UTILIZATION MANAGEMENT (UM) - Techniques like prior authorization and concurrent review that manage use of services for cost and quality.

VALUE AT RISK (VAR) - An estimate of potential portfolio loss over a time horizon at a given confidence level.

VALUE-BASED PAYMENT - Payment approaches that reward quality and outcomes rather than volume of services.

VARIABLE UNIVERSAL LIFE INSURANCE (VUL) - Universal life policy where cash value is invested in subaccounts with market risk and growth potential in mutual funds offered by the insurance company. The rate of return depends on success of those investments.

VARIANCE - A measurement in statistics of the spread between numbers in a data set, which measures how far each number in the set is from the mean and therefore from every other number in the set.

VEGA - Sensitivity of an option’s price to changes in implied volatility.

VERTICAL ANALYSIS - Analysis where each item is listed as a percentage. Reflects the change in percentage from year to year.

VIX - The Cboe Volatility Index—market’s 30‑day S&P 500 volatility expectation, often called the ‘fear gauge’.

VOTING RIGHTS - the right of shareholders to vote on matters of corporate policy, including decisions on the makeup of the board of directors, issuing securities, initiating corporate actions and making substantial changes in the corporation's operations.

W-2 - Reports the employee's annual wages and the amount of taxes withheld from their paychecks.

WAITING PERIOD - The time that must pass before coverage for an employee or dependent who is otherwise eligible can become effective.

WAR BOND - A form of government debt that seeks to raise capital from the public to fund war efforts

WEALTH PRESERVATION - The maintenance of income and assets.

WEALTH REPLACEMENT TRUST (WRT) - An irrevocable trust that owns and holds life insurance on its grantor's life. Also known as an Irrevocable Life Insurance Trust (ILIT).

WEIGHTED AVERAGE COST OF CAPITAL (WACC) - —the blended cost of a firm’s equity and debt, used as a discount rate.

WELLNESS PROGRAM - A program intended to promote health or prevent disease, sometimes with incentives from employers or plans.

WHOLE LIFE INSURANCE - A Permanent life insurance with guaranteed premiums, lifetime coverage, and a cash value component where the portion of premiums not used to purchase term life coverage is invested by the insurance company, providing the policy owner with a stated rate of return.

WILL CONTEST - A formal objection under the law raised against the validity of a will, based on the contention that the will does not reflect the actual intent of the testator, that undue influence was asserted, the testator was not of sound mind, or that the will is otherwise invalid.

WINDFALL - An unexpected, unearned, or sudden gain or advantage.

WORKERS’ COMPENSATION - Covers medical costs and lost wages for employees injured on the job and limits employer liability.

WORKING CAPITAL - The difference between a company's current assets, such as cash, accounts receivable (customers' unpaid bills) and inventories of raw materials and finished goods, and its current liabilities, such as accounts payable.

WRAP PLAN DOCUMENT - An ERISA document that ‘wraps’ insurance policies to form a single plan with a unified SPD and Form 5500 filing.

YIELD - Income return on an investment, such as interest or dividends, as a percentage of price.

YIELD SPREAD - The difference between two yields, often used to compare bonds of different maturities or credit risks.

YIELD TO MATURITY (YTM) - Total expected return of a bond if held to maturity, accounting for price, coupon, and time.

Estate Planning Basics

Lessons

Duration

Instructors

Kirby Rosplock (Ph.D.)

Kirby Rosplock

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