Reference

A trust structure often used by married couples to maximize estate tax exemptions and provide for the surviving spouse.

The ability of an individual or nation to produce a higher quantity of a good or service using the same amount of resources as others. It focuses on sheer productivity rather than opportunity cost.

A summary of the history of a property's ownership, including all recorded legal documents and claims.

A provision in a mortgage contract that allows the lender to demand immediate payment of the entire loan balance if certain conditions are met.

A unique set of numbers assigned to your specific bank account, used to identify it for deposits, withdrawals, and other transactions.

The short-term debts a business owes to its suppliers and vendors for items purchased on credit.

The balance of money due to a firm for goods or services delivered but not yet paid for by customers.

The amount of interest that has accumulated on a bond since the last time a coupon payment was made.

The period of time during which an individual is actively working and contributing money to their retirement accounts.

Automated Clearing House is a digital network used to move money between bank accounts in the United States, like when your employer directly deposits your paycheck into your account or you pay a monthly utility bill automatically.

An investment strategy that involves ongoing buying and selling activity by an investor or manager.

An investment strategy where a manager makes specific investments with the goal of outperforming an index.

A measure of the percentage of stock holdings in a manager's portfolio that differ from the benchmark index.

A fund where a professional manager makes specific buy and sell decisions in an attempt to beat a market index.

A claim payment based on the replacement cost of an item minus depreciation, reflecting its current market value at the time of loss.

A professional who uses math and statistics to analyze risks and help insurance companies set fair and sustainable premium rates.

A tax whose amount is based on the assessed value of a transaction or property, most commonly seen in real estate taxes.

A mortgage with an interest rate that can change periodically based on the performance of a specific benchmark.

A home loan with an interest rate that can change periodically based on the performance of a specific benchmark.

Your total gross income minus specific subtractions like student loan interest or retirement contributions. It is used as the starting point for calculating your final tax liability.

American Depositary Receipt is a way for you to buy shares of a foreign company, such as a Japanese car manufacturer, through a U.S. stock exchange just like you would buy shares of a local business.

Legal instructions regarding your healthcare preferences for future medical situations.

A legal document that specifies a person's preferences for medical treatment if they become unable to communicate their wishes.

A formal notice sent to a consumer explaining why their credit application was denied or why unfavorable terms were offered.

The tendency for people who have a higher risk of loss to seek insurance more frequently than those with lower risk.

Trading that occurs on electronic networks after the major stock exchanges have officially closed for the day.

The average length of time your credit accounts have been open, which influences your overall credit score.

The total demand for all finished goods and services produced in an economy. It consists of consumption, investment, government spending, and net exports.

The total supply of goods and services that firms in a national economy plan on selling during a specific time period. It represents the total productive capacity of the economy.

Adjusted Gross Income is your total yearly earnings from all sources minus specific deductions like contributions to a retirement plan, which is the final number the government uses to calculate your actual tax bill.

A marketing strategy where developers send free tokens to users to encourage adoption and reward community members.

A method of executing trades using automated, pre-programmed instructions that account for variables like time, price, and volume.

A conditional order that instructs the broker to fill the entire order quantity at once or not at all, though not necessarily immediately.

A measure of the active return on an investment compared to a suitable market index.

A general term used to describe any cryptocurrency other than Bitcoin, representing a wide variety of tokens with different functions.

A supplemental income tax that sets a floor on the percentage of taxes that must be paid by certain high-income individuals. It ensures these taxpayers do not use excessive deductions to avoid paying a minimum amount of tax.

A parallel tax system designed to ensure that higher-income taxpayers who benefit from specific exclusions, deductions, and credits pay at least a baseline amount of tax. It recalculates income tax under a different set of rules with fewer allowable deductions.

A tax return filed on Form 1040-X to correct errors or report missed income or deductions from a previously submitted return.

The process of gradually paying off a debt over time through regular payments of principal and interest.

A detailed table of periodic loan payments, showing the amount of principal and the amount of interest that comprise each payment.

Alternative Minimum Tax is a special tax calculation designed to ensure that wealthy individuals who use many tax breaks still pay at least a baseline amount of income tax to the government.

A legal proceeding for property located in a different state from where the deceased lived.

A financial product that pays out a fixed stream of payments to an individual, typically used as a primary source of income for retirees.

An investment that provides a set number of payments for a fixed period of time regardless of how long the investor lives.

A multiplier used by insurers to determine the amount of a regular payment based on interest rates and age.

A set of laws and regulations designed to stop the practice of generating income through illegal actions.

American Opportunity Tax Credit is a tax benefit that helps students and their families cover the costs of the first four years of post-secondary education by reducing the amount of income tax they owe.

A professional evaluation of the value of an item or the cost of repairs to determine the amount an insurance company should pay for a claim.

An increase in the value of one currency relative to another. This makes imports cheaper for the country with the stronger currency but makes its exports more expensive for others.

Annual Percentage Rate represents the total yearly cost of borrowing money, including interest and fees, giving you a clearer picture of what a loan like a car payment will actually cost you over time.

Annual Percentage Yield is the amount of interest you earn on a savings account over a year, taking into account the effect of your interest earning more interest as it sits in the bank.

The practice of buying and selling the same asset in different markets to profit from small differences in its price.

Adjustable Rate Mortgage is a home loan where the interest rate can change over time based on the market, meaning your monthly payment might go up or down after an initial fixed period.

A formal legal document filed with a state government to establish the creation of a new corporation.

The lowest price at which a seller is willing to sell a security to a potential buyer.

The dollar value assigned to a property by a local government assessor for the purpose of calculating property taxes. This amount may differ from the property's actual market value or sale price.

Any item of economic value owned by an individual, such as cash, real estate, stocks, or vehicles.

An investment strategy that aims to balance risk and reward by apportioning a portfolio's assets.

A trust established to shield a person's assets from future lawsuits, creditors, or legal judgments.

Anything of value owned by an individual that can be converted into cash, such as bank accounts, real estate, or vehicles.

An option is at-the-money when its strike price is the same as the current market price of the underlying security.

Automated Teller Machine is a self-service kiosk that allows you to withdraw cash, deposit money, or check your account balance at any time without needing to visit a physical bank branch.

A charge imposed by a bank for using an automated teller machine, often occurring when using a machine not owned by the account holder's bank.

An official examination of an individual's or organization's financial records to verify that the correct amount of tax was reported.

The maximum number of shares that a corporation is legally permitted to issue under its corporate charter.

A person who is allowed to use another person's credit card account but is not legally responsible for the payments.

A method of saving money by setting up automatic transfers from a checking account to a savings account on a regular basis.

Government policies already in place that automatically help stabilize the economy without new legislation. Examples include progressive income taxes and unemployment insurance.

An injunction that automatically stops lawsuits, foreclosures, and all collection activity against a debtor when bankruptcy is filed.

A scheduled move of money between bank accounts, often used to automate savings or debt payments.

The amount of money in a bank account that is currently accessible for withdrawal or to cover transactions.

The amount of your credit limit that remains unused and is available for spending.

Financial Aid Award Letter — A document sent by a college outlining the specific financial assistance package they are offering to an admitted student.