Investing glossary
Definitions written for understanding, not persuasion. Each entry explains what the term means, why it matters and where it shows up in practice.
A
- Accredited investor
An investor who meets SEC income or net worth thresholds and may access private offerings.
Alternative Investments
C
- Cap rate
Net operating income divided by property value — a rough yield measure for real estate.
Real Estate Investing - Capital stack
The hierarchy of claims on a property's cash flow, from senior debt through preferred equity to common equity.
Real Estate Investing
D
- Dollar-cost averaging
Investing a fixed amount on a fixed schedule regardless of price, which smooths the entry price over time.
Investing Basics
E
- Expense ratio
The annual percentage of assets a fund charges to cover its operating costs. It is deducted from returns automatically.
Investing Basics
S
- Sequence of returns risk
The risk that poor market returns early in retirement permanently reduce how long a portfolio lasts.
Retirement - Staking
Locking crypto assets to help secure a proof-of-stake network in exchange for protocol rewards.
Crypto
W
- Wash sale rule
A US tax rule that disallows a loss deduction if you buy a substantially identical security within 30 days before or after the sale.
Tax Tips