Acceleration Clause
A loan term letting the lender demand full repayment immediately if you miss payments.
DebtMoney Dictionary
The Finance Glossary
Every money term, explained in plain language — no jargon, no gatekeeping. Search, filter by topic, or browse A–Z.
508 terms
A
Accounts Payable
Money a business owes to suppliers for goods and services received but not yet paid for.
BusinessAccounts Receivable
Money owed to a business by customers who bought on credit.
BusinessAccrued Interest
Interest that has built up on a loan or bond but has not yet been paid.
DebtAcquirer
A company that purchases another company in a merger or acquisition.
BusinessActive Investing
A strategy of picking individual investments to try to beat the market, rather than tracking an index.
InvestingAdjustable-Rate Mortgage (ARM)
A home loan whose interest rate can change over time based on market rates.
DebtAlpha
The return an investment earns above its benchmark — a measure of a manager's skill.
InvestingAlternative Investment
Assets outside stocks, bonds, and cash — like real estate, art, or private equity.
InvestingAmortization
Paying off a loan over time with scheduled payments that cover both principal and interest.
DebtAngel Investor
A wealthy individual who funds early-stage startups with personal money in exchange for equity.
BusinessAnnual Report
A company's yearly publication of financial results and strategy for shareholders.
BusinessAnnuity
A contract, usually with an insurer, that pays you a regular income stream in exchange for an upfront sum.
InvestingAppreciation
An increase in an asset's value over time.
InvestingAPR (Annual Percentage Rate)
The yearly cost of borrowing money, including interest and fees, expressed as a percentage.
DebtAPY (Annual Percentage Yield)
The real rate of return on savings or deposits in one year, including the effect of compounding.
BankingArbitrage
Profiting from price differences of the same asset in different markets.
Crypto & MarketsAsk Price
The lowest price a seller is willing to accept for an asset.
Crypto & MarketsAssessed Value
The value a tax authority assigns to property for calculating property taxes.
BudgetingAsset
Anything you own that has value: cash, property, investments, or a business.
InvestingAsset Allocation
How you divide your portfolio among stocks, bonds, cash, and other asset classes based on your goals and risk tolerance.
InvestingAudit
An independent examination of financial records to confirm they are accurate.
BusinessAUM (Assets Under Management)
The total market value of investments a fund or advisor manages for clients.
InvestingAuto-Debit
An arrangement where bills are paid automatically from your account on their due dates.
BankingB
Balance Sheet
A snapshot of what a person or business owns (assets) and owes (liabilities) at a point in time.
BusinessBalance Transfer
Moving credit card debt to another card, usually to get a lower promotional interest rate.
DebtBalloon Payment
A large final payment at the end of a loan after smaller periodic payments.
DebtBank Draft
A payment guaranteed by a bank, drawn on its own funds rather than yours directly.
BankingBank Rate
The rate at which a central bank lends to commercial banks, shaping all other interest rates.
BankingBank Run
When many depositors withdraw at once fearing a bank's collapse — which can cause it.
BankingBankruptcy
A legal process for people or businesses unable to repay debts, offering relief or restructuring.
DebtBasis Point
One hundredth of a percentage point (0.01%) — the unit used to describe rate changes.
Crypto & MarketsBear Market
A period when asset prices fall 20% or more from recent highs, usually with widespread pessimism.
Crypto & MarketsBenchmark
A standard, like an index, used to measure an investment's performance.
InvestingBeneficiary
The person or entity designated to receive assets from a will, trust, or account.
BudgetingBeta
A measure of how much a stock moves relative to the overall market.
InvestingBid Price
The highest price a buyer is willing to pay for an asset.
Crypto & MarketsBid-Ask Spread
The gap between the highest buyer's price and lowest seller's price — a hidden cost of trading.
Crypto & MarketsBitcoin
The first and largest cryptocurrency, created in 2009 as decentralized digital money.
Crypto & MarketsBlockchain
A shared, tamper-resistant digital ledger recording transactions across many computers.
Crypto & MarketsBlue-Chip Stock
Shares of large, established, financially sound companies with long track records.
InvestingBond
A loan you give to a government or company in exchange for regular interest payments and your money back at maturity.
InvestingBond Ladder
Buying bonds with staggered maturity dates to spread interest-rate risk and create steady cash flow.
InvestingBond Yield
The return a bond investor earns, expressed as a percentage of its price.
InvestingBook Value
A company's net asset value on its balance sheet: assets minus liabilities.
BusinessBookkeeping
The day-to-day recording of a business's financial transactions.
BusinessBootstrapping
Building a business with personal savings and revenue instead of outside investment.
BusinessBreak-Even Point
The sales or revenue level where total income exactly covers total costs.
BusinessBroker
A licensed intermediary who buys and sells investments on your behalf.
InvestingBrokerage Account
An account with a licensed firm that lets you buy and sell investments.
InvestingBudget
A plan for how you will earn, spend, save, and invest your money over a set period.
BudgetingBudget Deficit
When spending exceeds income over a period, forcing borrowing or dipping into savings.
BudgetingBull Market
A period of rising asset prices, typically driven by optimism and strong economic performance.
Crypto & MarketsBurn Rate
How fast a startup spends its cash before reaching profitability.
BusinessBuy and Hold
A long-term strategy of purchasing investments and keeping them through market swings.
InvestingC
Callable Bond
A bond the issuer can repay early, usually when interest rates fall.
InvestingCapital Expenditure (CapEx)
Money spent on long-term assets like buildings, equipment, or vehicles.
BusinessCapital Gains
The profit you make when you sell an asset for more than you paid for it.
InvestingCapital Loss
The loss you realize when you sell an asset for less than you paid for it.
InvestingCash Flow
The movement of money in and out of your account or business over a period.
BusinessCash Flow Statement
A report tracking how cash enters and leaves a business across operations, investing, and financing.
BusinessCash Reserve
Liquid funds a person or business keeps for emergencies or opportunities.
BudgetingCash-Out Refinance
Replacing your mortgage with a larger one and taking the difference in cash.
DebtCentral Bank
A national institution, like the CBN or the Fed, that manages currency, interest rates, and bank regulation.
BankingCertificate of Deposit (CD)
A savings product that locks your money for a fixed term in exchange for a guaranteed rate.
BankingChapter 7 / Chapter 13
US bankruptcy types: liquidation of assets vs. a court-approved repayment plan.
DebtCharge-Off
When a lender writes off an unpaid debt as a loss — it still damages your credit and you may still owe it.
DebtChargeback
Reversing a card transaction through your bank when goods were faulty or the charge was fraudulent.
BankingChecking Account
A bank account for everyday transactions: deposits, withdrawals, and payments.
BankingCircuit Breaker
An automatic trading halt triggered when markets fall sharply, designed to calm panic.
Crypto & MarketsClosed-End Fund
A fund with a fixed number of shares that trades on an exchange, sometimes above or below asset value.
InvestingCo-Signer
A person who signs a loan with you and is equally responsible for repaying it.
DebtCognitive Bias (Money)
Mental shortcuts — like loss aversion or herd mentality — that lead to irrational financial decisions.
BudgetingCold Wallet
A crypto wallet kept offline, far safer from hacks than an internet-connected one.
Crypto & MarketsCollateral
An asset you pledge to a lender to secure a loan; they can seize it if you default.
DebtCollections
When an unpaid debt is handed to a collection agency that pursues you for payment.
DebtCommercial Paper
Short-term unsecured debt large companies issue to fund immediate needs.
BusinessCommodification of Debt
Bundling loans into tradable securities sold to investors — also called securitization.
DebtCommodity
A raw material traded in bulk, like gold, oil, cocoa, or wheat.
Crypto & MarketsCompound Annual Growth Rate (CAGR)
The smoothed annual growth rate of an investment over multiple years.
InvestingCompound Interest
Interest calculated on both the original amount and accumulated interest — the engine of long-term wealth.
InvestingConsolidation Loan
A single loan used to pay off multiple debts, ideally at a lower rate with one monthly payment.
DebtConsumer Price Index (CPI)
A measure of inflation tracking the average change in prices consumers pay for goods and services.
Crypto & MarketsContribution Margin
Revenue minus variable costs — how much each sale contributes toward covering fixed costs.
BusinessConvertible Bond
A bond that can be exchanged for a set number of the issuer's shares.
InvestingCorrection
A market decline of 10% to 20% from a recent peak — shorter and milder than a bear market.
Crypto & MarketsCost Basis
What you originally paid for an investment, used to calculate taxable gains or losses.
InvestingCost of Living
The amount of money needed to cover basic expenses like housing, food, and transport in a place.
BudgetingCounterparty Risk
The chance the other side of a financial deal fails to deliver on its obligation.
Crypto & MarketsCoupon Rate
The fixed annual interest a bond pays as a percentage of its face value.
InvestingCredit Bureau
An agency that collects borrowing histories and produces credit reports and scores.
DebtCredit Card Grace Period
The window between a purchase and its due date during which no interest accrues if you pay in full.
DebtCredit Freeze
Locking your credit file so no new credit can be opened — a strong defense against identity theft.
DebtCredit Limit
The maximum amount a lender lets you borrow on a credit card or credit line.
DebtCredit Report
A detailed record of your borrowing history, accounts, and payment behavior.
DebtCredit Score
A three-digit number that rates your creditworthiness based on your borrowing and repayment history.
DebtCredit Utilization
The share of your available credit you're using — keeping it low helps your credit score.
DebtCrowdfunding
Raising small amounts of money from many people online to fund a project or business.
BusinessCryptocurrency
Digital money built on blockchain technology, transferred without a central bank.
Crypto & MarketsCurrent Ratio
Current assets divided by current liabilities — a quick test of a business's short-term health.
BusinessCustodian
A financial institution that holds and safeguards your investments.
BankingD
Dark Pool
A private trading venue where large investors trade away from public exchanges.
Crypto & MarketsDay Trading
Buying and selling securities within the same day to profit from small price moves.
Crypto & MarketsDebenture
A bond not backed by collateral, relying only on the issuer's creditworthiness.
InvestingDebit Card
A payment card that draws money directly from your bank account.
BankingDebt Avalanche
A payoff method where you attack the highest-interest debt first to minimize total interest paid.
DebtDebt Counseling
Professional guidance to restructure and repay overwhelming debt, often via a management plan.
DebtDebt Management Plan (DMP)
An arranged schedule where a counselor negotiates lower rates and you make one monthly payment.
DebtDebt Service Coverage Ratio (DSCR)
Income available to pay debt divided by required debt payments — lenders watch it closely.
BusinessDebt Snowball
A payoff method where you clear the smallest debt first for momentum, then roll payments into the next.
DebtDebt-to-Income Ratio (DTI)
Your monthly debt payments divided by your monthly gross income — lenders use it to judge borrowing capacity.
DebtDeferred Payment
An arrangement allowing you to receive goods now and pay for them later.
DebtDeFi (Decentralized Finance)
Financial services like lending and trading built on blockchains without traditional intermediaries.
Crypto & MarketsDefined Benefit Plan
A pension promising a set retirement income, usually based on salary and years of service.
InvestingDefined Contribution Plan
A retirement plan where you (and often your employer) contribute, and the outcome depends on investment growth.
InvestingDeflation
A general decline in prices, which increases the purchasing power of money but can slow economic growth.
Crypto & MarketsDelinquency
Being late on a loan payment; prolonged delinquency leads to default.
DebtDelisting
Removing a company's shares from a stock exchange, usually for failing listing rules.
Crypto & MarketsDepreciation
The decline in an asset's value over time through use or obsolescence.
BusinessDerivative
A contract whose value is based on an underlying asset, like options or futures.
Crypto & MarketsDevaluation
A government's deliberate reduction of its currency's value against others.
Crypto & MarketsDirect Debit
Permission for a company to pull payments from your bank account automatically.
BankingDiscretionary Spending
Non-essential spending you could cut without affecting basics — wants, not needs.
BudgetingDisposable Income
Income left after taxes, available for spending and saving.
BudgetingDistribution
A payment a fund makes to its investors from income or realized gains.
InvestingDiversification
Spreading investments across different assets to reduce the impact of any single loss.
InvestingDividend
A portion of a company's profits paid out to shareholders, usually quarterly.
InvestingDividend Aristocrat
A company that has raised its dividend every year for at least 25 consecutive years.
InvestingDividend Reinvestment Plan (DRIP)
Automatically using dividends to buy more shares instead of taking cash.
InvestingDividend Yield
Annual dividends per share divided by the share price — the income return of a stock.
InvestingDollar-Cost Averaging
Investing a fixed amount regularly regardless of price, smoothing out market ups and downs.
InvestingDown Payment
The upfront portion you pay when buying a home or car on credit.
DebtDrawdown
The decline from a portfolio's peak to its trough — a measure of pain during downturns.
InvestingDue Diligence
The research done before an investment or business deal to verify facts and risks.
BusinessDutch Auction
A pricing method where the price starts high and drops until buyers accept it.
Crypto & MarketsE
Earnings Per Share (EPS)
A company's profit divided by its number of shares — a core profitability measure.
InvestingEarnings Season
The weeks each quarter when most public companies report their financial results.
Crypto & MarketsEBITDA
Earnings before interest, taxes, depreciation, and amortization — a rough gauge of operating profitability.
BusinessEconomic Indicator
Statistics like GDP, unemployment, and CPI that reveal the economy's health.
Crypto & MarketsEmergency Fund
Three to six months of living expenses kept in an accessible account for unexpected events.
BudgetingEmergency Levy
A temporary extra tax a government imposes during a crisis.
BudgetingEmerging Markets
Countries with fast-growing but riskier economies, like Nigeria, Brazil, or Vietnam.
Crypto & MarketsEmployee Stock Ownership Plan (ESOP)
A program giving workers ownership shares in their company.
BusinessEndowment
A fund of donated money invested to support an institution like a university forever.
InvestingEquity
Ownership value in an asset — like the part of your home you truly own, or shares in a company.
InvestingEquity Financing
Raising money by selling ownership shares rather than borrowing.
BusinessEquity Risk Premium
The extra return investors demand for holding stocks instead of safe bonds.
InvestingEscrow
Money or assets held by a neutral third party until a transaction's conditions are met.
BankingEstate Planning
Arranging how your assets will be managed and distributed after death, including wills and trusts.
BudgetingETF (Exchange-Traded Fund)
A fund that trades on the stock exchange like a single share but holds many underlying assets.
InvestingEthereum
A blockchain platform enabling smart contracts and most DeFi and NFT activity; its currency is ether.
Crypto & MarketsExchange Rate
The price of one currency in terms of another.
Crypto & MarketsExchange-Traded Note (ETN)
An unsecured debt security that tracks an index and trades like a stock.
InvestingExecutor
The person named in a will to carry out the deceased's wishes and settle the estate.
BudgetingExit Strategy
An investor's or founder's plan for selling their stake to realize returns.
BusinessExpected Return
The probability-weighted average return an investment is projected to earn.
InvestingExpense Ratio
The annual fee a fund charges, expressed as a percentage of your investment.
InvestingF
Face Value
The nominal value printed on a bond or security, repaid at maturity.
InvestingFiat Currency
Government-issued money not backed by gold or any commodity — like the naira or dollar.
BankingFICO Score
The most widely used credit-scoring model in the US, ranging from 300 to 850.
DebtFiduciary
A financial advisor legally required to act in your best interest, not theirs.
InvestingFinancial Independence (FI)
Having enough invested assets that work becomes optional — the core of the FIRE movement.
BudgetingFintech
Technology-driven financial services, from payment apps to digital-only banks.
BankingFIRE Movement
Financial Independence, Retire Early — extreme saving and investing to quit work decades ahead of schedule.
BudgetingFiscal Policy
Government decisions on spending and taxation that influence the economy.
Crypto & MarketsFiscal Year
A 12-month accounting period, not necessarily matching the calendar year.
BusinessFixed Expenses
Costs that stay the same each month, like rent, subscriptions, and loan payments.
BudgetingFixed Income
Investments that pay a set return, like bonds and treasury bills.
InvestingFixed-Rate Loan
A loan whose interest rate never changes over its term.
DebtFloat
The number of a company's shares actually available for public trading.
Crypto & MarketsFloating Rate
An interest rate that moves up or down with a benchmark over time.
DebtFOMO
Fear of missing out — the emotional trap that pushes people into overpriced assets and bad trades.
BudgetingForeclosure
The legal process where a lender seizes and sells a property after mortgage default.
DebtForex (FX)
The global marketplace for exchanging one currency for another.
Crypto & MarketsForward Contract
A private agreement to exchange an asset at a set price on a future date.
Crypto & MarketsFractional Share
Buying a portion of one share, letting you invest in expensive stocks with small amounts.
InvestingFraud Alert
A notice placed on your credit file telling lenders to verify your identity before issuing credit.
BankingFront-Running
Illegally trading ahead of a large order you know is coming to profit from its price impact.
Crypto & MarketsFrugal Fatigue
The burnout that comes from cutting spending too hard for too long — often causes binge spending.
BudgetingFund Manager
The professional who decides what a mutual fund or portfolio buys and sells.
InvestingFund of Funds
A fund that invests in other funds rather than directly in securities.
InvestingFungibility
The property of being interchangeable — one naira equals any other naira; NFTs are the opposite.
Crypto & MarketsFutures Contract
An agreement to buy or sell an asset at a set price on a future date.
Crypto & MarketsG
Garnishment
A court order directing money to be taken from your wages or account to repay a debt.
DebtGas Fee
The cost paid to process a transaction on a blockchain like Ethereum.
Crypto & MarketsGDP (Gross Domestic Product)
The total value of goods and services a country produces — a key measure of economic health.
Crypto & MarketsGeneral Partnership
A business owned by two or more people who share profits, losses, and unlimited liability.
BusinessGilt
A bond issued by the UK government; broadly, any very safe government bond.
InvestingGoing Concern
The assumption that a business will keep operating for the foreseeable future.
BusinessGold Standard
A historic system where currency value was directly tied to a fixed amount of gold.
Crypto & MarketsGood Till Canceled (GTC)
A trade order that stays active until it executes or you cancel it.
Crypto & MarketsGrace Period
Extra time after a due date during which you can pay without penalty.
DebtGross Domestic Savings
The portion of GDP a country saves rather than consumes.
Crypto & MarketsGross Income
Your total income before taxes and deductions are taken out.
BudgetingGross Margin
Revenue minus cost of goods sold, shown as a percentage — how much you keep per sale before overheads.
BusinessGrowth Rate
The percentage change in revenue, profit, or an economy over a period.
BusinessGrowth Stock
Shares in companies expected to grow faster than the market, often reinvesting profits instead of paying dividends.
InvestingGuarantor
A person who agrees to repay a loan if the borrower defaults.
DebtH
Hard Asset
A physical asset with intrinsic value — real estate, gold, equipment.
InvestingHard Inquiry
A credit check triggered by a loan or card application, which can slightly lower your credit score.
DebtHarmonized Index of Consumer Prices
The EU's standard inflation measure, comparable across member countries.
Crypto & MarketsHedge
An investment made to reduce the risk of loss in another investment.
InvestingHedge Fund
A private investment fund using aggressive strategies, open mainly to wealthy investors.
InvestingHigh-Yield Savings Account
A savings account paying significantly more interest than standard accounts, usually from digital banks.
BankingHODL
Crypto slang for holding an asset long-term through volatility instead of selling.
Crypto & MarketsHome Equity
The market value of your home minus what you still owe on the mortgage.
DebtHome Equity Loan
A loan that lets you borrow against the equity you've built in your home.
DebtHomeowners Insurance
Coverage protecting your property and belongings against damage, theft, and liability.
BudgetingHot Wallet
An internet-connected crypto wallet — convenient but more vulnerable to hacks.
Crypto & MarketsHousehold Debt
The total borrowing of families: mortgages, cards, student and car loans.
DebtHuman Capital
The economic value of your skills, knowledge, and ability to earn.
BudgetingHyperinflation
Extremely rapid and out-of-control price increases that destroy a currency's value.
Crypto & MarketsI
Illiquid Asset
An asset that's hard to sell quickly without a big price cut — like property or private company shares.
InvestingImpaired Asset
An asset whose recoverable value has fallen below its book value.
BusinessIncome Fund
A fund focused on generating regular payouts from dividends and interest rather than growth.
InvestingIncome Statement
A financial report showing revenue, expenses, and profit over a period.
BusinessIncubator
A program that helps very early startups with workspace, mentoring, and small funding.
BusinessIndemnity
A contractual promise to compensate for loss or damage — the basis of insurance.
BusinessIndex
A statistical measure of a market segment, like the S&P 500 or the NGX All-Share Index.
Crypto & MarketsIndex Fund
A fund that tracks a market index (like the S&P 500 or NGX All-Share) instead of trying to beat it.
InvestingInflation
The rate at which prices rise over time, reducing what your money can buy.
Crypto & MarketsInitial Margin
The deposit required to open a leveraged trading position.
Crypto & MarketsInsider Trading
Illegally buying or selling shares based on confidential company information.
Crypto & MarketsInsolvency
Being unable to pay debts as they fall due — it can lead to bankruptcy.
DebtInstallment Loan
A loan repaid in fixed scheduled payments, like a car or personal loan.
DebtInstitutional Investor
A large organization that invests pooled money: pension funds, insurers, mutual funds.
InvestingInterest Coverage Ratio
Operating profit divided by interest expense — shows how easily a company pays its interest.
BusinessInterest Rate
The cost of borrowing money or the reward for saving it, expressed as a percentage.
BankingInterest-Only Loan
A loan where early payments cover only interest, with principal repaid later.
DebtInternal Rate of Return (IRR)
The annualized growth rate that makes an investment's future cash flows equal its cost today.
InvestingIntestate
Dying without a valid will, leaving the law to decide who inherits.
BudgetingInvestment Grade
A credit rating signaling low default risk for a bond issuer.
InvestingInvoice Factoring
Selling your unpaid invoices to a company at a discount for immediate cash.
BusinessIPO (Initial Public Offering)
The first sale of a company's shares to the public on a stock exchange.
Crypto & MarketsIRA (Individual Retirement Account)
A US retirement account with tax advantages; variants include Traditional and Roth.
InvestingJ
Joint Account
A bank account shared by two or more people, all with access to the funds.
BankingJoint Venture
Two or more parties teaming up on a specific business project while remaining separate entities.
BusinessJumbo Loan
A mortgage exceeding the standard limits set by regulators, with stricter approval terms.
DebtJunk Bond
A high-yield bond from an issuer with weak credit — more return, much more risk.
InvestingK
Keogh Plan
A US tax-deferred retirement plan for self-employed people and small businesses.
InvestingKey Person Insurance
A policy paying a business if a critical employee or founder dies or becomes disabled.
BusinessKey Rate Duration
A measure of how sensitive a bond's price is to interest-rate changes at specific maturities.
InvestingKickback
An illegal secret payment made in return for favorable treatment — a form of bribery.
BusinessKYC (Know Your Customer)
The identity-verification process banks and fintechs use before opening accounts.
BankingL
Lapsed Policy
An insurance policy that ended because premiums were not paid.
BudgetingLarge-Cap
Companies with very large market capitalizations, typically $10 billion and above.
InvestingLast Will and Testament
A legal document stating how your assets should be distributed after death.
BudgetingLate Fee
A penalty charged when you miss a payment due date.
DebtLease
A contract to use an asset — a car, equipment, property — for payments over time without owning it.
DebtLedger
The record book where all financial transactions of a business are logged.
BusinessLegal Tender
Money that must by law be accepted for payment of debts in a country.
BankingLetter of Credit
A bank's guarantee that a buyer's payment to a seller will be received on time and in full.
BankingLeverage
Using borrowed money to invest or operate, amplifying both gains and losses.
InvestingLiability
Anything you owe: loans, credit card balances, mortgages, unpaid bills.
DebtLien
A legal claim a lender has on your property until a debt is repaid.
DebtLifestyle Creep
Spending more as you earn more, so saving never actually grows with your income.
BudgetingLimit Order
An order to buy or sell only at a specified price or better.
Crypto & MarketsLimited Liability Company (LLC)
A business structure protecting owners' personal assets from company debts.
BusinessLine of Credit
A flexible loan letting you borrow up to a limit, repay, and borrow again.
DebtLiquidation
Selling off a company's assets to pay creditors when it closes.
BusinessLiquidity
How quickly an asset can be converted to cash without losing value. Cash is perfectly liquid; property is not.
InvestingLiquidity Ratio
Measures of how easily an entity can pay its short-term obligations.
BusinessListed Company
A company whose shares trade publicly on a stock exchange.
Crypto & MarketsLoad Fee
A sales commission charged when you buy (front-load) or sell (back-load) certain mutual funds.
InvestingLoan Amortization Schedule
A table showing every loan payment split into interest and principal over the loan's life.
DebtLoan Shark
An illegal lender charging extreme interest, often using threats to collect.
DebtLoan-to-Value Ratio (LTV)
The loan amount as a percentage of the asset's value — key in mortgage lending.
DebtLong Position
Owning an asset expecting its price to rise.
Crypto & MarketsLoss Aversion
The psychological tendency to feel losses roughly twice as strongly as equal gains.
BudgetingLump Sum
A single large payment instead of a series of smaller ones.
InvestingM
Maker-Taker Fees
Exchange fees where adding liquidity (maker) costs less than removing it (taker).
Crypto & MarketsManaged Account
An investment account where a professional makes trading decisions for you.
InvestingMargin
Borrowed money from a broker used to buy investments — amplifies both gains and losses.
Crypto & MarketsMargin Call
A broker's demand to add cash or securities when your leveraged position loses value.
Crypto & MarketsMarket Capitalization
A company's total value on the stock market: share price times number of shares.
Crypto & MarketsMarket Correction
A decline of around 10% that resets overheated prices without becoming a bear market.
Crypto & MarketsMarket Maker
A firm that continuously quotes buy and sell prices to keep a market liquid.
Crypto & MarketsMarket Order
An order to buy or sell immediately at the best available price.
Crypto & MarketsMarket Timing
Trying to buy low and sell high by predicting market moves — notoriously hard to do consistently.
InvestingMaturity Date
The date a bond or loan must be fully repaid.
InvestingMaturity Value
The amount paid when a bond, deposit, or policy reaches its end date.
InvestingMerchant Account
A bank account letting a business accept card payments.
BankingMicro-Investing
Investing tiny amounts regularly, often by rounding up purchases through an app.
InvestingMicrofinance
Small loans and financial services for low-income entrepreneurs excluded from traditional banking.
BankingMinimum Payment
The smallest amount you must pay on a credit card each month to avoid penalties.
DebtMonetary Policy
Central bank actions — mainly interest rates and money supply — that steer the economy.
Crypto & MarketsMoney Market Fund
A low-risk fund investing in short-term government and corporate debt, popular for parking cash.
InvestingMoney Order
A prepaid paper payment instrument, a safe alternative to cash or personal checks.
BankingMoney Supply
The total money circulating in an economy — tracked by central banks to manage inflation.
Crypto & MarketsMoonshot
An extremely high-risk investment or venture with the potential for outsized returns.
Crypto & MarketsMoral Hazard
When protection from risk (like insurance or bailouts) encourages recklessness.
Crypto & MarketsMortgage
A long-term loan used to buy property, with the property itself as collateral.
DebtMoving Average
An average of prices over a set period, used to spot trends in technical analysis.
Crypto & MarketsMultiplier Effect
How an initial injection of spending ripples through the economy creating more total income.
Crypto & MarketsMutual Fund
A pooled investment where a professional manager invests many people's money across assets.
InvestingN
NASDAQ
A major US stock exchange known for technology companies; also an index of its largest stocks.
Crypto & MarketsNegative Amortization
When loan payments don't cover the interest, so your balance actually grows.
DebtNegative Equity
Owing more on an asset (like a home or car) than it is currently worth.
DebtNegotiable Instrument
A signed document promising payment, transferable between parties — like checks and promissory notes.
BankingNet 30
An invoice term requiring payment within 30 days of the invoice date.
BusinessNet Asset Value (NAV)
A fund's per-share value: total assets minus liabilities, divided by shares.
InvestingNet Income
What you actually take home after taxes and deductions — the number your budget should be built on.
BudgetingNet Profit Margin
The percentage of revenue left as profit after all expenses.
BusinessNet Worth
Everything you own (assets) minus everything you owe (liabilities). The true scoreboard of wealth.
BudgetingNFT (Non-Fungible Token)
A unique digital asset verified on a blockchain, often tied to art or collectibles.
Crypto & MarketsNo-Fee (No-Load) Fund
A mutual fund that charges no sales commission when you buy or sell.
InvestingNominal Interest Rate
The stated interest rate before adjusting for compounding or inflation.
BankingNon-Performing Loan
A loan on which the borrower has stopped making payments for an extended period.
DebtNotary Public
An official authorized to witness and certify signatures on legal documents.
BusinessO
Offshore Account
A bank account held outside your country of residence, legal if properly declared.
BankingOpen-End Fund
A mutual fund that creates or redeems shares on demand at net asset value.
InvestingOperating Expenses (OpEx)
The ongoing costs of running a business: rent, salaries, utilities, marketing.
BusinessOperating Leverage
The degree to which a company's costs are fixed — high fixed costs magnify profit swings.
BusinessOpportunity Cost
What you give up when you choose one option over another — the hidden cost of every financial decision.
BudgetingOption (Contract)
A contract giving you the right, but not the obligation, to buy or sell an asset at a set price before a deadline.
Crypto & MarketsOrigination Fee
An upfront charge a lender takes for processing a new loan.
DebtOverdraft
Spending more than you have in your account, usually triggering fees from the bank.
BankingOverdraft Protection
A bank feature that covers transactions when your balance runs short, usually for a fee or by linking savings.
BankingOvernight Rate
The interest rate at which banks lend to each other for one day, guided by the central bank.
BankingOvervalued
An asset trading above what its fundamentals justify.
Crypto & MarketsP
P/E Ratio (Price-to-Earnings)
A company's share price divided by its earnings per share — a common valuation yardstick.
InvestingPaper Trading
Practicing investing with simulated money before risking real funds.
Crypto & MarketsPar Value
The face value of a bond or the nominal value of a share set at issuance.
InvestingPassbook Savings
The traditional savings account where transactions were recorded in a physical booklet.
BankingPassive Income
Money earned with minimal ongoing effort, like dividends, rent, or royalties.
BudgetingPay Yourself First
The budgeting rule of moving money to savings before spending on anything else.
BudgetingPayday Loan
A small, extremely high-interest loan due on your next payday — a dangerous debt trap.
DebtPayment Holiday
An agreed temporary pause on loan repayments, usually during hardship.
DebtPeer-to-Peer Lending (P2P)
Borrowing and lending money directly between individuals through online platforms.
DebtPenny Stock
A very low-priced share of a small company — highly speculative and easily manipulated.
Crypto & MarketsPension
A retirement plan paying regular income after you stop working, funded during your career.
InvestingPerpetuity
A stream of equal payments continuing forever — a valuation concept in finance.
InvestingPersonal Guarantee
A promise making you personally liable for a business loan if the business cannot pay.
DebtPhishing
Fraudulent messages pretending to be banks or trusted companies to steal your login or card details.
BankingPink Sheets
An over-the-counter market for small, thinly traded, higher-risk stocks.
Crypto & MarketsPonzi Scheme
A fraud where returns to earlier investors are paid from new investors' money, not real profit.
Crypto & MarketsPortfolio
Your complete collection of investments: stocks, bonds, funds, real estate, and more.
InvestingPortfolio Manager
The professional responsible for an investment fund's strategy and holdings.
InvestingPower of Attorney
A legal document authorizing someone to act on your behalf in financial or legal matters.
BudgetingPreferred Stock
Shares with priority dividends over common stock but usually no voting rights.
InvestingPremium (Insurance)
The regular payment you make to keep an insurance policy active.
BudgetingPrepayment Penalty
A fee some lenders charge if you pay off a loan early.
DebtPresent Value
What future money is worth today, given that money now can earn returns.
InvestingPrice Discovery
The market process of buyers and sellers agreeing on an asset's fair price.
Crypto & MarketsPrice-to-Book Ratio
Share price divided by book value per share — compares market price to net asset value.
InvestingPrime Rate
The interest rate banks charge their most creditworthy customers — a benchmark for other loans.
BankingPrincipal
The original amount of money borrowed or invested, before interest.
DebtPrivate Equity
Investment in companies not listed on public stock exchanges.
InvestingPrivate Placement
Selling securities directly to a small group of investors instead of the public.
InvestingProbate
The court process of validating a will and distributing a deceased person's estate.
BudgetingProfit
What remains after all costs are subtracted from revenue.
BusinessProfit and Loss Statement (P&L)
Another name for the income statement: revenue, costs, and profit over a period.
BusinessPromissory Note
A written, signed promise to repay a specific sum under stated terms.
DebtProspectus
The legal document describing an investment offering's terms, risks, and finances.
InvestingPump and Dump
A scam where fraudsters hype an asset to inflate its price, then sell, leaving others with losses.
Crypto & MarketsPurchasing Power
How much goods and services your money can actually buy; inflation erodes it.
BudgetingPurchasing Power Parity (PPP)
Comparing currencies by what they can actually buy in each country.
Crypto & MarketsQ
Quantitative Easing (QE)
A central bank policy of buying bonds to inject money into the economy and lower long-term rates.
Crypto & MarketsQuantitative Tightening (QT)
A central bank reducing money supply by selling bonds — the reverse of QE.
Crypto & MarketsQuarterly Report
A company's financial statement published every three months.
BusinessQuick Ratio
A liquidity test: liquid assets (excluding inventory) divided by current liabilities.
BusinessQuote
The latest price at which an asset last traded, or the current bid and ask.
Crypto & MarketsR
Rally
A sustained period of rising asset prices after a decline or flat stretch.
Crypto & MarketsRate of Return
The percentage gain or loss on an investment over a period.
InvestingRatings Agency
A firm like Moody's or S&P that grades the creditworthiness of borrowers and bonds.
Crypto & MarketsReal Estate Crowdfunding
Pooling money online with other investors to fund property deals in small amounts.
InvestingReal Interest Rate
The interest rate after subtracting inflation — your true gain in purchasing power.
BankingRebalancing
Adjusting your portfolio periodically to maintain your target asset allocation.
InvestingReceivables Turnover
How quickly a business collects money owed by customers.
BusinessRecession
A significant, widespread decline in economic activity, typically lasting months.
Crypto & MarketsRecurring Deposit
A savings product where you deposit a fixed amount monthly and earn interest on the growing balance.
BankingRedemption
Cashing in an investment — selling fund shares back or receiving a bond's face value at maturity.
InvestingRefinancing
Replacing an existing loan with a new one, usually to get a lower interest rate.
DebtRegistered Investment Advisor (RIA)
A licensed professional firm that advises on investments for a fee, held to fiduciary standards.
InvestingREIT (Real Estate Investment Trust)
A company that owns income-producing real estate and trades like a stock, paying most profits as dividends.
InvestingRemittance
Money sent by workers abroad back to family in their home country.
BankingRepo Rate
The rate at which a central bank lends short-term funds to commercial banks against securities.
BankingResidual Income
Income left after all expenses and debt payments — or income continuing after the work is done.
BudgetingRestricted Stock
Company shares granted to employees that can't be sold until vesting conditions are met.
InvestingRetained Earnings
Profits a company keeps to reinvest rather than paying out as dividends.
BusinessReturn on Equity (ROE)
Profit divided by shareholders' equity — how well a company uses owners' money.
BusinessRevenue
Total money a business earns from sales before any costs are deducted.
BusinessReverse Mortgage
A loan letting older homeowners convert home equity into cash, repaid when the home is sold.
DebtRevolving Credit
Credit you can borrow, repay, and re-borrow up to a limit — like credit cards.
DebtRights Issue
An offer letting existing shareholders buy new shares at a discount before outsiders.
InvestingRisk Premium
The extra return investors expect for taking on additional risk.
InvestingRisk Tolerance
How much investment loss you can emotionally and financially withstand.
InvestingROI (Return on Investment)
The gain or loss on an investment relative to its cost, expressed as a percentage.
InvestingRollover
Moving retirement funds from one account to another without triggering taxes.
InvestingRoth IRA
A US retirement account funded with after-tax money, with tax-free withdrawals in retirement.
InvestingRound-Trip Trade
Buying and selling the same asset within a short window.
Crypto & MarketsRule of 72
A shortcut to estimate how long money takes to double: divide 72 by the annual return rate.
InvestingS
Safe-Haven Asset
An investment expected to hold value during turmoil — gold, top government bonds, some currencies.
InvestingSalary Advance
Receiving part of your earned wages before the official payday.
BudgetingSavings Account
A bank account for storing money you don't need immediately, earning interest.
BankingSecondary Market
Where investors trade existing securities among themselves — the stock exchange you know.
Crypto & MarketsSecured Credit Card
A card backed by a cash deposit you make, used to build or rebuild credit.
DebtSecured Loan
A loan backed by collateral, like a mortgage or car loan.
DebtSecurities
Tradable financial instruments: stocks, bonds, and similar assets.
InvestingSecuritization
Packaging loans (mortgages, car loans) into bonds sold to investors.
InvestingSeed Funding
The earliest round of capital a startup raises to develop its idea.
BusinessSelf-Employed Tax
Taxes independent workers pay covering both employee and employer contributions.
BudgetingSell-Off
A rapid, broad wave of selling that pushes market prices down sharply.
Crypto & MarketsShare Buyback
A company repurchasing its own shares, reducing supply and often boosting the price.
InvestingSharpe Ratio
Return earned per unit of risk taken — the classic risk-adjusted performance measure.
InvestingShort Position (Shorting)
Betting that an asset's price will fall by borrowing, selling, and buying back cheaper.
Crypto & MarketsShort Squeeze
When rising prices force short sellers to buy back shares, pushing prices even higher.
Crypto & MarketsSide Hustle
Work done alongside a main job to earn extra income.
BudgetingSimple Interest
Interest calculated only on the original principal, not on accumulated interest.
BankingSinking Fund
Money set aside gradually for a known future expense — a wedding, new laptop, or annual insurance.
BudgetingSmart Contract
Self-executing code on a blockchain that enforces an agreement without intermediaries.
Crypto & MarketsSoft Inquiry
A credit check that does not affect your score, like checking your own report.
DebtSolvency
The ability to meet long-term financial obligations — the opposite of insolvency.
BusinessSovereign Debt
Bonds and loans issued by national governments.
InvestingSpeculation
Trading on price movements rather than underlying value — high risk, high reward.
Crypto & MarketsSpread
The difference between the bid and ask price of an asset, or between borrowing and lending rates.
Crypto & MarketsStablecoin
A cryptocurrency pegged to a stable asset like the US dollar to reduce volatility.
Crypto & MarketsStagflation
The painful mix of stagnant growth, high unemployment, and high inflation.
Crypto & MarketsStaking
Locking up cryptocurrency to support a blockchain network in exchange for rewards.
Crypto & MarketsStanding Order
An instruction to your bank to pay a fixed amount regularly on set dates.
BankingStock (Share)
A unit of ownership in a company, entitling you to a slice of its profits and growth.
InvestingStock Exchange
A regulated marketplace where shares are listed and traded, like the NGX or NYSE.
Crypto & MarketsStock Split
Dividing existing shares into more shares at a lower price each — total value stays the same.
InvestingStop-Loss Order
An order that automatically sells an asset if it falls to a set price, limiting your loss.
Crypto & MarketsSubprime Loan
Lending to borrowers with poor credit at higher interest rates — central to the 2008 crisis.
DebtSubscription Economy
A business model where customers pay recurring fees for ongoing access rather than one-time purchases.
BusinessSuccession Planning
Preparing who takes over leadership or ownership of a business.
BusinessSwap
A contract where two parties exchange cash flows — commonly interest-rate or currency swaps.
Crypto & MarketsSweep Account
An account that automatically moves idle cash into higher-yield investments overnight.
BankingSWIFT
The global messaging network banks use to send international payment instructions.
BankingSystemic Risk
The danger that one failure cascades through the entire financial system.
Crypto & MarketsT
Take-Home Pay
Your salary after all deductions — the money that actually lands in your account.
BudgetingTangible Asset
A physical asset you can touch: buildings, machinery, inventory, cash.
BusinessTax Bracket
The range of income taxed at a specific rate — higher portions of income face higher rates.
BudgetingTax Credit
A direct reduction of the tax you owe — more valuable than a deduction of the same size.
BudgetingTax Deduction
An expense that reduces your taxable income, lowering the tax you owe.
BudgetingTax Haven
A jurisdiction with very low or zero taxes used by companies and individuals to shelter income.
Crypto & MarketsTax-Deferred
Investments where taxes are postponed until you withdraw the money, like some retirement accounts.
InvestingTechnical Analysis
Forecasting prices from charts and patterns rather than company fundamentals.
Crypto & MarketsTenor (Term)
The length of time until a loan or bond matures.
BankingTerm Deposit
Money locked in a bank for a fixed period at a guaranteed interest rate.
BankingTerm Loan
A loan repaid over a fixed period with regular payments, like a car or business loan.
DebtThird-Party Payment Processor
A company like Paystack or Stripe that handles card payments for businesses.
BusinessTicker Symbol
The short code identifying a listed stock or fund, like AAPL for Apple.
Crypto & MarketsTime Horizon
How long you plan to hold an investment before needing the money — it shapes your strategy.
InvestingTime Value of Money
The principle that money today is worth more than the same amount later, because it can earn returns.
InvestingTitle Deed
The legal document proving ownership of property.
BusinessToken
A digital asset built on an existing blockchain, representing value or utility.
Crypto & MarketsTotal Expense Ratio
All costs of running a fund expressed as a percentage of its assets — lower is better.
InvestingTotal Return
An investment's complete gain: price change plus dividends or interest.
InvestingTrade Deficit
When a country imports more than it exports.
Crypto & MarketsTrailing Stop
A stop-loss that moves up with the price, locking in gains as the asset rises.
Crypto & MarketsTransaction Fee
A charge for processing a payment, trade, or transfer.
BankingTransfer Pricing
The prices set for transactions between branches of the same multinational company — heavily regulated.
BusinessTreasury Bill (T-Bill)
A short-term government security sold at a discount and redeemed at full value — one of the safest investments.
InvestingTrial Balance
An accounting check that total debits equal total credits in the ledger.
BusinessTrust (Legal)
An arrangement where a trustee holds and manages assets for beneficiaries.
InvestingU
Unbanked
People with no access to formal banking services at all.
BankingUnderbanked
People who have a bank account but still rely on informal services for credit or payments.
BankingUndervalued
An asset trading below what its fundamentals suggest it's worth.
Crypto & MarketsUnderwriting
The process lenders and insurers use to assess risk and set terms before approving you.
BankingUnemployment Rate
The percentage of the labor force without work but actively seeking it.
Crypto & MarketsUnit Trust
A pooled fund divided into units investors can buy — the UK term for a mutual fund.
InvestingUnrealized Gain
A profit on an investment you still hold — it exists on paper until you sell.
InvestingUnsecured Debt
Borrowing with no collateral attached, so it carries higher interest rates.
DebtUnsecured Loan
A loan not backed by collateral, like most personal loans and credit cards.
DebtUpfront Costs
One-time expenses paid at the start of a purchase, like closing costs on a home.
BudgetingUsury
Lending money at illegally or unethically high interest rates.
DebtUtility Token
A crypto token granting access to a product or service on its platform.
Crypto & MarketsV
Valuation
The estimated worth of a company or asset.
BusinessValue Investing
Buying quality assets priced below their true worth and holding until the market catches up.
InvestingValue Stock
Shares trading below their perceived true worth, often with solid dividends and steady earnings.
InvestingVariable Expenses
Costs that change month to month, like groceries, fuel, and entertainment.
BudgetingVariable Rate
An interest rate that changes with market benchmarks over a loan's life.
DebtVendor Financing
When a seller lends the buyer the money to make the purchase.
BusinessVenture Capital
Funding given to early-stage startups in exchange for equity, betting on high growth.
BusinessVenture Debt
Loans to startups that complement equity funding without further diluting founders.
BusinessVesting
Earning full ownership of benefits like stock options gradually over time.
BusinessVesting Period
The time you must wait before gaining full ownership of granted benefits like stock options.
BusinessVIX (Volatility Index)
The 'fear gauge' — a measure of expected stock-market volatility.
Crypto & MarketsVolatility
How much and how quickly an asset's price moves. High volatility means bigger swings in both directions.
Crypto & MarketsVolume
The number of shares or contracts traded in a period — a sign of market activity.
Crypto & MarketsVoluntary Liquidation
When a company's owners choose to wind it down and sell its assets.
BusinessW
Wage Garnishment
Court-ordered deduction from your salary to repay a debt or obligation.
DebtWaiver of Premium
An insurance feature that pauses your premiums if you become disabled or unable to work.
BudgetingWallet (Crypto)
Software or hardware that stores the keys used to access your cryptocurrency.
Crypto & MarketsWarrant
A company-issued right to buy its shares at a set price before an expiry date.
InvestingWash Sale
Selling an investment at a loss and quickly rebuying it — often to harvest tax losses, restricted in many places.
InvestingWealth Management
Professional services combining investing, tax planning, and estate planning for affluent clients.
InvestingWealth Tax
A tax on the total value of a person's assets rather than their income.
BudgetingWhale
An individual or entity holding enough of an asset to move its market price.
Crypto & MarketsWhitelisting
Pre-approving specific addresses or accounts as trusted for transactions.
Crypto & MarketsWindfall
A sudden, unexpected sum of money — an inheritance, bonus, or prize.
BudgetingWire Transfer
An electronic bank-to-bank transfer of funds, usually same-day and hard to reverse.
BankingWithdrawal Penalty
A fee or lost interest for taking money out before an agreed date, like from a CD.
BankingWithholding Tax
Tax deducted at the source of income — from salary, dividends, or interest — before you receive it.
BankingWorking Capital
Current assets minus current liabilities — the cash cushion a business runs on day to day.
BusinessWorking Capital Loan
Short-term business borrowing to cover everyday operating expenses.
BusinessWrite-Off
Removing an unrecoverable asset or debt from the books as a loss.
BusinessY
Year-over-Year (YoY)
Comparing a metric to the same period a year earlier to smooth out seasonal swings.
BusinessYield
The income an investment generates, usually shown as an annual percentage of its price.
InvestingYield Curve
A graph of bond yields across maturities; an inverted curve often signals recession ahead.
Crypto & MarketsYield Farming
Moving crypto between DeFi protocols to chase the highest returns.
Crypto & MarketsYield Spread
The difference in yields between two bonds, reflecting their relative risk.
InvestingZ
Zero-Based Budgeting
A method where every unit of income is assigned a job until income minus expenses equals zero.
BudgetingZero-Coupon Bond
A bond sold at a deep discount that pays no interest, redeemable at full face value at maturity.
InvestingZero-Sum Game
A situation where one party's gain is exactly another's loss — true of some derivatives trading.
Crypto & MarketsZombie Company
A business earning just enough to service its debt but never to repay it.
BusinessHeard a term on the show you don't understand? Browse episodes — we break them down as we go.