Glossary of Financial Terms

Let’s face it, to say that navigating through all of the financial jargon and terminology is a bit challenging, is an understatement. This glossary of financial definitions will help you better understand difficult or confusing terminology, in simple terms.

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1031 Exchange

A real estate investment term for a tax deferral. 

529 Plan

Is a tax-free, growth-minded savings account dedicated to paying for higher education.

A

B

Brokerage Account

An investment account that lets individuals trade stocks, bonds, ETFs, and mutual funds.

C

Cash Account

Represent one type of brokerage account that functions only on the funds available in the user’s account.

Commercial REIT

Are real estate investment trusts that invest in income-producing properties like hotels, office buildings, and restaurants.

Crypto Exchange

Are third-party platforms that facilitate crypto buying, selling and trading.

Crypto IRA

Also referred to as a Bitcoin IRA, is a self-directed IRA that allows you to invest in digital currencies like Bitcoin and Ethereum.

Custodial Account

A savings account that a legal adult opens and manages for a minor child.

D

Decentralized Exchange (DEX)

A crypto exchange that does not maintain control of users’ funds. Transactions are peer-to-peer, and funds never go through an intermediary.

Delaware Statutory Trust (DST)

A type of real estate trust. It enables individual investors to own large, institutional-grade real estate they would otherwise not be able to afford.

Discount Broker

A stockbroker or brokerage firm that charges lower fees and provides fewer services than full-service brokers.

E

Equity REIT

Are real estate businesses that own or manage income-producing properties and lease out their units to others for a profit.

F

Forex Broker

Is a financial service or platform that allows you to trade foreign exchange on the worldwide market.

Full-Service Broker

A licensed financial broker-dealer firm who offers comprehensive services to investors.

G

Gold IRA

A type of specialized IRA. It is unique because it allows investors to use gold, other precious metals and certain qualifying collectibles instead of traditional stocks or paper assets as retirement savings.

H

Hybrid REIT

Are real estate investment trusts that link the benefits and risks of mortgage-backed securities and equity REITs.

I

J

Joint Brokerage Account

An investment account that is owned by two or mored individuals that allows them to invest together.

K

L

M

Margin Account

Is a type of brokerage account that allows an investor to borrow money from the broker to buy securities.

Mortgage REIT (mREIT)

Also known as mREITs, invest in mortgages, mortgage-backed securities, and related assets.

N

Non-Traded REIT

A corporate structure that allows a business to own, operate, develop, and manage real estate.

O

P

Q

R

Real Estate Investment Trust (REIT)

A company that owns and operates income-generating real estate, including commercial, residential, or industrial properties.

Robo-Advisor

An automated investment advisor that manages your investment account to help you reach your financial goals.

S

Stockbroker

An individual or firm that buys and sells stocks, bonds, mutual funds, and other securities on behalf of clients as part of an investment portfolio, typically for a commission.

T

U

Uniform Gifts to Minors Act (UGMA)

A type of custodial account that allows parents or guardians to transfer financial assets into the name of a minor.

Umbrella Partnership Real Estate Trust (UPREIT)

Where a property owner gives a portion of their property to a real estate investment trust (REIT).

Uniform Transfers to Minors Act (UTMA)

Accounts as investment accounts that parents or guardians can open on behalf of a minor to give them some financial security.

V

W

X

Y

Z