Financial terms glossary

#

10% Early Withdrawal Penalty & Exceptions Distributions before 59 1/2 cost 10% extra, unless an exception applies. 12b-1 Fee An annual fee a fund charges to cover distribution and marketing. 403(b) Plan A salary-deferral plan for public schools and 501(c)(3) nonprofits. 457 Plan Deferred compensation for state and local government employees. 529 Plan A tax-advantaged account for education expenses.

A

Active vs. Passive Management Trying to beat the market versus trying to match it. Advertising & the Marketing Rule Testimonials allowed with disclosures; performance must be fair and balanced. Advisory Contract Requirements Written, specific about fees, no assignment without consent, no waiver of rights. After-Tax Return What is left of a return after taxes. Agency Cross Transactions The adviser brokers a trade between an advisory client and another party. Agent (USA Definition) An individual representing a broker-dealer or issuer in selling securities. Alpha Return above what the portfolio's risk exposure would predict. Alternative Minimum Tax (AMT) A parallel tax calculation that adds back certain preferences; you pay the higher. American Depositary Receipt (ADR) A dollar-denominated receipt for foreign shares, traded in the US. Annual Gift Tax Exclusion $19,000 per recipient per year in 2026 without using any lifetime exemption. Annualized Return A multi-year return restated as a compound rate per year. Annuity An insurance contract converting a premium into future income. Annuity Payout Options Life only pays the most per month; joint and survivor pays the least. Anti-Money Laundering (AML) Know who the customer is, watch for suspicious activity, and report it. Antifraud Provisions Apply to every security and every transaction, registered or exempt. Asset Allocation How a portfolio is split across stocks, bonds, cash, and alternatives. Asset Location Placing each asset in the account type where it is taxed least. Asset-Backed Securities (ABS / MBS) Bonds backed by pools of loans - mortgages, auto loans, credit cards. Assignment of an Advisory Contract Transferring a client contract requires the client's consent - including by change of control. Auditor's Opinion (Qualified vs. Unqualified) The auditor's verdict on whether the financial statements are fairly presented.

B

Balance Sheet Assets, liabilities, and equity at a single point in time. Basis Point One hundredth of a percentage point. Behavioral Finance The predictable ways psychology leads investors to depart from rational choices. Benchmark The index a portfolio is measured against. Beneficiary Designation Account-level instructions that override the will. Best Execution The duty to seek the most favorable terms reasonably available. Beta How much a security moves relative to the overall market. Bid-Ask Spread The gap between the best buy price and the best sell price. Bond A loan to an issuer that pays interest and returns principal at maturity. Bond Price and Yield Relationships Discount bond: coupon < CY < YTM < YTC. Premium bond: the reverse. Book Value Assets minus liabilities - the accounting value of equity. Books & Records Requirements State advisers keep records at least 5 years; the Administrator can inspect any time. Borrowing From & Lending To Clients Prohibited except with financial institutions or affiliates in narrow cases. Breakpoints & Letter of Intent Reduced sales charges on larger Class A purchases. Broker-Dealer A firm that executes trades as agent (broker) or principal (dealer). Broker-Dealer (USA Definition) A firm in the business of effecting securities trades for others or its own account. Business Continuity & Succession Planning A written plan for disasters and for the death or disability of key people. Business Cycle The recurring pattern of expansion, peak, contraction, and trough.

C

C Corporation A separate taxpayer - profits taxed at the corporate level, then again as dividends. Call Option The right to buy 100 shares at a set strike price before expiration. Callable Bond (Call Feature) The issuer may redeem the bond before maturity. Capital Asset Pricing Model (CAPM) Expected return = risk-free rate + beta x market risk premium. Capital Gain (Short-Term vs. Long-Term) Profit on a sale, taxed by how long you held it. Cash Account An account where every purchase is paid for in full, no borrowing. Cash vs. Accrual Accounting Recording transactions when cash moves versus when they are earned or incurred. Cease-and-Desist Order An Administrator's order to stop a violation - issuable without a prior hearing. Certificate of Deposit (CD) A bank time deposit paying a fixed rate for a fixed term, FDIC insured. Churning Excessive trading in a client account to generate commissions. Civil Liability & Rescission An investor sold in violation of the Act can recover the purchase price. Client Confidentiality & Privacy Client information stays confidential except with consent or as required by law. Client Profile & Data Gathering The financial and nonfinancial facts every recommendation must rest on. Closed-End Fund A fund with a fixed number of shares that trades on an exchange. Code of Ethics & Personal Trading Access persons report holdings on joining and annually, and transactions quarterly. Commercial Paper Unsecured short-term corporate debt, 270 days or less. Commingling Mixing client funds or securities with the firm's or the representative's own. Commodities & Precious Metals Raw materials and metals, held directly, through futures, or through funds. Common Stock An ownership share in a company, with voting rights and last claim on assets. Compound Annual Growth Rate (CAGR) The smoothed annual rate that gets you from start to end value. Conflicts of Interest Material conflicts must be eliminated or fully disclosed. Consent to Service of Process Appointing the Administrator to receive legal papers on the registrant's behalf. Convertible Bond / Preferred A bond or preferred stock exchangeable into a set number of common shares. Corporate SEC Filings (10-K, 10-Q, 8-K) The annual, quarterly, and material-event reports public companies file. Correlation How closely two assets move together, from -1 to +1. Cost Basis What you paid, used to compute gain or loss on sale. Cost Basis Methods & Gifted Property FIFO by default, specific identification to control gains; gifts carry over the donor's basis. Coupon Rate The bond's stated annual interest as a percentage of par. Coverdell Education Savings Account $2,000 a year per beneficiary for education, subject to income limits. Covered Call Selling a call against shares you already own to generate income. Covering (Buy to Cover) Buying shares back to close out a short position. Credit Rating An agency's assessment of an issuer's likelihood of default. Credit Risk (Default Risk) The risk a borrower fails to make promised payments. Criminal Penalties Willful violations: up to $5,000 fine and/or 3 years in prison; 5-year limit. Currency Risk (Exchange Rate Risk) The risk that exchange rate moves reduce the value of foreign investments. Currency Valuation & Exchange Rates What one currency buys of another, and who wins when it moves. Current Ratio Current assets divided by current liabilities - short-term liquidity. Current Yield Annual interest divided by the bond's current market price. Custody Holding, or having authority to obtain, client funds or securities. Cybersecurity & Data Protection Written safeguards, an incident response plan, and breach notice within 30 days.

D

De Minimis Exemption No place of business in the state and fewer than 6 clients there in 12 months. Debt-to-Equity Ratio Total liabilities divided by shareholders' equity. Defined Benefit Plan A pension promising a specific benefit; the employer bears the investment risk. Defined Contribution Plan An individual account plan whose payout depends on contributions and returns. Deflation vs. Disinflation Falling prices versus a slowing rate of price increases. Denial, Suspension & Revocation of Registration Requires both the public interest and a statutory ground. Digital Assets Blockchain-based tokens - some are securities, some commodities, some neither. Disability Insurance Income replacement if illness or injury prevents you from working. Discounted Cash Flow (DCF) Valuing an asset as the present value of its future cash flows. Discretionary Authority Deciding the asset, the amount, or buy versus sell - without asking first. Diversification Spreading capital across assets so no single failure is fatal. Dividend Discount Model A stock is worth the present value of its future dividends. Dividend Yield Annual dividends per share divided by share price. Dollar-Cost Averaging Investing a fixed amount on a fixed schedule regardless of price. Donor-Advised Fund Give now, get the deduction now, recommend grants later. Duration A bond's price sensitivity to a 1% change in interest rates.

E

Earnings Per Share (EPS) Net income attributable to each share of common stock. EBITDA Earnings before interest, taxes, depreciation, and amortization. Efficient Frontier The set of portfolios with the best return for each level of risk. Efficient Market Hypothesis Prices already reflect available information. Emergency Fund Liquid reserves covering several months of essential expenses. Employee Stock Options (ISO vs. NSO) Incentive options get capital gains treatment; nonqualified options create income at exercise. ERISA Federal law governing private-sector employee benefit plans and their fiduciaries. ESG & Values-Based Investing Applying environmental, social, governance, or religious criteria to investments. Estate & Gift Tax Exemption (Unified Credit) $15 million per person in 2026, shared between lifetime gifts and the estate. Exchange-Traded Fund (ETF) A pooled fund that trades intraday on an exchange like a stock. Exchange-Traded Note (ETN) Unsecured bank debt that tracks an index and trades like a stock. Excluded from the Investment Adviser Definition Banks, incidental professionals, broker-dealers, and publishers are not advisers at all. Exempt Reporting Adviser A private fund adviser exempt from SEC registration but still filing reports. Exempt Securities Securities exempt from state registration - never from antifraud. Exempt Transactions Transactions that need no registration of the security, whatever the security. Exemptions from State Adviser Registration An adviser with no office in the state and only institutional or very few clients there. Expected Return The probability-weighted average of possible returns. Expense Ratio The annual percentage of assets a fund charges to operate.

F

Federal Covered Adviser An adviser registered with the SEC rather than the states. Federal Covered Securities Securities the states cannot require to register (NSMIA). Federal Funds Rate The overnight interbank lending rate targeted by the Fed. Fees, Compensation & Their Disclosure Fees must be disclosed and reasonable in light of the services. Fiduciary Duty A legal obligation to act in the client's best interest. Finder A person paid to introduce investors to an issuer, without doing more. FINRA The self-regulatory organization overseeing broker-dealers. Fixed Annuity An annuity paying a guaranteed rate from the insurer's general account. Foreign Bonds (Sovereign, Corporate, Yankee) Debt issued by foreign governments and companies. Form ADV The RIA's registration and disclosure document. Form ADV Part 2 Brochure Delivery Deliver 48 hours before the contract, or at signing with a 5-business-day exit. Forms U4 & U5 (and Form ADV) Individual registration and termination forms; the adviser's own registration form. Foundations & Charities Tax-exempt organizations investing for a mission, often in perpetuity. Free Cash Flow Operating cash flow minus capital expenditures. Front Running Trading ahead of a known client order to profit from its price impact. Fundamental Analysis Valuing a company from its financial statements, management, and industry. Future Value & the Rule of 72 What money grows to at a given rate; 72 / rate = years to double. Futures Contract A standardized obligation to buy or sell an asset on a future date.

G

General Obligation (GO) Bond A municipal bond backed by the issuer's full faith, credit, and taxing power. General Partnership Co-owners share management and unlimited liability; income passes through. Gross Domestic Product (GDP) The total value of goods and services produced in an economy. Growth vs. Value Investing Paying up for fast earners versus buying out-of-favor bargains. Guarantees Against Loss No one may guarantee a client against loss or promise a result.

H

Health Savings Account (HSA) Triple tax advantage: deductible in, tax-free growth, tax-free medical withdrawals. Hedge Clause Contract language that tries to waive the client's legal rights - prohibited. Hedge Fund A lightly regulated private fund for wealthy investors, often using leverage and shorting. High-Frequency Trading Computer-driven trading in huge volume over tiny time frames. High-Yield (Junk) Bond A below-investment-grade bond paying more to compensate for default risk. Holding Period Return Total return over the whole time an investment was held. Human Capital The present value of a person's future earnings.

I

IAR Continuing Education 12 credits a year: 6 Products and Practice, 6 Ethics and Professional Responsibility. Income Statement Revenue, expenses, and profit over a period of time. Index Fund A fund that tracks a benchmark instead of trying to beat it. Indexed (Equity-Indexed) Annuity A guaranteed minimum plus credits linked to an index, with caps. Inflation A general rise in prices that erodes purchasing power. Inflation Risk (Purchasing Power Risk) The risk that returns fail to keep pace with rising prices. Initial Margin (Reg T) The equity you must put up to open a margin position - generally 50%. Initial Public Offering (IPO) A company's first sale of stock to the public. Insider Trading Trading on material non-public information in breach of a duty. Insured Municipal Bond A muni with third-party insurance guaranteeing principal and interest. Interest Rate Risk The risk that rising rates push existing bond prices down. Internal Rate of Return (IRR) The discount rate at which an investment's NPV equals zero. Investment Adviser (USA Definition) Advises on securities, as a business, for compensation. Investment Adviser Representative (IAR) An individual who gives advice or solicits advisory business for an adviser. Investment Advisers Act of 1940 Defines who is an investment adviser and imposes fiduciary duty. Investment Objectives Preservation of capital, income, growth, growth and income, speculation. Investment Policy Statement (IPS) The written plan for how a portfolio will be invested and monitored. IRA Rollovers vs. Transfers 60-day rollovers are limited to one a year; direct transfers are unlimited. IRMAA (Medicare Income-Related Adjustment) Higher Medicare premiums for higher-income beneficiaries. Issuer & Nonissuer Transactions The entity that creates a security; nonissuer trades are between investors.

J

Joint Tenants with Right of Survivorship (JTWROS) At death, the owner's share passes automatically to the surviving co-owners.

K

Know Your Customer (KYC) The obligation to gather and use essential facts about each client.

L

Leading, Coincident & Lagging Indicators Data series that move before, with, or after the business cycle. Leverage Using borrowed money to increase exposure relative to your own capital. Leveraged & Inverse Funds Funds targeting a multiple or the opposite of an index's daily return. Limit Order Trade only at your specified price or better. Limited Liability Company (LLC) Limited liability for owners with pass-through taxation by default. Limited Partnership / Direct Participation Program A flow-through structure with a managing general partner and passive limited partners. Liquidation Priority (Capital Structure) Who gets paid first when a company is liquidated. Liquidity How quickly an asset converts to cash without moving its price. Liquidity Risk The risk you cannot exit at a fair price when you need to. Long Position You own the asset and profit when its price rises. Long-Term Care Insurance Covers extended custodial care that health insurance and Medicare do not.

M

Maintenance Margin The minimum equity percentage you must keep in a margin account. Margin Borrowing from your broker to buy securities, using the account as collateral. Margin Call A demand to add cash or securities after equity falls below maintenance. Marginal vs. Effective Tax Rate The rate on your next dollar versus the average rate on all your income. Market Capitalization Share price times shares outstanding - the equity value of a company. Market Makers, Exchanges & Clearing Firms Who quotes, who matches, and who holds and settles. Market Manipulation Creating false prices or false impressions of trading activity. Market Order Execute immediately at whatever price is available. Markups & Markdowns The dealer's profit on a principal trade. Maximum Drawdown The largest peak-to-trough decline over a period. Mean, Median, Mode & Range The four basic ways to summarize a set of numbers. Misrepresenting Registration & 'Investment Counsel' Registration is not approval; 'investment counsel' is a restricted title. Modern Portfolio Theory (MPT) Optimize the portfolio as a whole, not security by security. Monetary vs. Fiscal Policy Central bank rate and money supply tools versus government tax and spending. Money Market Fund A fund of very short-term debt, managed for stability and liquidity. Municipal Bond State or local government debt, usually federally tax-exempt. Municipal Bond Tax Treatment Interest usually federally tax-free; gains are not. Mutual Fund A pooled fund priced once daily at net asset value. Mutual Fund Share Classes (A, B, C) A: front-end load. B: back-end load. C: level load.

N

Naked Short Selling Selling short without first borrowing or locating the shares. Net Asset Value (NAV) A fund's per-share value: assets minus liabilities, divided by shares. Net Investment Income Tax (NIIT) A 3.8% surtax on investment income for higher earners. Net Present Value (NPV) Present value of inflows minus the initial cost. Net Worth Total assets minus total liabilities. Nonqualified Plans (Deferred Compensation) Plans outside ERISA's qualified rules, typically for executives. Notice Filing The state filing a federal covered adviser or security makes instead of registering.

O

Offer, Sale & Jurisdiction What counts as an offer or sale, and when it happens 'in' a state. Opportunity Cost The return given up by choosing one use of money over the next best. Option Premium The price of the option contract: intrinsic value plus time value. Outside Securities Accounts Opening a personal account at another firm requires the employer's written consent.

P

Par Value (Face Value) The principal repaid at maturity, conventionally $1,000 per bond. Payment for Order Flow Market makers paying brokers to route customer orders to them. Payout Ratio The share of earnings paid out as dividends. Pension Payout Choices Single life pays more; joint and survivor protects a spouse. Per Stirpes vs. Per Capita Whether a deceased beneficiary's share goes to their descendants or to the survivors. Performance-Based Fees & Qualified Clients Allowed only for qualified clients: $1.4M with the adviser or $2.7M net worth (from June 29, 2026). Person (USA Definition) Anyone who can be held legally responsible - individuals and organizations. Political Contributions (Pay-to-Play) Contributions to officials can bar an adviser from paid government work for two years. Portability (DSUE) A surviving spouse can use the deceased spouse's unused exemption. Power of Attorney Authorizing someone to act on your behalf if you cannot. Preferred Stock Equity with a fixed dividend and priority over common, usually without votes. Prepaid Fees & Financial Requirements Prepayment over $500, six months ahead, triggers net worth and balance sheet rules. Price-to-Book (P/B) Ratio Share price divided by book value per share. Price-to-Earnings (P/E) Ratio Price per share divided by earnings per share. Principal Transactions by Advisers Selling to or buying from a client for the adviser's own account needs consent each time. Principal vs. Agency Trades Dealer trading from inventory (markup) versus broker executing for a client (commission). Private Equity & Venture Capital Funds investing in private companies - buyouts and startups. Probate The court process validating a will and distributing an estate. Prohibited Transactions (Plans & IRAs) Self-dealing between a plan or IRA and a disqualified person. Protecting Vulnerable Adults Firms may delay suspicious disbursements from seniors' accounts and report exploitation. Protective Puts & Collars Using options to limit downside on stock already owned. Put Option The right to sell 100 shares at a set strike price before expiration.

Q

Qualified Default Investment Alternative (QDIA) Where contributions go when a participant makes no choice. Qualified Dividend A dividend taxed at long-term capital gains rates. Qualified Domestic Relations Order (QDRO) A court order dividing a retirement plan in a divorce. Quantitative Easing Central bank purchases of long-dated assets to push down long rates. Quick Ratio (Acid-Test Ratio) Current assets minus inventory, divided by current liabilities.

R

Real vs. Nominal Return Return after inflation versus the headline number. Rebalancing Periodically restoring the portfolio to its target weights. Recession A significant, broad, sustained decline in economic activity. Registered Investment Adviser (RIA) A firm registered to give advice for a fee, holding fiduciary duty. Registration Effectiveness, Renewal & Withdrawal Effective at noon on the 30th day; expires December 31; withdrawal takes 30 days. Regulation Best Interest (Reg BI) SEC rule requiring broker-dealers to act in a retail client's best interest. Reinvestment Risk The risk that coupons and principal must be reinvested at lower rates. REIT A company owning income real estate that must distribute 90% of taxable income. Required Minimum Distribution (RMD) Mandatory annual withdrawals from tax-deferred accounts starting at 73. Restricted & Control Stock (Rule 144) Unregistered or insider-held stock with resale limits. Return on Equity (ROE) Net income divided by shareholders' equity. Revenue Bond A municipal bond repaid only from the revenue of a specific project. Rights vs. Warrants Rights: short-term, below market. Warrants: long-term, above market. Risk Tolerance vs. Risk Capacity Willingness to bear loss versus financial ability to absorb it. Roth IRA / Roth 401(k) Pay tax now, grow tax-free, qualified withdrawals are untaxed.

S

S Corporation A corporation that passes income through to shareholders, avoiding double tax. Safe Withdrawal Rate The percentage of a portfolio that can be spent annually with low depletion risk. Secondary (Follow-On) Offering A later offering of shares after the IPO. Sector Rotation Shifting among sectors to match the stage of the business cycle. Securities Act of 1933 The 'truth in securities' law governing new issues. Securities and Exchange Commission (SEC) The federal agency regulating securities markets. Securities Exchange Act of 1934 Governs secondary-market trading and created the SEC. Securities Registration: Coordination & Qualification Coordination piggybacks on SEC registration; qualification is state-only. Security (USA Definition) & the Howey Test Stocks, bonds, investment contracts and more - but not fixed insurance products. Selling Away An agent selling securities outside the employing firm without its knowledge. SEP IRA An employer-funded IRA plan, up to 25% of compensation. Sequence of Returns Risk The risk that poor early returns in retirement permanently damage a portfolio. Settlement (T+1) The day the trade actually closes and cash and shares change hands. Shareholder Rights (Statutory vs. Cumulative Voting) Voting, preemptive rights, dividends when declared, inspection, limited liability. Sharing in Client Profits or Losses Allowed for agents only with written approval and in proportion to their investment. Sharpe Ratio Excess return per unit of total volatility. Short Position (Short Selling) You borrow shares, sell them, and profit if the price falls. Short Squeeze Rising prices force short sellers to buy back, pushing prices higher still. SIMPLE IRA A low-cost plan for employers with 100 or fewer employees. SIPC Insurance against broker failure - not against investment losses. Slippage The difference between the expected price and the actual fill. Social Media & Electronic Communications Business messages on any channel are communications that must be supervised and kept. Social Security Benefits Full retirement age is 67; claiming at 62 reduces benefits; waiting to 70 raises them. Soft Dollars Research and brokerage services received in return for directing client trades. Sole Proprietorship A business owned by one person with no legal separation from the owner. Solo 401(k) A 401(k) for a self-employed owner with no employees other than a spouse. Sovereign Debt Bonds issued by a national government. SPAC / Blank Check / Blind Pool A shell company that raises money first and picks an acquisition later. Standard Deviation How widely returns disperse around their average. State Securities Administrator The official or agency that enforces a state's securities act. Statement of Cash Flows Where cash came from and where it went: operating, investing, financing. Step-Up in Basis Inherited assets reset to market value at the date of death. Stop Order (Stop Loss) A dormant order that becomes live once a trigger price is touched. Strategic vs. Tactical Asset Allocation Long-term policy weights versus short-term deviations from them. Strike Price (Exercise Price) The fixed price at which an option can be exercised. Structured Products Notes combining a bond with a derivative for a customized payoff. Suitability Standard A recommendation must be appropriate given the client's profile. Supervision Firms must reasonably supervise their agents and IARs. Systematic Risk (Market Risk) Risk affecting the whole market that diversification cannot remove. Systematic vs. Unsystematic Risk (Exam Classification) How the NASAA outline sorts the named types of risk.

T

Tax-Deferred vs. Tax-Free Postponing tax versus never paying it. Tax-Loss Harvesting Realizing losses to offset gains and up to $3,000 of ordinary income. Taxation of Entities & Pass-Throughs C corps pay their own tax; REITs, MLPs, LLCs and S corps mostly pass income through. Technical Analysis Forecasting prices from charts, trends, and trading volume. Tenancy by the Entirety & Community Property Marital ownership forms: TBE protects against one spouse's creditors; community property splits marital assets. Tenants in Common (TIC) Each owner's share - which can be unequal - passes to their own estate. Term Life Insurance Pure death benefit for a fixed period, no cash value. Third-Party Trading Authorization Anyone other than the owner needs written authority to trade the account. Time Horizon How long until the money is needed. Time Value of Money A dollar today is worth more than a dollar tomorrow. Time-Weighted vs. Money-Weighted Return Manager performance versus the investor's actual experience. Total Return Price change plus income, as a single return figure. Trade Deficit A country imports more goods and services than it exports. Traditional IRA / 401(k) Deduct now, grow tax-deferred, pay ordinary income tax on withdrawal. Transfer on Death (TOD) / Payable on Death (POD) A registration that passes an account to named beneficiaries outside probate. Treasury Inflation-Protected Securities (TIPS) Treasuries whose principal adjusts with the CPI. Treasury Securities US government debt: bills, notes, and bonds. Trust & Estate Accounts Accounts run by a fiduciary - a trustee or an executor - under a governing document. Types of Preferred Stock Cumulative, convertible, callable, participating, and floating-rate preferred.

U

Uniform Securities Act (USA) The model state securities law most states' 'blue sky' statutes are based on. Unit Investment Trust (UIT) A fixed, unmanaged portfolio with a set termination date. Universal Life Insurance Permanent coverage with flexible premiums and an adjustable death benefit. Unsystematic Risk (Specific Risk) Company- or industry-specific risk that diversification can eliminate. UTMA / UGMA Custodial Accounts Accounts a custodian manages for a minor, who owns the assets outright.

V

Variable Annuity An annuity whose value rides on subaccounts the owner chooses - a security. Variable Life Insurance Permanent coverage with cash value invested in subaccounts - a security.

W

Wash Sale Rule A loss is disallowed if you rebuy the same security within 30 days. Whole Life Insurance Permanent coverage with a guaranteed cash value component. Will vs. Revocable Trust Directs assets through probate versus holding them outside probate. Wrap Fee Programs & Reverse Churning One fee for advice and execution - unsuitable for clients who rarely trade.

Y

Yield Curve A plot of Treasury yields across maturities. Yield Curve Inversion Short-term yields exceeding long-term yields - a recession signal. Yield to Call (YTC) The annualized return if the bond is held until its first call date. Yield to Maturity (YTM) The total annualized return if you buy today and hold to maturity.

Z

Zero-Coupon Bond Sold at a deep discount, pays no interest, matures at par.