Cost Basis is the purchase price of an asset. For tax purposes, Cost Basis is used to determine Capital Gains or Losses.
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Wash Sale Rule
The Wash Sale Rule is an IRS rule that prohibits one from using a loss to offset a gain(s) if the taxpayer repurchases the same security within 30 days.
Tax Loss Harvesting
To minimize tax liabilities, Tax Loss Harvesting is the practice of selling securities at a loss.
Reinvestment is the use of investment income to purchase additional shares of the asset that generated the income.
Tax Efficiency is an investment strategy in which one chooses investments based on their tax treatment in addition to all the other investment factors.
Marginal Tax Rate, or just Tax Rate, is the tax rate applied to the last dollar of income earned.
A Fiduciary is obligated to act in the best interest of the client.
A trust is a legal arrangement in which a Grantor gives to a Trustee the right to hold and invest assets for the benefit of a Beneficiary(s).
Property, money or assets that one person transfers to another while receiving nothing or less than fair market value in return.
Growth Investing is an investment strategy in which the projected future price of a company's shares is deemed more important than the its underlying value.
Fundamental Analysis is a method of analyzing a security to make investment decisions based on the company's underlying value.
Dollar-Cost Averaging is a risk management technique that aims to reduce the risk of buying or selling assets at unfavorable prices.
Diversification
Diversification strives to reduce risk by investing in uncorrelated assets. In essence, the term means, "Don't put all your eggs in one basket".
Investment Risk
Investment Risk is the likelihood that an investment's actual return will not meet that investment's expected return.
Asset Allocation
Asset allocation is an investment strategy that attempts to balance risk versus reward by adjusting the percentage of each asset in an investment portfolio.
Passive Investing is an investment strategy where an investor uses index funds vs. specifically selected assets.
Active Investing is an investment strategy where an investor, in an effort to outperform "the market", uses specifically selected assets vs. index funds.
Margin enables investors to purchase securities with borrowed money from a broker. "Reg T" establishes the minimum down payment called the “margin”.
Price is the dollar amount at which a security trades. Various types of prices include Bid, Ask, Last, and Close.
A Trade Order is a request to buy or sell a security traded on an exchange (e.g. NYSE). The main order types are market order, limit order & stop order.