Don’t Understand Financial Lingo…You aren’t Alone!

A Guide to Financial Lingo

Have you been hanging around teenagers lately? If so, then you know google has become a necessity to decipher what language in which they are speaking through acronyms. If not then let me just say go ahead and get google translate ready next time they will be around.

The truth is that the financial industry has been using abbreviations for years. So in order to help us all gain foundational knowledge, I have provided a brief guide to some of the most commonly used lingo when it comes to basic finance, financial agencies and investing among others.

 

A Guide to Basic Finance:                         

YTD – Year to Date

A/C – Account

APR – Annual Percentage Rate

 

A Guide to Economics:

CPI – Consumer Price Index

GDP – Gross Domestic Product

LTV – Loan to Value

 

A Guide to Divorce Abbreviations:

FMV – Fair Market Value

MDA – Marital Dissolution Agreement

QDRO – Qualified Domestic Relations Order

 

A Guide to Investing:                                  

ROR – Rate of Return

ROI – Return on Investment

NPV – Net Present Value

TVM – Time Value of Money

YTM – Yield to Maturity

OTC – Over the Counter

LIFO – Last In, First Out

 

A Guide to the Company Profile Data:

EPS – Earnings Per Share

P/E – Price to Earnings Ratio

BV – Book Value

P&L – Profit and Loss

IPO – Initial Public Offering

FIFO – First In, First Out

 

A Guide to the Markets:                             

NYSE – New York Stock Exchange

S&P 500 – Standard & Poor’s 500

Dow – Dow Jones Industrial Average

EAFE – Europe, Australasia and Far East

NASDAQ – National Association of Securities Dealers Automated Quotations

 

A Guide to the Financial Agencies

SEC – Securities and Exchange Commission

IRS – Internal Revenue Service

DOL – Department of Labor

FINRA – Financial Industry Regulatory Authority

 

If you have heard another financial acronym that isn’t listed above, I would love to hear from you!

Let’s figure it out together and not get lost in the world of abbreviations. Feel free to set a meeting through Wise & Worthy or reach out to me directly, mdstephens@royalaa.com.

Let’s talk soon!

Maleah