A beneficiary is a person or entity who is designated to receive the benefits of property owned by somoene else. Beneficiaries often receive these benefits as a part of an inheritance.

A broker is an individual or firm that acts as the intermediary between an investor and a securities exchange. Brokers services are compensated through commissions, fees or through the exchange itself.

A CPFA is a financial professional that demonstrates expertise and experience working with retirement plans. CPFAs create and carry out retirement plans for individual clients.

Cost basis is the original value or purchase price of an asset for tax purposes. Cost basis is used to calculate capital gains/losses, determining whether an investment is profitable or not.

A custodian is a financial institution that holds customers' securities for safekeeping to prevent them from being stolen or lost. Frequently, custodian banks manage customers' accounts and transactions, account for the status of assets, and ensure compliance with tax regulations.

An estate is everything comprising the net worth of an individual including land, real estate, personal possessions, financial securities, cash, and other assets the individual owns or has a controlling interest in.

An ETF is a type of pooled investment security that often tracks a particular index, sector, commodity, or other asset that can be purchased or sold on a stock exchange just as a regular stock can be.

An executor of an estate is an individual appointed to administer the last will and testament of a deceased person. The main duty of an executor is to carry out the instructions to manage the affairs and wishes of the deceased.

A fiduciary is an individual or organization that makes financial decisions on behalf of another party and is legally obligated to act in the client's best interests.

Financial advisors are professionals that help clients make decisions about what to do with their money. Advisors construct personalized financial plans that aim to achieve the financial goals of clients including investment options, savings, budgets, insurance policies, and tax strategies.

Fundamental analysis is a method of determining a stock's real, intrinsic, or "fair market" value. Fundamental analysts typically study the overall state of the economy, the strength of the industry, and the financial performance of the company.

A health care proxy is a document designating another individual the power to make health care decisions on behalf of the patient. Also known as a durable medical power of attorney.

Liquidity refers to the efficiency or ease with which an asset or security can be converted into ready cash without affecting its market price. The most liquid asset of all is cash itself. The more liquid an asset is, the easier and more efficient it is to turn it back into cash. Less liquid assets take more time and may have a higher cost.

Liquidity refers to the efficiency or ease with which an asset or security can be converted into ready cash without affecting its market price. The most liquid asset of all is cash itself. The more liquid an asset is, the easier and more efficient it is to turn it back into cash. Less liquid assets take more time and may have a higher cost.

Mutual funds are pooled assets from shareholders to invest in securities such as stocks, bonds, money market instruments and other assets. Professional money managers allocate the fund's assets and attempt to produce capital gains or income for the fund's investors.

A portfolio manager is a person responsible for investing a mutual, exchange traded, or closed-end fund's assets, implementing their investment strategy, and managing day-to-day portfolio trading.

POA is the legal authorization for a designated individual to act on behalf of the individual. The two main POA types are financial and health care.

Probate court is a segment of the judicial system that oversees the execution of wills, the handling of estates, conservatorships, and guardianships.

RoR is the net gain or loss of an investment over a period of time, expressed as a percentage of the investment's initial cost.

An RIA manages the assets of high-net-worth individuals and institutional investors. RIAs must register with the Securities and Exchange Commission and any states in which they operate. Revenue for RIAs in earned through a management fee -- a percentage of assets held for a client.

When an individual with a tax-deferred retirement account (traditional IRA, 401(k), etc.) reaches the age of 73, the government requires a certain amount to be taken from the account each year in order for the taxes to be paid on the account.

ROI is a performance measure used to evaluate the efficiency/profitability of an investment. The calculation measures the amount of return on an investment relative to its cost.

RIAs are legally bound to serve the financial interests of their clients. Broker-dealers have more flexibility and their investments are bound by the "suitability" standard. Brokers register with the Financial Industry Regulatory Authority (FINRA), while RIAs register through the Securities and Exchange Commission (SEC).

A securities exchange is a market in which buyers connect with sellers. Common examples of these exchanges are the New York Stock Exchange or the Nasdaq.

Technical analysis is a method of analyzing and predicting stock movements based on past market data including price and volume.

TVM is the concept that money today is more valuable than money tomorrow. TVM is the reason for which interest rates are charged when money is borrowed.