A 1031 exchange is a tax break that occurs when a property owner sells a property held for business or investment purposes in order to buy a new one for the same purpose.

A 401(K) plan is a qualified retirement plan where employees reduce their salary by paying a levelled pre-tax contributions to a trust.

A 403(B) plan is a tax-deferred retirement savings program available to employees of public schools and non-profits.

A venture round is a type of funding round used for venture capital financing, by which startup companies obtain investment, generally from venture capitalists and other institutional investors.

The absorption rate is the rate at which homes sell in an area over a time period. It is calculated by the equation: absorption rate = average number of sales per month/ total number of available properties.

The accelerated cost recovery system is a depreciation method for assets with the goal of providing tax breaks. Accelerated depreciation increases the deductions asset owners are able to claim.

An acceleration clause is a provision commonly found in loan agreements or contracts that allows the lender to demand immediate and full repayment of the outstanding loan balance under certain specified circumstances. This clause grants the lender the right to accelerate the repayment schedule if the borrower fails to meet specific conditions or obligations outlined in the loan agreement.

An accredited investor is an individual or firm who meets the minimum financial threshold set by regulators in the country to be allowed to deal in securities.

Accrued interest is the interest that has been incurred but not yet paid.

Accumulation shares refer to a type of mutual fund share where any income generated by the fund is automatically reinvested in the fund. This leads to an increase in the value of each share, as the earnings are used to purchase more assets within the fund rather than being paid out to investors as cash distributions.

Acquisition is the act of obtaining control of another corporation, known as a target, either by purchasing its shares, or by purchasing its assets.

The cost of acquiring a property, including purchase price and all other allied costs.

Active income refers to the income received from performing a service, including salaries, commissions, and income from businesses in which there is material participation.

Active investment involves frequent buying and selling of assets to outperform the market, relying on ongoing market analysis and strategy adjustments.

Mortgages with interest rates indexed to a certain benchmark. Typically, the mortgage begins with a fixed rate for a period and is adjusted periodically thereafter.

The adjusted tax basis refers to the modified value of an asset or security for tax purposes, considering changes to its initial cost or value when acquired. It involves the original purchase price along with adjustments such as capital improvements, depreciation, or other alterations impacting the asset's value over time. It is crucial in determining taxable gains or losses upon the sale or disposal of the asset, influencing the reported amount on tax returns.

Administrative expenses are operational costs such as custody fees, accounting expenses, legal fees, and other administrative charges.

Advisors are professionals who provides expert advice in a particular area, often financial advice for a fee.

Advisory boards are a committee of limited partners who provide non-binding strategic advice to the management of a corporation, organization, or foundation.

Agents are an individual or entity authorized to act on behalf of another in dealings with a third party.

An alignment of interest is the alignment of the contrasting interests of the sponsor (fund manager) and the investors of a fund through the fund agreement as a compromise which brings these interests as close as possible.

Alpha refers to excess returns earned on an investment above the benchmark return when adjusted for risk.

An alternative investment fund is a private fund which is not regulated under conventional financial regulatory frameworks, mainly investing in assets other than traditional stocks and bonds, like real estate, hedge funds, private equity, and commodities.

The alternative investment market is a sub-market of the London Stock Exchange designed to help smaller, less-viable companies access capital from the public market by allowing them to raise capital with lower levels of regulatory requirements than the main market.

Alternative investments are investments made outside of the three traditional stocks, bonds and cash.

American depositary receipts refer to the stocks of most foreign companies that trade in the U.S. markets. Owning an ADR enables a person to have the right to obtain the foreign stock it represents.

Amortisation is the process of spreading out a loan into a series of fixed payments over time.

Anchor investors are typically large institutional investors who commit to purchasing a substantial number of shares in a company's initial public offering before it is made available to the public.

An anchor tenant is the major occupier of the subject property. They often receive rent discounts and incentives as reward for leasing a significant space of a shopping mall is a major retail or department store that is one of the larger stores in the mall.

Ancillary tenants are smaller tenants of a subject property that occupy less space and pay a higher rent rate.

Angel financing is when an individual or a company invest in early-stage startups, providing capital and guidance in exchange for an ownership stake.

An annual sinking fund is a designated account created to systematically accumulate funds yearly for the repayment of a debt or bond. This fund involves regular contributions and interest accrual, assisting in either retiring the debt at maturity or purchasing bonds from the open market.

Artificial Intelligence is technology that uses machine learning to think like humans and perform their tasks. It processes mass data, analyses it and establishes patterns which it can use to make conclusions.

Allocation is the distribution of investments across various types of assets or asset classes to balance risk and reward based on an individual's goals, risk tolerance, and investment horizon.

An asset class is a grouping of similar financial instruments or investments with comparable characteristics and behaviours in the market. Examples include stocks (equities), bonds (fixed income), cash equivalents, real estate, commodities, and alternative investments. Investors use asset classes to diversify their portfolios based on risk and return preferences.

Asset-Backed securities are a type of financial investment that is collateralized by an underlying pool of assets - usually ones that generate a cash flow from debt, such as loans, leases, credit card balances, or receivables.

Asset-based financing is a strategy where tangible assets owned by a company, such as real estate, inventory, or equipment, are used as collateral to secure financing or obtain a loan.

A bad boy guarantee is a specific type of personal guarantee often used in certain lending or financial agreements, particularly in commercial real estate financing. It's a provision that holds an individual (usually a borrower or guarantor) personally liable for certain actions or behaviour that could result in triggering the guarantee.

A balance sheet is a financial statement that reports a company's assets, liabilities, and shareholder equity at a specific point in time, providing a snapshot of a company's finances.

The Bank of England base rate is the interest rate that the Bank of England will charge to lend money to a commercial bank.

Bankruptcy is a legal proceeding involving a person or business that is unable to repay their outstanding debts.

The base rate is the set interest rate, as determined by the central bank or reserve within a local economy, to be applied to loans for any commercial banks.

A basis point (bps) is equal to 1/100th of 1% or .01% and is a common unit of measure for interest rate changes.

A bear market is a market condition where securities prices fall and widespread pessimism causes the negative sentiment to be self-sustaining.

A benchmark is a standard against which the performance of a security, mutual fund, or investment manager can be measured.

Beta is a measure of the volatility, or systematic risk, of a security or portfolio compared to the market as a whole.

Big data mining is the extraction of information to input into machine learning to detect patterns.

Bitcoin is a digital currency which offers the promise of lower transaction fees than traditional online payment mechanisms and is operated by a decentralized authority, unlike government-issued currencies.

A blind pool is an investment vehicle in which investors contribute funds without knowing the specific assets or investments the pool will acquire or engage in

Blockchain is a digital ledger in which transactions made in bitcoin or another cryptocurrency are recorded chronologically and publicly.

The blockchain trilemma is the belief that decentralised networks can only provide two/ three benefits of decentralisation, security and scalability at a given time.

A blue chip stock refers to the shares of an established, profitable, and well-recognized corporation, with large market capitalization, a listing on a major stock exchange, and a history of reliable growth and dividend payments.

Bonds are fixed-income securities representing debt obligations issued by governments, municipalities, or corporations, typically paying periodic interest and returning the principal amount at maturity.

Bottom-up investing is an investment strategy that focuses company-specific fundamentals when analysing whether to buy or sell shares.

Bridge financing is a type of short-term financing intended to cover a company's short-term costs until the moment when regular long-term financing is secured.

A bridge loan is a short-term financing option utilized by individuals or companies to bridge the gap until they obtain permanent financing or clear an existing debt. Typically characterized by higher interest rates, bridge loans often require collateral, like real estate or business inventory, to secure the loan.

Bull markets are a financial market of a group of securities in which prices are rising or are expected to rise.

The burn rate is the rate at which a company is spending its capital or cash reserves, typically expressed on a monthly basis or yearly basis.

A business plan is a document describing a company's business activities and how it plans to achieve its goals.

Buy down is a financing technique where the buyer attempts to improve the interest rate for the initial period of the loan through an upfront payment.

A buyout refers to the acquisition or purchase of a controlling interest in a company, often through the use of significant amounts of borrowed money (debt) or equity financing. Buyouts can take various forms and are commonly categorized into different types: management buyout (MBO), leveraged buyout (LBO), private equity buyout, public-to-private buyout.

A CSR report is a periodic report published by companies with the goal of sharing their corporate social responsibility actions and results.

Cap rate is the rate of return for a property based on its annual income. It is calculated by dividing the net operating income of the property by the total value of the property.

Capital call is a legal right of an investment firm or an insurance firm to demand a portion of the money promised to it by an investor.

Capital gains taxes are paid on the sale or profits made on a set asset or investment. Capital gains taxes apply to income received on rentals, dividends, or yield from an investment.

Capital growth is an increase in the value of an asset or investment over time. It is measured by the difference between the current market value of an investment and its purchase price.

Capital preservation refers to an investment strategy that protects capital and avoids losses in investment portfolio.

A capital stack is the structure of various funding sources, including debt and equity, arranged in order of priority for repayment in case of liquidation or financial distribution. Common equity, at the top, has the lowest priority, while senior debt at the bottom has the highest.

Capitalization is the total value of a company's outstanding securities, including debt and equity, indicating its financial structure and the sources of funds.

Carbon footprint is the total amount of greenhouse gases, including carbon dioxide and methane, that are emitted by an individual, organization, event, product, or service.

Carried interest is a share of the profits earned by the private equity firm on successful investments. It represents a share of the profits earned by the fund or partnership that is allocated to the fund managers or general partners, typically after a certain return threshold is achieved.

Cash flow is the movement of money in and out of a company.

A cash flow statement is a financial report that provides a detailed breakdown of the cash generated and used by a company during a specific period, typically quarterly or annually. It presents information about how cash has moved in and out of the business, focusing on three main categories: operating activities, investing activities, and financing activities.

A cash yield is a financial measure in real estate investment that evaluates the annual pre-tax cash flow generated by an investment property relative to the initial amount of cash invested. It represents the ratio of the property's annual pre-tax cash flow to the total cash invested, typically expressed as a percentage. The term is often used interchangeably with "Cash on Cash".

Cash on cash is a financial metric used in real estate investing to evaluate the annual pre-tax cash flow generated by an investment property relative to the initial amount of cash invested. It is calculated by dividing the property's annual pre-tax cash flow by the total cash invested. The term is sometimes used interchangeably with "Cash Yield".

Catch-up is a provision in the fund's fee structure that allows the fund manager to receive a portion of profit distributions after the investors have achieved a certain rate of return.

A closed-ended investment company is a type of investment vehicle that issues a fixed number of shares that are then traded on a stock exchange or in the over-the-counter market. Unlike open-ended funds, which issue and redeem shares based on investor demand, closed-ended investment companies have a fixed capital structure and do not issue new shares or redeem existing ones once the initial offering period has ended.

Clustering refers to the utility of artificial intelligence to detect anomalies in customer purchasing behaviour.

Co-investment is an investment strategy where investors join together, often alongside a private equity firm, to invest directly in a specific deal or company.

Collateral is an asset a borrower offers to a lender to secure the loan.

Commercial real estate refers to properties used specifically for business or income-generating purposes. They hold the potential to generate profit for the property owner through capital gain and/or rental income.

The financial regulatory authority in Luxembourg responsible for supervising and regulating the country's financial sector, including banks, investment firms, and other financial entities.

A commitment is the amount an investor obliges to pay to the fund in the subscription agreement.

A commitment fee refers to a charge or fee that limited partners in a private equity fund may pay to the general partner based on the committed but uncalled capital, also known as the commitment amount.

A commitment period is the period of time during which the fund makes new investments and draws down capital from investors for investment purposes.

Commodities are basic goods used as inputs in the production of other goods or services.

Ownership represented by common stock, entitling shareholders to voting rights and potential dividends.

Real Estate tool that helps to determine the fair market value of a landed property by evaluating similar properties that are recently sold in the same area.

The Consumer Price Index measures the overall change in consumer prices based on a representative basket of goods and services over time.

An investment strategy focusing on low-risk, income-producing properties in established markets. Core assets are stable, fully leased to quality tenants, and typically provide predictable returns with lower potential for significant appreciation.

A real estate investment approach similar to core strategy but with opportunities for slight enhancements or improvements. Core plus assets may involve moderately higher risk compared to core, aiming for slightly higher returns while still prioritizing stable income and lower volatility.

Correlation is a statistic that measures the degree to which two variables move in relation to each other.

Cost basis is the original price that an asset was acquired for. It is necessary for understanding for tax purposes as this value is used to determine the capital gain of the value depending on the current market value.

The cost of capital represents the minimum rate of return a company must achieve to generate value.

Counterparty risk is the likelihood or probability that one of those involved in a transaction might default on its contractual obligation.

Covenants exist to provide a legally binding set of terms and conditions between a borrower and lender by setting out a set of conditions that a borrower must meet to uphold a contract. They aim to mitigate risk and ensure that borrowers or issuers fulfil their obligations and maintain financial stability throughout the duration of the loan or bond.

Credit rating is an assessment of the creditworthiness of a borrower in general terms or with respect to a particular debt or financial obligation.