Glossary

This glossary is generated backwards from the lessons. A term only appears here after a lesson has made it real through use, and every entry links back to that lesson. If a term is not here yet, you have not needed it yet.

Introduced in Level 0

Active income — Lesson 0.1
Asset — Lesson 0.1
Business equity — Lesson 0.3
Buy term, invest the difference — Lesson 0.4
Capital ladder — Lesson 0.3
Cash flow — Lesson 0.1
Certificate of Authority — Lesson 0.4
Compounding — Lesson 0.2
Concentration vs diversification — Lesson 0.3
Feedback loop — Lesson 0.2
Leverage point — Lesson 0.2
Liability — Lesson 0.1
Liquidity event — Lesson 0.3
Net worth — Lesson 0.1
Passive income — Lesson 0.1
Ponzi — Lesson 0.4
Principal — Lesson 0.1
Reinforcing / balancing loop — Lesson 0.2
Rule of 72 — Lesson 0.2
Savings rate — Lesson 0.2
SEC advisory — Lesson 0.4
Stock vs flow — Lesson 0.2
The U-turn pattern — Lesson 0.3
VUL — Lesson 0.4
Yield — Lesson 0.1
Hype scale — Lesson 0.4

Introduced in Level 1

Accumulating vs distributing — Lesson 1.6
Active vs passive — Lesson 1.5
Asymmetric risk-reward — Lesson 1.8
Blue chip — Lesson 1.7
Board lot — Lesson 1.7
Broker (stock) — Lesson 1.7
BSP policy rate — Lesson 1.3
Coupon — Lesson 1.4
DCA vs lump sum — Lesson 1.5
Dependency graph — Lesson 1.2
Dividend rate (MP2) — Lesson 1.4
Dividend yield — Lesson 1.7
Domicile — Lesson 1.6
EIR (effective interest rate) — Lesson 1.1
Emergency fund — Lesson 1.2
ETF — Lesson 1.5
Ex-dividend date — Lesson 1.7
Expected value — Lesson 1.8
Expense ratio / TER — Lesson 1.5
Feeder fund — Lesson 1.6
Final withholding tax — Lesson 1.1
Financial Order of Operations (FOO) — Lesson 1.2
Gross vs net — Lesson 1.1
GSED — Lesson 1.4
High-interest debt — Lesson 1.2
HMO — Lesson 1.2
Hurdle rate — Lesson 1.1
Index fund — Lesson 1.5
Inflation — Lesson 1.1
Laddering — Lesson 1.4
Liquidity spectrum — Lesson 1.8
Market-cap weighting — Lesson 1.5
Max drawdown — Lesson 1.8
MP2 — Lesson 1.4
NAVPU — Lesson 1.7
Occupancy rate — Lesson 1.7
One-line scorecard — Lesson 1.1
PDIC insurance — Lesson 1.2
PERA — Lesson 1.4
Promo vs base rate — Lesson 1.3
PSEi — Lesson 1.7
Real vs nominal return — Lesson 1.1
REIT — Lesson 1.7
Risk tolerance — Lesson 1.8
RTB (Retail Treasury Bond) — Lesson 1.4
Stock transaction tax — Lesson 1.7
Survivorship bias — Lesson 1.5
T+2 settlement — Lesson 1.7
Tax credit — Lesson 1.4
Tenor — Lesson 1.4
Term insurance — Lesson 1.2
Time deposit — Lesson 1.3
Tracking error — Lesson 1.5
UCITS — Lesson 1.6
US estate tax (non-resident) — Lesson 1.6
US-situs — Lesson 1.6
Variance drain — Lesson 1.8
VASP block — Lesson 1.6
Volatility — Lesson 1.8
W-8BEN — Lesson 1.6
Withholding treaty — Lesson 1.6

Introduced in Level 2

1701 family, the — Lesson 2.7
8% option — Lesson 2.7
Anchoring — Lesson 2.8
Asset allocation — Lesson 2.6
Assignment — Lesson 2.4
Bankability — Lesson 2.7
Bid-ask spread — Lesson 2.3
Cap rate — Lesson 2.2
Capitulation — Lesson 2.8
Core-satellite — Lesson 2.6
Correlation — Lesson 2.6
Covered call — Lesson 2.4
Covered-call ETF — Lesson 2.4
Credit rating — Lesson 2.3
Currency exposure — Lesson 2.6
Custodial risk — Lesson 2.5
Distributable income — Lesson 2.2
Dividend growth rate — Lesson 2.1
Dividend irrelevance — Lesson 2.1
Duration — Lesson 2.3
Final vs schedular tax — Lesson 2.7
Foreign tax credit — Lesson 2.7
FXTN — Lesson 2.3
Glide path — Lesson 2.6
Inflation dilution — Lesson 2.5
Investment policy statement (IPS) — Lesson 2.6
IPS trigger rules — Lesson 2.8
Kelly criterion — Lesson 2.5
Loss aversion — Lesson 2.8
Moratorium (SEC lending) — Lesson 2.5
NAV erosion — Lesson 2.4
Option premium — Lesson 2.4
OSD (optional standard deduction) — Lesson 2.7
P2P lending — Lesson 2.5
Payout ratio — Lesson 2.1
Position sizing — Lesson 2.5
Rebalancing — Lesson 2.6
Reinvestment risk — Lesson 2.3
Return of capital — Lesson 2.4
Secondary market — Lesson 2.3
Sequence-of-returns risk — Lesson 2.8
Slashing — Lesson 2.5
Sponsor risk — Lesson 2.2
Staking — Lesson 2.5
Total return — Lesson 2.1
VAT threshold — Lesson 2.7
WALE — Lesson 2.2
Worldwide income — Lesson 2.7
Yield spread — Lesson 2.2
Yield trap — Lesson 2.1
Yield to maturity (YTM) — Lesson 2.3

Introduced in Level 3

0619-E / CWT on rent — Lesson 3.10
50% rule, the — Lesson 3.4
Accessing bureau — Lesson 3.2
Acquired assets — Lesson 3.6
Act 3135 — Lesson 3.6
ADR (average daily rate) — Lesson 3.7
Amortization — Lesson 3.1
Annotation — Lesson 3.8
As-is-where-is — Lesson 3.6
Bedspace — Lesson 3.7
Cash-on-cash return — Lesson 3.4
CIC (Credit Information Corporation) — Lesson 3.2
Collection rate — Lesson 3.9
Condo corp house rules — Lesson 3.7
Credit utilization — Lesson 3.2
CROS — Lesson 3.2
Deed of sale — Lesson 3.8
Depreciation (rental) — Lesson 3.10
DSCR — Lesson 3.1
DTI / GMI ratios — Lesson 3.2
Earnest money — Lesson 3.8
Ejectment — Lesson 3.6
Encumbrance — Lesson 3.8
Equity buildup — Lesson 3.1
Exit liquidity — Lesson 3.5
Fixing period — Lesson 3.3
FX (foreign-transaction) fee — Lesson 3.2
Grace period — Lesson 3.2
GRM (gross rent multiplier) — Lesson 3.4
Holdco (holding corporation) — Lesson 3.10
Hospitality vs asset — Lesson 3.7
House-hacking — Lesson 3.1
In-house financing — Lesson 3.3
IRR (internal rate of return) — Lesson 3.4
Judicial vs extrajudicial foreclosure — Lesson 3.6
Leverage (financial) — Lesson 3.1
Lis pendens — Lesson 3.6
LTV — Lesson 3.1
MRI (mortgage redemption insurance) — Lesson 3.3
NOI (net operating income) — Lesson 3.4
Operating expense ratio — Lesson 3.4
Oversupply (Metro Manila condo) — Lesson 3.5
Payback period — Lesson 3.4
Positive / negative carry — Lesson 3.1
Pre-selling — Lesson 3.5
Pro-forma — Lesson 3.4
Property management fee — Lesson 3.9
Redemption period — Lesson 3.6
REM (real estate mortgage) — Lesson 3.2
Repricing shock — Lesson 3.1
Revolving balance — Lesson 3.2
RFO (ready for occupancy) — Lesson 3.5
RPT (real property tax) — Lesson 3.4
Seasoning — Lesson 3.2
Sec. 40(C)(2) tax-free exchange — Lesson 3.10
Secured credit card — Lesson 3.2
Security deposit (PH norms) — Lesson 3.9
Serviced / corporate rental — Lesson 3.7
STR occupancy — Lesson 3.7
Stress test (+3% repricing) — Lesson 3.1
Take-out — Lesson 3.3
TCT / CCT — Lesson 3.8
Tenant screening — Lesson 3.9
Torrens system — Lesson 3.8
Transaction friction — Lesson 3.8
Turnover cost — Lesson 3.9
Underwriting — Lesson 3.4
Vacancy allowance — Lesson 3.4
Yield-on-cost — Lesson 3.1
Yield transformation — Lesson 3.5
Zonal value — Lesson 3.8

Introduced in Level 4

Addbacks — Lesson 4.2
All-in capital — Lesson 4.1
Asset vs share deal — Lesson 4.3
BRRRR (PH-adapted) — Lesson 4.7
Buy-sell agreement — Lesson 4.6
CAR (Certificate Authorizing Registration) — Lesson 4.6
Cash-out refinance — Lesson 4.7
Chattel mortgage — Lesson 4.5
Collection — Lesson 4.5
DACI (decision-rights framework) — Lesson 4.4
Donor’s tax (PH) — Lesson 4.6
Earnout — Lesson 4.2
Escrow / holdback — Lesson 4.3
Estate freeze — Lesson 4.6
Estate tax (PH) — Lesson 4.6
First lien — Lesson 4.5
Franchise fee — Lesson 4.1
GIS (General Information Sheet) — Lesson 4.3
GM (general manager) — Lesson 4.4
Key-person risk — Lesson 4.2
Kill criteria — Lesson 4.7
LOI (letter of intent) — Lesson 4.2
Manager threshold — Lesson 4.1
Micro-holdco — Lesson 4.4
Multiple (SDE/EBITDA) — Lesson 4.2
OPC (One Person Corporation) — Lesson 4.6
Open cases (BIR) — Lesson 4.3
Operator — Lesson 4.4
Owner dependency score — Lesson 4.7
Owner hours — Lesson 4.4
Promissory note — Lesson 4.5
Quality of earnings (QoE) — Lesson 4.3
Reinvestment vs distribution — Lesson 4.4
Review cadence — Lesson 4.7
Royalty (franchise) — Lesson 4.1
SDE (seller’s discretionary earnings) — Lesson 4.1
Seller financing — Lesson 4.2
Site economics — Lesson 4.1
Sleeve cap — Lesson 4.5
SPA (sale and purchase agreement) — Lesson 4.3
Successor liability — Lesson 4.3
Unconscionability (interest rates) — Lesson 4.5
Working capital peg — Lesson 4.2

Introduced in Level 5

Alternatives (alts) — Lesson 5.1
Barbell — Lesson 5.3
Buy, borrow, die — Lesson 5.5
Buybacks — Lesson 5.3
CAPE / valuation regime — Lesson 5.3
Carried interest (carry) — Lesson 5.2
Consumption smoothing — Lesson 5.8
CRS — Lesson 5.6
Demographic dividend — Lesson 5.7
Denominator effect — Lesson 5.4
Destination allocation — Lesson 5.1
Die-With-Zero curve — Lesson 5.8
Direct deals — Lesson 5.1
Distribution waterfall — Lesson 5.2
Dry powder — Lesson 5.2
Endowment model — Lesson 5.4
Enough — Lesson 5.8
Family office — Lesson 5.1
FATCA — Lesson 5.6
First-scaled-mover — Lesson 5.7
Flag theory — Lesson 5.6
Float — Lesson 5.2
Formalization wave — Lesson 5.7
Foundation / DAF — Lesson 5.5
Fraud drift — Lesson 5.2
Golden visa — Lesson 5.6
GP / LP — Lesson 5.2
Illiquidity premium — Lesson 5.4
Index survivorship — Lesson 5.3
Lost decade — Lesson 5.3
Manager access — Lesson 5.4
Maturity gap — Lesson 5.7
Memory dividend — Lesson 5.8
Model importation — Lesson 5.7
Natural hedge — Lesson 5.3
Permanent capital — Lesson 5.2
Phase gate — Lesson 5.8
Portfolio defense — Lesson 5.1
PPLI — Lesson 5.5
Private banking tiers — Lesson 5.5
Private markets — Lesson 5.1
Promote — Lesson 5.2
Real assets — Lesson 5.1
Rollover — Lesson 5.8
S-curve — Lesson 5.2
SBLOC / lombard loan — Lesson 5.5
Substance — Lesson 5.6
Syndication — Lesson 5.2
Tax residency — Lesson 5.6
Territorial vs worldwide taxation — Lesson 5.6
Trust — Lesson 5.5
Vintage — Lesson 5.4
Volatility laundering — Lesson 5.4

The glossary is complete — all six levels are authored. A term only ever enters this page through a lesson that made it real.