A fuller guide to this term is on the way. In the meantime, the related terms below explain the ideas around it.
Related MoneyPedia terms
- Brokerage AccountAn account you open with an investment firm to buy and sell stocks, bonds, funds, and other investments.
- Capital Gains TaxA tax on the profit you make when you sell an investment or asset for more than you paid for it.
- Tax-Loss HarvestingSelling investments at a loss on purpose to offset taxable gains and lower your tax bill for the year.
- Roth IRAA retirement account funded with after-tax money that grows and comes out tax-free.
- Tax-Advantaged AccountAn account offering tax breaks on contributions, growth, or withdrawals to encourage saving for goals like retirement.
- Cost BasisThe original amount you paid for an investment, used to figure out your taxable gain or loss when you sell.
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Plain-English education — not personalized legal, tax, or investment advice.