Abbreviations and Acronyms

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Revision as of 19:46, 17 October 2020 by LadyGeek (talk | contribs) (Added acronym, suggested by reader feedback.)
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Below are brief descriptions to assist new investors. A glossary of words relevant to investing concepts can be found here.





  • LB - Large Blend. A stock classification. See: Stock Style boxes
  • LBYM - See: Living below your means
  • LG - Large Growth. A stock classification. See: Stock Style boxes
  • LMP - Liability Matching Portfolio. A portfolio which produces enough guaranteed income to meet needs, such as an all-TIPS portfolio for retirement income. See: Matching strategy
  • LT - Long Term. Usually used to denote the maturity or duration of a fixed income security. See: Bond Style boxes
  • LTC - Long Term Care. See: Long-term care insurance
  • LTCG - Long Term Capital Gains. Gains on securities held for more than one year. See: Capital gains distribution
  • LV - Large Value. A stock classification. See: Stock Style boxes
  • MAGI - Modified Adjusted Gross Income. Adjusted Gross Income with certain items adjusted; exactly what is adjusted depends on the specific tax rule, such as Roth IRA conversions and IRA deductions not affecting IRA eligibility. See: MAGI
  • MBR - Mega Backdoor Roth. A strategy to rollover 401(k) after-tax contributions to a Roth IRA. See: After-tax 401(k)
  • MCS - Monte Carlo Simulation. A problem solving technique using multiple trial runs, called simulations, which varies numbers within statistical constraints. The solution will be a statistical distribution.
  • MF - Mutual Fund. A registered investment company that pools investor capital for the purpose of investing in securities.
  • MMF - Money Market Fund. A mutual fund often used because it can be easily converted to cash.
  • MiFID - Markets in Financial Instruments Directive. EU regulation aimed at improving European investor protections.
  • MLP - Master limited partnership
  • MOABO - Mother Of All Buying Opportunities. A Bogleheads' idiomatic term coined by forum member cfs. An early mention is in this thread: Market fluctuation in late 2008.
  • MPT - Modern Portfolio Theory, also Modern portfolio theory. Diversify your assets to minimize risk to your investments.
  • MSCI - Morgan Stanley Capital International Inc. A major provider of stock market indexes.
  • MVO - Mean Variance Optimization. A method developed by economist Harry Markowitz for diversifying a portfolio (Modern Portfolio Theory). See MPT above.
  • MYGA - Multi-Year Guaranteed Annuity
  • NAREIT - National Association of Real Estate Investment Trusts
  • NASD - National Association of Securities Dealers
  • NAV - Net Asset Value. A mutual fund's price per share.
  • NIIT - Net investment income tax. The ACA (Affordable Care Act) 3.8% surtax on Net Investment Income (NII).
  • NRA - Non-resident alien. A person who is not a US resident and not a US citizen.
  • NZD - New Zealand Dollar
  • OMY - One More Year (not investing related).
  • OP - Original Poster (not investing related).
  • PAS - Vanguard's Personal Advisory Service
  • P/B - Price Book Ratio. Also known as the "price-equity ratio." See: Price to Book
  • P/E - Price Earnings Ratio. A ratio of a company's current share price compared to its per-share earnings. See: P/E
  • PE10 - Price / Earnings ratio, averaged over the past 10 years and adjusted for inflation. Also known as CAPE. See: Shiller PE10
  • PFIC - Passive Foreign Investment Company. Investment vehicles registered outside the US which are subject to US taxation.
  • PIA - Primary Insurance Amount. The base Social Security benefit before any adjustments such as retiring before or after Full Retirement Age (FRA). See: Social Security
  • POA - Power of Attorney. A legal document giving one person (the agent or attorney-in-fact) the power to act for another person (the principal). See: List of estate planning terms (link to definition).
  • PPP - Purchasing Power Parity. A theory that measures prices at different locations using a common basket of goods. Can also mean the US Paycheck Protection Program.
  • PRIIPs - Packaged Retail Investment and Insurance-Based Products. EU regulation aimed at improving European investor protections. Related to MiFID.
  • QCD - Qualified Charitable Distribution. A qualified charitable distribution (QCD) is the withdrawal of funds from an IRA with the intention of donating them directly to a qualified charity. There are tax benefits that go along with this strategy. And QCDs can be used when taking required minimum distributions (RMDs) in retirement.
  • QDI - Qualifying Dividend Income. A dividend which meets IRS requirements to (usually) get a lower tax rate. See: Qualified dividend
  • QJSA - Qualified Joint and Survivor Annuity (pension plans)



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