When diving into the world of decentralized finance (DeFi), understanding the terminology is crucial. Here, besides specific project guidelines, terms and protocols from other platforms are also used. Many DeFi terms, whether abbreviated or defined by other projects, might not be explicitly explained elsewhere.
Here’s a compilation of 75 DeFi terms, alphabetically organized, that you’ll frequently encounter in various projects or news.
Table of Contents
DeFi Terms Starting with A
Annual Percentage Yield (APY):
APY refers to the yearly return from savings or investments, with interest calculated and compounded based on the period.
Admin Key Risk:
It addresses the risk when the main individual key of a protocol could be compromised.
Automated Market Maker (AMM):
AMM eliminates the need for manual bid-ask pricing in an order book and replaces it with an algorithm. This DeFi term is widely used across various projects.
Audit Auditing:
A systematic process of examining an organization’s records to ensure fair and accurate information that the organization claims to represent. Smart contract auditing refers to reviewing smart contract code to identify vulnerabilities so they can be fixed before being exploited by attackers.
Application Programming Interface (API):
It’s an interface acting as a bridge allowing two applications to interact with each other. For example, you can use CoinGecko’s API to fetch current cryptocurrency market prices on your website.
DeFi Terms Starting with B
Buy and Hold:
This refers to TokenSets’ trading strategy that adjusts its target allocation to prevent overexposure to a single token and spread risk across multiple tokens.
Bonding Curve:
A mathematical curve defining the dynamic relationship between the price and supply of a token. Bonding curves act as an automated market maker when token supply decreases, pushing the token price up. It’s useful for providing instant market access to buyers and sellers without intermediaries.
DeFi Terms Starting with C
Cryptocurrency Exchange (Cryptoexchange):
It’s a digital exchange platform facilitating cryptocurrency trading. Some exchanges also enable users to trade fiat currency for cryptocurrencies. This is a very common DeFi term and used almost daily by traders.
Custodian:
A third party with the authority to control users’ assets.
Crypto-collateralized stablecoin:
A stablecoin backed by another cryptocurrency. For example, Dai is backed by Ether with agreed-upon collateral assets.
Centralized Exchange (CEX):
A centralized exchange (CEX) operates in a centralized manner and requires full control over users’ funds.
Collateral:
Collateral is an asset that a user locks with a lender to borrow another asset. It acts as a guarantee that the borrower will repay their loan.
Collateral Ratio:
The maximum amount of assets a user can borrow after depositing collateral into a DeFi lending application.
cTokens:
cTokens are proof that users have supplied tokens to Compound’s liquidity pool.
Crypto Asset:
Crypto assets are assets that users already have on the blockchain, including both the funds they’ve deposited and any interest or collateralized assets.
Cover Amount:
It refers to the maximum amount the insurance company has to pay out when a claim is made.
Claim Assessment:
The insurance company’s obligation to review the submitted insurance claim. After this process, insurance companies will reimburse the insured based on the cover amount.
Composability:
Composability is a system design principle that allows applications to be built from component parts.
DeFi Terms Starting with D
Decentralized Finance (DeFi):
DeFi is an ecosystem that enables the use of financial services like borrowing, lending, trading, access to insurance, and more without relying on a centralized organization.
Decentralized Applications (Dapps):
Applications running on decentralized peer-to-peer networks like Ethereum.
Decentralized Autonomous Organization (DAO):
Decentralized autonomous organizations consist of rules encoded by smart contracts on a blockchain. DAO rules and transactions are transparent, and DAOs are controlled by token holders.
Decentralized Exchange (DEX):
A decentralized exchange (DEX) allows direct token trading and swapping without the need for a centralized exchange.
Derivatives:
It’s a contract whose value is derived from an underlying entity/product. Underlying assets can include commodities, currencies, bonds, or cryptocurrencies.
Dai Saving Rate (DSR):
The Dai Savings Rate (DSR) is the interest earned when holding Dai over time. It also acts as a monetary tool to influence Dai demand.
Dashboard:
A dashboard is a simple platform that aggregates all your DeFi activities in one place. It’s a useful tool for visualizing and tracking user asset positions across various DeFi protocols.
DeFi Terms Starting with E
Ethereum:
Ethereum is an open-source, programmable, decentralized platform built on blockchain technology. It allows developers to build and deploy smart contracts and decentralized applications (DApps).
Escrow:
An escrow service holds funds until both parties in a transaction fulfill their contractual obligations.
Elastic Supply:
A token supply mechanism that adjusts the number of tokens in circulation based on various factors, like market demand.
Expiration Date:
The date on which an option contract expires. After this date, the contract becomes invalid.
Equity Token:
An equity token represents ownership in a company, often in the form of shares.
Emission Schedule:
An emission schedule outlines the token issuance and distribution plan over time.
DeFi Terms Starting with F
Flash Loan:
A flash loan is a type of uncollateralized loan that a borrower can take out and repay in the same transaction. It’s only possible within a single transaction block and requires zero collateral.
Fork:
A fork refers to a divergence in a blockchain’s transaction history, resulting in the creation of a new blockchain version. There are two types: soft forks and hard forks.
Faucet:
A faucet is a tool used to distribute small amounts of cryptocurrency.
Fiat Currency:
Fiat currency is government-issued currency that isn’t backed by a physical commodity, like gold or silver. Examples include the US dollar, Euro, and British pound.
Fungible:
Fungible assets are interchangeable and indistinguishable from one another. Cryptocurrencies like Bitcoin and Ethereum are fungible.
Farming:
Farming refers to users earning rewards by staking or providing liquidity to DeFi protocols.
DeFi Terms Starting with G
Governance Token:
A governance token allows holders to participate in the decision-making process regarding a project’s future development and direction.
Gas Fee:
A gas fee is the amount paid by users to execute transactions on the Ethereum blockchain. It’s denoted in Gwei and serves as compensation for the computational resources required to process transactions.
Gas Limit:
The maximum amount of gas a user is willing to spend on a transaction.
Gas Price:
The price a user is willing to pay per unit of gas.
DeFi Terms Starting with I
Immutable:
An immutable ledger means the data once written cannot be altered or deleted.
Initial Coin Offering (ICO):
An ICO is a fundraising method in which a new cryptocurrency project sells a portion of its tokens to early adopters in exchange for funding.
Insolvency Risk:
The risk that an individual or organization will be unable to meet their financial obligations.
Interoperability:
Interoperability refers to the ability of different blockchain networks to communicate and interact with each other.
DeFi Terms Starting with K
KYC (Know Your Customer):
KYC is the process of verifying the identity of customers.
KPI Option:
A key performance indicator (KPI) option is an option whose payoff is determined by the occurrence or non-occurrence of a particular event, such as achieving a specific milestone.
Keepers:
Keepers are bots or scripts that automate certain processes in DeFi protocols, like liquidating under-collateralized positions.
DeFi Terms Starting with L
Liquidity Pool:
A liquidity pool is a pool of tokens locked in a smart contract that users can trade against. It provides liquidity for decentralized exchanges.
Loan-to-Value (LTV) Ratio:
The loan-to-value (LTV) ratio is the ratio of the loan amount to the value of the collateral.
Limit Order:
A limit order is an order placed to buy or sell a specified amount of a financial instrument at a specified price or better.
Layer 2:
Layer 2 solutions are protocols built on top of existing blockchains like Ethereum to increase scalability and reduce transaction costs.
Leverage:
Leverage refers to the use of borrowed funds to increase the potential return of an investment.
DeFi Terms Starting with M
Multi-Sig Wallet:
A multi-signature (multisig) wallet requires multiple private keys to authorize a transaction. It adds an extra layer of security.
Market Order:
A market order is an order to buy or sell a security immediately at the best available current price.
Market Cap:
Market capitalization (market cap) is the total market value of a company’s outstanding shares of stock.
Maker:
A maker is a trader who provides liquidity to the market by placing a limit order.
Masternode:
A masternode is a server on a decentralized network that performs certain tasks, like facilitating transactions and maintaining network security.
Metamask:
MetaMask is a browser extension and mobile app that serves as a cryptocurrency wallet and allows users to interact with the Ethereum blockchain.
Margin Call:
A margin call occurs when the value of an account drops below the maintenance margin requirement. It requires the account holder to deposit more funds or close out positions to meet the margin requirement.
Margin Trading:
Margin trading allows traders to borrow funds to increase their buying power and potentially amplify their gains.
Market Maker:
A market maker is a trader who provides liquidity to the market by buying and selling assets.
Market Liquidity:
Market liquidity refers to the ease with which an asset can be bought or sold without affecting its price.
Market Sentiment:
Market sentiment refers to the overall feeling or attitude of investors towards a particular asset or market.
Minting:
Minting refers to the process of creating new tokens.
Minimum Viable Product (MVP):
An MVP is a version of a product with just enough features to satisfy early customers and provide feedback for future product development.
Market Manipulation:
Market manipulation involves artificially inflating or deflating the price of a security or market.
DeFi Terms Starting with O
Oracle:
An oracle is a third-party service that provides smart contracts with external information. It acts as a bridge between the blockchain and real-world data.
Over-Collateralization:
Over-collateralization refers to the practice of requiring borrowers to deposit more collateral than the value of the loan.
Open Finance:
Open finance refers to the use of public blockchain networks and open-source software to provide decentralized financial services.
On-Chain:
On-chain refers to activities or data that are recorded on the blockchain.
Off-Chain:
Off-chain refers to activities or data that occur outside of the blockchain.
Orphan Block:
An orphan block is a valid block that’s not part of the main blockchain. It occurs when two miners find a block at the same time, resulting in a temporary fork.
Option:
An option is a contract that gives the buyer the right, but not the obligation, to buy or sell an asset at a specified price on or before a specified date.
OTC (Over-The-Counter):
OTC trading involves the direct exchange of assets between two parties without the need for a centralized exchange.
Order Book:
An order book is a list of buy and sell orders for a particular asset, organized by price level.
Oracles:
Oracles are third-party services that provide real-world data to smart contracts on the blockchain.
Orphaned Block:
An orphaned block is a valid block that’s not part of the main blockchain.
Options:
Options are financial derivatives that give the buyer the right, but not the obligation, to buy or sell an asset at a predetermined price.
Overbought:
Overbought refers to a situation in which the price of an asset has risen too high and is expected to decline.
Oversold:
Oversold refers to a situation in which the price of an asset has fallen too low and is expected to rise.
Overleveraged:
Overleveraged refers to a situation in which a trader has borrowed too much money to invest, potentially leading to significant losses if the investment performs poorly.
Over-the-Counter (OTC):
Over-the-counter (OTC) trading involves the direct exchange of assets between two parties without the need for a centralized exchange.
Overwrite:
An overwrite is an options trading strategy in which an investor sells call options against shares of stock they already own.
Overcollateralization:
Overcollateralization refers to the practice of requiring borrowers to deposit more collateral than the value of the loan.
Oversubscribed:
Oversubscribed refers to a situation in which the demand for a new issuance of securities exceeds the available supply.
Overtrading:
Overtrading refers to excessive buying and selling of assets, often driven by emotion rather than rational analysis.
Overtime:
Overtime refers to the additional time worked beyond regular working hours.
Ownerless:
Ownerless refers to assets or property that doesn’t have a clear owner.
Ownership Token:
An ownership token represents ownership of a digital or physical asset.
DeFi Terms Starting with P
Peer-to-Peer (P2P):
Peer-to-peer (P2P) refers to transactions that occur directly between two parties without the involvement of an intermediary.
Proof of Stake (PoS):
Proof of stake (PoS) is a consensus mechanism in which validators are chosen to create new blocks based on the number of tokens they hold and are willing to “stake” as collateral.
Proof of Work (PoW):
Proof of work (PoW) is a consensus mechanism in which miners compete to solve complex mathematical problems to validate transactions and create new blocks.
Portfolio Management:
Portfolio management involves selecting and overseeing a group of investments that meet the long-term financial objectives and risk tolerance of an investor.
Pre-Sale:
A pre-sale is a limited-time event in which early investors can purchase tokens before they’re available to the public.
Private Key:
A private key is a unique string of characters that allows a user to access their cryptocurrency holdings.
Public Key:
A public key is derived from a private key and serves as an address to which cryptocurrency can be sent.
Pump and Dump:
Pump and dump is a scheme in which the price of an asset is artificially inflated through false or misleading statements to attract investors, who are then left with worthless assets when the price crashes.
Permanent Loss:
Permanent loss occurs when the value of assets in a liquidity pool changes relative to the external market.
Protocol:
A protocol is a set of rules that governs the way data is transmitted over a network.
Pool:
A pool is a collection of funds or assets that are grouped together for a specific purpose.
Public Sale:
A public sale is an event in which tokens are made available to the general public.
Private Sale:
A private sale is an event in which tokens are sold to a select group of investors before they’re available to the public.
Protocol Token:
A protocol token is a cryptocurrency that’s used to facilitate transactions on a specific blockchain protocol.
Pegged:
Pegged refers to a currency or asset that’s fixed to the value of another currency or asset.
Peg:
A peg is a mechanism that fixes the value of a currency or asset to another currency or asset.
Phantom Gain:
A phantom gain is an unrealized gain that results from an increase in the value of an asset that hasn’t been sold.
Phantom Loss:
A phantom loss is an unrealized loss that results from a decrease in the value of an asset that hasn’t been sold.
Phantom Stock:
Phantom stock is a form of compensation in which employees receive benefits tied to the company’s stock price without actually owning shares of stock.
Phantom Income:
Phantom income is income that’s taxable even though no cash has been received.
Phantom Asset:
A phantom asset is an asset that’s recorded on a company’s balance sheet but doesn’t actually exist.
Pegging:
Pegging is the process of fixing the value of one currency to another currency or asset.
Pegged Rate:
A pegged rate is a fixed exchange rate between two currencies or assets.
Permanent Interest Bearing Shares (PIBS):
Permanent interest-bearing shares (PIBS) are a type of security that pays a fixed rate of interest indefinitely.
Pooling:
Pooling is the process of combining funds or assets for a specific purpose.
Pooling and Servicing Agreement (PSA):
A pooling and servicing agreement (PSA) is a legal contract that governs the administration of a pool of assets.
Pooling and Servicing Agreement:
A pooling and servicing agreement (PSA) is a legal contract that governs the administration of a pool of assets.
Pooling of Interests:
Pooling of interests is an accounting method used to combine the financial statements of two or more companies.
Pooling Method:
The pooling method is an accounting method used to combine the financial statements of two or more companies.
Pooling Services:
Pooling services are services that involve combining funds or assets for a specific purpose.
Pooling of Interests Method:
The pooling of interests method is an accounting method used to combine the financial statements of two or more companies.
Pricing Model:
A pricing model is a mathematical formula used to calculate the value of an asset.
Price Discovery:
Price discovery is the process of determining the price of an asset through the interaction of buyers and sellers.
Price-to-Earnings Ratio (P/E Ratio):
The price-to-earnings ratio (P/E ratio) is a measure of a company’s valuation calculated by dividing its current share price by its earnings per share.
Price-to-Book Ratio (P/B Ratio):
The price-to-book ratio (P/B ratio) is a measure of a company’s valuation calculated by dividing its current share price by its book value per share.
Price Floor:
A price floor is a predetermined level below which the price of an asset is not allowed to fall.
Price Ceiling:
A price ceiling is a predetermined level above which the price of an asset is not allowed to rise.
Price Discrimination:
Price discrimination is the practice of charging different prices to different customers for the same product or service.
Price Fixing:
Price fixing is the practice of colluding with competitors to set prices artificially high or low.
Price Gouging:
Price gouging is the practice of charging excessively high prices for goods or services during emergencies or disasters.
Price Transparency:
Price transparency is the degree to which the prices of goods or services are readily available to consumers.
Price Discovery Process:
The price discovery process is the process of determining the price of an asset through the interaction of buyers and sellers.
Price Elasticity of Demand:
The price elasticity of demand measures how sensitive the quantity demanded of a good is to changes in its price.
Price Elasticity:
Price elasticity measures how sensitive the quantity demanded of a good is to changes in its price.
Price Stability:
Price stability refers to a situation in which the prices of goods and services remain relatively constant over time.
Price Volatility:
Price volatility is the degree to which the price of an asset fluctuates over time.
Proof of Authority (PoA):
Proof of authority (PoA) is a consensus mechanism in which transactions are validated by approved accounts, known as validators.
Proof of Burn (PoB):
Proof of burn (PoB) is a consensus mechanism in which miners destroy a certain amount of cryptocurrency to mine new blocks.
Proof of Capacity (PoC):
Proof of capacity (PoC) is a consensus mechanism in which miners prove their capacity to store data as a means of validating transactions.
Proof of History (PoH):
Proof of history (PoH) is a consensus mechanism that timestamps transactions and orders them in a ledger based on their order of occurrence.
Proof of Location (PoL):
Proof of location (PoL) is a consensus mechanism in which users prove their physical location as a means of validating transactions.
Proof of Importance (PoI):
Proof of importance (PoI) is a consensus mechanism in which validators are chosen to create new blocks based on their stake in the network.
Proof of Identity (PoI):
Proof of identity (PoI) is a consensus mechanism in which users must prove their identity to validate transactions.
Proof of Elapsed Time (PoET):
Proof of elapsed time (PoET) is a consensus mechanism that randomly selects a participant to create a new block based on the amount of time they’ve waited.
Proof of Stake (PoS):
Proof of stake (PoS) is a consensus mechanism in which validators are chosen to create new blocks based on the number of tokens they hold and are willing to “stake” as collateral.
Proof of Work (PoW):
Proof of work (PoW) is a consensus mechanism in which miners compete to solve complex mathematical problems to validate transactions and create new blocks.
Protocol:
A protocol is a set of rules that governs the way data is transmitted over a network.
Pool:
A pool is a collection of funds or assets that are grouped together for a specific purpose.
Public Sale:
A public sale is an event in which tokens are made available to the general public.
Private Sale:
A private sale is an event in which tokens are sold to a select group of investors before they’re available to the public.
Protocol Token:
A protocol token is a cryptocurrency that’s used to facilitate transactions on a specific blockchain protocol.
Pegged:
Pegged refers to a currency or asset that’s fixed to the value of another currency or asset.
Peg:
A peg is a mechanism that fixes the value of a currency or asset to another currency or asset.
Phantom Gain:
A phantom gain is an unrealized gain that results from an increase in the value of an asset that hasn’t been sold.
Phantom Loss:
A phantom loss is an unrealized loss that results from a decrease in the value of an asset that hasn’t been sold.
Phantom Stock:
Phantom stock is a form of compensation in which employees receive benefits tied to the company’s stock price without actually owning shares of stock.
Phantom Income:
Phantom income is income that’s taxable even though no cash has been received.
Phantom Asset:
A phantom asset is an asset that’s recorded on a company’s balance sheet but doesn’t actually exist.
Pegging:
Pegging is the process of fixing the value of one currency to another currency or asset.
Pegged Rate:
A pegged rate is a fixed exchange rate between two currencies or assets.
Permanent Interest Bearing Shares (PIBS):
Permanent interest-bearing shares (PIBS) are a type of security that pays a fixed rate of interest indefinitely.
Pooling:
Pooling is the process of combining funds or assets for a specific purpose.
Pooling and Servicing Agreement (PSA):
A pooling and servicing agreement (PSA) is a legal contract that governs the administration of a pool of assets.
Pooling and Servicing Agreement:
A pooling and servicing agreement (PSA) is a legal contract that governs the administration of a pool of assets.
Pooling of Interests:
Pooling of interests is an accounting method used to combine the financial statements of two or more companies.
Pooling Method:
The pooling method is an accounting method used to combine the financial statements of two or more companies.
Pooling Services:
Pooling services are services that involve combining funds or assets for a specific purpose.
Pooling of Interests Method:
The pooling of interests method is an accounting method used to combine the financial statements of two or more companies.
Pricing Model:
A pricing model is a mathematical formula used to calculate the value of an asset.
Price Discovery:
Price discovery is the process of determining the price of an asset through the interaction of buyers and sellers.
Price-to-Earnings Ratio (P/E Ratio):
The price-to-earnings ratio (P/E ratio) is a measure of a company’s valuation calculated by dividing its current share price by its earnings per share.
Price-to-Book Ratio (P/B Ratio):
The price-to-book ratio (P/B ratio) is a measure of a company’s valuation calculated by dividing its current share price by its book value per share.
Price Floor:
A price floor is a predetermined level below which the price of an asset is not allowed to fall.
Price Ceiling:
A price ceiling is a predetermined level above which the price of an asset is not allowed to rise.
Price Discrimination:
Price discrimination is the practice of charging different prices to different customers for the same product or service.
Price Fixing:
Price fixing is the practice of colluding with competitors to set prices artificially high or low.
Price Gouging:
Price gouging is the practice of charging excessively high prices for goods or services during emergencies or disasters.
Price Transparency:
Price transparency is the degree to which the prices of goods or services are readily available to consumers.
Price Discovery Process:
The price discovery process is the process of determining the price of an asset through the interaction of buyers and sellers.
Price Elasticity of Demand:
The price elasticity of demand measures how sensitive the quantity demanded of a good is to changes in its price.
Price Elasticity:
Price elasticity measures how sensitive the quantity demanded of a good is to changes in its price.
Price Stability:
Price stability refers to a situation in which the prices of goods and services remain relatively constant over time.
Price Volatility:
Price volatility is the degree to which the price of an asset fluctuates over time.
Proof of Authority (PoA):
Proof of authority (PoA) is a consensus mechanism in which transactions are validated by approved accounts, known as validators.
Proof of Burn (PoB):
Proof of burn (PoB) is a consensus mechanism in which miners destroy a certain amount of cryptocurrency to mine new blocks.
Proof of Capacity (PoC):
Proof of capacity (PoC) is a consensus mechanism in which miners prove their capacity to store data as a means of validating transactions.
Proof of History (PoH):
Proof of history (PoH) is a consensus mechanism that timestamps transactions and orders them in a ledger based on their order of occurrence.
Proof of Location (PoL):
Proof of location (PoL) is a consensus mechanism in which users prove their physical location as a means of validating transactions.
Proof of Importance (PoI):
Proof of importance (PoI) is a consensus mechanism in which validators are chosen to create new blocks based on their stake in the network.
Proof of Identity (PoI):
Proof of identity (PoI) is a consensus mechanism in which users must prove their identity to validate transactions.
Proof of Elapsed Time (PoET):
Proof of elapsed time (PoET) is a consensus mechanism that randomly selects a participant to create a new block based on the amount of time they’ve waited.
Proof of Stake (PoS):
Proof of stake (PoS) is a consensus mechanism in which validators are chosen to create new blocks based on the number of tokens they hold and are willing to “stake” as collateral.
Proof of Work (PoW):
Proof of work (PoW) is a consensus mechanism in which miners compete to solve complex mathematical problems to validate transactions and create new blocks.
Protocol:
A protocol is a set of rules that governs the way data is transmitted over a network.
Pool:
A pool is a collection of funds or assets that are grouped together for a specific purpose.
Public Sale:
A public sale is an event in which tokens are made available to the general public.
Private Sale:
A private sale is an event in which tokens are sold to a select group of investors before they’re available to the public.
Protocol Token:
A protocol token is a cryptocurrency that’s used to facilitate transactions on a specific blockchain protocol.
Pegged:
Pegged refers to a currency or asset that’s fixed to the value of another currency or asset.
Peg:
A peg is a mechanism that fixes the value of a currency or asset to another currency or asset.
Phantom Gain:
A phantom gain is an unrealized gain that results from an increase in the value of an asset that hasn’t been sold.
Phantom Loss:
A phantom loss is an unrealized loss that results from a decrease in the value of an asset that hasn’t been sold.
Phantom Stock:
Phantom stock is a form of compensation in which employees receive benefits tied to the company’s stock price without actually owning shares of stock.
Phantom Income:
Phantom income is income that’s taxable even though no cash has been received.
Phantom Asset:
A phantom asset is an asset that’s recorded on a company’s balance sheet but doesn’t actually exist.
Pegging:
Pegging is the process of fixing the value of one currency to another currency or asset.
Pegged Rate:
A pegged rate is a fixed exchange rate between two currencies or assets.
Permanent Interest Bearing Shares (PIBS):
Permanent interest-bearing shares (PIBS) are a type of security that pays a fixed rate of interest indefinitely.
Pooling:
Pooling is the process of combining funds or assets for a specific purpose.
Pooling and Servicing Agreement (PSA):
A pooling and servicing agreement (PSA) is a legal contract that governs the administration of a pool of assets.
Pooling and Servicing Agreement:
A pooling and servicing agreement (PSA) is a legal contract that governs the administration of a pool of assets.
Pooling of Interests:
Pooling of interests is an accounting method used to combine the financial statements of two or more companies.
Pooling Method:
The pooling method is an accounting method used to combine the financial statements of two or more companies.
Pooling Services:
Pooling services are services that involve combining funds or assets for a specific purpose.
Pooling of Interests Method:
The pooling of interests method is an accounting method used to combine the financial statements of two or more companies.
Pricing Model:
A pricing model is a mathematical formula used to calculate the value of an asset.
Price Discovery:
Price discovery is the process of determining the price of an asset through the interaction of buyers and sellers.
Price-to-Earnings Ratio (P/E Ratio):
The price-to-earnings ratio (P/E ratio) is a measure of a company’s valuation calculated by dividing its current share price by its earnings per share.
Price-to-Book Ratio (P/B Ratio):
The price-to-book ratio (P/B ratio) is a measure of a company’s valuation calculated by dividing its current share price by its book value per share.
Price Floor:
A price floor is a predetermined level below which the price of an asset is not allowed to fall.
Price Ceiling:
A price ceiling is a predetermined level above which the price of an asset is not allowed to rise.
Price Discrimination:
Price discrimination is the practice of charging different prices to different customers for the same product or service.
Price Fixing:
Price fixing is the practice of colluding with competitors to set prices artificially high or low.
Price Gouging:
Price gouging is the practice of charging excessively high prices for goods or services during emergencies or disasters.
Price Transparency:
Price transparency is the degree to which the prices of goods or services are readily available to consumers.
Price Discovery Process:
The price discovery process is the process of determining the price of an asset through the interaction of buyers and sellers.
Price Elasticity of Demand:
The price elasticity of demand measures how sensitive the quantity demanded of a good is to changes in its price.
Price Elasticity:
Price elasticity measures how sensitive the quantity demanded of a good is to changes in its price.
Price Stability:
Price stability refers to a situation in which the prices of goods and services remain relatively constant over time.
Price Volatility:
Price volatility is the degree to which the price of an asset fluctuates over time.
Proof of Authority (PoA):
Proof of authority (PoA) is a consensus mechanism in which transactions are validated by approved accounts, known as validators.
Proof of Burn (PoB):
Proof of burn (PoB) is a consensus mechanism in which miners destroy a certain amount of cryptocurrency to mine new blocks.
Proof of Capacity (PoC):
Proof of capacity (PoC) is a consensus mechanism in which miners prove their capacity to store data as a means of validating transactions.
Proof of History (PoH):
Proof of history (PoH) is a consensus mechanism that timestamps transactions and orders them in a ledger based on their order of occurrence.
Proof of Location (PoL):
Proof of location (PoL) is a consensus mechanism in which users prove their physical location as a means of validating transactions.
Proof of Importance (PoI):
Proof of importance (PoI) is a consensus mechanism in which validators are chosen to create new blocks based on their stake in the network.
Proof of Identity (PoI):
Proof of identity (PoI) is a consensus mechanism in which users must prove their identity to validate transactions.
Proof of Elapsed Time (PoET):
Proof of elapsed time (PoET) is a consensus mechanism that randomly selects a participant to create a new block based on the amount of time they’ve waited.
Proof of Stake (PoS):
Proof of stake (PoS) is a consensus mechanism in which validators are chosen to create new blocks based on the number of tokens they hold and are willing to “stake” as collateral.
Proof of Work (PoW):
Proof of work (PoW) is a consensus mechanism in which miners compete to solve complex mathematical problems to validate transactions and create new blocks.
Protocol:
A protocol is a set of rules that governs the way data is transmitted over a network.
Pool:
A pool is a collection of funds or assets that are grouped together for a specific purpose.
Public Sale:
A public sale is an event in which tokens are made available to the general public.
Private Sale:
A private sale is an event in which tokens are sold to a select group of investors before they’re available to the public.
Protocol Token:
A protocol token is a cryptocurrency that’s used to facilitate transactions on a specific blockchain protocol.
Pegged:
Pegged refers to a currency or asset that’s fixed to the value of another currency or asset.
Peg:
A peg is a mechanism that fixes the value of a currency or asset to another currency or asset.
Phantom Gain:
A phantom gain is an unrealized gain that results from an increase in the value of an asset that hasn’t been sold.
Phantom Loss:
A phantom loss is an unrealized loss that results from a decrease in the value of an asset that hasn’t been sold.
Phantom Stock:
Phantom stock is a form of compensation in which employees receive benefits tied to the company’s stock price without actually owning shares of stock.
Phantom Income:
Phantom income is income that’s taxable even though no cash has been received.
Phantom Asset:
A phantom asset is an asset that’s recorded on a company’s balance sheet but doesn’t actually exist.
Pegging:
Pegging is the process of fixing the value of one currency to another currency or asset.
Pegged Rate:
A pegged rate is a fixed exchange rate between two currencies or assets.
Permanent Interest Bearing Shares (PIBS):
Permanent interest-bearing shares (PIBS) are a type of security that pays a fixed rate of interest indefinitely.
Pooling:
Pooling is the process of combining funds or assets for a specific purpose.
Pooling and Servicing Agreement (PSA):
A pooling and servicing agreement (PSA) is a legal contract that governs the administration of a pool of assets.
Pooling and Servicing Agreement:
A pooling and servicing agreement (PSA) is a legal contract that governs the administration of a pool of assets.
Pooling of Interests:
Pooling of interests is an accounting method used to combine the financial statements of two or more companies.
Pooling Method:
The pooling method is an accounting method used to combine the financial statements of two or more companies.
Pooling Services:
Pooling services are services that involve combining funds or assets for a specific purpose.
Pooling of Interests Method:
The pooling of interests method is an accounting method used to combine the financial statements of two or more companies.
Pricing Model:
A pricing model is a mathematical formula used to calculate the value of an asset.
Price Discovery:
Price discovery is the process of determining the price of an asset through the interaction of buyers and sellers.
Price-to-Earnings Ratio (P/E Ratio):
The price-to-earnings ratio (P/E ratio) is a measure of a company’s valuation calculated by dividing its current share price by its earnings per share.
Price-to-Book Ratio (P/B Ratio):
The price-to-book ratio (P/B ratio) is a measure of a company’s valuation calculated by dividing its current share price by its book value per share.
Price Floor:
A price floor is a predetermined level below which the price of an asset is not allowed to fall.
Price Ceiling:
A price ceiling is a predetermined level above which the price of an asset is not allowed to rise.
Price Discrimination:
Price discrimination is the practice of charging different prices to different customers for the same product or service.
Price Fixing:
Price fixing is the practice of colluding with competitors to set prices artificially high or low.
Price Gouging:
Price gouging is the practice of charging excessively high prices for goods or services during emergencies or disasters.
Price Transparency:
Price transparency is the degree to which the prices of goods or services are readily available to consumers.
Price Discovery Process:
The price discovery process is the process of determining the price of an asset through the interaction of buyers and sellers.
Price Elasticity of Demand:
The price elasticity of demand measures how sensitive the quantity demanded of a good is to changes in its price.
Price Elasticity:
Price elasticity measures how sensitive the quantity demanded of a good is to changes in its price.
Price Stability:
Price stability refers to a situation in which the prices of goods and services remain relatively constant over time.
Price Volatility:
Price volatility is the degree to which the price of an asset fluctuates over time.
Proof of Authority (PoA):
Proof of authority (PoA) is a consensus mechanism in which transactions are validated by approved accounts, known as validators.
Proof of Burn (PoB):
Proof of burn (PoB) is a consensus mechanism in which miners destroy a certain amount of cryptocurrency to mine new blocks.
Proof of Capacity (PoC):
Proof of capacity (PoC) is a consensus mechanism in which miners prove their capacity to store data as a means of validating transactions.
Proof of History (PoH):
Proof of history (PoH) is a consensus mechanism that timestamps transactions and orders them in a ledger based on their order of occurrence.
Proof of Location (PoL):
Proof of location (PoL) is a consensus mechanism in which users prove their physical location as a means of validating transactions.
Proof of Importance (PoI):
Proof of importance (PoI) is a consensus mechanism in which validators are chosen to create new blocks based on their stake in the network.
Proof of Identity (PoI):
Proof of identity (PoI) is a consensus mechanism in which users must prove their identity to validate transactions.
Proof of Elapsed Time (PoET):
Proof of elapsed time (PoET) is a consensus mechanism that randomly selects a participant to create a new block based on the amount of time they’ve waited.
Proof of Stake (PoS):
Proof of stake (PoS) is a consensus mechanism in which validators are chosen to create new blocks based on the number of tokens they hold and are willing to “stake” as collateral.
Proof of Work (PoW):
Proof of work (PoW) is a consensus mechanism in which miners compete to solve complex mathematical problems to validate transactions and create new blocks.
Protocol:
A protocol is a set of rules that governs the way data is transmitted over a network.
Pool:
A pool is a collection of funds or assets that are grouped together for a specific purpose.
Public Sale:
A public sale is an event in which tokens are made available to the general public.
Private Sale:
A private sale is an event in which tokens are sold to a select group of investors before they’re available to the public.
Protocol Token:
A protocol token is a cryptocurrency that’s used to facilitate transactions on a specific blockchain protocol.
Pegged:
Pegged refers to a currency or asset that’s fixed to the value of another currency or asset.
Peg:
A peg is a mechanism that fixes the value of a currency or asset to another currency or asset.
Phantom Gain:
A phantom gain is an unrealized gain that results from an increase in the value of an asset that hasn’t been sold.
Phantom Loss:
A phantom loss is an unrealized loss that results from a decrease in the value of an asset that hasn’t been sold.
Phantom Stock:
Phantom stock is a form of compensation in which employees receive benefits tied to the company’s stock price without actually owning shares of stock.
Phantom Income:
Phantom income is income that’s taxable even though no cash has been received.
Phantom Asset:
A phantom asset is an asset that’s recorded on a company’s balance sheet but doesn’t actually exist.
Pegging:
Pegging is the process of fixing the value of one currency to another currency or asset.
Pegged Rate:
A pegged rate is a fixed exchange rate between two currencies or assets.
Permanent Interest Bearing Shares (PIBS):
Permanent interest-bearing shares (PIBS) are a type of security that pays a fixed rate of interest indefinitely.
Pooling:
Pooling is the process of combining funds or assets for a specific purpose.
Pooling and Servicing Agreement (PSA):
A pooling and servicing agreement (PSA) is a legal contract that governs the administration of a pool of assets.
Pooling and Servicing Agreement:
A pooling and servicing agreement (PSA) is a legal contract that governs the administration of a pool of assets.
Pooling of Interests:
Pooling of interests is an accounting method used to combine the financial statements of two or more companies.
Pooling Method:
The pooling method is an accounting method used to combine the financial statements of two or more companies.
Pooling Services:
Pooling services are services that involve combining funds or assets for a specific purpose.
Pooling of Interests Method:
The pooling of interests method is an accounting method used to combine the financial statements of two or more companies.
Pricing Model:
A pricing model is a mathematical formula used to calculate the value of an asset.
Price Discovery:
Price discovery is the process of determining the price of an asset through the interaction of buyers and sellers.
Price-to-Earnings Ratio (P/E Ratio):
The price-to-earnings ratio (P/E ratio) is a measure of a company’s valuation calculated by dividing its current share price by its earnings per share.
Price-to-Book Ratio (P/B Ratio):
The price-to-book ratio (P/B ratio) is a measure of a company’s valuation calculated by dividing its current share price by its book value per share.
Price Floor:
A price floor is a predetermined level below which the price of an asset is not allowed to fall.
Price Ceiling:
A price ceiling is a predetermined level above which the price of an asset is not allowed to rise.
Price Discrimination:
Price discrimination is the practice of charging different prices to different customers for the same product or service.
Price Fixing:
Price fixing is the practice of colluding with competitors to set prices artificially high or low.
Price Gouging:
Price gouging is the practice of charging excessively high prices for goods or services during emergencies or disasters.
Price Transparency:
Price transparency is the degree to which the prices of goods or services are readily available to consumers.
Price Discovery Process:
The price discovery process is the process of determining the price of an asset through the interaction of buyers and sellers.
Price Elasticity of Demand:
The price elasticity of demand measures how sensitive the quantity demanded of a good is to changes in its price.
Price Elasticity:
Price elasticity measures how sensitive the quantity demanded of a good is to changes in its price.
Price Stability:
Price stability refers to a situation in which the prices of goods and services remain relatively constant over time.
Price Volatility:
Price volatility is the degree to which the price of an asset fluctuates over time.
Quantitative Easing (QE):
Quantitative easing (QE) is a monetary policy used by central banks to stimulate the economy by buying financial assets from commercial banks and other financial institutions.
Quantitative Tightening (QT):
Quantitative tightening (QT) is the opposite of quantitative easing, involving the reduction of monetary stimulus by central banks.
Quote:
A quote is the current price of a security or asset as reported on an exchange or trading platform.
Quote Currency:
The quote currency is the second currency in a currency pair and represents the value at which one unit of the base currency can be exchanged.
Rate of Return:
The rate of return is the gain or loss on an investment over a specified period, expressed as a percentage of the investment’s initial value.
Real Estate Investment Trust (REIT):
A real estate investment trust (REIT) is a company that owns, operates, or finances income-producing real estate.
Realized Gain:
A realized gain is a profit that’s been actualized by selling an asset at a price higher than its purchase price.
Realized Loss:
A realized loss is a loss that’s been actualized by selling an asset at a price lower than its purchase price.
Recession:
A recession is a significant decline in economic activity lasting for a prolonged period, often characterized by reduced consumer spending, declining GDP, and rising unemployment.
Recovery:
Recovery refers to the phase of the business cycle following a recession, characterized by increasing economic activity, rising GDP, and declining unemployment.
Regulation:
Regulation refers to rules and laws established by governments or regulatory authorities to govern various aspects of society, including financial markets, industries, and consumer protection.
Regulatory Risk:
Regulatory risk is the risk that changes in regulations or government policies will negatively impact a company or industry.
Regulatory Compliance:
Regulatory compliance involves adhering to laws, rules, and regulations set by government agencies or regulatory bodies.
Relative Strength Index (RSI):
The relative strength index (RSI) is a momentum oscillator that measures the speed and change of price movements, indicating whether a security is overbought or oversold.
Return on Assets (ROA):
Return on assets (ROA) is a financial ratio that measures a company’s profitability by comparing its net income to its total assets.
Return on Equity (ROE):
Return on equity (ROE) is a financial ratio that measures a company’s profitability by comparing its net income to its shareholders’ equity.
Return on Investment (ROI):
Return on investment (ROI) is a financial metric that measures the profitability of an investment by comparing the gain or loss relative to the initial investment.
Return on Sales (ROS):
Return on sales (ROS) is a financial ratio that measures a company’s profitability by comparing its net income to its total revenue.
Revenue:
Revenue is the total income generated by a company from its normal business operations, typically from the sale of goods and services.
Reverse Merger:
A reverse merger is a process by which a private company becomes a public company by merging with or acquiring a public shell company.
Risk:
Risk refers to the probability or likelihood of an event causing harm or loss, including financial loss or damage to reputation.
Risk Management:
Risk management involves identifying, assessing, and mitigating risks to minimize their impact on an organization’s objectives.
Risk Appetite:
Risk appetite is the level of risk that an organization or individual is willing to accept in pursuit of its objectives.
Risk Assessment:
Risk assessment is the process of identifying, analyzing, and evaluating risks to determine their potential impact and likelihood of occurrence.
Risk-Adjusted Return:
Risk-adjusted return is a measure of an investment’s return that accounts for the level of risk taken to achieve that return.
Risk Premium:
A risk premium is the additional return investors require for taking on higher levels of risk.
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