Financial Terms Glossary

1. SDIRA

Self-Directed Individual Retirement Account, allowing investments in alternative assets.

2. SEP IRA

Simplified Employee Pension Individual Retirement Account, primarily for self-employed individuals and small business owners.

3. Stablecoins

Cryptocurrencies pegged to stable assets like the US dollar to reduce volatility.

4. Sharpe ratio

A measure of risk-adjusted return, calculating the excess return per unit of risk.

5. Secondary market

A marketplace where investors buy and sell securities they already own.

6. Self-directed Roth IRA

A Roth IRA that allows for a broader range of investment options beyond traditional assets.

7. Stock market volatility

The degree of variation of trading prices over time in the stock market.

8. Self-directed IRA custodian

A financial institution that holds and manages the assets in a self-directed IRA.

9. Special Purpose Vehicle (SPV)

An entity created for a specific, limited purpose, often to isolate financial risk.

10. Securities and Exchange Commission

A U.S. government agency responsible for regulating the securities industry.