The world of finance is confusing enough without all the need-to-know acronyms and abbreviations. But once you know the language of finance, you’ll find it’s much easier to navigate your own economic situation. The following list of financial abbreviations includes abbreviations for business, banks, finance, and the stock market.
Banking Acronyms and Financial Abbreviations
There are some abbreviations and acronyms that refer to financial matters in general. Others are used more by businesses and accountants. General financial abbreviations and acronyms include:
ACH - Automated Clearing House
AIR - Assumed Interest Rate
APR - Annual Percentage Rate
APT - Asset Protection Trust
APY - Annual Percentage Yield
ARM - Adjustable Rate Mortgage
ATM - Automated Teller Machine
ATR - Ability to Repay
CD - Certificate of Deposit
DDA - Demand Deposit Account
DTI - Debt-to-Income
EFT - Electronic Funds Transfer
ETF - Exchange Traded Funds
FDIC - Federal Deposit Insurance Corporation
FED - Federal Reserve Bank
FOREX - Foreign Exchange
FRB - Federal Reserve Board
HELOC - Home Equity Line of Credit
HPML - High Priced Mortgage Loan
IRA - Individual Retirement Account
LOI - Letter Of Intent
PIN - Personal Identification Number
MBS - Mortgage-Backed Securities
NSF - Non-Sufficient Funds
Accounting and Business Finance Abbreviations
Businesses often refer to a different set of abbreviations that are specific to day-to-day operations and company holdings. These accounting departments frequently use:
AFS - Annual Financial Statement
BCP - Business Continuity Plan
CAPEX - Capital Expenditures
CF - Company Finance
COB - Close of Business
CRR - Cash Reserve Ratio
EPS - Earnings Per Share
FIFO - First In, First Out
LIFO - Last In, First Out
LLC - Limited Liability Company
MTD - Month-to-Date
NAV - Net Asset Value
NCND - Non-Circumvention and Non-Disclosure
NDA - Non-Disclosure Agreement
NOL - Net Operating Loss
NPO - Non-Profit Organization
P&L - Profit and Loss
P/E - Price-to-Earnings ratio
PSP - Profit Sharing Plan
QTD - Quarter-to-Date
ROA - Return on Assets
ROCE - Return On Capital Employed
RONA - Return on Net Assets
ROS - Return on Sales
WC - Working capital
YTD - Year-to-date
Personal Finance and Tax Abbreviations
If you’re confused by your tax statement or pay stub, these tricky personal finance abbreviations may appear there:
AGI - Adjusted Gross Income
AMT - Alternate Minimum Tax
BTA - Board of Tax Appeals
CIT - Corporate Income Tax
CGT - Capital Gains Tax
CTC - Child Tax Credit
EIN - Employee Identification Number
EIC - Earned Income Credit
EITC - Earned Income Tax Credit
FICA - Federal Insurance Contributions Act
HSA - Health Savings Account
IRA - Individual Retirement Account
ITC - Investment Tax Credit
IRS - Internal Revenue System
MAGI - Modified Adjusted Gross Income
NWT - Net Wealth Tax
PIT - Personal Income Tax
VAT - Value Added Tax
WHT - Withholding Tax
Investment and Stocks Abbreviations
Whether you’re investing in your retirement account or trading in the stock market, it’s important to know what you’re talking about. Common financial abbreviations in investment or trading contexts include:
ADTV - Average Daily Trading Volume
AMEX - American Stock Exchange
CAGR - Compound annual growth rate
CB - Current Bid
CMP - Current Market Price
DJIA - Dow Jones Industrial Average
IPO - Initial Public Offering
MMKT - Money Market
NASDAQ - National Association of Securities Dealers Automated Quotation
NYSE - New York Stock Exchange
PFD - Preferred stock
REIT - Real Estate Investment Trust
ROE - Return on Equity
ROI - Return on Investment
ROIC - Return on Invested Capital
QTE - Quote
SEC - Securities Exchange Commission
SIV - Structured Investment Vehicle
TSA - Tax-Sheltered Annuity
TSR - Total Shareholder Return
YTM - Yield To Maturity
Professional Financial Abbreviations
You may not be a financial professional, but you’ll want to know who to turn to when you need one. Common titles for financial professionals include:
CAO - Chief Accounting Officer
CFA - Chartered Financial Analyst
CFM - Certified Financial Manager
CFO - Chief Financial Officer
CFP - Certified Financial Planner
CIA - Certified Internal Auditor
CIMA - Certified Investment Management Analyst
CISA - Certified Information Systems Auditor
CMA - Certified Management Accountant
CMO - Chief Marketing Officer
COO - Chief Operating Officer
CPA - Certified Public Accountant
CPP - Certified Payroll Professional
CSO - Chief Security Officer
CTO - Chief Technology Officer
RIA - Registered Investment Advisor
Work Smarter, Not Harder
For abbreviations on terms not covered here, consult your financial professional or check out: