Clear, exam-focused definitions of 568+ terms from securities, insurance, and real estate. Perfect for SIE, Series 7, Life & Health, and Real Estate exam prep.
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A 1031 exchange is a tax-deferred transaction under IRC Section 1031 that allows real estate investors to sell an investment property and reinvest the proceeds in a "like-kind" property while deferring capital gains taxes, provided strict IRS deadlines are met.
IRC Section 1035 allows tax-free exchange of life insurance to life insurance/annuity/LTC, or annuity to annuity/LTC, but NOT annuity to life insurance.
The 4% rule suggests withdrawing 4% of your initial portfolio in the first year, then adjusting for inflation annually, with a high probability of not running out of money over 30 years.
A 401(k) is an employer-sponsored retirement savings plan that allows employees to contribute pre-tax dollars, with potential employer matching, and tax-deferred growth until withdrawal.
A 403(b) plan is a tax-advantaged retirement savings account for employees of public schools, tax-exempt organizations, and certain ministers, allowing pre-tax contributions up to $23,500 in 2025.
A 457(b) plan is a deferred compensation retirement plan for state and local government employees with a major advantage of no 10% early withdrawal penalty after separation from service.
A 529 plan is a tax-advantaged savings plan designed to help families save for future education expenses, offering tax-free growth and withdrawals when used for qualified education costs.
Above-the-line deductions are adjustments subtracted from gross income to arrive at adjusted gross income (AGI), available to all taxpayers regardless of whether they itemize. Common examples include educator expenses, HSA contributions, self-employed health insurance, student loan interest, and IRA contributions.
An abstract of title is a condensed history of all recorded documents affecting a property's ownership, including deeds, mortgages, liens, and other encumbrances, used to verify clear title before a real estate transaction.
An accelerated death benefit is a life insurance policy provision that allows terminally ill policyholders to receive a portion of their death benefit while still living, typically when diagnosed with a terminal illness with 12-24 months to live.
Accord and satisfaction is a contract doctrine where parties agree to accept different performance (accord) than originally promised, and upon completion of that substitute performance (satisfaction), the original obligation is discharged.
Accretion is the gradual and imperceptible addition of land to a property through natural deposits of soil, sand, or sediment by water action, with the new land becoming the property of the landowner.
Active managerial control is a food safety management approach where the person in charge (PIC) proactively anticipates, identifies, and corrects food safety risks rather than reacting to problems after they occur. It is the FDA-recommended strategy for preventing foodborne illness in food service establishments.
Activities of Daily Living (ADLs) are the fundamental self-care tasks that individuals perform daily, including bathing, dressing, eating, toileting, transferring (mobility), and continence. Assessing ADLs helps nurses determine a patient's functional status and care needs.
Actual Cash Value is a property valuation method that equals replacement cost minus depreciation, representing what property is worth today after accounting for wear and tear.
Actus reus is the physical component of a crime consisting of a voluntary act, an omission when there is a legal duty to act, or possession, which must concur with mens rea to establish criminal liability.
Additional Medicare Tax is a 0.9% tax on wages, self-employment income, and railroad retirement compensation exceeding $200,000 (single) or $250,000 (married filing jointly), with no employer match and reported on Form 8959.
Adjudication is the real-time electronic process by which a pharmacy submits a prescription claim to a patient's insurance plan and receives an immediate approval, rejection, or request for additional information.
Adjusted Gross Income (AGI) is gross income minus above-the-line deductions (adjustments to income). AGI is the key threshold used to determine eligibility for many tax credits, deductions, and phase-outs on Form 1040.
Adjusted Gross Income (AGI) is your total gross income minus specific above-the-line deductions (adjustments), serving as the starting point for calculating taxable income and determining eligibility for many tax benefits.
An ADR is a certificate issued by a U.S. bank representing shares in a foreign company, allowing American investors to buy foreign stocks on U.S. exchanges in U.S. dollars without dealing with foreign exchanges or currencies.
An advance directive is a legal document that allows individuals to specify their healthcare preferences and designate a decision-maker in case they become unable to communicate or make decisions for themselves. Common types include living wills and durable power of attorney for healthcare.
Adverse possession is a legal doctrine that allows someone to claim ownership of land after occupying it openly, continuously, and without permission for a statutory period, typically ranging from 5 to 20 years depending on the state.
Adverse selection is an insurance phenomenon where higher-risk individuals are more likely to purchase insurance than lower-risk individuals, creating an imbalanced risk pool that can lead to increased premiums and potential market instability.
Agency is a legal relationship where a real estate agent (agent) is authorized to act on behalf of a client (principal) in a real estate transaction.
An Air Force Specialty Code (AFSC) is a system of alphanumeric codes used by the U.S. Air Force and Space Force to identify specific job specialties. ASVAB line scores determine which AFSCs a recruit qualifies for.
A food allergen is a protein in food that triggers an abnormal immune response in sensitive individuals, potentially causing anaphylaxis (a life-threatening allergic reaction). The FDA identifies nine major food allergens that must be declared on food labels and that food service workers must manage to prevent cross-contact.
Alpha measures excess return relative to CAPM prediction, indicating manager skill in adding (positive alpha) or losing (negative alpha) value.
The Alternative Minimum Tax (AMT) is a parallel tax system that adds back certain preference items and adjustments to regular taxable income, ensuring high-income taxpayers pay a minimum amount of tax regardless of deductions and credits.
Ambulation is the act of walking or moving from one place to another, either independently or with assistance. In healthcare, ambulation refers to helping patients walk safely using proper body mechanics, gait belts, and assistive devices such as walkers, canes, or crutches.
An amended return is filed using Form 1040-X to correct errors or make changes to a previously filed federal income tax return, such as changes to filing status, income, deductions, or credits.
Amortization is the process of spreading loan payments over time in regular installments, with each payment covering both principal and interest, gradually reducing the loan balance to zero.
Anchoring bias is over-reliance on the first piece of information encountered (the "anchor") when making decisions, even when arbitrary or outdated.
An annuity is an insurance contract that provides a stream of income payments, typically for retirement, in exchange for an initial lump sum or series of payments.
Anticipatory breach (anticipatory repudiation) occurs when a party clearly and unequivocally indicates before performance is due that they will not perform their contractual obligations, giving the non-breaching party immediate rights to remedies.
An appraisal is a professional assessment of a property's market value, typically required by lenders before approving a mortgage to ensure the loan amount is appropriate.
Appreciation is the increase in a property's value over time due to market conditions, improvements, inflation, or increased demand, representing a key source of real estate investment returns.
Arithmetic Reasoning is an ASVAB subtest that measures your ability to solve word problems involving basic arithmetic operations, percentages, ratios, and time/distance calculations. It is one of the four subtests used to calculate the AFQT score.
An adjustable rate mortgage (ARM) is a home loan with an interest rate that changes periodically based on market conditions, typically starting with a lower fixed rate before adjusting.
The AFQT is the most important ASVAB score, calculated from four subtests using the formula AFQT = 2VE + AR + MK. It is reported as a percentile (1-99) and determines eligibility for military enlistment across all branches.
The ASVAB is a multiple-aptitude test administered by the U.S. Department of Defense to determine qualification for military enlistment and job placement across all branches. It consists of 10 subtests covering verbal, math, science, and technical domains.
Aseptic technique is a set of practices and procedures used in sterile compounding to prevent microbial contamination of compounded sterile preparations (CSPs), including proper gowning, hand hygiene, and manipulation within a laminar airflow hood.
Aspiration is the entry of food, liquid, saliva, or other foreign material into the airway and lungs instead of the esophagus. Aspiration can cause choking, aspiration pneumonia, and in severe cases, death, making prevention a critical nursing assistant responsibility.
Aspiration precautions are nursing interventions designed to prevent food, liquid, or gastric contents from entering the airway and lungs. Key measures include elevating the head of bed to 30-45 degrees, thickening liquids, and monitoring swallowing ability.
Assault is an intentional tort where defendant causes plaintiff to reasonably apprehend imminent harmful or offensive contact, requiring present ability but no actual touching.
Assembling Objects is an ASVAB subtest that measures spatial reasoning and the ability to visualize how pieces fit together. It appears only on the CAT-ASVAB and is used in some Navy line score calculations.
Asset allocation is an investment strategy that divides a portfolio among different asset classes (stocks, bonds, cash) based on an investor's goals, risk tolerance, and time horizon to optimize risk-adjusted returns.
Assignment is the transfer of some or all policy rights from the policyholder to another party, commonly used for collateral assignments (securing loans) or absolute assignments (permanent transfer of ownership).
Assumption of risk is a defense where plaintiff voluntarily encountered known risk. California distinguishes primary assumption (complete bar for inherent risks) and secondary (merged into comparative negligence) under Knight v. Jewett.
The ASVAB Career Exploration Program (CEP) is a free testing program offered to high school and post-secondary students that uses ASVAB results to help explore career options, with scores also valid for military enlistment within 2 years.
At-risk rules limit business loss deductions to the amount economically at risk, preventing deductions for losses funded by nonrecourse financing.
Criminal attempt is an inchoate offense requiring specific intent to commit a target crime plus a substantial step (MPC) or act beyond mere preparation (common law) toward completing that crime.
Attorney-client privilege protects confidential communications between client and attorney made for purpose of obtaining or providing legal advice, belonging to client who alone can waive it.
Authentication is the evidentiary requirement under FRE 901 that proponent must produce sufficient proof to support finding that item is what proponent claims it to be.
Auto Information is an ASVAB subtest that tests knowledge of automotive systems including engines, transmissions, brakes, electrical systems, and basic vehicle maintenance and repair.
Avulsion is the sudden and perceptible loss or addition of land caused by the action of water, such as a flood or change in a river's course, where the original owner retains title to the displaced land.
Average Wholesale Price (AWP) is a benchmark price for prescription drugs that represents the average price wholesalers charge pharmacies, commonly used by insurance companies and PBMs to calculate reimbursement rates for pharmacy claims.
Backdoor Roth IRA is a strategy where high-income individuals make nondeductible Traditional IRA contributions and convert to Roth, with pro-rata rule applying to existing pretax IRA balances.
Basis is the cost or adjusted value of an asset used to determine gain or loss on sale or disposition. Original cost basis includes purchase price plus improvements minus depreciation. Gift basis equals the donor's basis (carryover), while inherited property receives a stepped-up basis to fair market value at death.
A basis point (bp) is one-hundredth of one percent (0.01%), commonly used to express changes in interest rates, bond yields, and fees. 100 basis points equals 1%.
Battery is an intentional tort requiring harmful or offensive contact with another person without consent, where defendant intended to cause the contact or was substantially certain it would occur.
A bear market is a financial market condition characterized by falling prices, investor pessimism, and negative sentiment, typically defined as a 20% or greater decline from recent highs.
A beneficiary is a person or entity designated to receive the death benefit or proceeds from an insurance policy or retirement account.
The best evidence rule under FRE 1002 requires that to prove content of a writing, recording, or photograph, the original must be produced unless exception applies.
Best execution is the obligation of broker-dealers to execute customer orders at the most favorable terms reasonably available under the circumstances, considering price, speed, and likelihood of execution.
Beta is a measure of a security's volatility relative to the overall market, where a beta of 1.0 means the security moves with the market, above 1.0 means more volatile, and below 1.0 means less volatile.
Beta coefficient measures systematic risk relative to the market. Beta of 1 means it moves with the market, greater than 1 means more volatile, less than 1 means less volatile.
Beyond-use dating (BUD) is the date after which a compounded preparation should not be used, determined by the pharmacy based on USP standards and the stability characteristics of the specific formulation.
The bid-ask spread is the difference between the highest price a buyer is willing to pay (bid) and the lowest price a seller is willing to accept (ask), representing a transaction cost and liquidity indicator.
A biennial inventory is the DEA-required physical count of all controlled substances that must be conducted by every registrant (pharmacy, hospital, practitioner) at least once every two years to account for Schedule II-V drugs on hand.
The Big Six pathogens are six highly infectious microorganisms identified by the FDA Food Code that require food workers to be excluded from or restricted in food service operations when diagnosed: Norovirus, Hepatitis A, Salmonella Typhi, Shigella spp., Shiga toxin-producing E. coli (STEC), and non-typhoidal Salmonella.
A binder is a temporary insurance contract that provides immediate coverage until the formal policy is issued, typically valid for 30 to 90 days and containing the essential terms of the future policy.
A biological hazard in food safety refers to harmful microorganisms or their toxins that can contaminate food and cause foodborne illness. Biological hazards include bacteria, viruses, parasites, and fungi, and they are the most common cause of foodborne illness outbreaks.
Blockbusting is an illegal practice where real estate agents induce homeowners to sell by exploiting fears about racial or ethnic groups moving into the neighborhood, then profit by reselling to minority buyers at inflated prices.
A blue chip stock is a share of a large, well-established, financially sound company with a history of reliable performance, stable earnings, and often regular dividend payments.
Blue sky laws are state-level securities regulations designed to protect investors from fraud, requiring registration of securities offerings and brokers within each state.
Body mechanics refers to the coordinated use of body position, movement, and alignment to prevent injury during patient care activities such as lifting, transferring, and repositioning. Proper body mechanics protect both the nurse and the patient from musculoskeletal injury.
A bond is a fixed-income debt security where the issuer owes the holder a debt and pays interest (coupon) plus principal at maturity.
Boot is the taxable portion received in an otherwise tax-free exchange, such as a like-kind exchange under Section 1031. Boot includes cash, debt relief, or non-qualifying property received, and triggers gain recognition up to the amount of boot received.
The Braden Scale is a standardized clinical tool used to assess a patient's risk for developing pressure injuries (bedsores). It evaluates six risk factors: sensory perception, moisture, activity, mobility, nutrition, and friction/shear, with scores ranging from 6 (highest risk) to 23 (lowest risk).
A broker-dealer is a financial firm that buys and sells securities for its customers (broker) and for its own account (dealer), regulated by FINRA and the SEC.
Bucket strategy segments retirement portfolio into time-based buckets: short-term (cash 1-2 years), intermediate (bonds 3-7 years), and long-term (stocks 8+ years) to manage sequence of returns risk.
A bull market is a financial market condition characterized by rising prices, investor optimism, and expectations of continued gains, typically defined as a 20% or greater rise from recent lows.
The bundle of rights is the set of five legal rights that come with property ownership: the right to use, possess, transfer, encumber, and exclude others (remembered by the acronym UPTEE).
A bypass trust (credit shelter trust or B trust) uses the first spouse's estate tax exemption by holding assets outside the surviving spouse's estate while providing income to the survivor, preserving exemption amount from estate taxes.
A cafeteria plan (Section 125 plan) allows employees to choose from various pre-tax benefits including health insurance, FSAs, and dependent care, reducing taxable income through salary reduction.
A call option gives the holder the right to buy an underlying asset at a specified strike price before the expiration date.
Cap rate is a real estate investment metric calculated by dividing a property's Net Operating Income (NOI) by its current market value or purchase price, expressed as a percentage to evaluate potential return.
A capital gain is the profit realized when an investment or asset is sold for more than its original purchase price, subject to taxation based on holding period.
Capital gains tax is a tax on the profit from selling investments or assets. Short-term gains (assets held less than 1 year) are taxed as ordinary income; long-term gains (held more than 1 year) receive preferential rates of 0%, 15%, or 20% based on income.
A nursing care plan is a written document that outlines a patient's identified health problems, measurable goals, and specific nursing interventions. It is developed by the RN based on nursing assessment data and guides the entire nursing team in providing consistent, individualized care.
Carryover basis means the recipient of a gift takes the donor's original cost basis, with adjustments for gift tax paid. Used for lifetime gifts (NOT inheritance, which gets stepped-up basis).
Cash flow analysis examines the timing and amounts of money flowing in and out of a household or business to ensure adequate liquidity, identify patterns, and plan for financial goals.
Cash value is the savings component of a permanent life insurance policy that grows tax-deferred and can be accessed through loans or withdrawals during the policyholder's lifetime.
A casualty loss is a loss resulting from a sudden, unexpected, or unusual event such as fire, storm, flood, or theft. After the Tax Cuts and Jobs Act (2017), personal casualty losses are only deductible if the loss occurs in a federally declared disaster area, subject to a $100 per-event reduction and 10% AGI floor.
The CAT-ASVAB is the computer-adaptive version of the ASVAB taken at Military Entrance Processing Stations (MEPS). It adapts question difficulty based on your answers, contains 145 questions across 10 subtests, and takes approximately 154 minutes.
Catch-up contributions allow workers age 50+ to contribute extra amounts above normal limits to retirement accounts including 401(k), IRA, and 403(b) plans, with SECURE 2.0 adding super catch-up for ages 60-63.
The CFP designation is the gold standard professional credential for financial planners, awarded by the CFP Board to individuals who meet education, examination, experience, and ethics requirements and commit to a fiduciary standard of care.
Chain of title is the complete, sequential history of all transfers of property ownership from the original owner to the present owner, used to verify clear and marketable title.
Character evidence is evidence of a person's general character traits or propensities, generally inadmissible under FRE 404(a) to prove conduct on particular occasion, though exceptions exist in criminal cases.
A charitable lead trust pays income to charity for a term of years, with remainder passing to non-charitable beneficiaries (typically family), providing gift/estate tax benefits on the remainder interest.
A charitable remainder trust provides income to the donor or other beneficiaries for life or a term, with the remainder passing to charity, offering an immediate income tax deduction and avoiding capital gains on contributed assets.
A chemical hazard in food safety is any toxic chemical substance that can contaminate food and cause illness or injury when consumed. Chemical hazards include cleaning products, pesticides, food additives, allergens, and toxic metals, and they represent one of the three main categories of food safety hazards in the HACCP system.
The Child Tax Credit provides up to $2,000 per qualifying child under age 17. The credit phases out at $200,000 AGI (single) and $400,000 (MFJ). The refundable portion (Additional Child Tax Credit/ACTC) is up to $1,700. The child must have a valid Social Security number.
Churning is the illegal practice of excessive trading in a customer's account by a broker primarily to generate commissions, without regard to the customer's investment objectives.
Circular 230 is the Treasury Department publication that governs the practice of tax professionals before the IRS, establishing standards of conduct, penalties for violations, and rules for written tax advice.
A class action under FRCP Rule 23 is a lawsuit where one or more representative plaintiffs sue on behalf of a larger group (class) with common claims, requiring numerosity, commonality, typicality, adequacy, and satisfaction of one Rule 23(b) category.
Cliff vesting is an all-or-nothing vesting schedule where employees become 100% vested after a specified period (typically 3 years for qualified plans), with no vesting before that point.
Clinical judgment is the process by which nurses observe, interpret, respond to, and reflect on patient data to make informed decisions about patient care. The NCSBN Clinical Judgment Measurement Model (NCJMM) is the framework used on the NCLEX to evaluate this competency.
Closing is the final step in a real estate transaction where ownership transfers from seller to buyer, documents are signed, funds are exchanged, and the deed is recorded.
Closing costs are fees and expenses paid at the real estate closing beyond the property price, typically 2-5% of the loan amount, including lender fees, title insurance, escrow, and prepaid items.
A cloud on title is any document, claim, lien, or encumbrance that could impair or affect the owner's title to property, making the title unmarketable until resolved.
A Comparative Market Analysis (CMA) is an evaluation of similar recently sold properties (comparables) used by real estate agents to help sellers set listing prices and buyers make competitive offers.
Coinsurance is a cost-sharing arrangement where the insured pays a percentage of covered medical expenses after the deductible is met, typically 20% with insurance paying 80%.
Coinsurance is a property insurance provision requiring the insured to carry coverage equal to a specified percentage (usually 80%) of the property value or face a penalty at claim time.
Collateral estoppel (issue preclusion) prevents relitigation of specific issues of fact or law that were actually litigated, necessarily decided, and essential to the judgment in a prior proceeding between the same parties.
The Commerce Clause (Article I, Section 8, Clause 3) grants Congress power to regulate interstate commerce, with the Dormant Commerce Clause implicitly limiting state regulation that discriminates against or unduly burdens interstate commerce.
Commingling is the illegal practice of mixing client funds with personal or business funds, violating fiduciary duties and real estate licensing laws that require separate trust/escrow accounts.
Common stock is a security representing ownership in a corporation, giving shareholders voting rights and potential dividends.
Comparables (comps) are recently sold properties similar to a subject property in location, size, features, and condition, used by appraisers and agents to estimate market value.
Comparative negligence apportions damages based on each party's fault. California follows "pure" comparative negligence under Li v. Yellow Cab (1975), allowing recovery even when more than 50% at fault.
Composite scores (also called line scores) are combined scores from specific ASVAB subtest groupings that determine qualification for particular military jobs. Each branch uses different composite score formulas.
Compound interest is interest calculated on both the initial principal and the accumulated interest from previous periods, causing wealth to grow exponentially over time.
A compounding pharmacy prepares customized medications by mixing, combining, or altering ingredients to create preparations not commercially available, following USP 795 (non-sterile) and USP 797 (sterile) standards.
Computerized Adaptive Testing (CAT) is the testing methodology used by the NCLEX-PN and NCLEX-RN, where the computer adjusts the difficulty of each subsequent question based on the candidate's previous answers to determine competency with 95% confidence.
Confirmation bias is the tendency to seek, interpret, and remember information that confirms pre-existing beliefs while ignoring contradictory evidence.
Consideration is the bargained-for exchange of legal value between parties that supports enforceability of a contract, requiring both a bargain (exchange) and legal detriment or benefit.
The contestability period is typically the first two years of a life insurance policy during which the insurer can investigate and deny claims based on material misrepresentation or fraud in the application.
A contingency is a condition or clause in a real estate contract that must be satisfied before the transaction can close, allowing buyers to cancel without penalty if the condition is not met.
Enrolled Agents must complete 72 hours of continuing education every three-year enrollment cycle to maintain their EA license, with a minimum of 16 hours per year including 2 hours of ethics.
A contracture is a permanent tightening and shortening of muscles, tendons, or other tissues around a joint, resulting in limited range of motion and a fixed, often painful position. Contractures develop when joints are immobilized for prolonged periods without range-of-motion exercises.
Controlled substance schedules are the DEA's five-tier classification system (Schedule I through Schedule V) that categorizes drugs based on their accepted medical use, abuse potential, and likelihood of causing dependence.
A conventional loan is a mortgage not insured or guaranteed by a government agency (unlike FHA, VA, or USDA loans), typically requiring a 20% down payment to avoid private mortgage insurance (PMI).
The conversion privilege is a policy provision allowing the policyholder to convert a term life insurance policy to a permanent life insurance policy without providing evidence of insurability (no medical exam required).
A convertible bond is a corporate bond that can be converted into a predetermined number of the company's common stock shares, offering both fixed income and equity upside potential.
A copay is a fixed dollar amount that an insured person pays for a covered healthcare service, typically due at the time of service, regardless of the total cost.
A corrective action in HACCP is a predetermined procedure that must be followed when monitoring indicates that a critical control point (CCP) is not under control or a critical limit has been exceeded. Corrective actions ensure that unsafe food does not reach the consumer.
Correlation coefficient (r) measures the degree to which two investments move together, ranging from +1 (perfect positive) through 0 (no relationship) to -1 (perfect negative), used in portfolio diversification.
A correspondence audit is the most common type of IRS audit, conducted entirely by mail. The IRS sends a letter requesting specific documentation for one or two issues. The taxpayer responds by mailing the requested documents.
CPhT (Certified Pharmacy Technician) is the nationally recognized credential earned by passing either the ExCPT (administered by NHA) or the PTCE (administered by PTCB), demonstrating competency in pharmacy technician knowledge and skills.
A critical control point (CCP) is a specific step in the food handling process where a control measure can be applied to prevent, eliminate, or reduce a food safety hazard to an acceptable level. CCPs are the second principle of HACCP and are the foundation of any food safety management system.
Cross-contamination is the transfer of harmful microorganisms (bacteria, viruses, parasites) from one food, surface, or person to another, typically from raw food to ready-to-eat food. It is one of the leading causes of foodborne illness and a major focus of the ServSafe Manager exam.
A Crummey power gives trust beneficiaries a temporary right to withdraw contributions made to the trust, converting gifts to the trust into present interests that qualify for the annual gift tax exclusion.
Current yield is a bond's annual interest payment divided by its current market price, expressing the income return as a percentage without accounting for capital gains or losses.
DAW codes are standardized numeric codes (0-9) used on pharmacy claims to indicate whether a brand-name or generic drug should be dispensed and who is requesting the specific product.
Day trading is the practice of buying and selling securities within the same trading day, closing all positions before the market closes to avoid overnight risk and leverage requirements.
DEA Form 222 is a triplicate federal order form required for the purchase, transfer, or distribution of Schedule II controlled substances between DEA-registered entities, serving as a key tool in preventing diversion.
A DEA number is a unique identifier assigned by the Drug Enforcement Administration to healthcare providers and pharmacies authorized to handle controlled substances, used to track prescribing and dispensing activity.
A death benefit is the amount of money paid to beneficiaries upon the death of an insured person, typically the face amount of a life insurance policy.
The Debt Avalanche Method is a debt reduction strategy where debts are paid off in order from highest interest rate to lowest, minimizing total interest paid and providing the mathematically optimal path to debt freedom.
The Debt Snowball Method is a debt reduction strategy where debts are paid off in order from smallest balance to largest, regardless of interest rate, providing psychological wins that build momentum.
A declarations page (dec page) is the first page of an insurance policy that summarizes essential coverage information including the named insured, policy number, coverage limits, deductibles, premiums, and effective dates.
A decubitus ulcer (also called a pressure injury, pressure sore, or bedsore) is localized damage to the skin and underlying tissue caused by prolonged pressure, friction, or shear, typically over bony prominences. Pressure injuries are classified in stages from Stage 1 (intact skin with non-blanchable redness) to Stage 4 (full-thickness tissue loss exposing bone, muscle, or tendon).
A deductible is the amount a policyholder must pay out-of-pocket before the insurance company begins to pay for covered expenses.
A deductible is the amount the insured must pay out-of-pocket before insurance coverage begins, representing a form of self-insurance that reduces premiums.
A deed is a legal document that transfers ownership (title) of real property from one party to another.
A deed of trust is a security instrument used instead of a mortgage in some states, involving three parties: the borrower (trustor), lender (beneficiary), and neutral third party (trustee) who holds legal title until the loan is paid.
Defamation is a tort involving publication of false statement of fact to third party that damages reputation, divided into libel (written) and slander (spoken).
A defined benefit plan promises a specified monthly benefit at retirement, typically based on salary and years of service, with the employer bearing all investment risk.
A defined contribution plan is a retirement plan where contributions are made to individual accounts, with the final benefit depending on contributions and investment performance.
The Delayed Entry Program (DEP), also called the Delayed Enlistment Program, allows individuals to enlist in a branch of the U.S. military and delay reporting for active duty for up to 365 days, giving time to finish school, get in shape, or wait for a desired job opening.
Delayed Retirement Credits are permanent increases to Social Security benefits for delaying past Full Retirement Age, adding 8% per year up to age 70.
Delegation in nursing is the process of transferring responsibility for performing a specific nursing task to another qualified individual (such as a CNA or UAP) while retaining accountability for the outcome. The five rights of delegation guide safe delegation decisions.
A dependent is a person who meets the qualifying child or qualifying relative tests and can be claimed on another taxpayer's return. Claiming a dependent provides eligibility for various credits, deductions, and favorable filing status.
Depreciation is the systematic allocation of the cost of a tangible asset over its useful life, allowing businesses and rental property owners to deduct the cost of assets as they wear out or become obsolete.
Depreciation in real estate has two meanings: for tax purposes, it is the annual deduction for the cost of investment property over time (27.5 years residential, 39 years commercial); for appraisal, it is the loss in value due to physical, functional, or external obsolescence.
Depreciation recapture requires taxpayers to recognize previously claimed depreciation as income when selling an asset - ordinary income for Section 1245 property, 25% max for unrecaptured Section 1250 gain.
Disability insurance provides income replacement when a policyholder cannot work due to illness or injury, typically paying 60-70% of pre-disability income after an elimination period.
The disposition effect is selling winning investments too quickly while holding losing investments too long, resulting in suboptimal returns and tax inefficiency.
Diversification is an investment strategy that spreads investments across various assets, sectors, or geographic regions to reduce risk without necessarily sacrificing returns.
Diversity jurisdiction under 28 U.S.C. Section 1332 grants federal courts power to hear civil cases between citizens of different states when the amount in controversy exceeds $75,000, requiring complete diversity where no plaintiff shares citizenship with any defendant.
A dividend is a distribution of a portion of a company's earnings to shareholders, typically paid quarterly in cash or additional shares.
Dollar-cost averaging is an investment strategy of investing a fixed dollar amount at regular intervals regardless of price, reducing the impact of volatility over time.
The Dormant Commerce Clause is a judicial doctrine inferring from the Commerce Clause a negative prohibition against state laws that discriminate against or unduly burden interstate commerce, even when Congress has not acted.
Drug utilization review (DUR) is a systematic process of evaluating prescription drug use to ensure medications are used appropriately, safely, and effectively, as mandated by OBRA-90 for Medicaid patients.
The Drug Supply Chain Security Act (DSCSA) is a 2013 federal law that establishes a national system for tracking and tracing prescription drug products through the U.S. pharmaceutical supply chain to protect consumers from counterfeit, stolen, contaminated, or harmful drugs.
Dual agency occurs when a single real estate agent or brokerage represents both the buyer and seller in the same transaction, creating a potential conflict of interest that requires disclosure and consent.
Due diligence is the investigation period in a real estate transaction during which buyers thoroughly examine the property, review documents, and verify all aspects of the purchase before finalizing the deal.
Duration is a measure of a bond's price sensitivity to interest rate changes, expressed in years. A higher duration means greater price volatility when interest rates change.
A dying declaration is a hearsay exception under FRE 804(b)(2) for a statement by declarant who believed death imminent, concerning cause or circumstances of impending death, admissible in homicide prosecutions and civil cases when declarant unavailable.
A dynasty trust is an irrevocable trust designed to last multiple generations (perpetually in some states), sheltering assets from estate, gift, and GST taxes across generations.
Dysphagia is difficulty swallowing food, liquids, or saliva, which increases the risk of aspiration (food or liquid entering the airway), choking, malnutrition, and dehydration. Dysphagia is common in elderly patients and those with stroke, dementia, or neurological conditions.
The Earned Income Tax Credit (EITC/EIC) is a refundable tax credit for low-to-moderate income workers. The maximum credit for 2025 is $7,830 with 3+ qualifying children. Taxpayers must have earned income, a valid SSN, and investment income below $11,600.
Earnest money is a deposit made by a buyer to show good faith when making an offer on a property, which is typically applied to the purchase price at closing.
Earnings Per Share (EPS) is a company's net profit divided by the number of outstanding common shares, calculated as (Net Income - Preferred Dividends) / Weighted Average Common Shares Outstanding. It is a key metric for evaluating profitability and stock valuation.
An easement is a non-possessory right to use another person's land for a specific purpose, such as accessing a road or running utility lines.
The Economic Substance Doctrine requires that a transaction have meaningful economic purpose beyond tax avoidance. Transactions lacking economic substance can be disregarded for tax purposes.
Edema is swelling caused by excess fluid trapped in the body's tissues. It most commonly occurs in the feet, ankles, legs, and hands (peripheral edema), but can affect any part of the body. Edema may indicate heart failure, kidney disease, liver disease, or other serious conditions that the CNA must report.
Education credits reduce tax for qualified education expenses. The American Opportunity Tax Credit (AOTC) provides up to $2,500 for the first 4 years of college (40% refundable). The Lifetime Learning Credit (LLC) provides up to $2,000 with no limit on years and is non-refundable. You cannot claim both for the same student in the same year.
The Efficient Market Hypothesis proposes that stock prices fully reflect all available information, making it impossible to consistently outperform the market through stock selection or market timing.
Electronics Information is an ASVAB subtest that tests knowledge of electrical and electronic concepts, including circuits, current, voltage, resistance, and basic electronic components and systems.
An Eligible Designated Beneficiary (EDB) is one of five categories of IRA beneficiaries who are exempt from the SECURE Act's 10-year distribution rule and can still stretch inherited IRA distributions over their own life expectancy: surviving spouses, minor children of the decedent, disabled individuals, chronically ill individuals, and beneficiaries not more than 10 years younger than the decedent.
The elimination period (also called waiting period) is the time between when a disability or long-term care need begins and when insurance benefits start being paid.
An Emergency Fund is a readily accessible savings reserve equal to 3-6 months of essential living expenses, designed to cover unexpected costs or income loss without requiring debt or liquidating investments.
Eminent domain is the government's constitutional power to take private property for public use, provided the owner receives just compensation as required by the Fifth Amendment.
An encumbrance is any claim, lien, or liability attached to real property that may diminish its value or affect the owner's ability to transfer clear title.
An endorsement (also called a rider) is a written amendment attached to an insurance policy that modifies, adds, or removes coverage from the original policy terms.
An Enrolled Agent is a federally authorized tax practitioner who has earned the privilege of representing taxpayers before the IRS by passing the Special Enrollment Examination (SEE) or through IRS experience.
An EPO is a managed care health insurance plan that requires members to use in-network providers for all non-emergency care, but unlike HMOs, does not require a primary care physician referral to see specialists.
The Equal Protection Clause of the Fourteenth Amendment prohibits states from denying any person equal protection of the laws, requiring that similarly situated individuals be treated alike and subjecting government classifications to varying levels of judicial scrutiny.
Equity represents ownership interest in a company, typically in the form of common or preferred stock. Shareholders are owners who share in profits and have voting rights but bear the most risk if the company fails.
Escrow is a neutral third-party arrangement where documents and funds are held until all conditions of a transaction are satisfied.
The federal estate tax is a tax on the transfer of property at death, applying to estates exceeding the exemption amount ($13.99M in 2025, $15M in 2026) at rates up to 40%.
Estimated tax payments are quarterly tax payments made by individuals and businesses who expect to owe $1,000 or more in tax after subtracting withholding and credits.
Evidence of insurability (EOI) is proof that a person qualifies for insurance coverage based on their health status, typically required for late enrollees, increased coverage, or certain life events.
The ex-dividend date is the first day a stock trades without the right to receive the next declared dividend. To receive the dividend, you must own the stock before this date.
Exchange rate risk is the potential for loss when the value of investments fluctuates due to changes in currency exchange rates between countries.
An exchange-traded fund (ETF) is an investment fund that trades on stock exchanges like individual stocks, typically tracking an index while offering diversification, low costs, and tax efficiency.
An excited utterance is a hearsay exception under FRE 803(2) for a statement relating to a startling event, made while declarant was under stress of excitement, admissible because excitement eliminates opportunity for fabrication.
An exclusion is a policy provision that specifies conditions, circumstances, or types of losses that are not covered by an insurance policy, eliminating the insurer's obligation to pay for those particular claims.
The exclusion ratio determines what portion of each annuity payment is tax-free (return of principal) versus taxable (earnings), calculated by dividing the investment in the contract by expected return.
An exclusive agency listing is a listing agreement where one broker has the exclusive right to market the property, but the seller retains the right to sell the property themselves without owing a commission.
An exclusive listing is a listing agreement where only one broker is authorized to market and sell a property, with two types: exclusive right to sell (broker gets commission regardless of who sells) and exclusive agency (owner can sell without commission).
An exclusive right to sell listing is a listing agreement where one broker has the exclusive right to sell the property and earns the commission regardless of who finds the buyer, including the seller.
An executor (personal representative) is a person named in a will to manage a deceased person's estate, including gathering assets, paying debts, and distributing property to beneficiaries.
An expense ratio is the annual fee charged by a mutual fund or ETF to cover operating expenses, expressed as a percentage of assets under management. Lower expense ratios mean more of your money stays invested.
Extended term insurance is a nonforfeiture option that uses the cash value of a permanent life insurance policy to purchase paid-up term insurance for the same face amount, lasting as long as the cash value allows.
The Fair Housing Act is a federal law that prohibits discrimination in housing based on race, color, religion, national origin, sex, familial status, and disability.
False imprisonment is an intentional tort involving unlawful restraint of a person against their will within bounded boundaries through physical barriers, force, threats, or other coercive means.
FDA drug recall classifications are a three-tier system (Class I, II, and III) that categorizes product recalls based on the severity of the health hazard posed by the defective or potentially harmful product.
Fee simple (also called fee simple absolute) is the most complete form of property ownership, granting the owner full bundle of rights including the right to use, sell, lease, or bequeath the property without restrictions, with ownership lasting indefinitely and passing to heirs.
The felony murder rule imposes murder liability on a defendant who causes a death during commission of an inherently dangerous felony (BARRK: Burglary, Arson, Robbery, Rape, Kidnapping), without requiring proof of intent to kill.
An FHA loan is a mortgage insured by the Federal Housing Administration, designed for first-time and lower-income homebuyers with lower down payment requirements (3.5%) and more flexible credit standards, requiring mortgage insurance premium (MIP).
A fiduciary is a person or organization legally obligated to act in the best interest of another party, putting the client's interests ahead of their own.
The fiduciary standard is the highest legal standard of care in financial services, requiring advisers to act in their clients' BEST interest at all times, not merely recommend "suitable" investments. It applies to Registered Investment Advisers (RIAs) under the Investment Advisers Act of 1940.
FIFO (First In, First Out) is a stock rotation method used in food service to ensure that older food products are used before newer ones, reducing food waste and preventing the use of expired or spoiled items. Products received first should be placed in front and used first.
Filing status is a classification that determines a taxpayer's tax rate schedule, standard deduction amount, and eligibility for certain credits and deductions, with five options: Single, MFJ, MFS, HOH, and QSS.
The Financial Planning Process is the CFP Board's official 7-step framework for delivering comprehensive financial advice, beginning with understanding client circumstances and progressing through goal identification, analysis, recommendation development, presentation, implementation, and ongoing monitoring.
FINRA (Financial Industry Regulatory Authority) is a self-regulatory organization that oversees broker-dealers and their registered representatives, administering qualification exams and enforcing securities rules.
The First Amendment protects five fundamental freedoms from government infringement: freedom of religion (Establishment and Free Exercise Clauses), freedom of speech, freedom of the press, the right to peaceably assemble, and the right to petition the government.
A fixture is personal property that has been permanently attached to real property and becomes part of the real estate, transferring with the property when sold unless specifically excluded in the contract.
A focused assessment is a detailed nursing assessment of a specific body system or complaint, performed after the initial comprehensive assessment to gather more information about a particular health concern or to monitor a known condition.
A food safety management system is a comprehensive program of policies, procedures, and practices designed to prevent foodborne illness in a food service establishment. It combines active managerial control, HACCP principles, standard operating procedures (SOPs), and employee training to systematically control food safety risks.
A foodborne illness (food poisoning) is a disease transmitted to people through contaminated food or beverages, caused by biological hazards (bacteria, viruses, parasites), chemical hazards (toxins, cleaning agents), or physical hazards (foreign objects). The CDC estimates 48 million cases occur annually in the United States.
Foreclosure is the legal process by which a lender takes ownership of a property when the borrower fails to make mortgage payments, typically after several months of default.
The Foreign Earned Income Exclusion (FEIE) allows qualifying US taxpayers living and working abroad to exclude up to $130,000 (2025) of foreign earned income from US taxation. Taxpayers must meet either the bona fide residence test or the physical presence test (330 days in a 12-month period).
Form U4 is the registration form that individuals must complete to become associated with a FINRA member firm and obtain required securities licenses, including personal, employment, and disclosure history.
Form U5 is the form filed when a registered representative leaves a FINRA member firm, documenting the reason for termination and any disclosure events that must be reported.
Form W-2 is the annual wage and tax statement that employers must provide to employees by January 31. It reports wages, tips, federal/state/local taxes withheld, Social Security and Medicare wages, retirement plan contributions, and health insurance costs.
A formulary is a list of prescription drugs approved for coverage by a health insurance plan, pharmacy benefit manager (PBM), or healthcare institution, organized into tiers that determine patient cost-sharing.
The Fourth Amendment protects individuals from unreasonable searches and seizures by the government, generally requiring a warrant supported by probable cause, with evidence obtained in violation subject to the exclusionary rule.
Fowler's position is a standard patient positioning in which the head of the bed is elevated to a 45-90 degree angle while the patient sits semi-upright or upright. Variations include low Fowler's (15-30 degrees), semi-Fowler's (30-45 degrees), standard Fowler's (45-60 degrees), and high Fowler's (60-90 degrees).
The framing effect is a cognitive bias where people react differently to choices depending on how they are presented (framed), such as gains versus losses, even when the outcomes are mathematically identical.
The free look period is a mandatory time frame (typically 10-30 days) after receiving an insurance policy during which the policyholder can cancel for a full refund of premiums paid, no questions asked.
Front running is the illegal practice of a broker executing trades for their own account ahead of a large client order, using advance knowledge that the client's trade will likely move the market price.
Frustration of purpose is a contract defense that excuses performance when an unforeseen event substantially destroys the principal purpose of the contract, even though performance remains physically possible.
Full Retirement Age (FRA) is the age at which a person can receive full, unreduced Social Security retirement benefits - age 67 for those born in 1960 or later.
A gait belt (also called a transfer belt) is a safety device made of heavy canvas or nylon that is placed around a patient's waist to provide a secure grip during ambulation (walking), transfers (bed to chair), and repositioning. Gait belts are a required safety tool on virtually every CNA skills exam.
General Science is an ASVAB subtest that covers life science, physical science, and earth/space science. It tests fundamental scientific knowledge including biology, chemistry, physics, ecology, geology, meteorology, and astronomy.
The GSTT is a 40% federal tax on transfers to persons two or more generations below the transferor, designed to prevent families from avoiding estate taxes by skipping generations.
Gift tax is a federal tax on transferring assets to another person while alive, with an annual exclusion of $18,000 per recipient in 2024 ($36,000 for married couples splitting gifts). The lifetime exemption of $13.61 million is unified with the estate tax exemption.
The Glasgow Coma Scale (GCS) is a standardized neurological assessment tool that evaluates a patient's level of consciousness by scoring three responses: eye opening (1-4), verbal response (1-5), and motor response (1-6), for a total score of 3-15.
Goals-Based Planning is a financial planning approach that organizes all strategies around specific client life goals rather than abstract metrics, measuring success by goal achievement rather than benchmark performance.
Good Compounding Practices are the minimum professional standards established by USP chapters 795 (non-sterile) and 797 (sterile) that pharmacies must follow when preparing compounded medications, covering personnel, facilities, equipment, and quality assurance.
The Government Pension Offset (GPO) was a provision that reduced Social Security spousal or survivor benefits by two-thirds of the amount of a government pension from non-covered employment. The GPO was REPEALED by the Social Security Fairness Act, signed into law on January 5, 2025, with retroactive benefits back to January 2024.
A grace period is a set time after the premium due date during which a policy remains in force even if the premium hasn't been paid, typically 30-31 days for life insurance.
Graded vesting is a vesting schedule where employees gradually earn ownership over time, typically 20% per year starting in year 2, until reaching 100% after 6 years maximum.
A GRAT is an irrevocable trust where the grantor transfers assets and retains the right to receive fixed annuity payments for a specified term, with any appreciation above the IRS Section 7520 hurdle rate passing to beneficiaries gift-tax-free.
A grantor trust is a trust where the creator (grantor) retains certain powers or interests that cause the trust income to be taxed to the grantor personally rather than to the trust, making the trust a "disregarded entity" for income tax purposes under IRC Sections 671-679.
The Gross Rent Multiplier (GRM) is a property valuation metric calculated by dividing the property price by its annual gross rental income, providing a quick method to compare investment properties and estimate how many years of gross rent would equal the purchase price.
Growth stocks are shares of companies expected to grow earnings faster than the market with high P/E ratios and minimal dividends, while value stocks trade below their intrinsic value with lower P/E ratios and often pay dividends.
The GT (General Technical) score is one of the most important ASVAB composite scores, calculated by combining Verbal Expression (VE) and Arithmetic Reasoning (AR). Many desirable military jobs require a minimum GT score of 100-110 or higher.
A guaranteed insurability rider allows the policyholder to purchase additional life insurance at specified future dates or events without providing evidence of insurability (no medical exam required), regardless of changes in health.
HACCP is a systematic, science-based food safety management system that identifies, evaluates, and controls biological, chemical, and physical hazards throughout the food production process. It is built on seven core principles and is a key topic on the ServSafe Manager exam.
A hazard is a condition or circumstance that increases the likelihood or potential severity of a loss occurring from a particular peril, classified as physical, moral, or morale hazards.
Head of Household is a tax filing status for unmarried taxpayers who pay more than half the cost of maintaining a home for a qualifying dependent, providing a higher standard deduction and wider tax brackets than single filers.
A Health Savings Account (HSA) is a tax-advantaged savings account available to individuals enrolled in a High Deductible Health Plan (HDHP). HSAs offer a triple tax advantage: tax-deductible contributions, tax-free growth, and tax-free withdrawals for qualified medical expenses. 2025 contribution limits are $4,300 (self) and $8,550 (family).
A healthcare proxy is a legal document that designates a trusted person (the agent or proxy) to make medical decisions on your behalf if you become unable to communicate or make decisions for yourself due to illness or incapacity.
Hearsay is an out-of-court statement offered to prove the truth of the matter asserted, generally inadmissible under FRE 801(c) and California Evidence Code Section 1200 because the declarant cannot be cross-examined.
A hedge fund is a private investment partnership using sophisticated strategies like leverage, short selling, and derivatives to generate returns for accredited investors, typically with high minimum investments and limited liquidity.
The Heimlich maneuver (now officially called abdominal thrusts) is an emergency first-aid technique used to dislodge a foreign object blocking the airway of a choking person. It involves standing behind the victim and delivering upward abdominal thrusts below the diaphragm to force air from the lungs and expel the obstruction.
A HEPA (High-Efficiency Particulate Air) filter is an air filtration device that removes at least 99.97% of particles 0.3 microns or larger, used in laminar airflow workbenches and cleanrooms to maintain the sterile environment required for compounding sterile preparations.
Herd mentality is following the crowd rather than independent analysis, contributing to bubbles and crashes.
HIPAA (Health Insurance Portability and Accountability Act) in pharmacy governs the protection of patients' protected health information (PHI) during prescription processing, counseling, insurance claims, and all pharmacy operations.
An HMO is a managed care health insurance plan that provides comprehensive coverage at the lowest cost, requiring members to select a primary care physician (PCP) who coordinates all care and provides referrals to specialists within the network.
Hobby loss rules prevent deducting hobby losses against other income, with the safe harbor presumption of profit in 3 of 5 years (2 of 7 for horses).
Home Office Deduction allows self-employed taxpayers to deduct expenses for business use of their home, calculated using either the simplified method ($5/sq ft, max $1,500) or the regular method based on actual expenses.
Homeowners policies are standardized insurance contracts (HO-2, HO-3, HO-5, etc.) that provide property and liability coverage for owner-occupied residences.
An HSA is a tax-advantaged savings account for individuals with high-deductible health plans, offering triple tax benefits: tax-deductible contributions, tax-free growth, and tax-free withdrawals for qualified medical expenses.
Impeachment is the process of attacking witness credibility through prior inconsistent statements, bias, sensory defects, character for untruthfulness, and prior convictions, governed by FRE 607-609.
Impossibility is a contract defense that excuses performance when an unforeseen event makes performance objectively impossible, such as destruction of the subject matter, death of a necessary party, or supervening illegality.
Impracticability is a contract defense that excuses performance when an unforeseen event makes performance extremely and unreasonably difficult or expensive, though not strictly impossible.
An incentive spirometer is a handheld breathing exercise device used to encourage patients to take slow, deep breaths to expand their lungs fully. It is commonly used after surgery, during prolonged bed rest, or for patients with respiratory conditions to prevent atelectasis (lung collapse) and pneumonia.
The incontestability clause is a life insurance policy provision stating that after a specified period (usually 2 years), the insurer cannot contest or void the policy based on material misrepresentation in the application, except for fraud.
Indemnity is a fundamental insurance principle stating that an insured should be restored to the same financial position they were in immediately before a loss occurred, receiving compensation equal to the actual loss without profit or gain.
An index fund is a mutual fund or ETF designed to track the performance of a specific market index (like the S&P 500) by holding the same securities in the same proportions, offering broad diversification with low fees.
An indwelling catheter (Foley catheter) is a flexible tube inserted through the urethra into the bladder to continuously drain urine. It is held in place by an inflated balloon and connected to a closed drainage system. Proper catheter care is essential to prevent catheter-associated urinary tract infections (CAUTIs).
Inflation is the rate at which the general level of prices for goods and services rises over time, decreasing the purchasing power of money.
An inherited IRA is a retirement account passed to a beneficiary after the owner's death, with most non-spouse beneficiaries required to deplete the account within 10 years under the SECURE Act.
Innocent spouse relief provides relief from joint and several tax liability when a spouse or ex-spouse improperly reported items on a joint return. Three types exist: innocent spouse relief (Section 6015(b)), separation of liability (Section 6015(c)), and equitable relief (Section 6015(f)).
The insanity defense asserts that defendant, due to mental disease or defect, lacked capacity to understand wrongfulness of conduct or conform behavior to law. California uses McNaughten test.
Insider trading is the illegal practice of buying or selling securities based on material, non-public information, or tipping others to trade on such information. It violates securities laws and can result in civil and criminal penalties.
An installment agreement is an IRS payment plan that allows taxpayers to pay their tax debt over time in monthly installments, with several types available depending on the amount owed.
Insurable interest is a legal requirement that the person purchasing insurance must have a financial stake in the insured person or property, ensuring they would suffer a genuine loss if the insured event occurs.
Intake and Output (I&O) is a nursing measurement that tracks all fluids entering (intake) and leaving (output) a patient's body over a specified period, typically 24 hours. Accurate I&O monitoring is essential for assessing fluid balance, kidney function, and hydration status.
Integrated Pest Management (IPM) is a sustainable, preventive approach to pest control in food service that combines sanitation, facility maintenance, monitoring, and targeted pesticide use as a last resort to manage pest populations. IPM emphasizes preventing pests from entering the establishment rather than relying solely on chemical treatments.
Interest rate risk is the potential for investment losses due to changes in interest rates, particularly affecting fixed-income securities like bonds whose prices fall when rates rise.
Intermediate scrutiny is a mid-level standard of judicial review requiring the government to prove that a challenged law serves an important governmental interest and is substantially related to achieving that interest, primarily applied to gender and legitimacy classifications under the Equal Protection Clause.
An investment adviser is a person or firm that provides advice about securities for compensation, regulated by the SEC (if managing $100M+) or state regulators, and held to a fiduciary standard.
Investment grade refers to bonds rated BBB-/Baa3 or higher by credit rating agencies, indicating lower default risk and greater creditworthiness compared to high-yield (junk) bonds.
An Investment Policy Statement (IPS) is a formal document between an advisor and client that outlines investment objectives, risk tolerance, constraints, asset allocation guidelines, and the rules governing portfolio management decisions.
Involuntary manslaughter is an unintentional killing resulting from criminal negligence or during commission of an unlawful act not amounting to a felony (misdemeanor-manslaughter rule).
An IPO is the first sale of stock by a private company to the public, allowing the company to raise capital from public investors and become publicly traded.
An IRA is a tax-advantaged personal retirement savings account that individuals can open independently, offering either tax-deductible contributions (Traditional) or tax-free withdrawals (Roth).
An ILIT is an irrevocable trust that owns life insurance policies, removing death benefit proceeds from the insured's taxable estate while providing liquidity for estate taxes.
An irrevocable trust is a legal arrangement where the grantor permanently transfers assets out of their estate into a trust that generally cannot be modified, amended, or terminated, providing potential estate tax benefits and asset protection.
IRS Appeals is an independent office within the IRS where taxpayers can dispute IRS decisions before going to court. The process begins with a 30-day letter and allows taxpayers to protest assessed tax, penalties, interest, and collection actions through an informal conference.
The Institute for Safe Medication Practices (ISMP) is an independent nonprofit organization dedicated to preventing medication errors by publishing safety alerts, maintaining lists of error-prone abbreviations, and promoting Tall Man lettering for look-alike/sound-alike drug names.
Itemized deductions are specific expenses taxpayers can deduct from adjusted gross income instead of the standard deduction, including state and local taxes, mortgage interest, charitable contributions, and certain medical expenses.
Joint tenancy is a form of property co-ownership where two or more people hold equal, undivided interests with the right of survivorship, meaning when one owner dies, their share automatically passes to the surviving owner(s).
A junk bond is a corporate bond rated below investment grade (BB+/Ba1 or lower) that offers higher interest rates to compensate investors for the increased risk of default.
A Laminar Airflow Workbench (LAFW) is a sterile compounding device that uses HEPA-filtered unidirectional airflow to provide an ISO Class 5 environment for preparing sterile preparations such as IV admixtures and ophthalmic solutions.
The law of large numbers is a statistical principle stating that as the number of similar, independent exposure units increases, the actual loss experience will more closely approximate the expected or predicted loss, enabling insurers to predict losses with greater accuracy.
A leasehold is an interest in real property held by a tenant under a lease agreement, granting the right to possess and use the property for a specified period while ownership remains with the landlord (lessor), making it a nonfreehold estate that is less than full ownership.
A Licensed Practical Nurse (LPN), called a Licensed Vocational Nurse (LVN) in California and Texas, is a healthcare professional who has completed a state-approved practical nursing program (typically 12-18 months) and passed the NCLEX-PN exam. LPNs provide basic nursing care under the supervision of an RN or physician.
A lien is a legal claim against a property that must be paid when the property is sold, serving as security for a debt or obligation.
A life estate is a freehold ownership interest in real property that lasts only for the lifetime of a designated person (the life tenant), after which the property passes to another party.
Systematic determination of appropriate coverage using DIME (Debt + Income + Mortgage + Education), Human Life Value, or Capital Needs Analysis.
Sale of life insurance by a senior (65+) to a third party for 10-25% of death benefit, with proceeds TAXABLE in three tiers.
A like-kind exchange under IRC Section 1031 allows taxpayers to defer capital gains tax by exchanging qualifying real property held for business or investment purposes for similar property. The replacement property must be identified within 45 days and the exchange completed within 180 days. Personal property no longer qualifies after the Tax Cuts and Jobs Act (2017).
A limit order is an instruction to buy or sell a security at a specified price or better, guaranteeing the price but not guaranteeing execution.
Line scores are composite scores derived from specific combinations of ASVAB subtest results. Each military branch uses different line score formulas to determine which jobs a recruit qualifies for, separate from the AFQT enlistment score.
Liquidity refers to how quickly and easily an asset can be converted to cash without significantly affecting its price. Cash is the most liquid asset, while real estate and collectibles are considered illiquid.
Lis pendens (Latin for "suit pending") is a recorded notice that a lawsuit has been filed affecting title to or possession of real property, warning potential buyers that the property is subject to litigation.
A living will is a legal document that specifies a person's wishes regarding medical treatment and life-sustaining measures if they become terminally ill or permanently incapacitated and unable to communicate their decisions.
Log rolling is a patient turning technique that moves the entire body as a single unit (like a log) without twisting the spine. It is used for patients with spinal injuries, after spinal surgery, or for patients with hip fractures to prevent further injury during repositioning.
A long-term capital gain is the profit from selling a capital asset held for more than one year. Taxed at preferential rates: 0% (up to $48,350 single), 15% (up to $533,400), or 20% (above). The 3.8% Net Investment Income Tax (NIIT) applies for high earners, creating a maximum effective rate of 23.8%.
Long-term capital gains are profits from selling assets held for more than one year, taxed at preferential rates of 0%, 15%, or 20% depending on taxable income, significantly lower than ordinary income tax rates.
Long-term care insurance is coverage that pays for extended care services not covered by health insurance or Medicare, including nursing home care, assisted living, and in-home care.
Loss aversion is a cognitive bias where the psychological pain of losing is approximately twice as powerful as the pleasure of gaining an equivalent amount.
A lot number is a unique identifier assigned by a drug manufacturer to a specific batch of medication produced at the same time and under the same conditions, used for tracking, quality control, and recall purposes.
Maximum Allowable Cost (MAC) pricing is a reimbursement limit set by insurance companies and PBMs on the amount they will pay for generic and multi-source brand-name drugs, ensuring pharmacies dispense the most cost-effective version available.
Malice aforethought is the mens rea required for murder, encompassing four mental states: intent to kill, intent to cause serious bodily harm, depraved heart (extreme recklessness), and felony murder.
A margin account is a brokerage account that allows investors to borrow money from the broker to purchase securities, using the account assets as collateral.
The marginal tax rate is the tax rate applied to your last dollar of taxable income, representing the percentage of tax you would pay on an additional dollar of income within your current tax bracket.
Market capitalization (market cap) is the total market value of a company's outstanding shares, calculated by multiplying the current stock price by the number of shares outstanding. It's used to classify companies as large-cap, mid-cap, or small-cap.
A market maker is a broker-dealer firm that stands ready to buy and sell a particular security at publicly quoted prices, providing liquidity to the market by maintaining bid and ask prices throughout the trading day.
A market order is an instruction to buy or sell a security immediately at the best available current price, guaranteeing execution but not the price.
Married Filing Separately (MFS) is a filing status for married taxpayers who choose to file individual returns. MFS results in the loss of many tax benefits including EITC, education credits, and adoption credit. If one spouse itemizes, both must itemize. Community property states require income splitting.
Maslow's Hierarchy of Needs is a motivational theory organized as a five-level pyramid, used in nursing to prioritize patient care. From bottom to top: physiological needs, safety and security, love and belonging, self-esteem, and self-actualization. Lower-level needs must be met before addressing higher-level needs.
Mathematics Knowledge is an ASVAB subtest that tests pure mathematical concepts including algebra, geometry, and basic number theory. Unlike Arithmetic Reasoning, MK focuses on direct math problems rather than word problems.
A mechanic's lien is a legal claim against a property by contractors, subcontractors, or suppliers who provided labor or materials for improvements but were not paid, creating a security interest in the property.
Mechanical Comprehension is an ASVAB subtest that tests understanding of basic mechanical and physical principles, including simple machines, force, energy, fluid dynamics, and structural support concepts.
MedWatch is the FDA's safety information and adverse event reporting program that allows healthcare professionals, patients, and consumers to report serious problems suspected to be associated with FDA-regulated drugs, biologics, medical devices, and dietary supplements.
Mens rea is the mental state or criminal intent required to establish guilt for a crime, ranging from purpose (highest culpability) to negligence (lowest), and is an essential element that prosecution must prove beyond a reasonable doubt.
Mental accounting is treating money differently based on its source or intended use, violating the principle that money is fungible (interchangeable).
MEPS (Military Entrance Processing Station) is a Department of Defense facility where military applicants complete the CAT-ASVAB, undergo medical examinations, and take the oath of enlistment. There are 65 MEPS locations across the United States.
Metes and bounds is the oldest legal description method for real property, using physical features, distances (metes), and directions (bounds) to define property boundaries, starting and ending at a point of beginning.
A Military Occupational Specialty (MOS) is the Army and Marine Corps system for classifying enlisted jobs. Each MOS is identified by a numeric code and requires specific ASVAB line scores for qualification.
Minimum Essential Coverage (MEC) is health insurance that meets ACA requirements. Qualifying plans include employer-sponsored coverage, marketplace plans, Medicare, Medicaid, CHIP, and TRICARE. The federal individual mandate penalty was reduced to $0 starting in 2019, but some states maintain their own individual mandate with penalties.
MPT is Markowitz's 1952 framework for constructing portfolios to maximize expected return for a given risk level through diversification.
Modified Adjusted Gross Income (MAGI) is AGI with certain deductions and exclusions added back. The specific add-backs vary by tax provision. MAGI is used to determine Roth IRA eligibility, premium tax credit, Medicare surcharges, passive activity loss limits, and education credit phase-outs.
Modified Adjusted Gross Income (MAGI) is AGI with certain deductions or exclusions added back, used to determine eligibility for Roth IRA contributions, education credits, and other tax benefits with varying definitions depending on the specific tax provision.
Monte Carlo Analysis is a retirement planning technique that uses computer simulations to model thousands of possible market scenarios, generating a probability of success (typically 0-99%) for a financial plan rather than relying on a single assumed rate of return.
Moral hazard is an increased risk of loss due to dishonesty or character defects of the insured, such as intentionally causing damage to collect insurance proceeds or filing fraudulent claims.
Morbidity refers to the incidence of illness or disease within a population, used by insurance companies to predict the likelihood of disability claims and to calculate health and disability insurance premiums.
A mortality table is a statistical chart showing the probability of death at each age, used by life insurance companies to calculate premiums, reserves, and the expected length of life for policyholders.
A mortgage is a loan used to purchase real estate, where the property serves as collateral, typically repaid over 15-30 years with interest.
MOS stands for Military Occupational Specialty, the alphanumeric code system used by the Army and Marine Corps to classify enlisted jobs. ASVAB line scores determine which MOS codes a recruit qualifies for.
A motion to dismiss under FRCP Rule 12(b) is a pre-answer motion challenging the complaint on procedural or substantive grounds, including lack of jurisdiction, improper venue, insufficient service, or failure to state a claim upon which relief can be granted.
The MSRB is the self-regulatory organization that creates rules governing the municipal securities market, regulating dealers and advisors who buy, sell, and underwrite state and local government bonds.
A municipal bond (muni) is a debt security issued by a state, city, or county to finance public projects, with interest typically exempt from federal income tax.
A mutual fund is a professionally managed investment vehicle that pools money from multiple investors to purchase a diversified portfolio of securities.
Named perils coverage only protects against specific risks explicitly listed in the insurance policy, such as fire, lightning, windstorm, and theft. If a peril is not named, it is not covered.
NASAA is the organization representing state and provincial securities regulators in the US, Canada, and Mexico, responsible for investor protection and coordinating state securities laws.
The NDC (National Drug Code) is a unique 10-digit, 3-segment numeric identifier assigned to each medication product in the United States, identifying the labeler, product, and package size.
Negligence per se establishes presumption of negligence when defendant violates statute designed to protect against type of harm suffered by plaintiff within protected class.
NAV is the per-share value of a mutual fund or ETF, calculated by dividing total assets minus liabilities by the number of outstanding shares.
The Net Investment Income Tax (NIIT) is an additional 3.8% tax on investment income for individuals with modified adjusted gross income (MAGI) exceeding $200,000 (single) or $250,000 (married filing jointly).
A net listing is an employment contract where the broker keeps any amount received above the seller's minimum acceptable price, which is often illegal or discouraged due to inherent conflicts of interest.
Net Operating Income (NOI) is a property's gross income minus operating expenses, calculated as Gross Income - Operating Expenses. NOI excludes mortgage payments, depreciation, and capital expenditures, making it the key metric for evaluating commercial real estate profitability.
A net operating loss occurs when a business's allowable tax deductions exceed its taxable income. NOLs can be carried forward indefinitely but are limited to 80% of taxable income in the carryforward year.
Net Unrealized Appreciation is the difference between the current value of employer stock and its original cost basis, which receives favorable long-term capital gains tax treatment when distributed in-kind.
A Net Worth Statement (Personal Balance Sheet) is a financial snapshot showing total assets minus total liabilities at a specific point in time, providing the foundation for financial planning by measuring wealth and tracking progress toward goals.
The National Healthcareer Association (NHA) is the certifying body that administers the ExCPT (Exam for the Certification of Pharmacy Technicians), one of two nationally recognized pathways to earn CPhT certification.
Nonforfeiture options are provisions in permanent life insurance policies that allow policyholders to access accrued cash value if they stop paying premiums, rather than forfeiting all benefits.
A nonrefundable tax credit can reduce tax liability to zero but cannot generate a refund. Any excess credit beyond the tax owed is lost (unless carryforward rules apply).
NPO is a medical abbreviation from the Latin "nil per os" meaning "nothing by mouth." When a patient is NPO, they are not allowed to eat or drink anything, including water, ice chips, and medications by mouth. NPO status is ordered before surgery, certain medical tests, or when a patient has severe swallowing difficulties.
The nursing process is a systematic, five-step problem-solving framework used by nurses to provide patient-centered care: Assessment, Diagnosis, Planning, Implementation, and Evaluation (ADPIE). It is the foundation of all nursing practice and the organizing framework for the NCLEX.
OBRA (Omnibus Budget Reconciliation Act of 1987) is a landmark federal law that established nationwide standards for nursing home care and residents' rights, mandated nurse aide training and competency evaluation programs, and created the Nurse Aide Registry. OBRA is the legal foundation for CNA certification requirements and nursing home quality standards in the United States.
OBRA-90 is a federal law that mandated prospective drug utilization review (DUR), patient counseling by pharmacists, and maintenance of patient medication profiles for all Medicaid prescription recipients.
An Offer in Compromise is an agreement between a taxpayer and the IRS that settles tax debt for less than the full amount owed, available when the taxpayer cannot pay in full or when there is a legitimate dispute.
An open listing is a non-exclusive listing agreement where the property owner can hire multiple brokers simultaneously, with only the broker who procures the buyer earning a commission.
Open perils coverage (also called "all-risk" or "special form") protects against all causes of loss EXCEPT those specifically excluded in the policy, providing broader protection than named perils.
An option is a contract giving the holder the right, but not the obligation, to buy (call) or sell (put) an asset at a specified price before a certain date.
The Orange Book is the FDA publication officially titled "Approved Drug Products with Therapeutic Equivalence Evaluations" that lists all FDA-approved drugs and assigns therapeutic equivalence (TE) ratings to determine which generic drugs can be substituted for brand-name products.
Ordinary income is income taxed at regular marginal tax rates (10% to 37%), including wages, salaries, interest, short-term capital gains, non-qualified dividends, and business income. Unlike long-term capital gains and qualified dividends, ordinary income does not receive preferential tax treatment.
The OTC market is a decentralized marketplace where securities are traded directly between parties through dealer networks rather than on a centralized exchange, including stocks not listed on major exchanges.
The out-of-pocket maximum is the most you have to pay for covered healthcare services in a plan year, after which your insurance pays 100% of covered costs.
Overconfidence bias is overestimating one's knowledge, abilities, and forecast precision, leading to excessive trading and under-diversification.
Own-occupation pays benefits if you cannot perform YOUR specific occupation, even if you could work in another field.
The P/E ratio is a valuation metric comparing a company's stock price to its earnings per share, used to assess whether a stock is overvalued or undervalued relative to its earnings.
Paid-up insurance is a life insurance policy that requires no further premium payments because the cash value has grown enough to cover all future costs, or it was purchased as a nonforfeiture option.
Paragraph Comprehension is an ASVAB subtest that tests reading comprehension skills, including the ability to identify main ideas, draw conclusions, find specific details, and determine word meaning from context. It is one of the four subtests used in AFQT calculation.
The parol evidence rule prevents parties from introducing evidence of prior or contemporaneous oral or written agreements to contradict, vary, or add to the terms of a fully integrated written contract.
PASS is a mnemonic for the proper use of a fire extinguisher: Pull the pin, Aim at the base of the fire, Squeeze the handle, and Sweep side to side. It is used together with RACE (Rescue, Alarm, Contain, Extinguish/Evacuate) as part of hospital fire safety protocols.
Passive activity loss rules limit deduction of losses from activities without material participation to the extent of passive income, with suspended losses carried forward.
Patient advocacy is the act of supporting and protecting patients' rights, safety, and best interests within the healthcare system. Nurses serve as patient advocates by ensuring informed consent, protecting patient rights, facilitating communication, and speaking up when patient safety is at risk.
Penalty abatement is the removal or reduction of IRS penalties due to reasonable cause or first-time penalty abatement (FTA) relief for taxpayers with a clean compliance history.
Per capita is a Latin term meaning "by head" that specifies estate distribution equally among all living beneficiaries at the time of death, with deceased beneficiaries' shares redistributed among survivors rather than passing to their descendants.
Per stirpes is a Latin term meaning "by branch" that specifies how estate assets are distributed when a beneficiary predeceases the testator, with the deceased beneficiary's share passing down to their descendants rather than to other surviving beneficiaries.
A peril is the specific cause of loss that an insurance policy covers, such as fire, theft, windstorm, lightning, or vandalism. Insurance policies are structured around either named perils (specific listed events) or open perils (all events except exclusions).
Perineal care (peri care) is the cleansing of the perineal area (the genital and rectal region) to maintain hygiene, prevent infection, and promote skin integrity. It is a fundamental CNA skill performed during bathing, after toileting, and during incontinence care.
The Person in Charge (PIC) is the individual present at a food service establishment who is responsible for managing the operation and ensuring compliance with the FDA Food Code. The PIC must demonstrate knowledge of food safety principles, including foodborne illness prevention, HACCP, proper temperatures, and allergen management.
The Personal Auto Policy is a standardized auto insurance contract covering liability, medical payments, uninsured motorists, and physical damage for personal vehicles.
Personal jurisdiction is the court's power over a particular defendant, requiring that the defendant have sufficient minimum contacts with the forum state such that exercising jurisdiction does not offend traditional notions of fair play and substantial justice under the Due Process Clause.
Personal protective equipment (PPE) in food service includes items worn by food handlers to prevent contamination of food and protect workers, such as single-use gloves, hair restraints (hair nets, hats), aprons, and wound coverings (bandages with gloves). PPE is a key component of personal hygiene in food safety management.
Pharmacy calculations are the mathematical operations pharmacy technicians must perform to accurately process prescriptions, including dosage conversions, day supply calculations, concentration and dilution problems, and percentage calculations.
A physical hazard in food safety is any foreign object that can contaminate food and cause injury or illness when consumed. Physical hazards include glass fragments, metal shavings, bones, stones, wood splinters, and personal items like jewelry or bandages.
The PiCAT is an unproctored, internet-based version of the ASVAB that can be taken at home. If the results are verified at MEPS through a short confirmation test, PiCAT scores are used as official ASVAB scores for enlistment.
A plat is a surveyed map of a subdivision showing the division of land into lots, blocks, streets, and common areas, recorded in public records to create legal descriptions for each parcel.
Private Mortgage Insurance (PMI) is insurance required on conventional loans when the down payment is less than 20%, protecting the LENDER (not the borrower) against default. PMI can be canceled once the borrower reaches 20% equity, unlike FHA mortgage insurance.
Points are upfront fees paid to a lender at closing to reduce the interest rate on a mortgage, with each point equal to 1% of the loan amount and typically lowering the rate by 0.25%.
A policy loan is a loan from an insurance company using the cash value of a permanent life insurance policy as collateral, which does not require credit approval and charges interest that accrues if unpaid.
A POS (Point of Service) plan is a hybrid health insurance plan combining HMO and PPO features, requiring a primary care physician and referrals like an HMO but allowing out-of-network care at higher costs like a PPO.
Form 2848 is the IRS Power of Attorney form that authorizes a qualified individual (EA, CPA, or attorney) to represent a taxpayer before the IRS, including the right to receive confidential tax information.
A power of attorney is a legal document that authorizes a designated person (the agent or attorney-in-fact) to make financial, legal, or healthcare decisions on behalf of another person (the principal), either immediately or upon incapacity.
A PPO (Preferred Provider Organization) is a health insurance plan that offers a network of preferred providers with lower costs, while allowing members to see any provider without referrals, including out-of-network doctors at higher out-of-pocket costs.
Preferred stock is a hybrid security with features of both stocks and bonds, offering fixed dividends and priority over common stock in liquidation.
An insurance premium is the amount paid by the policyholder to the insurance company for coverage, typically paid monthly, quarterly, or annually.
The Premium Tax Credit is a refundable credit that helps eligible individuals and families afford health insurance purchased through the Health Insurance Marketplace, based on household income between 100-400% of the Federal Poverty Level.
A present sense impression is a hearsay exception under FRE 803(1) for a statement describing an event made while or immediately after the declarant perceived it.
The Primary Insurance Amount (PIA) is the monthly Social Security benefit a worker receives if they claim benefits at their Full Retirement Age (FRA). It is calculated using a progressive formula applied to the worker's Average Indexed Monthly Earnings (AIME), with three "bend points" that provide higher replacement rates for lower earners.
The primary market is where new securities are issued and sold for the first time, with proceeds going directly to the issuing company or government—including IPOs and new bond offerings.
Prior authorization is a requirement by a health insurance plan that a prescriber obtain approval before a specific medication, procedure, or service will be covered, used to ensure medical necessity and manage costs.
A private placement is the sale of securities directly to a limited number of sophisticated investors without a public offering, typically exempt from SEC registration under Regulation D.
Probate is the legal process through which a deceased person's will is validated by a court, debts are paid, and remaining assets are distributed to beneficiaries, typically taking several months to over a year and involving court supervision.
Procedural due process is a constitutional requirement under the Fifth and Fourteenth Amendments that the government must provide fair procedures, typically notice and an opportunity to be heard, before depriving a person of life, liberty, or property.
Promissory estoppel is an equitable doctrine that enforces a promise lacking consideration when the promisor should reasonably expect the promise to induce reliance, the promisee actually and reasonably relies, and enforcement is necessary to avoid injustice.
A promissory note is the borrower's written promise to repay a loan, containing the loan terms including principal amount, interest rate, payment schedule, and maturity date. It is the "IOU" document that creates the debt obligation, separate from the mortgage or deed of trust that secures the loan with property.
The prone position is a body position in which a patient lies face down on their stomach with their head turned to one side. In healthcare, prone positioning is used for back care, certain respiratory conditions, and specific procedures, though it is less commonly used than supine or lateral positions.
Proration is the division of ongoing property expenses such as taxes, insurance, and HOA fees between buyer and seller at closing, based on the portion of the billing period each party owns the property.
A prospectus is a legal document filed with the SEC that provides details about an investment offering, including risks, fees, objectives, and management.
Proximate cause (legal cause) limits liability to foreseeable consequences of negligent conduct, requiring plaintiff's harm be within scope of risk created by defendant's breach, per Palsgraf v. Long Island Railroad.
A PTIN is a unique identification number issued by the IRS that all paid tax return preparers must obtain and use when signing federal tax returns or claims for refund.
Pulse oximetry is a noninvasive method of measuring the oxygen saturation (SpO2) of the blood using a small clip-on sensor placed on the fingertip, toe, or earlobe. The normal SpO2 range is 95-100%, and readings below 90% indicate a medical emergency requiring immediate reporting to the nurse.
Pure risk involves only the possibility of loss or no loss (insurable), while speculative risk involves the possibility of loss, no change, or gain (not insurable). Insurance companies only cover pure risks because they can be predicted statistically and do not involve voluntary profit-seeking behavior.
A put option gives the holder the right to sell an underlying asset at a specified strike price before the expiration date.
The QBI deduction allows eligible taxpayers to deduct up to 20% of qualified business income from pass-through entities (sole proprietorships, partnerships, S corporations). Phase-outs apply for specified service trades/businesses (SSTBs) above income thresholds.
A QPRT is an irrevocable trust that transfers a personal residence to beneficiaries at a discounted gift tax value by retaining the right to live in the home for a specified term of years.
A qualifying child is a dependent who meets four tests: relationship, age (under 19 or 24 if student, or permanently disabled), residency (lived with taxpayer more than half the year), and support (child did not provide more than half their own support).
A qualifying relative is a dependent who is not a qualifying child but meets four tests: not a qualifying child, relationship or member of household, gross income under the threshold ($5,050 in 2025), and taxpayer provides more than half their support.
Qualifying Surviving Spouse (formerly Qualifying Widow/Widower) is a filing status available for two years after a spouse's death, allowing the surviving spouse to use married filing jointly tax rates and standard deduction if they maintain a home for a dependent child.
A quiet title action is a lawsuit filed to establish ownership of real property and remove any clouds, claims, or disputes affecting the title, resulting in a court judgment that "quiets" all challenges to ownership.
A quitclaim deed is a legal document that transfers whatever ownership interest the grantor may have in a property without any warranties or guarantees about the quality of title, offering the least protection to the buyer.
RACE is a mnemonic for the immediate response to a fire in a healthcare facility: Rescue patients in danger, Activate the fire alarm, Contain the fire by closing doors, and Extinguish the fire or Evacuate. It is used with PASS (Pull, Aim, Squeeze, Sweep) for fire extinguisher operation.
Range of Motion (ROM) refers to the full movement potential of a joint, measured in degrees. ROM exercises are nursing interventions performed to maintain or improve joint flexibility, prevent contractures, and promote circulation in patients with limited mobility.
A Rating is the Navy and Coast Guard system for classifying enlisted jobs, identified by a name and abbreviation. ASVAB composite scores determine which ratings a recruit qualifies for, similar to how the Army uses MOS codes.
Ready-to-eat (RTE) foods are foods that can be consumed without further cooking or preparation, including washed fruits and vegetables, deli meats, bread, cheese, and cooked foods. RTE foods require special handling because they will not undergo further cooking to kill pathogens before being served.
Reasonable cause is a defense against IRS penalties where the taxpayer demonstrates they exercised ordinary business care and prudence but were still unable to comply with their tax obligations.
Rebalancing is the process of periodically adjusting a portfolio back to its target asset allocation by buying underweighted assets and selling overweighted ones. This risk management strategy can be calendar-based (e.g., quarterly or annually) or threshold-based (when allocations drift beyond set limits).
Rebating is an illegal insurance practice where an agent offers part of their commission or other inducements to a prospect as an incentive to purchase a policy, violating state insurance laws designed to ensure fair competition.
Redlining is the illegal discriminatory practice of denying or limiting financial services, insurance, or other services to residents of certain areas based on racial or ethnic composition rather than individual qualifications.
Reduced paid-up insurance is a nonforfeiture option that uses a policy's cash value to purchase a smaller permanent life insurance policy that is fully paid up, with no further premiums required but a reduced death benefit.
A refundable tax credit can reduce tax liability below zero, resulting in a refund to the taxpayer. The excess credit amount is paid as a refund even if no tax was owed.
Regulation D provides exemptions from SEC registration for private placements, allowing companies to raise capital by selling securities to accredited investors without the cost and time of a full public offering.
Regulation T is the Federal Reserve rule governing the extension of credit by broker-dealers to customers for purchasing securities, establishing the initial margin requirement of 50% for equity securities.
A REIT is a company that owns, operates, or finances income-producing real estate and allows individual investors to earn dividends from real estate investments without having to buy or manage properties directly.
A remainder interest is a future ownership interest in property that becomes possessory after a life estate terminates, allowing the remainderman to receive full ownership when the life tenant dies.
A Risk Evaluation and Mitigation Strategy (REMS) is an FDA-required drug safety program for certain medications with serious safety concerns, designed to ensure that the benefits of the drug outweigh its risks through specific requirements such as medication guides, communication plans, and restricted dispensing programs.
Replacement cost is a property valuation method that pays the full cost to replace damaged property with new items of like kind and quality, without deducting for depreciation.
RMDs are mandatory annual withdrawals from traditional IRAs and employer-sponsored retirement plans beginning at age 73 under SECURE 2.0. Roth IRAs are exempt during the owner's lifetime. A 25% penalty applies for failure to take RMDs.
RESPA is a federal law that requires lenders to provide borrowers with clear disclosures about settlement costs and prohibits certain practices like kickbacks and referral fees that can inflate closing costs.
A rider is an optional add-on to an insurance policy that provides additional benefits or modifies coverage for an extra premium, allowing policyholders to customize their protection beyond the base policy.
Right of survivorship is a legal feature of joint tenancy and tenancy by the entirety that automatically transfers a deceased co-owner's interest to the surviving co-owner(s), bypassing probate.
RMDs are mandatory annual withdrawals from traditional retirement accounts (Traditional IRA, 401(k)) that must begin at age 73, calculated based on account balance and life expectancy.
A Roth conversion ladder is a tax-efficient retirement strategy where traditional IRA or 401(k) funds are converted to a Roth IRA in annual increments over several years, allowing penalty-free access to converted amounts after a 5-year waiting period.
A Roth IRA is a retirement account funded with after-tax dollars that grows tax-free and allows tax-free withdrawals in retirement, with no required minimum distributions.
Rule 144 provides a safe harbor for selling restricted securities and control securities, specifying holding periods, volume limitations, and filing requirements for legally reselling these securities.
Rule 145 governs securities issued in business combination transactions (mergers, acquisitions, reclassifications), determining when a registration statement is required for shareholders receiving new securities.
An S corporation is a pass-through entity that files Form 1120-S. Income, deductions, and credits flow through to shareholders' individual returns. Limited to 100 shareholders, one class of stock, and US individual/trust shareholders only.
Sanitizing is the process of reducing the number of harmful microorganisms on a surface to safe levels using heat or chemical solutions. In food service, surfaces must be cleaned first (to remove visible soil) and then sanitized to reduce pathogens. Sanitizing is different from sterilizing, which eliminates all microorganisms.
Schedule C is the IRS form used by sole proprietors and single-member LLCs to report business income and expenses. Net profit is subject to both income tax and self-employment tax.
Scope of practice defines the legal boundaries of what a healthcare professional is authorized to do based on their education, licensure, and state Nurse Practice Act. For LPNs/LVNs, the scope includes basic nursing care, data collection, medication administration, and care plan implementation under RN or physician supervision.
The SEC is the U.S. federal agency responsible for enforcing securities laws, regulating securities markets, and protecting investors from fraud and market manipulation.
The secondary market is where previously issued securities are bought and sold between investors, with proceeds going to the selling investor rather than the issuing company—including stock exchanges like NYSE and NASDAQ.
Section 179 allows businesses to deduct the full purchase price of qualifying equipment and software in the year it is placed in service, rather than depreciating it over multiple years.
The Securities Act of 1933 is the federal law requiring registration and disclosure for new securities offerings, ensuring investors receive material information before buying, often called the "Paper Act" or "Truth in Securities Act."
The Securities Exchange Act of 1934 is the federal law regulating secondary market trading, creating the SEC, and requiring ongoing disclosure by public companies, often called the "People Act" for regulating market participants.
Self-employment tax is the combined Social Security (12.4%) and Medicare (2.9%) tax that self-employed individuals pay on net earnings from self-employment, totaling 15.3%.
Sequence of returns risk is the danger that the timing of poor investment returns, particularly in the early years of retirement withdrawals, can permanently deplete a portfolio even if average long-term returns are adequate.
The settlement date is when a securities transaction is finalized, ownership officially transfers, and payment is exchanged—typically T+1 (one business day after the trade date) for most securities.
The Sharpe ratio is a risk-adjusted return measure that calculates the excess return earned per unit of total risk (standard deviation), helping investors compare the efficiency of different investments or portfolios.
Shop Information is an ASVAB subtest that tests knowledge of tools, shop practices, woodworking, metalworking, and building materials. On the CAT-ASVAB it is a separate subtest; on the paper version it is combined with Auto Information as Auto & Shop (AS).
Short selling is an investment strategy where an investor borrows shares to sell immediately, hoping to buy them back later at a lower price and profit from the decline.
Sig codes are standardized abbreviations derived primarily from Latin used on prescriptions to communicate directions for medication use, including frequency, route, timing, and special instructions.
SIPC is a nonprofit corporation that protects customers of failed broker-dealers by restoring securities and cash up to $500,000 per customer, including $250,000 for cash claims.
Up to 85% of Social Security benefits may be taxable based on provisional income (AGI + tax-exempt interest + 50% of Social Security benefits). Thresholds are $25,000/$32,000 for 50% inclusion and $34,000/$44,000 for 85% inclusion (single/MFJ).
A special warranty deed is a deed where the grantor only guarantees clear title for the period they owned the property, not for the entire history of ownership, providing less protection than a general warranty deed.
The standard deduction is a fixed dollar amount that reduces taxable income, available to taxpayers who do not itemize deductions, with amounts varying by filing status and adjusted annually for inflation.
Standard precautions are a set of infection control practices used with ALL patients regardless of diagnosis or infection status. They include hand hygiene, use of personal protective equipment (PPE), safe injection practices, respiratory hygiene, and proper handling of contaminated equipment and surfaces.
Standard precautions in pharmacy are infection control practices applied to all patient care situations to prevent transmission of bloodborne and other pathogens, including hand hygiene, PPE use, sharps safety, and proper waste disposal.
The IRS generally has 3 years from the filing date to assess additional tax. This extends to 6 years if more than 25% of gross income is omitted. There is no statute of limitations for fraud or failure to file a return.
Steering is an illegal practice where real estate agents direct prospective buyers or renters toward or away from certain neighborhoods based on their race, color, religion, national origin, sex, familial status, or disability.
Step-up in basis is a tax provision that adjusts the cost basis of inherited assets to their fair market value (FMV) at the date of the decedent's death, effectively eliminating unrealized capital gains that accumulated during the decedent's lifetime. This allows heirs to sell inherited assets with little or no capital gains tax.
A stock split is a corporate action that divides existing shares into multiple shares, reducing the price per share proportionally while maintaining the same total market value.
A stop order is an order to buy or sell a security once it reaches a specified price (the stop price), at which point it becomes a market order and executes at the next available price.
Subrogation is the insurance principle that allows an insurer, after paying a claim, to assume the policyholder's legal right to recover damages from the third party responsible for the loss.
The suitability standard is a broker-dealer regulatory requirement that investment recommendations must be "suitable" for a client based on their financial profile, but does not require acting in the client's best interest. This is a lower standard than the fiduciary duty required of investment advisers, though Regulation Best Interest (Reg BI) has enhanced broker-dealer obligations since 2020.
The supine position is a body position in which the patient lies flat on their back, face up. It is one of the most common positions in healthcare, used for physical assessments, CPR, many medical procedures, and sleep. CNAs must know proper supine positioning, including pressure point protection and when this position is contraindicated.
A survey is a professional measurement and mapping of a property that shows its boundaries, dimensions, improvements, and relationship to adjoining properties, often required for real estate transactions.
Systematic risk is the inherent risk that affects the entire market or asset class, which cannot be eliminated through diversification and includes factors like interest rates, inflation, and recessions.
Tactical asset allocation makes short-term adjustments from strategic targets to capitalize on market opportunities or avoid perceived risks.
Tall Man lettering is an FDA-recommended safety practice that uses uppercase letters within drug names to highlight differences between look-alike/sound-alike (LASA) medication names, helping prevent dispensing errors.
A Target Date Fund (TDF) is a diversified mutual fund that automatically adjusts its asset allocation along a "glide path" from aggressive to conservative as the target retirement date approaches, providing a hands-off investment solution for retirement savers.
Tax credits reduce tax liability dollar-for-dollar and are more valuable than tax deductions, which only reduce taxable income by a percentage based on your marginal tax bracket.
Tax fraud is the willful attempt to evade or defeat tax. Civil fraud carries a 75% penalty on the underpayment. Criminal tax evasion can result in fines up to $250,000 and/or 5 years imprisonment. There is no statute of limitations for fraud.
A taxpayer's tax home is the regular place of business or post of duty, regardless of where they maintain their personal residence. The tax home determines whether travel expenses are deductible as business travel.
Form 8821 authorizes any individual, corporation, firm, or organization to receive and inspect a taxpayer's confidential tax information, but does NOT grant the authority to represent the taxpayer before the IRS.
A tax-advantaged account is an investment or savings account that offers special tax benefits, either through tax-deferred growth (Traditional IRA, 401(k)) or tax-free withdrawals (Roth IRA, HSA, 529 plans), designed to encourage saving for retirement, healthcare, or education.
Tax-deferred means investment growth is not taxed until funds are withdrawn, typically in retirement. Traditional IRAs, 401(k)s, 403(b)s, and annuities offer tax-deferred growth, with contributions often being pre-tax and withdrawals taxed as ordinary income.
Tax-loss harvesting is a strategy of selling investments at a loss to offset capital gains or ordinary income, thereby reducing tax liability while maintaining market exposure by purchasing similar (but not substantially identical) investments.
TCS foods are foods that require time and temperature control for safety to limit the growth of pathogenic microorganisms or toxin formation. These foods are high in moisture, protein, and have a neutral to slightly acidic pH, making them ideal environments for bacterial growth.
The Temperature Danger Zone is the temperature range between 41°F and 135°F (5°C to 57°C) in which foodborne bacteria grow most rapidly, potentially doubling in number every 20 minutes. TCS foods must be kept out of this range to prevent foodborne illness.
Tenancy by the entirety is a form of co-ownership available only to married couples that includes the right of survivorship and protection from individual creditors, treating the couple as a single legal entity.
Tenancy in common is a form of property co-ownership where two or more people hold undivided interests in the same property, with each owner able to sell or transfer their share independently and leave it to heirs.
Term life insurance provides death benefit protection for a specific period (term), with no cash value accumulation, offering the lowest premium for the highest coverage.
A testamentary trust is a trust created through a last will and testament that does not come into existence until the death of the testator, at which point it becomes irrevocable and must pass through the probate process.
Therapeutic communication is a purposeful, goal-directed form of communication used by nurses to build rapport, gather patient information, and provide emotional support. It uses techniques such as active listening, open-ended questions, reflection, and clarification while avoiding non-therapeutic responses like giving advice or false reassurance.
Therapeutic equivalence is the FDA designation indicating that a generic drug product is both pharmaceutically equivalent and bioequivalent to a reference brand-name drug, as published in the FDA's Orange Book with AB-rated approval codes.
Thickened liquids are beverages and liquid foods that have been modified to a thicker consistency using commercial thickening agents to make them safer to swallow for patients with dysphagia (difficulty swallowing). Thickening liquids slows the flow, giving the patient more time to control the swallow and reducing the risk of aspiration.
The Thrift Savings Plan (TSP) is a defined contribution retirement savings plan for federal employees and uniformed service members, offering the same contribution limits as 401(k) plans with exceptionally low expense ratios and five core investment funds plus lifecycle options.
TILA is a federal law that requires lenders to disclose key loan terms and costs to borrowers in a standardized format, including the APR, finance charges, and total payments, enabling consumers to compare credit offers.
Time Horizon is the expected period an investor plans to hold an investment before needing the funds, directly influencing asset allocation and risk tolerance, typically categorized as short-term (0-3 years), medium-term (3-10 years), or long-term (10+ years).
Title is the legal right to own, use, and dispose of real property, representing the bundle of rights that come with property ownership.
Title insurance is a policy that protects property buyers and lenders against losses from defects in title, such as liens, encumbrances, or ownership disputes that existed before purchase.
A Totten trust is an informal revocable trust where a bank account passes directly to named beneficiaries upon death, avoiding probate while allowing full control during lifetime.
The trade date is the day when a securities transaction is executed—when the buyer and seller agree to the terms and the order is filled, regardless of when settlement occurs.
A transaction broker is a real estate licensee who facilitates a transaction between buyer and seller without representing either party as an agent, providing limited services while maintaining neutrality.
A transfer belt (also called a gait belt) is a heavy-duty fabric belt placed around a patient's waist to provide a secure handhold during transfers (moving from one surface to another, such as bed to wheelchair), ambulation, and repositioning. It is the same device as a gait belt and is a required safety tool in CNA practice.
Treasury securities are debt instruments issued by the U.S. government to finance operations, considered the safest investments due to being backed by the full faith and credit of the U.S.
Triage is the process of sorting and prioritizing patients based on the severity and urgency of their condition to determine the order in which they receive care. In nursing, triage is an RN-level function, but LPNs should understand triage principles for prioritization questions on the NCLEX-PN.
Trusts are taxed at compressed income tax brackets, reaching the top rate of 37% at just $15,200 of income (2025). Simple trusts must distribute all income annually. Complex trusts may accumulate income. Grantor trusts are taxed to the grantor.
Twisting is an illegal insurance practice where an agent induces a policyholder to replace an existing policy with a new one through misrepresentation or incomplete comparison, often to generate new commission.
Umbrella insurance is excess liability coverage that provides additional protection beyond the limits of underlying policies (auto, homeowners), typically in $1 million increments.
The underpayment penalty applies when a taxpayer does not pay enough tax through withholding or estimated payments during the year. Safe harbors: pay 100% of prior year tax (110% if AGI exceeds $150,000) or 90% of current year tax.
Underwriting is the process by which an insurance company evaluates risk and determines whether to accept an application for coverage and at what premium rate.
Unearned income is income from sources other than personal services, including interest, dividends, capital gains, rental income, royalties, pensions, and Social Security. It is subject to the 3.8% NIIT above certain thresholds and kiddie tax rules apply to children.
The unified credit is a federal tax credit that exempts a specified amount of assets from estate and gift taxes during a person's lifetime and at death, set at $13.99 million for 2025 and $15 million for 2026 per individual.
Unit dose packaging is a medication distribution system where each individual dose of a medication is packaged separately in its own labeled container, ready for direct administration to the patient without further measurement or preparation.
Universal life insurance is a permanent life insurance policy with flexible premiums and death benefits, plus a cash value component that earns interest based on current market rates.
USP 795 and USP 797 are United States Pharmacopeia chapters that establish minimum standards for non-sterile compounding (795) and sterile compounding (797), including personnel training, facilities, equipment, and quality assurance requirements.
A VA loan is a government-backed mortgage guaranteed by the U.S. Department of Veterans Affairs for eligible veterans, active-duty service members, and surviving spouses, featuring 0% down payment, no private mortgage insurance (PMI), and competitive interest rates.
A variable annuity is an insurance contract where payouts depend on the performance of underlying investments chosen by the contract owner, offering growth potential with market risk.
Venue under 28 U.S.C. Section 1391 determines the proper geographic location (judicial district) for a federal lawsuit, based on where defendants reside (if all in same state), where events occurred, or as a fallback, where any defendant is subject to personal jurisdiction.
Verbal Expression (VE) is a combined ASVAB score calculated by adding Word Knowledge (WK) and Paragraph Comprehension (PC) standard scores. VE is doubled in the AFQT formula, making it the most heavily weighted component for military enlistment eligibility.
Verification is the process by which a pharmacist performs a final check of a filled prescription to confirm the correct drug, dose, dosage form, quantity, and labeling before the medication is dispensed to the patient, serving as the last safety checkpoint in the dispensing workflow.
Vesting is the process by which an employee earns full ownership rights to employer-contributed retirement benefits over time, with employee contributions always being 100% vested immediately.
Sale of life insurance by a terminally ill person (24 months or less) to a third party for 50-70% of death benefit, with proceeds TAX-FREE.
Vital signs are the fundamental measurements of basic body functions: temperature, pulse (heart rate), respirations (breathing rate), blood pressure, and pain (often called the "5th vital sign"). They provide critical data about a patient's physiological status and are assessed by all levels of nursing staff.
Volatility is a statistical measure of the dispersion of returns for a security or market index, indicating how much the price fluctuates over time—higher volatility means greater price swings and higher risk.
Voluntary manslaughter is an intentional killing committed in "heat of passion" following adequate provocation, or under honest but unreasonable belief in self-defense (imperfect self-defense), reducing murder to a lesser offense.
A waiver of premium rider is an optional life or disability insurance provision that waives premium payments if the insured becomes totally disabled for a specified period, keeping the policy in force.
A waiver of premium rider is a life insurance provision that waives all premium payments if the policyholder becomes totally disabled, keeping the policy in force without any out-of-pocket cost during the disability.
A warranty deed is a type of deed that provides the highest level of protection for the buyer, with the grantor guaranteeing clear title and promising to defend against any claims to the property.
The wash sale rule prohibits investors from claiming a tax loss on a security if they purchase a substantially identical security within 30 days before or after the sale, disallowing the loss for tax purposes but adding it to the cost basis of the new shares.
Whole life insurance is a permanent life insurance policy that provides lifetime coverage with fixed premiums, a guaranteed death benefit, and cash value that grows at a guaranteed rate.
The Windfall Elimination Provision (WEP) was a Social Security formula that reduced benefits for workers who earned pensions from employment not covered by Social Security while also qualifying for Social Security benefits from other covered work. The WEP was REPEALED by the Social Security Fairness Act, signed into law on January 5, 2025, with retroactive benefits back to January 2024.
The withdrawal rate is the percentage of a retirement portfolio withdrawn annually for living expenses, with the "4% rule" being the most widely cited guideline suggesting retirees can withdraw 4% of their initial portfolio (adjusted for inflation) with a high probability of not running out of money over 30 years.
Withholding is the portion of an employee's wages that an employer deducts and remits directly to the IRS as prepayment of income tax. Form W-4 determines the withholding amount. Withholding is treated as paid evenly throughout the year.
Word Knowledge is an ASVAB subtest that tests vocabulary skills, including identifying synonyms and understanding word meanings. Combined with Paragraph Comprehension, it forms the Verbal Expression (VE) score, which is doubled in the AFQT formula.
Workers compensation is a state-mandated insurance system that provides medical benefits and wage replacement to employees who are injured or become ill due to their job, in exchange for employees giving up the right to sue their employer for negligence.
Wound care is the nursing practice of assessing, cleaning, treating, and dressing wounds to promote healing and prevent infection. It includes understanding wound types, healing stages, dressing selection, and recognizing signs of complications such as infection or delayed healing.
Yield is the income return on an investment, expressed as a percentage, including interest or dividends received.
Yield to maturity is the total return anticipated on a bond if held until it matures, accounting for all coupon payments, the difference between purchase price and par value, and the time value of money.
A zero coupon bond is a debt security that pays no periodic interest but is sold at a deep discount to face value, with the full face value paid at maturity—the return is the difference between purchase price and par.
Zoning is the government regulation that divides land into designated districts with specific permitted uses, building requirements, and restrictions to control development and separate incompatible land uses.