Water Cooler Lingo

Financial literacy is key to understanding wealth and finance. This dictionary offers essential terms and definitions for beginners and experts, empowering you to make informed financial decisions and discuss matters confidently. Dive in and embrace the language of the wealthy.

FOMO

Fear Of Missing Out - abbreviation for "fear of missing out": a worried feeling that you may miss exciting events that other people are going to, especially caused by things you see on social media: Don't get FOMO.

Ponzi scheme

Named after Charles Ponzi, who is believed to be the inventor of the type of pyramid scam in the 20th century.

Crypto Fear and Greed Index

The Crypto Fear and Greed Index provides a score of 0 to 100, categorizing bitcoin sentiment from extreme fear to extreme greed. Many crypto traders use the index to help them find the right time to enter and exit the market.

Grift

Petty small scale swindling

Dry Powder

Capital set aside so if price drops you can buy more on the dip

HODL

The term HODL is derived from a misspelling of the word “hold” in the context of buying and holding Bitcoin and other cryptocurrencies. It has become a popular meme among crypto investors and is often interpreted as an acronym for “hold on for dear life”. The term originated from a 2013 online post to the Bitcointalk forum where the typo appeared. The price of Bitcoin in 2013 was volatile at the time, surging to over $950 at the beginning of December, 2013, up from just over $130 in April of the same year. The poster encouraged people not to sell and that they were “hodling”. he term HODL implies refusing to sell an investment despite drops in value that might scare other investors into selling. It has become a core tenet of many Bitcoin and crypto believers, representing a long-term approach to cryptocurrency investing. Novice traders are likely to make mistakes when trying to time the market, so they are advised to simply hold their coin.

What is GDP?

Gross Domestic Product (GDP) is the total monetary or market value of all the finished goods and services produced within a country’s borders in a specific time period. It serves as a comprehensive scorecard of a given country’s economic health and is used to estimate the size of an economy and its growth rate. GDP can be calculated using different approaches, such as expenditures, production, or incomes, and it can be adjusted for inflation and population to provide deeper insights. Real GDP takes into account the effects of inflation, while nominal GDP does not.

The calculation of GDP includes all private and public consumption, government outlays, investments, additions to private inventories, paid-in construction costs, and the foreign balance of trade. Exports are added to the value, while imports are subtracted. The foreign balance of trade plays a significant role in determining a country’s GDP. When the total value of goods and services that domestic producers sell to foreign countries exceeds the total value of foreign goods and services that domestic consumers buy, a country is said to have a trade surplus. Conversely, if domestic consumers spend more on foreign products than domestic producers sell to foreign consumers, it is called a trade deficit.

GDP can be computed on a nominal basis or a real basis. Real GDP accounts for inflation and provides a better method for expressing long-term national economic performance since it uses constant dollars.

For more information about GDP, you can refer to the U.S. Bureau of Economic Analysis (BEA)3 or Wikipedia.

Please note that economic conditions can change over time, so it’s always a good idea to stay updated with the latest news and official reports for the most accurate and current information.

FUGAZI

A family name and a slang word which refers to something that is fake or damaged beyond repair.