Investment glossary

Short explanations useful when tracking a personal portfolio — returns, FIFO, and basic Czech tax context.

• XIRR — XIRR is an annualized return from buy, sell and dividend cashflows. Why deposit timing matters.
• TWR (time-weighted) — TWR chains returns between deposits and withdrawals — why it is used versus a benchmark.
• MWR (money-weighted) — MWR reflects the size and timing of deposits. In practice it often matches portfolio XIRR.
• XIRR vs TWR — Money-weighted (XIRR) vs time-weighted (TWR) portfolio return — when to use which.
• FIFO — FIFO means the oldest buys are consumed first on a sale — impact on realized P&L and tax views.
• Holding-period test — Indicative explanation of the Czech holding-period test on securities sales — not tax advice.
• Tax on securities sales (Czechia) — Basic terms around personal tax on securities sales in Czechia: holding test, proceeds, FIFO. Indicative only — not tax advice.
• Dividend calendar — What a dividend calendar is, ex-date, DPS, and why a CZK estimate is not booked cash.
• Dividend — What a dividend is, how it relates to DPS, and why it does not change share count.
• DPS — DPS is the dividend attributable to one share — the base for estimating an open-position payout.
• Cashflow — Money moves in a portfolio: buys, sells, dividends and fees as the basis for XIRR.
• Lot — A lot is one purchase (date, price, quantity). Under FIFO, sales consume the oldest lot first.
• Benchmark — A benchmark is a reference index or ETF — when TWR vs S&P 500 (or similar) makes sense.
• FX rate — How the CZK rate affects P&L on foreign shares even when the EUR/USD price is flat.
• Broker — A broker is the platform you use to buy and sell securities. Fees and account currencies differ.
• Ticker — A ticker is a short instrument symbol (e.g. AAPL, CEZ.PR). The same issuer can have different tickers by market.
• ISIN — ISIN is a 12-character securities code. Funds often use it instead of an exchange ticker.
• ETF — An ETF trades like a share, often tracks an index, and suits benchmarks or a portfolio core.
• Equity (stock) — A share is ownership in a company. Return can come from price growth and dividends; prices move with the market.
• Fee — Fees (commission, spread, entry fee) reduce net return — why to record them on every trade.
• Volatility — Volatility describes how much price swings. Higher volatility means larger moves up and down.
• Asset allocation — Asset allocation is how you split wealth across stocks, bonds, cash and other asset classes.