Glossary of wealth management terms

A single stock large enough to dominate a portfolio's risk, meaning more than 10 to 20 percent of investable assets. Founders, executives, and early investors hold them most often.

The investment approach developed at major university endowments: broad diversification, meaningful allocations to alternative assets, long time horizons, and disciplined rebalancing.

A partnership that lets holders of appreciated single stocks swap shares for a diversified basket without an immediate taxable sale, subject to holding periods and eligibility rules.

An organization that manages the full financial life of a wealthy family: investments, tax and estate coordination, reporting, and administration. A single-family office serves one family; a multi-family office serves several.

A person or firm legally obligated to act in the client's best interest. SEC-registered investment advisers owe clients this duty.

A transaction that converts ownership into cash: the sale of a company, an IPO, a large secondary sale, or a major exercise of equity.

A firm providing family office services to a small group of families, giving each the staff and structure of a private office at a fraction of the cost of building one.

A service that coordinates a family's financial operations: bill payment, wires, cash management, escrow and trust disbursements, and consolidated reporting.

Stock in a qualifying small business that can receive substantial federal capital-gains exclusions under Section 1202, subject to holding-period, issuer, and eligibility requirements. The rules reward planning done years before a sale.

Defined as $30 million or more in investable assets. The threshold matters because at that scale, coordination across taxes, entities, and generations becomes the main event.