Glossary terms

Found a term you don’t understand?
Don’t worry, we’ve got you covered.
search icon magnifying glass
Active Income: What It Is and What It Is Not

Active income is sometimes known as a form of set salary which an employee receives monthly or bi-weekly for completing a specific job or upfront work.

Read More
Allocation Defined and Explained

An offering that is allocated to an investor comprises a certain percentage of the total offering vehicle, based on investment amount and split pro-rata. Read more about it here.

Read More
Amortization: What It Is and How It Works

Amortization refers to both the principal and interest payments made throughout the loan repayment plan. Amortization is used for various types of loans.

Read More
Appreciation: Definition and Formula

The fiscal value increase of a set asset over time is influenced by interest rates, inflation, a decrease in market demand, or an increase in demand.

Read More
Asset-based Investments: The Basics

Asset-based investment, sometimes referred to as asset-based financing, is a form of investment that collateralizes company securities to obtain a loan. Find out more.

Read More
Basis Point: How It Is Used

A financial unit of measurement is usually equal to 1/100th of 1%. Basis point or BPS can be used to measure interest rates or yield on specific securities.

Read More
Capitalization (Cap) Rate: RoR Calculation

A calculation is used to help determine the potential Rate of Return (RoR) on a real estate investment.

Read More
Carried Interest: Fund Manager Compensation

Carried interest acts as the basic compensation for a fund manager. It’s a share of the profits from the investment that is paid to the investment manager. Carried interest explained in full here.

Read More
Collateral: Asset-Based Loans

Loans in which the borrower will offer assets as collateral to secure the loan. If the borrower defaults the lender will have ownership of those assets. Find out more about collateral here.

Read More
Common Equity: How Companies Use It

Common equity includes the value of shares of common stock, earnings and paid-in capital, and the number of investments in a company made by investors.

Read More
Compound Interest

The accumulated interest of a loan or deposit for previous periods and on principal payments made. It’s also simply known as “interest on interest.” We expand here.

Read More
Confession of Judgement

A legal written agreement is signed by the lender, agreeing to repay any money owed to the creditor (borrower) to avoid court action to resolve disputes. Learn more about it here.

Read More
Contingency Fee Representation

When a plaintiff is represented on a contingency fee basis, no legal fees are paid until they have won their case, the lawyer receives a percentage thereof. Broader description available here.

Read More

A mutual relationship between two different investments that have a similar response to market influence and market-related forces. A full description here.

Read More
Cost Basis: A Key Tool for Investors

Learn how to calculate capital gains, handle taxes effectively, and choose the right cost basis model with our short guide.

Read More
Cost of Capital

Cost of capital refers to the minimum rate of return a business or company has to generate before a new purchase, or investment starts to make money. Find out more.

Read More
Covenants: Safeguards in Debt Agreement

An indenture that is entered by a borrowing party or individual to proclaim which activities may or may not be carried out, these include certain agreements. Here you can learn more.

Read More
Debt: Types and Their Implications

Money owed on financial instruments that were borrowed from a financial lender or institution. The borrower is required to repay the debt or return the value thereof.

Read More
Default: Risks and Recovery Strategies

When a borrower is unable to make repayments on their loan according to previously agreed-upon terms and conditions, known as being “in default.” Default explained here.

Read More

Payments made by any private or public fund to investors. Companies use disbursements to complete the final payment on any form of goods and expenses. Examples available here.

Read More
DRIP for Maximum Returns

Dividend Reinvestment Plan is a scheme through which investors reinvest their earnings or dividends back into stocks of the company.

Read More
Equity: Assets Minus Liabilities

The remaining value of an asset after the deduction of all liabilities, there two types, tangible and intangible assets.

Read More
Free Cash Flow

Free cash flow is the amount of cash available after a company has paid its operations and other capital expenditure.

Read More
HNWI or High Net Worth Individuals

Typically known as an HNWI, this individual has financial assets, excluding primary residence that exceeds the $1 million and does not surpass $5 million. HNWI described in full.

Read More
Internal Rate of Return

The method used to evaluate the attractiveness of an investment opportunity. The IRR presents cash flows equal to zero. Learn more here.

Read More
Inventory Essentials and Types

All tangible goods are housed by a business with the intent of it being sold as part of business operations, for example, food, clothing, car parts, etc. A full description here.

Read More
Inventory Financing

Asset-backed lending makes use of company inventory as a form of collateral to help secure a loan. Inventory can be seized when borrowers default. Full description available.

Read More
Investment Memorandum

The investment memorandum acts as a profile considering all investments to determine whether the offerings will meet the client’s desired needs. Example of investment memorandum included here.

Read More
Investment Property

A property or real estate that is held by an investor for the practice of retaining capital income or appreciation from it.

Read More
Irrevocable Letter Of Direction (LOD)

Known as a letter of direction gives the recipient-specific rights regarding the sender or writer’s finances, written to a bank or family members. LOD explained better here.

Read More
Jumpstart Our Business Startups (JOBS) Act

The JOBS Act was a bipartisan project led by Obama and Congress to leverage the use of crowdfunding, democratizing access to capital for both large and small businesses.

Read More
Liens Explained: Types and Forms

A legal action in which a lender seizes the property of the borrower that’s failed to make payments on a loan. Property is held until repayments are made. A broader description is available below.

Read More
Linear Income

A linear income can be a job where you need to either clock in for every shift or be present in-office to physically receive your wages or income.

Read More
Liquidity in Economis and Business

The rate at which assets owned by an individual or company can easily be sold off for cash. These can include publicly traded stock or Treasury Bills. Learn more about liquidity here.

Read More
Liquidity Premium

Liquidity premium refers to a type of investment that cannot be sold at a fair market value, where investors require additional security on the available asset.

Read More
Loan-to-Cost Ratio (LTC)

Determines the amount of debt relative to the cost of purchasing a property in commercial mortgage financing and multifamily financing.

Read More
Loan-To-Value (LTV)

Used to calculate and evaluate collateral. This refers to the loan amount and the underlying assets which determine the cushion the borrower has. Here is a full LTV description.

Read More
Mass Tort Explained: When It Is Used

The civil action of numerous plaintiffs against selected or multiple corporate defendants. These civil grievances are resolved in state or federal courts. Mass Tort fully explained here.

Read More
Multiple on Invested Capital (MOIC)

MOIC is a performance metric for private market investments, which indicates the multiple of capital returned at investment maturity. In essence, it shows how many times an investor’s initial capital is regained.

Read More
Net Asset Value (NAV)

NAV is used to determine the market value of the mutual fund. This instrument is used to estimate whether a fund is under or overvalued.

Read More

The lender pledges a form of collateral, i.e. real estate or property, for which the borrower is not personally liable. More details are available here.

Read More
Of coupons, yields, rates and spreads: What does it all mean?

Fixed income terms are often used interchangeably, despite referring to different financial concepts. Interpreting these terms correctly can help investors calculate potential return and better value their income opportunities.

Read More
Operating Agreement

Bylaws described in an operating agreement, members and investors agree to operate the newly formed SPV. These apply to Yieldstreet offerings. Learn what to include.

Read More
Originators Explained: Connecting Borrowers and Lenders

Originators assist with determining the terms of the loan with the borrower, performing due diligence. The originator acts as the liaison for the borrower.

Read More

An originator that sells parts of a loan to individuals, businesses, and financial investment firms. Participation can be 100% or as little as 5%. Learn about this concept.

Read More
Participation Agreement

An agreement was signed by the originator and investors. With YieldStreet, managers of the SPV sign the agreement as a proxy to purchase a loan percentage. See a more detailed description here.

Read More
Payment Frequency

The frequency represents how often investors should receive forms of principal or interest repayments on their investments. Here you can find out more.

Read More
Plaintiff Defined: Initiator of Legal Actions

An individual or group which begins a new case in the court of law against a defendant, both parties are represented by an attorney or lawyer. The definition is expanded here.

Read More
Post-settlement funding

Funding is allocated to a plaintiff before any compensation from the settlement of the case can be accessed or received by the plaintiff. Description expanded.

Read More
Pre-settlement Funding

Non-recourse funding plaintiffs receive while awaiting to start or resume the trial. This funding is allocated for personal use and legal fees. Explained in full.

Read More
Preferred Return

Gives preference to a class of equity above a common preferred class concerning the overall distribution of profits among shareholders.

Read More
Private Equity Fund

A manageable investment scheme controlled by an investment broker or a limited liability partnership houses a collection of equities and debt securities.

Read More
Pro-rata Explained: How to Calculate It

A Latin phrase that describes a proportionate allocation of a certain amount. This will include a fraction amount according to its share of the whole. Pro-Rata explained.

Read More
Recurring Income

Earnings that a person receives on investment or asset that continuously pays profits without the investor having to put in additional work.

Read More
Regulation A+

Allows companies, startups, and entrepreneurs to raise funding capital from the entire public which includes both accredited and non-accredited investors.

Read More
Regulation D

An exemption within the Securities Act of 1933 allows investors and companies to qualify for exemptions under the registration requirements.

Read More
Residual Income

Residual income is earned by completing upfront work, and receiving a salary or set wage and is the amount of money left after covering expenses and taxes.

Read More
Secured vs Unsecured Position

A secured position allows one to secure a loan using collateral, whereas an unsecured one does not require upfront collateral beforehand.

Read More
Senior Debt

Debt takes priority over other forms of equities and debts if a company or investor defaults on their loan repayments.

Read More
Senior Debt in Business Financing and Growth

The order in which a company is required to pay off debt is usually above junior debt, applicable to companies who are operational or who have filed for bankruptcy. We expand here.

Read More

A portion or part of the debt is paid off first secured with collateral. Normally offered by corporations, Limited Liability Companies or a Limited Partnership. More on this topic.

Read More
Settlement: What It Is and How It Works

An agreement or resolution between two or more disputing parties about a legal matter. Settlement is agreed upon before the commencement of a court case. Topic expanded here.

Read More
SPV or Special Purpose Vehicle

A company can form an SPV, a separate entity from the primary company which is used to secure and privatize any form of company investment. Examples of SPV.

Read More
Step-Up In Basis

A tax loophole for investors and corporations to help bypass capital gains taxes for assets that are passed on.

Read More
Subscription Agreement

An agreement signed by all investors looking to purchase a portion of a Special Purpose Vehicle. Each investor will have pro-rata ownership of the SPV. See more here.

Read More
UCC-1 / Perfected Interest

A legal financing statement filed by a creditor allows them to give notice that it has or may have an interest in the personal property of a debtor. Examples available here.

Read More

An underwriter performs a background check on a borrower to determine whether the person can repay the loan and if they can offer collateral.

Read More
What Does NOI Mean in Real Estate?

Learn what NOI stands for. It’s a calculation used in rental property by the investor or property buyer to determine the potential profitability of their property investment purchase.

Read More
Yield Explained: How to Measure Investment Income

Capital income is received from an investment, either being stocks or shares. Higher-yielding stocks are more lucrative and sometimes the most preferred option on the market.

Read More

We believe our 10 alternative asset classes, track record across 470+ investments, third party reviews, and history of innovation makes Yieldstreet “The leading platform for private market investing,” as compared to other private market investment platforms.

1 Past performance is no guarantee of future results. Any historical returns, expected returns, or probability projections may not reflect actual future performance. All securities involve risk and may result in significant losses.

3 "Annual interest," "Annualized Return" or "Target Returns" represents a projected annual target rate of interest or annualized target return, and not returns or interest actually obtained by fund investors. “Term" represents the estimated term of the investment; the term of the fund is generally at the discretion of the fund’s manager, and may exceed the estimated term by a significant amount of time. Unless otherwise specified on the fund's offering page, target interest or returns are based on an analysis performed by Yieldstreet of the potential inflows and outflows related to the transactions in which the strategy or fund has engaged and/or is anticipated to engage in over the estimated term of the fund. There is no guarantee that targeted interest or returns will be realized or achieved or that an investment will be successful. Actual performance may deviate from these expectations materially, including due to market or economic factors, portfolio management decisions, modelling error, or other reasons.

4 Reflects the annualized distribution rate that is calculated by taking the most recent quarterly distribution approved by the Fund's Board of Directors and dividing it by prior quarter-end NAV and annualizing it. The Fund’s distribution may exceed its earnings. Therefore, a portion of the Fund’s distribution may be a return of the money you originally invested and represent a return of capital to you for tax purposes.

5 Represents the sum of the interest accrued in the statement period plus the interest paid in the statement period.

6 The internal rate of return ("IRR") represents an average net realized IRR with respect to all matured investments, excluding our Short Term Notes program, weighted by the investment size of each individual investment, made by private investment vehicles managed by YieldStreet Management, LLC from July 1, 2015 through and including July 18th, 2022, after deduction of management fees and all other expenses charged to investments.

7 Investors should carefully consider the investment objectives, risks, charges and expenses of the Yieldstreet Alternative Income Fund before investing. The prospectus for the Yieldstreet Alternative Income Fund contains this and other information about the Fund and can be obtained by emailing [email protected] or by referring to The prospectus should be read carefully before investing in the Fund. Investments in the Fund are not bank deposits (and thus not insured by the FDIC or by any other federal governmental agency) and are not guaranteed by Yieldstreet or any other party.

8 This tool is for informational purposes only. You should not construe any information provided here as investment advice or a recommendation, endorsement or solicitation to buy any securities offered on Yieldstreet. Yieldstreet is not a fiduciary by virtue of any person's use of or access to this tool. The information provided here is of a general nature and does not address the circumstances of any particular individual or entity. You alone assume the sole responsibility of evaluating the merits and risks associated with the use of this information before making any decisions based on such information.

9 Statistics as of the most recent month end.

300 Park Avenue 15th Floor, New York, NY 10022


No communication by YieldStreet Inc. or any of its affiliates (collectively, “Yieldstreet™”), through this website or any other medium, should be construed or is intended to be a recommendation to purchase, sell or hold any security or otherwise to be investment, tax, financial, accounting, legal, regulatory or compliance advice, except for specific investment advice that may be provided by YieldStreet Management, LLC pursuant to a written advisory agreement between such entity and the recipient. Nothing on this website is intended as an offer to extend credit, an offer to purchase or sell securities or a solicitation of any securities transaction.

Any financial projections or returns shown on the website are estimated predictions of performance only, are hypothetical, are not based on actual investment results and are not guarantees of future results. Estimated projections do not represent or guarantee the actual results of any transaction, and no representation is made that any transaction will, or is likely to, achieve results or profits similar to those shown. In addition, other financial metrics and calculations shown on the website (including amounts of principal and interest repaid) have not been independently verified or audited and may differ from the actual financial metrics and calculations for any investment, which are contained in the investors’ portfolios. Any investment information contained herein has been secured from sources that Yieldstreet believes are reliable, but we make no representations or warranties as to the accuracy of such information and accept no liability therefore.

Private placement investments are NOT bank deposits (and thus NOT insured by the FDIC or by any other federal governmental agency), are NOT guaranteed by Yieldstreet or any other party, and MAY lose value. Neither the Securities and Exchange Commission nor any federal or state securities commission or regulatory authority has recommended or approved any investment or the accuracy or completeness of any of the information or materials provided by or through the website. Investors must be able to afford the loss of their entire investment.

Investments in private placements are speculative and involve a high degree of risk and those investors who cannot afford to lose their entire investment should not invest. Additionally, investors may receive illiquid and/or restricted securities that may be subject to holding period requirements and/or liquidity concerns. Investments in private placements are highly illiquid and those investors who cannot hold an investment for the long term (at least 5-7 years) should not invest.

Alternative investments should only be part of your overall investment portfolio. Further, the alternative investment portion of your portfolio should include a balanced portfolio of different alternative investments.

Articles or information from third-party media outside of this domain may discuss Yieldstreet or relate to information contained herein, but Yieldstreet does not approve and is not responsible for such content. Hyperlinks to third-party sites, or reproduction of third-party articles, do not constitute an approval or endorsement by Yieldstreet of the linked or reproduced content.

Investing in securities (the "Securities") listed on Yieldstreet™ pose risks, including but not limited to credit risk, interest rate risk, and the risk of losing some or all of the money you invest. Before investing you should: (1) conduct your own investigation and analysis; (2) carefully consider the investment and all related charges, expenses, uncertainties and risks, including all uncertainties and risks described in offering materials; and (3) consult with your own investment, tax, financial and legal advisors. Such Securities are only suitable for accredited investors who understand and are willing and able to accept the high risks associated with private investments.

Investing in private placements requires long-term commitments, the ability to afford to lose the entire investment, and low liquidity needs. This website provides preliminary and general information about the Securities and is intended for initial reference purposes only. It does not summarize or compile all the applicable information. This website does not constitute an offer to sell or buy any securities. No offer or sale of any Securities will occur without the delivery of confidential offering materials and related documents. This information contained herein is qualified by and subject to more detailed information in the applicable offering materials. Yieldstreet™ is not registered as a broker-dealer. Yieldstreet™ does not make any representation or warranty to any prospective investor regarding the legality of an investment in any Yieldstreet Securities.

YieldStreet Inc. is the direct owner of Yieldstreet Management, LLC, which is an SEC-registered investment adviser that manages the Yieldstreet funds and provides investment advice to the Yieldstreet funds, and in certain cases, to retail investors. RealCadre LLC is also indirectly owned by Yieldstreet Inc. RealCadre LLC is a broker-dealer registered with the Securities and Exchange Commission (“SEC”) and a member of the Financial Industry Regulatory Authority (“FINRA”) and the Securities Investor Protection Corporation (“SIPC”). Information on all FINRA registered broker-dealers can be found on FINRA’s BrokerCheck. Despite its affiliation with Yieldstreet Management, LLC, RealCadre LLC has no role in the investment advisory services received by YieldStreet clients or the management or distribution of the Yieldstreet funds or other securities offered on our through Yieldstreet and its personnel. RealCadre LLC does not solicit, sell, recommend, or place interests in the Yieldstreet funds.

Yieldstreet is not a bank. Certain services are offered through Plaid, and Footprint and none of such entities is affiliated with Yieldstreet. By using the services offered by any of these entities you acknowledge and accept their respective disclosures and agreements, as applicable.

Investment advisory services are only provided to clients of YieldStreet Management, LLC, an investment advisor registered with the Securities and Exchange Commission, pursuant to a written advisory agreement.

Our site uses a third party service to match browser cookies to your mailing address. We then use another company to send special offers through the mail on our behalf. Our company never receives or stores any of this information and our third parties do not provide or sell this information to any other company or service.

Read full disclosure