Resources · 17 of 17
Glossary
Plain-language definitions of the Claude Code terms you meet in this track, written for a private equity reader.
Claude Code introduces a handful of terms from the world of software tools. None of them require a technical background, but a few come up often enough that it helps to have them straight before you start. This page defines, in plain English, the words you meet across this track and inside Claude Code itself. If a term on another page is unclear, it is almost certainly explained here.
The tools you work in
Claude Code : Claude running directly in the files and folders on your computer, rather than in a browser chat. It can read your files, propose changes, and, with your approval, make them. See Claude Code vs claude.ai.
VS Code : A free code editor from Microsoft, and the recommended environment for Claude Code because it puts your files, editor, and terminal in one window. See Before you Start.
Terminal : The text window where you type commands to your computer. Claude Code runs in any terminal, and VS Code’s built-in terminal is the most convenient option. See Before you Start.
Command line (CLI) : A way of controlling a program by typing commands instead of clicking buttons. Claude Code is a command-line tool, but in practice you talk to it in plain English.
Files and projects
Folder (directory) : A place on your computer that holds related files. You point Claude Code at one folder and it works within it.
Working directory : The specific folder Claude Code is currently opened in and allowed to work with.
Repository (repo) : A folder whose full history of changes is tracked by Git, so every version can be recovered. See Saving Work with Git.
CLAUDE.md : A plain-text file in your project that tells Claude Code the standing rules and context for that project: what it is, how to behave, and what to avoid. It is the project’s rulebook. See CLAUDE.md Rulebook.
handover.md, plan.md, context.md : Three plain-text notes kept alongside CLAUDE.md that record where the work stands, the plan, and the lessons learned, so any session or colleague can pick the work up cleanly. See CLAUDE.md Rulebook.
README : A short plain-text file describing what a project is and how to run it, written for whoever opens the folder next.
Making and reviewing changes
Prompt (request) : The instruction you give Claude Code, in plain English. A good request is small and specific: one clear task at a time. See Your First Session.
Diff : A side-by-side view of exactly what Claude proposes to change, with removals and additions marked. You read the diff before you accept anything. See Approving Changes.
Approve / reject : Your decision on each proposed change. Nothing is written to your files until you approve it, which is what keeps you in control. See Approving Changes.
Session : One continuous working conversation with Claude Code in a folder. It remembers what has been said within it, which is why a handover note matters when you start a fresh one.
Agent : Claude working through a multi-step task on its own, checking its own progress as it goes, still under your approval for changes that touch your files.
Saving and shipping
Git : The system that records snapshots of your work so you can always return to an earlier state. It is your safety net, and the reason you can experiment without fear. See Saving Work with Git.
Commit : A saved snapshot of your project at a point in time, with a short note describing what changed. See Saving Work with Git.
Branch : A separate line of work you can develop and review before combining it with the main version, so unfinished changes never disturb the working copy.
Push : To send your committed work from your computer to a shared home online, such as GitHub, so it is backed up and others can see it.
GitHub : A widely used online home for repositories, where work is stored, shared, and published from.
Deploy (going live) : To publish your work so it becomes a live link others can open. See Going Live.
Keeping it safe
Confidentiality : The discipline of keeping restricted material within the boundaries your firm’s policy allows. See Keeping Deal Data Safe.
Verification : Checking what Claude Code produces against the source and your own judgment before relying on it. Fluent output is not the same as correct output. See Verify Everything.