Financial Glossary

A tax-advantaged retirement savings plan offered by employers.

A financial product that provides regular payments in exchange for an initial lump sum.

The strategy of dividing investments among different asset categories.

A market condition in which prices are falling or expected to fall.

A debt investment where an investor loans money to an entity for a defined period.

The profit from selling an asset for more than its purchase price.

Interest calculated on the initial principal and accumulated interest.

Spreading investments across various assets to reduce risk.

A type of investment fund traded on stock exchanges.

A person legally obligated to act in the best interest of another party.

The rate at which the general level of prices for goods and services rises.

The ease with which an asset can be converted into cash without affecting its market price.

An investment vehicle made up of a pool of funds from many investors.

A collection of financial investments like stocks, bonds, and cash.

A tax-advantaged retirement account funded with post-tax dollars.

A type of security that represents ownership in a corporation.

An expense that reduces taxable income.

The income return on an investment, such as interest or dividends.