Financial Dictionary

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Dividend

Dividend Definition A dividend is a portion of a company’s profit paid to common and preferred shareholders. They provide an ...

Yield Curve

What Is a Yield Curve? A yield curve is the relationship between interest rates and time, and is determined by ...

Living Will

What is a Living Will? A living will provides instructions to your healthcare provider in the event that you are ...

Mutual Funds

What Is a Mutual Fund? A mutual fund is a fund operated by an investment company that raises money from ...

incentive stock options ISO

Stocks

What Is a Stock? A stock is a long-term, growth-oriented investment representing ownership in a company; also known as ‘equity.’ ...

Bonds

What Is a Bond? A bond acts like a loan or an IOU that is issued by a corporation, municipality, ...

Annualized Rate of Return

What is Annualized Rate of Return? Annualized rate of return is the average annual return over a period of years, ...

Bear/Bull Market

What is a Bear or Bull Market? A bear market is a prolonged period of falling stock prices, usually marked ...

Basis Points (BPS)

What is a Basis Point? A basis point represents one gradation on a 100-point scale representing 1%. This term is ...

Asset Allocation

What is Asset Allocation? Asset allocation is the process of dividing investments among cash, equities (ex. U.S. Large Cap, International), ...

Appreciation

What is Appreciation? Appreciation means that the value of a financial asset increases over time. This increase occurs for many ...

Alternative Investments

What Are Alternative Investments? Alternative investments indicate assets that aren’t considered “conventional” investment types, like stocks, bonds, and cash. Alternative ...