Financial Dictionary

401(k)

What is a 401(k) Retirement Plan? A 401(k) is an employer-sponsored retirement plan that allows …

adjusted gross income

Adjusted Gross Income (AGI)

What Is Adjusted Gross Income? Adjusted gross income (AGI) is one figure used in the …

Alternative Investments

What Are Alternative Investments? Alternative investments indicate assets that aren’t considered “conventional” investment types, like …

Annualized Rate of Return

What is Annualized Rate of Return? Annualized rate of return is the average annual return …

annuity

Annuity

What Is an Annuity? An annuity is a contract with an insurance company that guarantees …

Appreciation

What is Appreciation? Appreciation means that the value of a financial asset increases over time. …

Asset Allocation

What is Asset Allocation? Asset allocation is the process of dividing investments among cash, equities …

Asset Class

Asset Class Definition Asset classes are securities with similar features and financial structure. These securities …

Basis Points (BPS)

What is a Basis Point? A basis point represents one gradation on a 100-point scale …

Bear/Bull Market

What is a Bear or Bull Market? A bear market is a prolonged period of …

Benchmark

What Is a Benchmark in Finance? Financial benchmarking involves running financial analyses in order to …

Beneficiary

What Is a Beneficiary? A beneficiary is the person or entity who will receive benefits …

college savings

Blue Chip

Blue Chip Meaning A blue chip is a high-quality, relatively low-risk investment; it usually refers …

Bonds

What Is a Bond? A bond acts like a loan or an IOU that is …

market volatility

Capital Gains

What are Capital Gains? Capital gains are the difference between a security’s purchase price and …

Diversification

Diversification Definition Diversification is the process of owning different investments that tend to perform well …

Dividend

Dividend Definition A dividend is a portion of a company’s profit paid to common and …

Equities

What are Equities? Equities are shares issued by a company which represent ownership in the …

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