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