Research &
Glossary

The distribution of investments among different asset categories like stocks, bonds, and cash based on goals and risk tolerance.

A loan made to a company or government that pays you interest over time. When the bond matures, you get your principal back.

A long-term investment strategy where investors purchase securities and hold them for an extended period regardless of market fluctuations.

A period when stock prices are rising or expected to rise, typically characterized by investor optimism and confidence.

A period when stock prices fall 20% or more from recent highs, usually accompanied by widespread pessimism.

A measure of a stock's volatility compared to the overall market. A beta above 1 means more volatile than the market.

Stock of a well-established, financially sound company with a history of reliable performance (e.g., Apple, Microsoft).

A portion of a company's profits paid to shareholders, usually quarterly. Companies use dividends to distribute earnings to investors.

Spreading investments across different assets to reduce risk. Don't put all your eggs in one basket.

Investing a fixed amount regularly regardless of price, which helps reduce the impact of market volatility.

Financial contracts whose value derives from an underlying asset, such as options, futures, and swaps.

Exchange-Traded Fund: a basket of securities that trades on an exchange like a stock, offering instant diversification.

The central bank of the United States, responsible for monetary policy, interest rates, and economic stability.

Gross Domestic Product: the total value of all goods and services produced in a country, measuring economic health.

An alternative investment fund that uses advanced strategies and leverage to generate returns for accredited investors.

A mutual fund or ETF designed to track the performance of a specific market index like the S&P 500.

Initial Public Offering: when a private company first sells shares to the public, becoming publicly traded.

The rate at which the general level of prices rises, reducing purchasing power. Typically measured by CPI.

The cost of borrowing money or the return on savings, set by central banks and influenced by economic conditions.

How easily an asset can be bought or sold without affecting its price. Cash is the most liquid asset.

The total value of a company's outstanding shares. Calculated by multiplying share price by total number of shares.

An order to buy or sell a security immediately at the best available current price.

A professionally managed investment fund that pools money from many investors to purchase securities.

A collection of investments owned by an individual or institution, including stocks, bonds, real estate, and other assets.

Price-to-Earnings ratio compares a company's stock price to its earnings per share, indicating how much investors pay per dollar of earnings.

The degree of variability in investment returns an investor is willing to withstand. Varies based on age, income, and goals.

Return on Investment measures the gain or loss generated relative to the amount invested, expressed as a percentage.

A significant decline in economic activity lasting more than a few months, typically identified by two consecutive quarters of negative GDP growth.

A share of ownership in a company. When you buy stock, you become a partial owner of that business and may receive dividends and voting rights.

Borrowing shares to sell them, hoping to buy them back later at a lower price and profit from the difference.

Strategy of selecting stocks that trade below their intrinsic value, popularized by Warren Buffett.

The degree of variation in trading prices over time. High volatility means large price swings; low volatility means stable prices.

The income return on an investment, such as dividends from stocks or interest from bonds, expressed as a percentage.