A comprehensive guide to financial terms and definitions to help you navigate the world of investments.
Total market value of the investments a financial institution manages on behalf of clients.
A financial product that provides a fixed stream of payments over time, typically used for retirement income.
The process of spreading investments across various asset classes (e.g., stocks, bonds, cash) to manage risk.
A fixed-income instrument representing a loan from an investor to a borrower (usually a government or corporation).
A person or firm that facilitates buying and selling of financial instruments for clients.
Profit from the sale of an asset when the selling price exceeds the purchase price.
A financial derivative that allows traders to speculate on price movements without owning the underlying asset.
A financial institution that holds securities on behalf of clients to prevent loss or theft.
A portion of a company’s earnings distributed to shareholders.
Investigation or audit of a potential investment to confirm all facts, usually before a business transaction.
Ownership value in an asset or business after liabilities are subtracted.
A fund that tracks an index, commodity, or asset and is traded like a stock.
A person or firm legally obligated to act in the best interests of their client.
The global market for buying and selling currencies.
The total value of all goods and services produced within a country in a given period.
Investment strategy focusing on companies expected to grow at an above-average rate.
A strategy used to reduce or offset risk in an investment portfolio.
A person with liquid assets exceeding a certain amount (typically $1 million or more).
The rate at which the general level of prices for goods and services rises, eroding purchasing power.
A type of mutual fund or ETF designed to replicate the performance of a market index.
An investment vehicle that pools money from many investors to purchase a diversified portfolio of assets.
A brokerage account that allows investors to borrow money to buy securities.
A collection of investments owned by an individual or institution.
A valuation measure comparing a company’s current share price to its per-share earnings.
The degree of variability in investment returns an investor is willing to withstand.
An automated platform that provides financial advice or portfolio management with minimal human intervention.
Tradable financial assets such as stocks, bonds, and options.
A measure of risk-adjusted return; the higher, the better.
A legal arrangement in which assets are managed by one party for the benefit of another.
A long-term government debt security with a fixed interest rate and maturity of more than 10 years.
A statistical measure of the dispersion of returns for a given asset, reflecting risk or uncertainty.
Comprehensive financial services offered to affluent clients, including investment advice, estate planning, and tax services.
Tax withheld at the source on income (such as interest or dividends) before it is paid to the investor.
Disclaimer: The information provided is for educational purposes only and should not be considered financial advice.
