16 terms explained in plain English.
Any resource with economic value that an individual or entity owns with the expectation that it will provide future benefit.
A market condition where prices fall 20% or more from recent highs, accompanied by widespread pessimism.
A market condition where prices rise or are expected to rise, accompanied by optimism and investor confidence.
Interest calculated on the initial principal and also on the accumulated interest of previous periods.
The strategy of spreading investments across various assets to reduce risk.
A distribution of a portion of a company's earnings to its shareholders.
A type of investment fund that holds a collection of assets and trades on stock exchanges like a stock.
A mutual fund or ETF designed to follow certain preset rules so that it can track a specified basket of investments.
The ease with which an asset can be converted into cash without affecting its market price.
The total value of a company's outstanding shares, calculated as share price times number of shares.
Price-to-Earnings ratio, a valuation metric comparing a company's share price to its earnings per share.
A collection of financial investments like stocks, bonds, ETFs, and cash.
The degree of variability in investment returns an investor is willing to withstand.
A share in the ownership of a company, representing a claim on part of the company's assets and earnings.
A statistical measure of the dispersion of returns for a given security or market index.
The income return on an investment, such as interest or dividends received.