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Financial Glossary

Learn the meaning of common financial and investment terms.

Asset

Anything owned that has financial value and can generate future benefits.

Bond

A fixed-income investment where investors lend money to governments or companies.

Capital Gain

Profit earned from selling an investment at a higher price than it was purchased.

Dividend

A payment made by a company to its shareholders from profits.

ETF

Exchange Traded Fund — an investment fund traded on a stock exchange.

IPO

Initial Public Offering — when a private company offers shares to the public.

Liquidity

The ease with which an investment can be converted into cash.

Portfolio

A collection of investments owned by an individual or institution.

Volatility

The degree to which an investment price moves up or down over time.