Glossary of Terms

APR

Annual Percentage Rate - the annual rate charged for borrowing or earned through an investment.

APY

Annual Percentage Yield - the real rate of return earned on a savings deposit or investment taking i...

Bull Market

A financial market in which prices are rising or are expected to rise.

Bear Market

A market condition in which the prices of securities are falling, and widespread pessimism causes th...

ROI

Return on Investment - a performance measure used to evaluate the efficiency or profitability of an...

Dividend

A distribution of a portion of a company's earnings, decided by the board of directors, paid to a cl...

Asset Allocation

An investment strategy that aims to balance risk and reward by apportioning a portfolio's assets acc...

Amortization

The process of spreading out a loan into a series of fixed payments over time.

Escrow

A legal concept describing a financial instrument whereby an asset or escrow money is held by a thir...

Capital Gains Tax

A tax levied on the profit realized on the sale of a non-inventory asset.

Collateral

An item of value that a lender can seize from a borrower if they fail to repay a loan according to t...

Liquidity

The efficiency or ease with which an asset or security can be converted into ready cash without affe...

Overdraft

An extension of credit from a lending institution that is granted when an account reaches zero.

Subpoena

A writ ordering a person to attend a court.

Filibuster

A political procedure where one or more members of parliament or congress debate over a proposed pie...

Eminent Domain

The right of a government or its agent to expropriate private property for public use, with payment...

Premium

The amount of money an individual or business pays for an insurance policy.

Deductible

The amount paid out of pocket by the policyholder before an insurance provider will pay any expenses...

Co-pay

A fixed out-of-pocket amount paid by an insured for covered services.

Accreditation

A process of validation in which colleges, universities and other institutions of higher learning ar...

Tenure

An academic appointment that provides a teacher or professor with permanent employment.