Financial Terms

Diversification is a strategy that involves spreading investments across various financial instruments, industries, and other categories to reduce risk. Financial

Capitalization is the market value of a company, calculated by multiplying the number of shares outstanding by the price per

Yield is the annual percentage rate of return on capital. The dividend or interest paid by a company expressed as

EBITDA is an acronym standing for Earnings Before Interest, Taxes, Depreciation, and Amortization. A record of the amount of money

Income replacement ratio is the percentage of pre-retirement income that is needed to maintain the same standard of living in

Compound interest is the interest on a loan or deposit calculated based on both the initial principal and the accumulated

An annuity is a financial product that pays out a fixed stream of payments to an individual, typically used as

A recession is a downturn in economic activity, defined by many economists as at least two consecutive quarters of decline

An expense ratio is the ratio between a mutual fund’s operating expenses for the year and the average value of