Asset Allocation

"The implementation of an investment strategy that aims to balance risk and reward."

Arbitrage

"The simultaneous purchase and sale of an asset to profit from an imbalance in the price."

Annual Percentage Yield

"The real rate of return earned on an investment, taking into account the effect of compounding interest."

Bond Market

"A financial market where participants can issue new debt, known as the primary market, or buy and sell debt securities."

Bitcoin

"A decentralized digital currency without a central bank or single administrator."

Balance Sheet

"A financial statement that reports a company's assets, liabilities, and shareholder equity."

Compound Interest

"Interest calculated on the principal amount and the accumulated interest of previous periods."

Dividend Yield

"A financial ratio that shows how much a company pays out in dividends each year relative to its stock price."

Exchange Traded Fund (ETF)

"A type of pooled investment security that operates much like a mutual fund."

Federal Reserve

"The central banking system of the United States."

GDP (Gross Domestic Product)

"The total monetary or market value of all the finished goods and services produced within a country."

Inflation

"The rate at which the general level of prices for goods and services is rising."

Market Capitalization

"The total dollar market value of a company's outstanding shares of stock."

Quantitative Easing

"A form of monetary policy in which a central bank purchases at-scale government bonds."

Recession

"A significant decline in economic activity spread across the economy, lasting more than a few months."