6/30/2023 0 Comments Time horizon definition economics![]() ![]() ![]() In general, someone is bullish if they believe the value of a security or market will rise. This level may be achieved through a single purchase or a series of smaller purchases.īull market - Any market in which prices are advancing in an upward trend. The issuer promises to repay the full amount of the loan on a specific date and pay a specified rate of return for the use of the money to the investor at specific time intervals.īond fund - A mutual fund that invests exclusively in bonds.īreakpoint - The level of dollar investment in a mutual fund at which an investor becomes eligible for a discounted sales fee. ![]() The term Blue Chip is borrowed from poker, where the blue chips are the most valuable.īoard of Trustees - A governing board elected or appointed to direct the policies of an institution.īond - A bond acts like a loan or an IOU that is issued by a corporation, municipality or the U.S. A sustainable investment style that involves investing in companies that lead their peer groups with respect to sustainability performance.īeta - A measurement of volatility where 1 is neutral above 1 is more volatile and less than 1 is less volatile.īlue chip - A high-quality, relatively low-risk investment the term usually refers to stocks of large, well-established companies that have performed well over a long period.A top performing product, service or person within a category or peer group.The opposite of a bull market.īenchmark - A standard, usually an unmanaged index, used for comparative purposes in assessing performance of a portfolio or mutual fund. A market in which prices decline sharply against a background of widespread pessimism, growing unemployment or business recession. The companies selected typically are in different industries and different geographic regions.īear market - A bear market is a prolonged period of falling stock prices, usually marked by a decline of 20% or more. A shorter average maturity usually means a less sensitive - and consequently, less volatile - portfolio.īalanced fund - Mutual funds that seek both growth and income in a portfolio with a mix of common stock, preferred stock or bonds. In general, the longer the average maturity, the greater the fund's sensitivity to interest-rate changes, which means greater price fluctuation. The most common asset classes are stocks, bonds and cash equivalents.Īverage maturity - For a bond fund, the average of the stated maturity dates of the debt securities in the portfolio. Annualized rate of return also can be called compound growth rate.Īppreciation - The increase in value of a financial asset.Īsset allocation - The process of dividing investments among cash, income and growth buckets to optimize the balance between risk and reward based on investment needs.Īsset class - Securities with similar features. Alpha - The amount of return expected from an investment from its inherent value.Īlternative Minimum Tax (AMT) - Federal tax, revamped by the Tax Reform Act of 1986, aimed at ensuring that wealthy individuals, trusts, estates and corporations pay at least some tax.Īnnual report - The yearly audited record of a corporation or a mutual fund's condition and performance that is distributed to shareholders.Īnnualized - A procedure where figures covering a period of less than one year are extended to cover a 12-month period.Īnnualized rate of return - The average annual return over a period of years, taking into account the effect of compounding. ![]()
0 Comments
Leave a Reply. |