Financial Glossary

Ownership title representing a share of a company's capital, giving right to a portion of its profits.

Debt security issued by a government or company, allowing to borrow funds at a fixed interest rate.

A portion of a company's profits distributed to shareholders based on the number of shares owned.

Sustained increase in the general price level of goods and services in an economy, reducing the purchasing power of money.

Financial strategy of using borrowed capital to increase the potential return of an investment, potentially amplifying both gains and losses.

The earnings generated and realized on an investment over a particular period, typically expressed as a percentage of the initial investment cost.

Investment strategy of spreading investments across various financial instruments to reduce overall risk.

Statistical measure of the dispersion of returns for a given security or market index, indicating the level of risk.

The ease with which an asset can be converted into cash without causing a significant movement in the price.

The proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the loan outstanding.