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Financial Glossary
Financial Glossary
- Exchange-Traded Funds
- ETFs combine many of the benefits of an index mutual fund with the flexibility of stocks. Like mutual funds, ETFs enable you to invest in a pool of securities in one transaction. And similar to stocks, ETFs are listed on a stock exchange so you may purchase them through a brokerage or advisory account. ETFs offer stock-like trading features that enable you to trade throughout the day, utilize limit and stop orders, and even short-sell.
- Strategic Asset Allocation
- At the inception of the portfolio, a "base policy mix" is established based on expected returns. Because the value of assets can change due to market performance, the portfolio should be periodically rebalanced.
- Tactical Asset Allocation
- This is a moderately active strategy that allows money mangers to increase market value by taking advantage of certain situations in the marketplace. When targeted short-term profits are achieved, the manager returns to the portfolio's original strategic asset mix.
- Macroeconomic Trends
- The behavior of the aggregate economy, including economy-wide phenomena such as changes in unemployment, national income, rate of growth, gross domestic product, inflation and price levels.
- Quantitative Analysis
- A financial analysis technique that seeks to understand behavior by using complex mathematical and statistical modeling to assign a numerical value to variables and replicate reality. mathematically.
- Fundamental Screening
- Using revenues, earnings, future growth, return on equity, profit margins and other data to determine a company's underlying value and potential for future growth.
- Mutual Funds
- A variety of stocks, bonds, or securities, grouped together, managed (bought and sold) by a professional investment company and purchased by individual investors through shares.
- Stocks
- Ownership of a corporation represented by shares that are a claim on the corporation’s earnings and assets.
- Indexes
- An index is an imaginary portfolio of securities representing a particular market or a portion of it. Stock and bond market indexes are used as a benchmark to compare mutual funds and exchange-traded funds (ETFs) whose portfolios mirror the components of the index.
- Fixed Income
- Periodic investment income produced for investors at reasonably predictable levels by a variety of municipal, corporate and government agency bonds and other high-yielding securities.
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