Investment and Financial Terms

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Active investing

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An investment strategy that involves buying and selling assets with the goal of outperforming a specific market benchmark.

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Aggressive investor

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An investor who seeks high returns and is willing to take on significant risk to achieve those returns by investing in asset classes such as equities and cryptocurrency.

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Asset

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Something you own.

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Asset allocation

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The process of dividing an investment portfolio among different asset classes, such as stocks, bonds, and cash, to optimize risk and return based on an investor's goals, risk tolerance, and time horizon.

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Asset class

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A group of investments that exhibit similar characteristics and behave similarly in the marketplace. Commonly include stocks (equities), bonds (fixed income), and cash equivalents.

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Balanced fund

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A mutual fund or ETF that invests in a mix of asset classes, typically stocks and bonds, to provide a balance of growth and income.

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Bear

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An investor who believes that the stock market will decline in value.

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Bear market

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A prolonged period of declining stock prices, typically defined as a drop of 20% or more from a recent peak.

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Benchmark

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A standard against which the performance of an investment or portfolio is measured.

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Bitcoin

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The most popular cryptocurrency.