Investment and Finance

The speed an asset can be converted to cash.

• Liquidity

• Solvency

• Profitability

• Equity

A retirement account, independent of an employer, that offers tax advantages and compound interest.

• Individual Retirement Account (IRA)

• 401(k) Plan

• Roth 401(k)

• Health Savings Account (HSA)

When an investor earns interest not only on the amount of money invested but also on the interest previously earned.

• Simple interest

• Compound interest

• Fixed interest

• Variable interest

The monetary gain made from an investment.

• Profit

• Return

• Revenue

• Interest

Non-profit retirement fund both employee and employer contribute money.

• 401(k)

• 403(b)

• Pension Plan

• IRA

The degree of danger that an investment will lose money.

• Risk

• Return

• Profit

• Liquidity

Spreading an investment across several different financial products.

• Diversification

• Concentration

• Speculation

• Hedging

A retirement fund that an employee may contribute to while working at a company.

• IRA

• Pension Plan

• 401(k)

• Health Savings Account

Uses taxable income to build the principal, but upon retirement, the investor does not have to pay taxes on withdrawals.

• Traditional IRA

• Roth IRA

• 401(k)

• Health Savings Account

An income provided by an employer to an employee based on age and years of service.

• Salary

• Pension

• Bonus

• Commission