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  • Appreciation
    An increase in the price or value of an asset.
  • Asset
    An asset is anything of value (tangible or intangible), that is owned with an expectation to generate cash in the future.
  • Asset allocation
    Asset allocation is a strategy used in building your portfolio to balance risks and returns by putting your money in different assets, like stocks and fixed income.
  • Beta
    Is a measure of how sensitive or volatile a security is compared to the market.
  • Bonds
    A bond is when the investor loans money to a borrower, typically a corporation or the government, and in return gets interest payments.
  • Brokerage firm
    A brokerage firm acts as a middleman between buyers and sellers of securities and other financial instruments.
  • Business diversification
    Business diversification is a growth strategy where companies develop a new product or enter a new market.
  • Capital Gain
    A capital gain occurs when you sell an asset for more than what you originally paid for it.
  • Certificate of Deposit
    A certificate of deposit (CD) is a savings account that holds a fixed amount of money for a fixed period of time, and in exchange, the issuing bank pays interest. After the fixed period is over,(...)
  • Compound interest
    Compound interest is the interest you gain on your initial investment as well as the accrued interest on that investment. It is basically “interest earned on interest.”
  • Credit rating
    A credit rating is a score that tells lenders how likely a borrower is to pay back a loan, and it is based on the borrower's financial history.
  • Currency
    A currency is a generally accepted form of payment within a country or region, for example, USD in the United States or EGP in Egypt.
  • Custodian
    A financial institution or person responsible for safeguarding a firm's or individual's financial assets.
  • Debt
    Debt is a sum of money borrowed by one party from another - it is used by many corporations and individuals to make large purchases that they could not afford under normal circumstances. The(...)
  • Debt to Equity
    A financial ratio used to calculate the proportion of stockholder equity in relation to debt that is used to finance the assets of a company.
  • Debtor
    A debtor (aka borrower) is a person or an entity that owes money to others.
  • Deflation
    Deflation is a decrease in the overall level of prices for products and services. Typically, it happens when the inflation rate drops below 0%.
  • Demand
    Demand is the willingness of consumers to buy a good or service at a certain price.
  • Depreciation
    To lose value over a period of time - this refers to any form of assets, such as cash or real estate.
  • Dilution
    Dilution refers to when a company issues new shares after its initial public offering (IPO) which results in a reduction of the value of the existing shares.
  • Disposable income
    Disposable income is the income remaining after paying all mandatory payments are made such as taxes. 
  • Diversification
    A risk management strategy that involves splitting up your investments into different types of assets that behave differently, to reduce overall risk
  • Diversified Portfolio
    A diversified portfolio is a collection of different securities and asset classes that are not affected by the same factors, which minimizes the overall risk of the portfolio. 
  • Dividend yield
    A measure of the size of a dividend, which is found by expressing the dividend as a percentage of a share's current price. It's calculated by dividing the annual dividends paid per share by the(...)
  • Dividends
    Dividends are a portion of a firm's net profits that is distributed to the shareholders rather than being reinvested in the company.
  • Dollar-denominated
    Dollar-denominated means that the value of the instrument/asset class is priced in US dollars.
  • Earnings report
    Earnings reports are quarterly financial statements issued by publicly traded companies. This includes three key financial statements: the balance sheet, the income statement and the cash flow(...)
  • EPS
    Earning per share is an indicator of a company's profitability. It is calculated by dividing a company's net income by its total number of shares.
  • ETF
    An exchange-traded fund, or ETF, is a collection of various stocks or bonds that is managed by professionals. These funds trade on major stock exchanges, like the New York Stock Exchange.
  • Hedge fund
    A private investment firm that uses a variety of strategies to invest the money of its clients in an effort to outperform the market or act as a hedge against unanticipated changes in the market.
  • Inflation
    Inflation is a general increase in prices that causes a decline in a currency’s purchasing power.
  • Intangible assets
    Intangible assets are assets that are not physical and cannot be grabbed such as a company's reputation, trademark, or copyright.
  • Interest
    Interest is the cost of borrowing money. The borrower pays interest, and the lender receives it. For instance, if you borrow money from the bank since you are the borrower you have to return the(...)
  • Investment
    An investment is an asset that you buy with the expectation that it will generate some future income or profit
  • IPO
    When a company decides to raise money through selling shares for the first time to the public.
  • Liquidity
    The ability to transfer an asset into cash, the easier it is to transfer to cash the more liquid that asset is. For example, gold is extremely liquid since it can be transferred to cash very easily.
  • Market capitalization
    It’s simply the total value of a company’s outstanding stocks, calculated by multiplying the total number of shares by the current share price.
  • Market Volatility
    It is the rate at which prices go up and down.
  • Mutual fund
    A mutual fund is a financial vehicle that pools assets from shareholders to invest in securities like stocks, bonds, money market instruments, and other assets. They are operated by professional(...)
  • Net income
    Net income is the total revenue minus total expenses of a company.
  • Net worth
    Net worth is calculated by subtracting a person or a company's liabilities from their assets. Simply it is the total wealth of an individual or company.
  • Passive Income
    Passive income is a cash stream that requires little to no effort to maintain - unlike active income, such as your salary.
  • Portfolio
    A portfolio is a person’s or an institution’s entire collection of investments or financial assets, including stocks, bonds, real estate, mutual funds and other securities.
  • Primary Market
    The primary market is where securities are created - companies sell new stocks and bonds to the public for the first time.
  • Profit
    A profit is the financial gain of a business that is equal to revenue minus costs.
  • Purchasing power
    Purchasing power is the amount of goods and services that can be purchased with a unit of(...)
  • Real terms
    Real terms refer to a value that takes into account the effects of inflation for example if wages climbed by 5% and prices increased by 2%, then the 'real' growth in wages would only be 3%.
  • Return
    Return is the money made or lost on an investment over a period of time.
  • Risk preference
    Risk preference is the investor's choice of how risky they want their investment to be. The higher the risk the higher the return.
  • Risk tolerance
    An investor’s risk tolerance is the level of risk they’re willing to take when making an investment decision>
  • ROI
    Return on investment is a simple ratio that divides the net profit (or loss) from an investment by its cost. When you put money into an investment, ROI helps you understand how much profit or(...)
  • Secondary Market
    The secondary market is where investors purchase securities from other investors, rather than from issuing companies themselves.
  • Securities
    Securities are tradable financial instruments with monetary value.
  • Shares outstanding
    Shares outstanding is the number of total shares of a corporation that are authorized, issued, and purchased on the secondary market by investors
  • Solutions Fund
    Solutions fund is a sum of money stashed away every month for emergencies or unplanned expenses.
  • Stock
    A stock is a security that represents partial ownership in a company. When you purchase a company's stock, you're purchasing a small piece of the company, called a share.
  • Stock exchange
    Is a place where traders can buy and sell securities such as stocks bonds, and other securities
  • Stock Market
    The stock market is where investors connect to buy and sell investments — most commonly, stocks
  • Stock valuation
    Stock valuation is a method of trying to calculate the worth of a company and comparing the valuation to the current market price in order to know whether a stock is over or under valued.
  • Stop loss
    It is a strategy developed to limit losses and control risk by deciding to sell or buy an asset when it reaches a certain price.
  • Supply
    Supply is the total amount of goods and services that are available for the consumers.
  • Tangible assets
    Tangible assets are physical assets that are available in physical form or holdings, such as a car, equipment, or machine.
  • Tenant
    A person who rents a house from a landlord.
  • Time horizon
    Time horizon is your investing timeframe for achieving a financial goal.
  • Time value of money
    The sum of money in the present is worth more than the same sum of money in the future.