Glossary

The total amount of money currently in your bank or investment account.

Interest that has been earned or owed but hasn’t been paid out yet.

A strategy where you (or a manager) frequently buy and sell stocks to try and beat the market's average return.

A math expert for insurance companies who calculates risks and helps set your premium prices.

The total yearly cost of borrowing money (like a loan or credit card), including interest and fees.

When the value of an asset (like a house or a stock) goes up over time.

Anything you own that has value, such as cash, property, stocks, or even a car.

It’s how you divide your money among different types of investments (stocks, bonds, crypto).

When the stock market is performing poorly and prices are falling (usually by 20% or more).

The person you name to receive your money or assets (like from a life insurance policy or a will) after you pass away.

A digital, public ledger that records transactions. It is the technology that makes cryptocurrency possible.

Shares of very large, well-known, and financially stable companies (like Apple, Disney, or Coca-Cola).

An IOU. You lend money to a government or company for a set period, and they pay you back with interest.

A short-term loan used to "bridge the gap" when you need money quickly.

When the stock market is doing great and prices are rising. Think of a bull tossing its horns up.

How fast a new company (startup) is spending its cash before it starts making a profit.

The money or assets you have available to invest or start a business.

The profit you make when you sell something for more than you paid for it.

The movement of money in and out of your pocket or business. "Positive cash flow" means more is coming in than going out.

The main organization that manages a country's money and interest rates (e.g., the Federal Reserve in the US).