Financial Math Vocab

4. A risk‑management technique that reduces exposure by spreading investments across different assets, sectors, or markets.
9. The gain or loss on an investment over a period, usually expressed as a percentage.
10. a single unit of stock.
11. A measure comparing the expected return of an investment to the amount of risk taken.
12. Investment pools that collect money from many investors to buy a diversified portfolio of securities, managed by professionals.
13. The act of committing capital to assets with the goal of generating returns over time.
14. Debt securities in which an investor lends money to a borrower (government or corporation) in exchange for periodic interest and repayment of principal.

1. Money invested in accounts that receive tax advantages (e.g., tax‑deferred or tax‑free growth), such as retirement accounts.
2. The allocation of money into an asset with the expectation of earning a future return.
3. A type of mutual fund that invests in a mix of stocks and bonds to balance risk and return.
5. The ease and speed with which an asset can be converted into cash without significant loss of value.
6. Equity securities representing ownership in a company.
7. Mutual funds or ETFs that invest in a specific industry or sector (e.g., technology, healthcare).
8. A collection of financial assets (stocks, bonds, funds, etc.) held by an investor.
11. The probability that the actual return on an investment will differ from the expected return.