The use of borrowed money to increase potential returns on an investment.
What is leverage?
100
A number that measures a person's creditworthiness.
What is credit score?
100
A risky bond offering a higher rate of return and higher default risk than a bond issued by a financially stable company; also known as high yield bonds.
What is junk bond?
100
Equity investment in companies not traded on a public stock exchange.
What is Private equity?
The portfolio may include traditional assets such as bonds, but also hedge funds, real estate and commodities.
200
The total dollar value of all outstanding shares. Computed as shares times current market price.
What is market capitalization?
200
The cost of an insurance policy.
What is premium?
200
The index that measures the daily stock price movements of 30 large, publicly-owned U.S. companies.
What is Dow Jones Industrial Average?
200
Financial assets outside traditional investment classes—stocks, bonds or cash; typically owned by institutions or high net-worth individuals.
What is alternative investments?
300
The relationship between current assets and current liabilities.
What is Liquidity Ratio, or Current Ratio?
300
Commonly referred to as IRA.
What is retirement savings plan?
300
The difference between the highest price that a buyer is willing to pay for an asset and the lowest price that a seller is willing to accept to sell it.
What is bid-ask spread?
300
Private companies valued at over 1 billion dollars.