Investing and Retirement Terminology

The process of setting money aside to increase wealth over time for long-term financial goals, such as retirement

The measurement of gain or loss generated on an investment relative to the amount of money invested​​​​​​​

The relationship of expected return (profit you expect to make) compared to the amount of risk (amount you stand to lose if the price goes down) taken with a given investment ​​​​​​​

An asset that can be easily bought or sold

A financial market that trades shares of ownership of public companies

A security that represents part ownership or equity in a company​​​​​​​

A measurement of a section of the stock market, typically a weighted average of the prices of selected stocks

When prices in a financial market are on the rise or expected to rise​​​​​​​

When prices in a financial market experience a prolonged decline​​​​​​​

Annuity that offers low, guaranteed rates of interest and fixed income payments in retirement​​​​​​​