📚 Glossary
Quick reference guide to essential investing and risk management terms.
Introduction
The Glossary is your quick reference for financial and investing terminology.
It summarizes the key concepts mentioned throughout the Knowledge Hub so you can decode them at a glance.
Core Investing Terms
- Asset Allocation: Dividing investments among asset classes to balance risk and reward.
- Diversification: Spreading investments across sectors or asset classes to reduce exposure.
- Liquidity: How quickly an asset can be bought or sold without affecting its price.
- Volatility: The degree of variation in asset prices over time.
Risk Management Terms
- Market Risk: Exposure to overall market downturns and volatility.
- Credit Risk: Risk of borrower default on debt obligations.
- Operational Risk: Failures in processes, systems, or people.
- Currency Risk: Losses due to exchange rate fluctuations.
- Systemic Risk: Collapse of the entire financial system due to interconnectedness.
Strategy Terms
- Value Investing: Buying undervalued companies with strong fundamentals.
- Growth Investing: Targeting companies with high revenue and earnings growth.
- Dividend Investing: Building passive income streams through dividend‑paying stocks.
- Momentum Trading: Riding short‑term price trends using technical indicators.
- Index Fund Investing: Tracking the market with low‑cost index funds and ETFs.
Conclusion
This glossary is a living reference.
As you explore the Knowledge Hub, return here to clarify terms and reinforce your understanding