The plain-English dictionary

Finance words, without the fog.

Short definitions for the terms you keep hearing. If a word still feels slippery, tell us.

Asset

Something you own that has economic value.

Growth that earns growth on top of the original amount.

Spreading money across different investments so one outcome does not decide everything.

Cash set aside for the surprises that are inconvenient, not hypothetical.

A fund designed to follow a market index rather than pick individual winners.

How quickly an asset can become spendable cash without a large loss.

The amount left after costs are taken away from revenue.

What you own minus what you owe.

How much uncertainty you can handle without abandoning your plan.

The income an investment produces, often shown as a percentage.