Economic Terms

  • Quantitative Easing

    A form of monetary policy used by central banks to increase the supply of money in an economy when the bank interest rate, discount rate and/or inter-bank interest rate are either at, or close to, zero. read more

  • Dollar Cost Averaging

    The technique of buying a fixed dollar amount of a particular investment on a regular schedule, regardless of the share price. More shares are purchased when prices are low, and fewer shares are bought when prices are high. read more

  • Liquidity Crisis

    For the economy as a whole, a liquidity crisis means that the two main sources of liquidity in the economy, banks and the commercial paper market, severely reduce the number of loans they make or stop making loans altogether. read more

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Investment Terms

  • Call Options

    An agreement that gives an investor the right (but not the obligation) to buy a stock, bond, commodity, or other instrument at a specified price within a specific time period.           read more

  • Short Selling

    The selling of a security that the seller does not own, or any sale that is completed by the delivery of a security borrowed by the seller... read more

  • ETF's

    Exchange-traded funds that follow a specific benchmark index as closely as possible. Index ETF's are much like index mutual funds, but whereas the mutual fund shares can only be redeemed at one price daily... read more

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Retirement Terms

  • 401k Plan

    A 401(k) retirement savings plan allows an employee to save for retirement and have the savings invested while deferring current income taxes on the saved money and earnings until withdrawal. read more

  • Traditional IRA

    An Individual Retirement Account, commonly called an (IRA), is a personal retirement savings plan available to anyone who receives taxable compensation during the year. For IRA contribution purposes, compensation includes wages... read more

  • ROTH IRA

    A Roth IRA (Individual Retirement Account) is a savings plan that allows you to make pre-taxed contributions to a retirement plan. The earnings are tax-free, although Roth IRA contributions are non-deductible. Come retirement, qualified withdrawals are also tax-free.  read more

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