Financial Dictionary

Margin Lending Definition Margin lending is the practice of borrowing money from a brokerage account while leveraging investment assets as collateral for the loan. { "@context": "https://schema.org", "@type": "DefinedTerm", "@id": "DefinedTerm", "name": "Margin Lending", "description": "Margin lending is the practice of borrowing money from a brokerage account while leveraging investment assets as collateral for the loan." "inDefinedTermSet": "/financial

Diversification Definition Diversification is the process of owning different investments that tend to perform well at different times in order to reduce the effects of volatility in a portfolio, and also increase the potential for increasing returns. { "@context": "https://schema.org", "@type": "DefinedTerm", "@id": "DefinedTerm", "name": "Diversification", "description": "Diversification is the process of owning different investments that tend to perform well at different times in

What is Power of Attorney POAs are legal documents that allow you to name an “agent” (also sometimes referred to as an “Attorney-in-fact”) to act on your behalf for financial or health care decisions and are key components of any estate plan. This agent is expected to place the principal’s interests ahead of his or her own, which is why it is important to pick a trustworthy agent. { "@context": "https://schema.org", "@type": "DefinedTerm", "@id": "DefinedTerm", "name": "Power of Attor

Volatility Definition Volatility is the amount and frequency with which an investment fluctuates in value. A volatile market gives traders opportunities to make money quickly, but also leaves room to lose money quickly as well. { "@context": "https://schema.org", "@type": "DefinedTerm", "@id": "DefinedTerm", "name": "Volatility", "description": "Volatility is the amount and frequency with which an investment fluctuates in value. A volatile market gives traders opportunities to make

What is a 401(k) Retirement Plan? A 401(k) is an employer-sponsored retirement plan that allows employees to defer a portion of their wages to individual accounts. Generally, contributions to the plan are made on a pre-tax basis. However, some employer-sponsored plans allow for after-tax, or Roth 401(K) deferrals. Employers may also match their employees’ 401(K) deferrals up to a certain amount. Annual contributions are typically limited up to a maximum amount allowed by the IRS. { "@contex