NGPF Investing 2025

401(k)

A retirement savings plan offered by employers with tax benefits and possible employer matching.

Active Investing

A strategy where investors frequently buy and sell investments to outperform the market.

AI (Artificial Intelligence) in Investing

Technology that analyzes financial data and automates investment decisions.

Annuity

A financial product providing regular payments over time, usually for retirement.

Asset

Something valuable that can be owned or invested in.

Bear Market

A period when stock prices fall, often signaling a weak economy.

Benchmark

A standard used to measure an investment's performance.

Bond

A loan made to a company or government, repaid with interest.

Bond Fund

A pool of bonds managed as a single investment.

Brokerage Account

An account that allows individuals to buy and sell stocks, ETFs, and other investments.

Bull Market

A period when stock prices rise, often signaling a strong economy.

Capital Gains

Profit from selling an investment for more than its purchase price.

Compound Interest

Interest that builds upon itself, accelerating investment growth.

Corporate Bond

A bond issued by a company to raise capital.

Default Risk

The possibility that a borrower won't repay a bond or loan.

Diversification

Reducing investment risk by spreading money across different assets.

Dividend

A company's profit paid to shareholders, usually as cash or additional shares.

Dollar-Cost Averaging

Investing a fixed amount regularly, regardless of market conditions.

Dow Jones Industrial Average (DJIA)

A stock market index tracking 30 large, publicly owned companies in the U.S.

ETF (Exchange-Traded Fund)

A fund that trades like a stock, providing diversification.

Employer Match

The amount an employer contributes to an employee's 401(k), usually matching a percentage of their contribution.

Expense Ratio

The annual fee charged for managing a fund.

Face Value

The original value of a bond, repaid at maturity.

Index Fund

A passive investment fund that mirrors a stock market index like the S&P 500.

Inflation

The rise in prices over time, reducing money's purchasing power.

Interest Rate

The percentage charged for borrowing or earned on an investment.

Investment Fund

A pool of money from multiple investors used to buy a mix of assets.

Investment Portfolio

A collection of investments owned by an individual or entity.

Investment Risk

The chance of losing money on an investment.

IPO (Initial Public Offering)

The first time a company sells stock to the public.

IRA (Individual Retirement Account)

A retirement savings account with tax benefits.

Liquidity

How easily an asset can be converted into cash without significant loss.

Market Volatility

The frequency and size of price swings in investments.

Micro-Investing

Investing small amounts of money, often through apps that round up purchases.

Mutual Fund

A pooled investment in stocks, bonds, or both, managed by professionals.

Nasdaq

A major U.S. stock exchange with a focus on technology companies.

Passive Investing

A hands-off strategy that tracks the market instead of trying to beat it.

Pension

A retirement plan providing fixed payments after retirement, typically from an employer.

Portfolio

The total collection of an investor's stocks, bonds, and other assets.

Robo-Advisor

A digital financial service that manages investments using algorithms.

Risk Tolerance

An investor's comfort level with potential investment losses.

Roth IRA

A retirement account where contributions are taxed upfront, but withdrawals in retirement are tax-free.

S&P 500

A stock market index tracking 500 of the largest U.S. companies.

Social Security

A government program providing retirement income based on lifetime earnings.

Stock

A share of ownership in a company, giving investors a claim on profits.

Stock Market

A place where stocks and other investments are bought and sold.

Stock Split

When a company increases its number of shares while lowering share price.

Target Date Fund (TDF)

A retirement fund that automatically adjusts investments over time.

Tax-Advantaged Account

An investment account that offers tax benefits, such as a 401(k) or IRA.

Yield

The earnings from an investment, often expressed as a percentage.