Financial Glossary

Understand key financial terms to enhance your financial literacy.

An asset is anything of value or a resource of value that can be converted into cash.

A liability is something a person or company owes, usually a sum of money.

Equity represents the value that would be returned to a company's shareholders if all of its assets were liquidated and all its debts were paid off.

Diversification is a risk management strategy that mixes a wide variety of investments within a portfolio.

Inflation is the rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling.