A fuller guide to this term is on the way. In the meantime, the related terms below explain the ideas around it.
Related MoneyPedia terms
- Cash EquivalentA safe, short-term investment that can be converted to cash quickly, such as a money market fund or Treasury bill.
- Treasury BillA short-term government loan that matures in a year or less and is sold at a discount to its face value.
- Money Market FundA low-risk fund that invests in short-term, high-quality debt and aims to keep a stable share price.
- Risk ToleranceHow much investment ups and downs you can handle emotionally and financially without changing your plan.
- BondA loan you make to a government or company that pays you interest and returns your money on a set date.
- Asset AllocationHow you split your money among stocks, bonds, and cash — the biggest driver of risk and growth.
More in Investing
Plain-English education — not personalized legal, tax, or investment advice.