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
- Mutual FundA pooled investment where many people's money is combined and managed together to buy a mix of stocks or bonds.
- NAV (Net Asset Value)The per-share value of a fund, calculated by dividing its total holdings' value by the number of shares.
- YieldThe income an investment pays you each year, shown as a percentage of its current price.
- 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.
- LiquidityHow quickly and easily you can turn an investment into cash without moving its price much.
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Plain-English education — not personalized legal, tax, or investment advice.