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epf terms
| Term | Definition |
|---|---|
| Face value | The nominal value of a bond or stock as stated by the issuer. |
| Liquidity | The ease with which an asset can be converted into cash. |
| Mutual Fund | An investment vehicle made up of a pool of money collected from many investors to purchase securities. |
| Portfolio | A collection of financial investments like stocks, bonds, commodities, etc. |
| Preferred stock | A class of ownership in a corporation that has a higher claim on assets and earnings than common stock. |
| Rate of return | The gain or loss made on an investment relative to the amount invested. |
| Risk | The potential of losing financial investment. |
| Securities | Financial instruments that represent an ownership position in a company or a creditor relationship with a government body. |
| Treasury bill | A short-term government security with a maturity of less than one year. |
| Volatility | A statistical measure of the dispersion of returns for a given security or market index. |
| 401(k) | A retirement savings plan sponsored by an employer that allows employees to save a portion of their paycheck before taxes are taken out. |
| Asset | Any resource owned by an individual or entity that is expected to provide future economic benefits. |
| Balance Sheet | A financial statement that summarizes a company's assets, liabilities, and shareholders' equity at a specific point in time. |
| Consumer Price Index | A measure that examines the weighted average of prices of a basket of consumer goods and services. |
| Income tax | A tax imposed on individuals or entities based on their income. |
| Net worth | The total assets minus total liabilities of an individual or company. |
| Pension | A regular payment made during a person's retirement from an investment fund to which that person or their employer has contributed. |
| Roth IRA | An individual retirement account allowing a person to set aside after-tax income up to a specified amount each year. |
| Social Security income | A government program that provides financial assistance to individuals who are retired, disabled, or survivors of deceased workers. |
| Traditional IRA | An individual retirement account that allows individuals to direct pre-tax income towards investments that can grow tax-deferred. |