Active Investing

Alpha

The return an investment earns above its benchmark — a measure of a manager's skill.

Alternative Investment

Assets outside stocks, bonds, and cash — like real estate, art, or private equity.

Annuity

A contract, usually with an insurer, that pays you a regular income stream in exchange for an upfront sum.

Appreciation

An increase in an asset's value over time.

Asset

Anything you own that has value: cash, property, investments, or a business.

Asset Allocation

How you divide your portfolio among stocks, bonds, cash, and other asset classes based on your goals and risk tolerance.