Yield The profit from an investment. Similar to return, but yield is generally associated with income. Zero Coupon Bond A bond that pays no coupon. It will sell at a discount to the amount that will be paid at maturity. Active Describes an investment process which is designed to outperform a benchmark such as the market.
Active management is the opposite of passive management.
Annualized Used to describe a statistic, usually return , expressed on a per year basis. Ask The price at which someone is offering to sell a security. A high level classification of an investment. Examples of asset classes include equities , real estate , venture capital , fixed income , and cash equivalents . Bid The price someone is offering to pay for a security.