C:

Capital appreciation - Increased market value of an asset.

Capital gain - The difference of an asset's selling price above its original purchase price.

Correlation - A statistical measure used to compare asset classes and how they relate to each other in different economic climates. Correlation simply indicates whether investments move in the same direction, opposite directions, or randomly, given certain market conditions.

D:

Diversification - Similar to asset allocation, diversification is a strategy designed to reduce overall portfolio risk.

F:

Financial Industry Regulatory Authority, Inc. (FINRA) - A self-regulatory securities industry organization responsible for the operation and regulation of the securities industry and for conducting regulatory reviews of members’ business activities.

L:

Leverage - The degree to which an investor or business is using borrowed money.

Liquidate - To convert assets into cash.

N:

NAV or net asset value - The daily dollar value of a single mutual fund share based on the value of the underlying assets. In terms of corporate valuations, the value of assets less liabilities equals net asset value (NAV).

O:

Ordinary income - Income other than capital gains.

P:

Portfolio - All investments collectively owned by the same individual or organization.

R:

REIT (Real Estate Investment Trust) - A company that primarily owns and manages real estate and/or timberland properties. A REIT is set up as a corporation, shares of which may be purchased by investors. Collectively, all shareholders own investment units of a company that owns various properties.

Return - The profit calculated on an investment, including income and capital gains, that is typically expressed as a percentage of the total amount invested.

Registered Representative - The representative of a FINRA firm who gives advice on which securities to buy and sell, and who collects a percentage of the commission income he or she generates.

Risk - The possibility of loss of capital on an investment.

S:

Securities and Exchange Commission (SEC) - The primary federal regulatory agency for the securities industry, with the responsibility of promoting full disclosure and protecting investors against fraudulent and manipulative practices in the securities markets.

Securities Investor Protection Corporation (SIPC) - A nonprofit membership corporation established by Congress that insures securities and cash in customer accounts up to $500,000 (up to $100,000 in cash) in the event of brokerage bankruptcy. The SIPC operates similar to the way that the Federal Deposit Insurance Corporation insures bank deposits. The SIPC does not insure against market risk.

V:

Valuation - Assessed value or price of an asset or company.

Volatility - The rate at which the price of a security moves up and down.