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Financial Dictionary

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Financial Dictionary 

Thousands of investors have told us they are confused by the investment jargon that is used by financial advisors. We also know some terms, that investors don't understand, are used by advisors as sales ploys. They establish themselves as experts when they define a term you may not understand. 

There is an alternative. We have defined more than 1,500 commonly used financial terms. Look-up a definition by entering the term in the search engine or using the alphabetical search service.

Definition of 'Alpha'

A coefficient that measures the portion of an investment's return that is due to non-market risk. For example, Alpha is a mathematical estimate of the amount of return expected from an investment's inherent values, such as the rate of growth in earnings per share. An alpha of 1.25 indicates that a stock should rise 25% more in relation to the general stock market that has an alpha of 1.00.

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