Industry Terms DB
Table view
Name
Definition
AI Definition
Hub (Bullet)
Asset allocation is the process of dividing an investment portfolio among different asset categories, such as stocks, bonds, and cash, to optimize risk and return based on an investor's goals and risk tolerance.
The average duration of a single transaction, including hold time, talk time, and related tasks that follow the transaction.
Average Handle Time (AHT) is a key performance metric used in call centers that measures the average duration it takes to resolve a customer interaction, encompassing the total time spent on the call as well as any subsequent tasks.
First Call Resolution (FCR) refers to the practice of resolving a customer’s issue or inquiry during their first contact with a service representative, without the need for follow-up calls or additional support. Achieving a high FCR rate is a key performance indicator for customer service and support teams, as it reflects efficiency and customer satisfaction.
Call abandon rate is a metric that measures the percentage of incoming calls that are disconnected by the caller before they are answered by a representative. A high call abandon rate can indicate issues with customer service capacity or long wait times.
A Service Level refers to the agreed-upon performance metrics and standards for a service, often defined in a Service Level Agreement (SLA). It typically includes aspects such as availability, responsiveness, and quality of service, establishing expectations between the service provider and the client.
Spreading investments to reduce risk.
Diversification is an investment strategy that involves allocating resources across various financial instruments, industries, or other categories to reduce exposure to any single asset or risk. This approach aims to improve the overall risk-return profile of an investment portfolio.
Profit from the sale of property or an investment.
Capital gains refer to the profit that is realized when an asset, such as property or an investment, is sold for more than its purchase price.
Market conditions of falling or rising stock prices respectively.
A bear market refers to a period in which stock prices are falling, typically by 20% or more from recent highs. Conversely, a bull market describes a period of rising stock prices, indicating investor confidence and expectations of continued growth.
Someone legally obligated to act in the client's best interest.
A fiduciary is someone who holds a legal or ethical relationship of trust with one or more parties. This individual is required to act in the best interest of their clients, putting the clients' interests above their own.
Arranging for the management and disposal of an individual's estate.
Estate planning involves the process of preparing for the transfer of an individual's wealth and assets after their death. This includes creating wills, establishing trusts, and making decisions about guardianship and healthcare. The goal is to ensure that an individual's wishes are fulfilled and that their estate is managed effectively and efficiently.
An employer-sponsored retirement savings plan.
A 401(k) is a type of employer-sponsored retirement savings plan that allows employees to save and invest a portion of their paycheck before taxes are taken out. Contributions are often matched by the employer, providing an additional incentive for employees to save for retirement.
A tax-advantaged retirement savings account.
An Individual Retirement Account (IRA) is a type of savings account that is designed to help individuals save for retirement while providing certain tax advantages.
A professionally managed investment fund pooled from many investors.
A mutual fund is an investment vehicle that pools money from multiple investors to collectively invest in a diversified portfolio of stocks, bonds, or other securities, managed by professional investment managers.
A type of investment fund traded on stock exchanges.
An ETF, or Exchange-Traded Fund, is a type of investment fund that is traded on stock exchanges, similar to individual stocks. ETFs hold assets such as stocks, commodities, or bonds and generally operate with an arbitrage mechanism designed to keep trading close to its net asset value, though deviations can occasionally occur.
Interest earned on both the principal and accumulated interest.
Compound interest is the interest earned on both the principal and the accumulated interest from previous periods. It differs from simple interest, which is calculated only on the principal amount.
How quickly an asset can be converted to cash.
Liquidity refers to the ease with which an asset can be bought or sold in the market without affecting its price.
A collection of financial investments.
A portfolio is a collection of financial investments, which can include stocks, bonds, real estate, and other assets, managed together to achieve specific financial goals and risk tolerances.
An investor's ability to handle market fluctuations.
Risk tolerance refers to the degree of variability in investment returns that an individual is willing to withstand in their investment portfolio. It reflects the investor's comfort level with the potential for loss and their long-term financial goals.
The profit or loss from an investment.
ROI (Return on Investment) refers to the profit or loss from an investment.
