Financial language, explained clearly.

How a portfolio divides capital across asset classes and exposures.

Spreading exposure so one position, company or risk factor does not dominate the outcome.

The combination of price change and distributions over a period.

The per-share value of a fund’s assets minus liabilities.

The fund’s annual operating expenses expressed as a percentage of assets.

Cash distributions annualized relative to a reference price; not the same as total return.

A distribution classification that can include the return of invested capital.

The price paid by an option buyer and received by an option seller.

The process by which an option seller is required to fulfill the contract obligation.