Glossary

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A useful and wide glossary is available below to clarify financial terms and jargon.
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Real rate of return
Real rate of return:  The annual percentage return realized on an investment, which is adjusted for changes in prices due to inflation or other external effects. This method expresses the nominal rate of return in real terms, which keeps the purchasing power of a given level of capital constant over time.  Example: An investment yields a return of 5% over a given period. During the same time, the cumulative rate of inflation was 3%. Therefore, the real rate of return to the investor was only 2%. 
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