Financial what?!

GAAP: General Accepted Accounting Principles: standard framework of guidelines for financial accounting.

Audited Statement: A financial statement that an auditor has prepared according to GAAP

Securities Fraud (AKA Stock Fraud/Investment Fraud): A practice that induces investors to make purchase or sale decisions on the basis of false information, frequently resulting in losses, in violation of the securities laws. Typically occurs when investors are enticed to part with their money based on untrue statements.

Hedge Fund: An investment portfolio run by professional money managers who use alternative investment strategies such leverage, programs trading, arbitrage, and derivatives to produce returns for their investors. Hedge funds are restricted investment only available to a qualified investor who typically has over $1M in investible assets.

Portfolio: In finance, it is an appropriate mix or collection of investments held by an institution or an individual.

Investment Horizon: The length of time a sum of $ is expected to be invested. Ex: Typically, the shorter the investor’s horizon, the less risk he/she should be willing to accept