Plain-English definitions for the terms you'll encounter on your financial journey.
The natural rise and fall of economic growth over time. It typically consists of four stages: expansion, peak, contraction, and trough.
A phase of the business cycle in which the economy moves from a peak to a trough. It is characterized by falling GDP and rising unemployment.
A decline of 10 percent or more in the price of a security or market index from its most recent peak.
A phase of the business cycle where the economy moves from a trough to a peak, characterized by an increase in production and employment.
A phase of the business cycle in which the economy moves from a trough to a peak. It is characterized by an increase in production, employment, and income.
A decline of at least 10% in a stock market index or an individual security's price from its most recent peak.
The highest point of the business cycle, representing the end of an economic expansion. It is the transition point before the economy begins to contract.