Terms to Know

Finance: The field that deals with the study of investments. It includes the dynamics of assets and liabilities over time under conditions of different degrees of uncertainty and risk. Finance can also be defined as the science of money management.

Capital: The financial assets themselves (money) or the financial value of assets, includes the value of tangible machinery and production equipment used in environments such as factories and other manufacturing facilities.

Financialization: A college or universities’ priorities exhibited through its financial decisions.

Divestment: The process of slowly pulling out capital invested in a certain asset.

Endowment: A form of donation made to an institution consisting of money or financial assets that may or may not have a stated purpose at the bequest of the donor. In general, most endowments have guidelines stating how much of each year’s investment income can be spent (e.g. 5%).

Hedge Funds: A hedge fund is an alternative investment vehicle that pools capital from accredited individuals or institutional investors and invests in a variety of assets, often with complex portfolio construction and risk-management techniques.

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