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capital gains
when an asset increases in value, resulting in it being sold for more than the amount it was originally bought with
capital loss
when an asset decreases in value, resulting in it being sold for less than the amount it was originally bought with
commission
money paid to a person providing a service for their effort put into making the service happen
dividends
the distribution of the profit a corporation makes to its shareholders
insider trading
when information not publicly reported by a company convinces an interested investor to invest in the company
IPO (initial public offering)
when a private company makes the transition of becoming a public company by selling stocks for the first time
IRA (individual retirement account)
an account that allows people to save up for retirement by either adding money to it throughout fixed intervals (monthly, annually) or investing in the market, of which any profits will be added to the account
market value
the price of something as determined by its supply and demand
mutual funds
bringing together money from numerous investors in order to mutually invest in something
stock exchange
a place where investors can buy and sell investments
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