Investing final 2025

stocks

a share of a company, at a set price, a set amount of that company. Publicly traded.

bonds

sold by the government or companies. Basically someone loaning them money (by buying one). A promise they will return that money to you and you get payments in the form of interest.

mutual funds

investment that has grouped multiple investments together. Also has a bunch of people together who has invested in it together.

speculative investments

not traditional investment, either a really high rate or return or you lose all your money.

index funds

a group of similar stocks or bonds (companies too)

maturity date

the scheduled time investors get paid back (usually bonds or loans)

liquidity

how quickly something can be turned into cash

market price

current price someone is willing to pay for something

stock holder/share holder

someone who owns a share of a company

risk

uncertainty regarding the future of an investment

inflation

a general rise in prices across all markets

inflation risk

understanding what money will be worth in the future

dividend

an amount that they pay to shareholders (Payment you get along the way)

diversification

having your money spread away in different things

assets

things that you own of value

liabilities

things that you owe