Considerations for Investing

Risk

the probability or likelihood of losses relative to the expected return on any particular investment

Diversification

a risk management technique that mixes a wide variety of investments within a portfolio

Inflation

a rise in prices - a rise in the cost of living

Liquidity

The degree to which an asset can be quickly bought or sold in the market without affecting the asset's price

Volatility

The range of price changes over a given period of time. If the price stays relatively stable or if the price varies greatly.

Taxation

Tax rate or amount on any interest, dividends, or other income you receive