Basic Investment Concepts

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4 Terms

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What are Stocks?

A share of ownership in a company. Represents a claim on part of the corporation's assets and earnings.

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What are Bonds?

A debt instrument issued by corporations or governments to raise capital. Investors lend money to the issuer and receive interest payments over a specified period.

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What are Mutual Funds?

A portfolio of stocks, bonds, or other securities managed by a professional fund manager. It allows investors to diversify their investments easily.

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What is Investment Risk?

The potential loss of money on an investment. It's important to understand your risk tolerance before investing.