Investing vocab

First ten words

 Stock

A type of investment that represents ownership in a company.

Bond

A debt instrument where an investor loans money to an entity for a fixed period of time at a fixed interest rate.

Mutual Fund

A pool of money from multiple investors used to invest in a diversified portfolio of stocks, bonds, or other securities.

Dividend

A portion of a company's profits distributed to its shareholders.

Capital Gain

The profit made from selling an investment at a higher price than its purchase price.

Risk

The possibility of losing money or not achieving the expected return on an investment.

Portfolio

A collection of investments owned by an individual or an organization.

Asset Allocation

The distribution of investments across different asset classes, such as stocks, bonds, and cash.

Diversification

Spreading investments across different assets or asset classes to reduce risk.

Return

The gain or loss on an investment, usually expressed as a percentage.