Investing Basics
The process of using your money to make more money over time.
What is investing?
This type of investment represents ownership in a company
What is a stock/share?
This short code identifies a company on the stock market
What is a ticker symbol?
This document or online tool helps you track how much you earn, spend, save, and invest.
What is a budget?
The concept of losing the value of your money as time passes by
What is inflation?
This type of investment is when you lend money to a company or government in exchange for interest payments
What is a bond?
This term describes how much it costs to purchase one share of a company.
What is the price per share?
This amount of money should be set aside for emergencies — usually 3–6 months of expenses.
What is an emergency fund?
By investing in this, you typically yield 8 - 10% a year
What is the S&P 500?
This is a basket of investments that trades like a stock and often tracks an index
What is an ETF?
This measures a company’s total value: share price multiplied by the number of shares.
What is market capitalization?
This term describes the money you spend on essentials such as housing, food, and transportation.
What are needs/fixed expenses?
This type of growth happens when your money earns money, and that money also earns money.
What is compound interest?
This type of stock pays out a portion of company profits to shareholders.
What is a dividend-paying stock?
This shows the highest and lowest prices a stock has reached over the past year.
What is the 52-week range?
This concept means spreading out your investments to reduce risk
What is diversification?