Core Investing Ideas
Money put into something with the expectation of earning a profit.
What is an Investment?
A marketplace where shares of companies are bought and sold.
What is a Stock Market?
Ownership in a company that can be bought and sold.
What is a Stock?
The percentage gain or loss an investment makes in one year.
What is an Annual Return?
The chance of losing some or all of an investment.
What is a Risk?
Using money to buy assets expected to grow in value or generate income.
What is Investing?
A period when stock prices are falling and investor confidence is low.
What is a Bear Market?
A single unit of ownership in a company.
What is a Share?
A portion of a company’s profits paid to shareholders.
What is a Dividend?
A comparison of the potential risk of an investment to its potential reward.
What is a Risk-Return Ratio?
Anything of value owned, such as cash, property, or stocks.
What is an Asset?
A period when stock prices are rising and investor confidence is high.
What is a Bull Market?
A loan made to a company or government that pays interest over time.
What is a Bond?
Profit made when an investment is sold for more than it was bought for.
What is Capital Gain?
How quickly an asset can be converted into cash without losing value.
What is Liquidity?
A collection of all an investor’s assets and investments.
What is a Portfolio?
a major U.S. stock market index that tracks 500 large publicly traded companies.
What is Standard and Poor's 500?
A pooled investment managed by professionals that invests in many assets.
What is a Mutual Fund?
A loss that occurs when an investment is sold for less than it was bought for.
What is Capital Loss?
Basic raw materials like oil, gold, wheat, or natural gas that are bought and sold.
What are Commodities?
Spreading investments across different assets to reduce risk.
What is Diversification?
A short code used to identify a stock on the market (e.g., AAPL for Apple).
What is a Ticker Symbol?
A fund that tracks a market index, like the S&P 500.
What is an Index Fund?
An increase in the value of an asset over time.
What is Appreciation?
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