Basic Terms
Short definition of Investment
Investing money into something (like stocks or property) in hope of a profit return.
Short definition of Interest
Money earned from lending money or keeping it in a savings account.
what's a built market?
A market where prices are rising or are expected to rise, showing investor confidence.
short definition of Diversification
Spreading investments across different assets to reduce risk
Short definition of stocks
A share of ownership in a company
Short Definition of Principal
The original amount of money invested or loaned
Short definition of Dividend
A share of a company’s profits paid to stockholders
What's a bear market?
A market where prices are failing or are expected to fall, showing investors pessimism.
Short definition of Asset Allocation
Dividing your investments among different categories like stocks, bond, cash
Short definition of Bond
A loan made to a company or government that pays back with interest over time
Short Definition of Risk
The chance of losing money or not getting the expected return from something
Short definition of capital gain
Profit made from selling an investment for more then it was bought
What's market volatility?
The degree of variation in market prices over time: high volatility means prices change quickly and unpredictability.
What's a portfolio ?
A collection of all investments owned by a person or organization.
What is Mutual fund?
A pool of money from many investors used to buy a mix of stocks, bonds or other assets
Short Definition of Liquidity
How quickly an investment can be turned into cash without losing value
Loss from selling an investment for less then it was brought.
Short Definition of Return on Investment (ROI)
A measure of how much profit or loss is made on an investment, usually shown in percentage