Investment Types
A share of ownership in a company
Stock
A collection of different investments.
Portfolio
The financial gain from an investment
Return
A market with rising stock prices.
Bull
Investing the same amount regularly over time
Averaging
A debt instrument issued by corporations or governments.
Bond
The process of spreading investments to reduce risk
Diversification
The chance of losing money in an investment
Risk
A market with falling stock prices.
Bear
Buying stocks when their prices drop
Value
A fund that pools money to invest in multiple securities.
Mutual Fund
Adjusting a portfolio to maintain target allocations
Rebalancing
A measure of how much an investment's price fluctuates.
Volatility
The increase in prices of goods and services over time.
Inflation
Investing in different asset classes to minimize risk
Hedging
A fund that tracks a stock index like the S&P 500.
ETF
The mix of stocks, bonds, and cash in a portfolio
Allocation
The return an investor expects based on risk
Yield
The total value of all goods and services in a country
GDP
Overconfidence in making investment decisions.
Bias
An investment in physical assets like real estate or gold.
Commodity
A fund designed to change allocation as retirement nears.
Target-Date
The practice of evaluating an investment’s true worth.
Valuation
The interest rate set by a central bank
Fed Rate
The mental accounting of money in different categories.
Framing