BASIC TERMS
The acts of committing money or capital to an endeavor with the expectation of obtaining an income or profit.
INVESTMENT
A share of ownership in a corporation.
STOCK
Spreading investments across different assets to reduce risk
DIVERSIFICATION
A prolonged period of rising stock prices
BULL MARKET
The return earned on debt investments
INTEREST
The original amount of money invested or borrowed, excluding any interest or dividends.
PRINCIPAL
A debt investment in which an investor loans money to an entity that borrows funds for a defined period of time.
BOND
Distributing investments among various asset classes
ASSET ALLOCATION
A prolonged period of falling stock prices
BEAR MARKET
A payment made by a company to its shareholders
DIVIDEND
The chance that an investments value will decrease or that an investment will fail to produce the expected return.
RISK
An investment vehicle that pools money from many investors to invest in a diversified portfolio of securities.
MUTUAL FUND
A collection of investments owned by an individual or institution.
PORTFOLIO
The degree of price fluctuation in a market
MARKET VOLITILITY
Profit from selling an asset at a higher price than its purchase price
CAPITAL GAIN