Investing Basics
Putting your money into something with the hope of making a profit.
What is investing?
Buying a small part of a company through this type of investment.
What is a stock?
This is the place where stocks are bought and sold.
What is the stock market?
This type of investment usually has less risk than stocks.
What are bonds?
Anything valuable that you own, like cash, stocks, or property.
What is an asset?
People do this to grow their money or prepare for the future.
What is, "investing?"
This is a loan you give to a company or government in exchange for regular interest payments.
What is a bond?
This means owning a piece of a company.
What is buying shares?
This means spreading your money into different types of investments.
What is diversification?
This means how easily you can turn an investment into cash.
What is liquidity?
This is keeping money safe and accessible, while this is trying to grow money over time.
What is the difference between saving and investing?
This type of investment has the highest risk and potential reward.
What is a stock?
Companies sometimes pay this to shareholders as a part of profits.
What is a dividend?
Bitcoin is an example of this risky investment.
What is, "cryptocurrency?"
This is interest earned on both the original amount and the interest already earned.
What is compound interest?
This means the chance that you could lose money on your investment.
What is risk?
Investing in this means buying property like houses or land.
What is real estate?
This person helps you buy and sell stocks.
What is a stockbroker?
This market is when stock prices are rising.
What is a bull market?
This is the term used to describe how well or poorly we can deal with losses when we invest.
What is, "tolerance?"
This is the money you earn from your investment.
What is return?
This investment pools money from many people to buy stocks and bonds.
What is a mutual fund?
The New York Stock Exchange is one example of this.
What is a stock exchange?
This market is when stock prices are falling.
What is a bear market?
This is a collection of investments owned by one person.
What is a portfolio?