Investment
An investment that is a share of ownership in a corporation.
What is a stock?
Expenses that do not change from month to month (like rent, mortgage, or car payment).
What are fixed expenses?
The name for a distribution of profits by a company to individuals who own that company’s stock.
What is a dividend?
An investment that is a loan to a corporation or a government.
What is a bond?
Expenses that change from month to month (like food, entertainment, or vacation).
What are variable expenses?
This is an investing technique in which you spread your money around different types of investments.
What is diversification?
This is an investment that pools money from many people and uses the money to buy many stocks and/or bonds.
What is a mutual fund?
Your wages AFTER taxes and deductions.
What are net wages?
A type of interest that grows not only on the principal but also on all accumulated interest over time.
What is compound interest?