Basic Investing
This is the profit you make on an investment, usually expressed as a percentage.
What is return (or rate of return)?
A stock represents what in a company?
→ What is ownership (or equity)?
This is the amount of money you have left after expenses.
What is savings?
Higher potential returns usually come with higher this.
→ What is risk?
This is the general increase in prices over time.
→ What is inflation?
If you buy an asset for $100 and sell it for $130, this $30 gain is called this.
What is Capital Gain?
When more people want to buy a stock than sell it, the price tends to do this.
→ What is increase (go up)?
Paying only the minimum on a credit card balance mainly increases this cost over time.
→ What is interest?
Investing in only one stock instead of many increases this type of risk.
What is company-specific risk?
When inflation rises, your money’s purchasing power does this.
→ What is decrease?
This type of investment pools money from many investors to buy a diversified portfolio.
What is a mutual fund or ETF?
This order type buys or sells a stock immediately at the best available price.
→ What is a market order?
This score, typically between 300–850, affects your ability to borrow money.
→ What is a credit score?
This strategy focuses on buying undervalued stocks and holding them long-term.
→ What is value investing?
This government agency regulates the U.S. stock market. (Hint: the acronym is related to College Sports)
→ What is the SEC (Securities and Exchange Commission)?
This concept explains why starting to invest early leads to much larger gains over time.
→ What is compound interest?
This order type lets you set the exact price you’re willing to buy or sell at.
→ What is a limit order?
This type of account typically earns higher interest than a regular checking account.
→ What is a savings account (or high-yield savings account)?
This strategy focuses on buying stocks that are increasing in price.
→ What is growth investing (or momentum investing)?
This type of income is earned without actively working, like dividends or rent.
→ What is passive income?
This is the original amount of money invested, not including gains or losses.
→ What is principal?
This major U.S. stock exchange is known for listing many tech companies.
→ What is the NASDAQ?
This financial habit involves tracking income and expenses to control spending.
→ What is budgeting?
This describes how easily an asset can be quickly converted into cash without losing value.
→ What is liquidity?
This account allows investments to grow tax-free for retirement in the U.S. (if rules are followed).
→ What is a Roth IRA?