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Investing

TermDefinition
savings The portion of income set aside for the future.
investment Purchasing financial products or valuable items with the aim of increasing wealth over time.
return on investment Reflects the gain or loss from an investment over a period.
compound interest Interest computed on the original principal plus all previously accumulated interest. Allows wealth to grow over time.
stock a piece of ownership in a corporation.
bond A debt instrument where an investor is the lender, and the borrower (typically a corporation or government) promises to pay a specified amount of interest and repay the principal.
diversification The process of spreading investments among a variety of companies and asset classes (stocks, bonds, cash, etc.) to reduce overall risk.
retirement account
stock market
dividend
mutual fund
common stock
preferred stock
Created by: user-1986120
 

 



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