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Investing -FL

Financial Lit. Investing level 1

TermDefinition
Net Worth The difference between the total value of someone's assets and their total liabilities.
Mutual Funds A collection of various assets (like stocks and bonds) pooled together and managed for investors.
Bank CDs Certificates of Deposit; low-risk, fixed-interest savings accounts where money is held for a set term.
Bonds Loans issued by companies or governments to raise capital in exchange for interest payments.
Stocks Financial instruments representing partial ownership in a company.
Real Estate Investment Buying and holding physical property to generate rental income or profit from appreciation.
Liquidity The ease and speed with which an asset can be converted into cash.
Diversification Spreading investments across different asset types to reduce overall risk.
Bull Market A market condition where prices are generally rising.
Bear Market A market condition characterized by declining prices and investor pessimism.
IRA Individual Retirement Account; a tax-advantaged account designed for retirement savings.
401(k) An employer-sponsored retirement savings plan.
Asset Any resource or property owned by an individual or company that can generate value.
Retirement Planning The process of planning for financial needs after one stops working.
ROI
Created by: glandoam
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