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Investing -FL
Financial Lit. Investing level 1
| Term | Definition |
|---|---|
| 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 |