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ASSET CLASS#1

A group of investments with similar characteristics, like stocks, bonds, or real estate, each serving different investment goals.

DIVERSIFICATION#2

The strategy of spreading investments across various asset classes to reduce risk and enhance returns.

STOCK#3

A share in the ownership of a company, representing a claim on its assets and earnings.

BOND#4

A fixed income investment where an investor loans money to an entity for a defined period at a fixed interest rate.

PORTFOLIO#5

A collection of financial investments like stocks, bonds, and real estate held by an individual or institution.

RISK MANAGEMENT#6

The process of identifying, assessing, and prioritizing risks followed by coordinated efforts to minimize or control their impact.

MARKET ORDER#7

An order to buy or sell a stock immediately at the current market price.

DIVIDEND#8

A portion of a company's earnings distributed to shareholders, typically paid quarterly.

STOCK INDEX#9

A measurement of the performance of a group of stocks, representing a specific segment of the market.

ASSET ALLOCATION#10

The strategy of dividing an investment portfolio among different asset categories to balance risk and reward.

REAL ESTATE#11

Property consisting of land and the buildings on it, often used as an investment for rental income or appreciation.

RETURN ON INVESTMENT (ROI)#12

A measure used to evaluate the efficiency of an investment, calculated as net profit divided by the initial cost.

CAPITAL GAIN#13

The profit earned from the sale of an asset when the selling price exceeds the purchase price.

MUTUAL FUND#14

An investment vehicle that pools money from multiple investors to purchase a diversified portfolio of stocks and bonds.

EXCHANGE-TRADED FUND (ETF)#15

A type of investment fund that trades on stock exchanges, similar to individual stocks, often tracking an index.

RESEARCH TECHNIQUES#16

Methods used to analyze potential investments, including fundamental and technical analysis.

MARKET ANALYSIS#17

The study of market trends and conditions to inform investment decisions.

EQUITY#18

Ownership interest in a company, typically in the form of stocks, representing a claim on the company's assets.

INVESTMENT STRATEGY#19

A plan for investing that outlines how an investor aims to achieve their financial goals.

CASE STUDY#20

An in-depth analysis of a particular investment scenario used to illustrate key concepts.

HYPOTHETICAL INVESTMENT#21

A simulated investment scenario used for educational purposes to demonstrate potential outcomes.

VOLATILITY#22

A statistical measure of the dispersion of returns for a given security, indicating the degree of risk.

CORRELATION#23

A statistical measure that describes the degree to which two securities move in relation to each other.

FINANCIAL LITERACY#24

The ability to understand and effectively use various financial skills, including personal financial management and investing.

SIMULATED TRADING#25

Practicing trading stocks or other securities using virtual accounts to gain experience without financial risk.