What is investment?
Investment refers to the process of allocating money or resources to an asset, project, or venture with the expectation of generating income or profit.
What are the different types of investments?
Some common types of investments include stocks, bonds, real estate, mutual funds, exchange-traded funds (ETFs), and commodities.
What is a stock?
A stock represents ownership in a company and gives the investor a claim on the company's assets and earnings.
What is a bond?
A bond is a debt instrument issued by a company or government entity to raise capital. It represents a loan made by an investor to the issuer.
What is real estate investment?
Real estate investment involves buying, owning, and managing properties with the goal of generating income or appreciation.
What is a mutual fund?
A mutual fund is a pool of money collected from multiple investors to invest in a diversified portfolio of securities, managed by professional fund managers.
What is an ETF?
An ETF is a type of investment fund and exchange-traded product that holds assets such as stocks, bonds, or commodities and trades on stock exchanges.
What is diversification?
Diversification is the practice of spreading investments across different assets or asset classes to reduce risk and increase potential returns.
What is risk tolerance?
Risk tolerance refers to an investor's ability and willingness to endure fluctuations in the value of their investments in pursuit of potential returns.
What is a dividend?
A dividend is a payment made by a corporation to its shareholders, usually in the form of cash or additional shares, as a share of the company's profits.
What is capital gain?
A capital gain is the profit realized from the sale of an investment, calculated as the difference between the purchase price and the selling price.
What is a 401(k)?
A 401(k) is a retirement savings plan sponsored by an employer that allows employees to contribute a portion of their salary on a pre-tax basis.