What is compound interest?
Compound interest is the interest earned on both the initial principal and the accumulated interest from previous periods.
What is a risk-return tradeoff?
The risk-return tradeoff is the principle that higher potential returns are associated with higher levels of risk.
What is a bear market?
A bear market is a period of declining stock prices, typically accompanied by widespread pessimism and a negative economic outlook.
What is a bull market?
A bull market is a period of rising stock prices, typically accompanied by optimism and a positive economic outlook.
What is dollar-cost averaging?
Dollar-cost averaging is an investment strategy where an investor regularly invests a fixed amount of money into an investment regardless of its price.
What is an initial public offering (IPO)?
An initial public offering (IPO) is the first sale of a company's stock to the public, allowing it to raise capital from outside investors.
What is a risk-free rate?
The risk-free rate is the theoretical rate of return on an investment with zero risk, often approximated by the yield on government bonds.
What is market volatility?
Market volatility refers to the degree of variation or fluctuation in the price of a financial instrument or market over time.