Investment

Front

Why is compound interest more advantageous than simple interest?

Back

In compound interest, you earn interest on not only your principal, but also on the interest you’ve already made.

Front

A type of savings that signifies that you own a part of a corporation and a claim to their assets and earnings.

Back

Stock

Front

An amount of money paid by a company regularly to its shareholders

Back

Dividends

Front

An investment program funded by shareholders that trades in diversified

Back

Mutual Funds

Front

The amount you earn as profit from your investment based on your deposited amount, usually expressed as a percentage

Back

Interest Rate

Front

The act of investing in a large variety of stocks, bonds and/or alternative investments, like gold or real estate, as a way to reduce your overall risk.

Back

Diversification

Front

The overall collection of investments held by a person.

Back

Portfolio

Front

A security in which the investor loans money to a company or government, then pays regular interest to the bondholder and returns the principal on the bond’s maturity date

Back

Bond

Front

Degree of uncertainty on how likely the investor is to make money on an investment

Back

Risk

Front

A certificate issued by a bank to a person depositing money for a specified length of time.

Back

Certificate of Deposit (CD)