Interest calculated on the principal amount and also on the accumulated interest of previous periods. It can thus be regarded as “interest on interest.”

Weakening something, hurtful

Not "putting all your eggs in one basket," investing in a variety of companies or formats to reduce the risk of a single investment doing badly

Value of something after deducting the liabilities associated with it (Example: the value of a house above and beyond the loan on it.

These investment options are linked to an index or pool of assets, providing more diversification than single stocks.

Intense irritation or annoyance

A time of economic increase when trade and industrial activity rise

Money spent, money going "out"

Take advantage of, make full use of and gain benefits from something

Expenses that remain constant from month to month.

a type of mutual fund with a portfolio constructed to match or track the components of a financial market index, such as the Standard & Poor's 500 Index (S&P 500)

A "basket" of diverse assets that can include stocks, bonds, cash, and more

: The ability to produce something at a lower cost than someone else, an advantage to the producer

To use something to maximum advantage

Debts, things that you owe

A legal agreement wherein a bank or other lender loans money at a given interest rate in exchange for holding the title to the property until the loan is paid off

A form of investment that pools money from lots of different investors; a manager then invests in many different securities (stocks or bonds) with that combined money. They provide diversity without requiring a lot of attention from individual investors

The net gain or loss on an investment over a specified time period, expressed as a percentage of the investment's initial cost.

A time of economic decline during which trade and industrial activity are reduced

A simple way to determine how long an investment will take to double given a fixed annual rate of interest.

Unpredictable, prone to rapid and large changes