Fund:
A group of stocks, bonds, or other assets that you can invest in. ETFs, mutual funds, and Index Funds are all examples of types of funds.
Portfolio:
The collection of investments that you have made.
Stock:
A sliver of ownership in a company. When you buy a stock, you are an owner of that company.
Capital gains:
The profit you make when you sell an asset. This profit is sometimes subject to taxation, called a “capital gains tax”, which is calculated by your income bracket and the amount of time you’ve held the asset.
Diversification:
Spreading your money across a number of different (largely unrelated) investments to reduce the risk of losing your money if one of them goes down.
Index:
A way of measuring the performance of a stock exchange or a certain subset of it. For example, the Dow Jones Industrial Average and S&P 500 are examples of Indexes.
Dividend:
When a company shares earnings with its qualifying shareholders, paid out as cash or additional stocks.
Source: Centsai, Accessed 11/20/22
This article’s view is the author’s and does not reflect the opinion of any member of CentSai’s management. The author is not being paid by any financial services company nor has been paid to promote any individual product or service. The author is not a financial advisor or a broker-dealer. The content above is education-only and any reader is encouraged to seek advice from a registered financial advisor before taking any action.
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