Stocks, bonds, index funds, diversification, compounding and fees.
39 cards · basic cards · AI-written, checked twice. Edit anything.
- What is a stock?
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A share of ownership in a company- What do dividends represent?
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Payments to shareholders from company profits- What is a stock split?
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A division of shares that increases the number of shares outstanding- What are capital gains?
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Profits from selling an investment for more than you paid- What is a growth stock?
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A stock of a company expected to grow faster than the market average- What is dividend yield?
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The annual dividend divided by the current stock price, shown as a percentage- What is market capitalization?
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The total value of a company's outstanding shares- What does value investing mean?
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Buying stocks believed to be trading below their intrinsic worth- What is a bond?
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A loan you give to a company or government that pays you interest- What is coupon rate on a bond?
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The annual interest percentage paid by the bond issuer- How do bond prices relate to interest rates?
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When interest rates rise, existing bond prices fall, and vice versa- What is the key difference between stocks and bonds?
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Stocks represent ownership in a company; bonds represent debt owed to you- What is bond duration?
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A measure of how sensitive a bond is to changes in interest rates- What is an index fund?
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A fund that tracks a specific market index like the S&P 500- What is the S&P 500?
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An index of 500 large-cap US companies that serves as a market benchmark
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