Investing
IMPORTANT WORDS TO KNOW!
Risk- the possibility that the actual return on an
investment will be different from its expected return
Return- A profit on an investment
Volatility- The stability of a company's stock
Liquidity- The ability to quickly convert an
investment to cash with little or no loss in value
Dividends- are those paid out of a company's profits to the
owners of the business (i.e., the shareholders)
Diversification- Investing in different asset classes and in securities
of many issuers in an attempt to reduce overall investment risk
investment will be different from its expected return
Return- A profit on an investment
Volatility- The stability of a company's stock
Liquidity- The ability to quickly convert an
investment to cash with little or no loss in value
Dividends- are those paid out of a company's profits to the
owners of the business (i.e., the shareholders)
Diversification- Investing in different asset classes and in securities
of many issuers in an attempt to reduce overall investment risk