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Investment Unit
Return on Investment
| Term | Definition |
|---|---|
| Rate Of Return | The ratio of money gained or lost on an investment relative to the amount of money invested; also known as return on investment (ROI). |
| Bond | A security in which the investor loans money to a company or government, which then pays regular interest to the bondholder and returns the principal on the bond's maturity date |
| Mutual Fund | A collection of stocks and/or bonds combined into one fund which will be traded as a unit, typically chosen and actively managed by an "expert" in exchange for a fee from each investor |
| Stock | A share of the value of a company, which can be bought, sold, or traded as an investment and which gives the investor small partial ownership of the company |
| Risk | Degree of uncertainty on how likely the investor is to make money on an investment |
| Investing | The process of buying assets such as stocks, bonds, mutual funds or real estate with the expectation that your investment will make money for you. Investments usually are selected to achieve long-term goals. |
| Inflation | A general increase in prices and fall in the purchasing value of money |
| Savings | Process of setting aside money you don’t spend now for emergencies or for a future purchase. It’s money you want to be able to access quickly, with little or no risk, and with the least amount of taxes. Saving options include saving accounts and CDs (cer |
Created by:
yelena585
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