Lesson 1.1

Terminology

  1. Savings (Bank): 
    • An investment that is returned on demand and pays interest annually. It is a loan to a bank.
      • Annual Return: .01% (link)
        • Keyword: Loan
  2. Stocks (Equities)
    • A share of ownership of a company. As the value of the company rises or falls, so does the value of the share.
    • Stock market is good for long term investment and building wealth.
    • There are risk with the stock market but these risks can be minimized as we will show you.
    • Semi-liquid investment.
      • Annual Return: 9% (link)
        •  (*Stock returns since the early 1900s have averaged an annual return of 9.00%)
          • Keyword: Ownership
  3. Bonds (Fixed Income)
    • A loan to a company, or government entity. It is returned after a specified time period with interest payable each year.
      • Annual Return: 4% (*typically)
        • Keyword: Loan

Complete list of terminology: Investment Terminology

1 | 1.1 | 1.2 | 1.3 | 2 | 2.1 | 2.2 | 2.3 | 2.4 | 3 | 3.1 | 3.2 | 4 | 4.1 | 4.2 | 4.3 | 4.4 | 4.5 | 4.6 | 5 | 5.1 | 5.2


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