Essential Investing Terms

By Business & Finance Last updated Sunday, April/21/2024

11. Equities

This is another way of saying stocks, equities are shares of ownership (or equity) in a business on the market. Equities represent a major asset class.More »

This is another way of saying bonds. Fixed-income investments pay investors a fixed amount on a fixed schedule. The returns from fixed-income investments tend to be stable and predictable, which makes them a favorite among investors looking for income-producing assets. However, fixed-income investments are not without risk.More »

13. Asset class

If you were to group all of your investments according to their traits, each grouping would be an asset class. The main asset classes are equities, fixed-income (bonds), and cash. (Real estate and commodities could also be considered among the main asset classes.) Each asset class can perform differently in certain markets. By investing in a little bit of each class, you diversify your holdings and spread your risk.More »

14. Net worth

Add up all of your assets, which is what you have and own, then subtract your liabilities, such as debt. The result is your net worth. It's really just one statistic of many that can help you track your financial progress. But it does give you a big-picture view of your financial health.More »

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Essential Investing Terms

11. Equities

12. Fixed-income

13. Asset class

14. Net worth