Anything of value that can be owned or controlled with the expectation of generating income or appreciating
in value, such as stocks, bonds, or real estate.
Portfolio
A collection of different investments held by an individual or institution to diversify risk and achieve
financial goals.
Risk Tolerance
The level of risk an investor is willing to take based on their financial situation, goals, and comfort
with potential losses.
Return on Investment (ROI)
A measure of the profitability of an investment, calculated by dividing the net profit by the initial
cost of the investment.
Diversification
A strategy of spreading investments across different asset classes or sectors to reduce risk and improve
potential returns.
Liquidity
The ease with which an asset can be quickly converted into cash without affecting its market price; for
example, stocks are more liquid than real estate.
Dividend
A portion of a company's profits distributed to its shareholders, typically paid on a regular basis,
usually quarterly.
Capital Gain
The profit earned from the sale of an investment or asset when its selling price exceeds its purchase
price.
Bear Market
A market condition where the prices of securities are falling, leading to widespread pessimism and
selling.
Bull Market
A market condition where the prices of securities are rising, encouraging optimism and buying.
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