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- Net worth. Add up all that you own (assets) and minus all that you owe (liabilities) the difference is your net worth.
- Compound interest. Think of it as “interest on interest.” It applies to both loans and deposit accounts.
- Stocks. Also called equities or shares, represent ownership in a company. Investors buy stocks in companies they believe will increase in value.
- Bonds. Is a fix income instrument that represents a loan between the investor and borrower typically governmental or corporate. Low risk.
- Capital Gain/Loss. Is the difference between how much something is worth presently versus how much is was originally purchased for.
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