7 investment terminologies you need to know

Hey smart investor,

In order for you to thrive in the Investment space, knowledge is required, more specifically, knowledge of some important Investment terminologies used in the space. We've put together 7 investment terminologies you need to know to become a smarter investor😏

1. Asset: An asset is a resource that has economic value, such as stocks, bonds, or real estate.

2. Diversification: Diversification is the practice of spreading your investments across a variety of asset classes in order to mitigate risk.

3. Risk tolerance: Risk tolerance is an individual's willingness to take on risk in order to potentially earn a higher return on their investment.

4. Portfolio: A portfolio is a collection of investments held by an individual or organization.

5. Return on investment (ROI): ROI is the profit or loss made on an investment, expressed as a percentage of the original investment.

6. Mutual fund: A mutual fund is a type of investment vehicle that pools together money from multiple investors and uses it to buy a diversified portfolio of stocks, bonds, or other securities.

7. ETF (Exchange-traded fund): An ETF is a type of investment fund that tracks the performance of a specific market index, such as the S&P 500.

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