Asset = Things that make you money. (Example: Stocks, Rental Properties, Online businesses)

Liability = Things that cost you money. (Example: Mortgage, Car loan, College loans)

Stock = A slice of ownership in a company. (More stocks = more ownership) 

Index = A list of stocks. (S&P 500 Index, which includes the top 500 U.S. companies) 

Bond = A loan to a business or government. (Corporate bonds / Treasury bonds) 

Portfolio = All of the stocks you own. (All of the stocks in your brokerage account)

Dividend = Profits shared with investors. (Profit payments made to investors) 

Broker = The company that you use to buy and sell stocks. (Example: Robinhood)

Compound Interest = The money your money makes you. (Your profits making profits) 

Dollar Cost Average = Investing money on a regular basis. (Investing every time you get paid)

Expense Ratio = An annual fee charged by a fund. ($VOO has a 0.03% expense ratio) 

Passive Investing = Investing in Index Funds such as the S&P 500. (Not actively buying and selling stocks yourself)

Yield = The annual percentage rate of return. (3% yield = earning 3% per year in interest)

Bull Market = When stocks are in an overall uptrend (Declared when stocks are up 20% from the all time low)

Bear Market = When stocks are in an overall downtrend (Declared when stocks are down 20% from the all time high)


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