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)