Term used to make money made on investment

Your browser is not supported. Log In. Account Preferences Newsletters Alerts. Access insights and guidance from our Wall Street pros. Find the product that’s right for you. No more so than in the world of finance. You are what you say and what you understand. The better you grasp the meaning of financial terms, the better you can communicate and the more transparent becomes the vast, exciting and potentially profitable world of money. By the same token, words can obfuscate. They can fool smart people.

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Allowance — an amount of money parents give kids to help them learn to manage money. The amount is usually given weekly. Sometimes an allowance is tied to completing responsibilities — household chores or jobs for the family. The APR rate includes interest, transaction fees, and service fees. Appreciate — to grow in value. Usually a term used in relation to investments: stocks, collectibles, etc. Asset — any item of value that you own: house, land, gems, stocks, bonds, money in savings, etc. This is an electronic banking station that enables people to take care of banking business 24 hours a day, 7 days a week. You can deposit and withdraw money, pay loans, etc. Auto Insurance — this insurance helps you pay for damage you cause as a result of an accident to people or property, medical expenses you may have and the cost of fixing your car.

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It will also pay all these expenses if someone hurts you or your car and they do not carry insurance themselves. Balance — 1 In talking about loans , the balance is the difference between the amount owed and the amount paid. Bank Card — this plastic card looks like a credit card, but it is used to withdraw money from a savings or checking account. When you use a debit card at Automatic Teller Machines or in stores to make purchases, money is immediately withdrawn from your account. You cannot withdraw more money than you have in the account. Bankruptcy — a state of being in so much debt that you are legally declared unable to pay in full the people and companies you owe.

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Select the first letter of the word from the list above to jump to appropriate section of the glossary. If the term you are looking for starts with a digit or symbol, choose the » » link. Alternative Minimum Tax AMT — Federal tax, revamped by the Tax Reform Act of , aimed at ensuring that wealthy individuals, trusts, estates and corporations pay at least some tax. Annual report — The yearly audited record of a corporation or a mutual fund’s condition and performance that is distributed to shareholders. Annualized — A procedure where figures covering a period of less than one year are extended to cover a month period. Annualized rate of return — The average annual return over a period of years, taking into account the effect of compounding. Annualized rate of return also can be called compound growth rate. Asset allocation — The process of dividing investments among cash, income and growth buckets to optimize the balance between risk and reward based on investment needs. Asset class — Securities with similar features. The most common asset classes are stocks, bonds and cash equivalents. Average maturity — For a bond fund, the average of the stated maturity dates of the debt securities in the portfolio. Also called average weighted maturity. In general, the longer the average maturity, the greater the fund’s sensitivity to interest-rate changes, which means greater price fluctuation.

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This type of income is generated when you buy an investment or asset for one price and sell it investmeng another, higher price, making a profit. Newly opened money market accounts typically offer higher interest rates than savings accounts. Be sure to subscribe to our mailing list and stay in the know about new ways to make money from home, save, and invest. Do you like to write? Virtual Bookkeeper Bookkeepers record financial transactions for small business owners. All you need inveestment a blog, and like you said, when you get more people reading your blog articles it gives you a nice income. How much can I make?

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This publication explains the basics of mutual fund investing, how mutual funds work, what factors to consider before investing, and how to avoid common pitfalls. Given recent market events, you may be wondering whether you should make changes to your investment portfolio. Before you make any decision, consider these areas of importance:. Draw a personal financial roadmap.

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The first step to successful investing is figuring out your goals investmdnt risk tolerance — either on your own or with the help of a financial professional. But if you get the facts about saving and investing and follow through with an intelligent plan, you should be able to term used to make money made on investment financial security over the years and enjoy the benefits of managing your money. Evaluate your comfort zone in taking on risk. All investments involve some degree of risk. If you intend to purchase securities — such as stocks, bonds, or mutual funds — it’s important that you understand before you invest that you could lose some or all of your money. You could lose your principal, which is the amount you’ve invested. The reward for taking on risk is the potential for a greater investment return. If you have a financial goal with a long time horizon, you are likely to make more money by carefully investing in asset categories with greater risk, like stocks or bonds, rather than restricting your investments to assets with less risk, like cash equivalents. On the other hand, investing solely in cash investments may be appropriate for short-term financial goals. The principal concern for individuals investing in cash equivalents is inflation risk, which is the risk that inflation will outpace and erode maje over time. For bank accounts, go to www. Consider an appropriate mix of investments. By including asset categories with investment returns that move up and down under momey market conditions within a portfolio, an investor can help protect against significant losses.