Appreciation Increase in value or price. Asset A valuable what you need to know before investing in stocks that you own. This can be property, possessions, etc.

Bonds You loan money to someone or something hoping that they give you more money back. It’s important to know that as prices rise, interest rates rise and the value of your bond can fall. On the other hand, as interest rates fall, your bond becomes more valuable. And yes, that was a double negative.

I paid because of the higher interest they would receive. Brokerage A place you can go to buy or sell stocks, bonds and other investment things. Commodities Physical resources that people want or need. Example: oil, corn, sugar, copper, gold, coffee beans, coal, etc. I made an extra dollar in the 2nd year I earned interest on my interest.

Depreciation Decrease in value or price. 16,000 because the car is no longer brand new. Dividend A small portion of a company’s earnings that are paid back to whoever owns their stock. 55, they’ll likely pay you 2. You can receive this payment in your bank account or use it to buy more shares of the stock. Example: I recently purchased an ETF that only buys stock of companies that are buying back their own stock.

Index A bunch of things that represent a certain market. T, Walt Disney, Coca Cola and Exxon. Index Fund A mutual fund that tracks a certain index. Inflation An increase in the prices of goods and services. Interest A fee that someone borrowing money owes to a someone that’s lending money.