![]() ![]() You can limit some of your risks by allocating your portfolio according to your asset type.īalance sheet: A statement showing what a company owns, the liabilities the company has, and the outstanding shareholder equity.īear market: This is a market that is falling. The idea is that different assets perform opposite to each other. They include stocks, bonds, commodities, real estate, and other investments.Īsset allocation: One of the ways to divide up the holdings in your portfolio is to do so by asset class. It is something you own that can reasonably be expected to produce something for you. The Most Common Investing Terms and DefinitionsĪsk: This is the lowest price an owner is willing to accept for an asset.Īsset: Something that has the potential to earn money for you. These terms will be helpful to understand, so you don't miss something you should know or veer away from your financial goals. In fact, if you wait until you know everything before you get started, you'll probably never start investing at all! But there are some basic terms you might want to have in your investing arsenal. You don't have to know everything to start investing. We may receive compensation when you click on links to those products or services This article/post contains references to products or services from one or more of our advertisers or partners. How to Boost Your Savings With a CD Ladder.What’s the Difference Between Saving and Investing?.Best High-Yield Savings Accounts For 2021.How to Offset Capital Gains Tax On Your Investments.How to Pay Less Taxes on a Six-Figure Income.How Taxes Affect Your Investment Portfolio. ![]()
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