Investing Unit
Return
the money an investor receives above and beyond the sum of money initially invested
Asset Allocation
the process of spreading your assets among several different types of investments to lessen risk
Stock Market
A general term used to describe all transactions involving the buying and selling of stock shares issued by a company.
Stock
A share of ownership in a corporation.
Dividends
Company's share profits to the shareholders based on the corporation's performance.
Risk
Degree of uncertainty of return on an asset; in business, the likelihood of loss or reduced profit.
Bond
Loan you give to an organization
Actively managed mutual fund
Managed by a fund manager who charges a fee
Target Date Funds
Often mutual funds where the mix of stocks, bonds, and other investments changes over time until the target date based on that fund's strategy.
share
Piece of ownership in a company, mutual fund or other investment
Index Funds
Provide a low-cost, diversified investment option that closely matches the overall return of a given index, such as the S&P 500
Fund Manager
Someone who oversees a mutual fund and makes the investment decisions for the fund.
Diversification
Spreading out investments to reduce risk
Risk Tolerance
The degree, amount, or volume of risk that an organization or individual will withstand.
Disadvantage of a robo-adviser
You many not be able to get advice from a human financial advisory when you want it
Shareholder
You may receive dividends from the company, if the company pays them, and you have ownership of a portion of a company
Mutual Fund
an investment program funded by shareholders that trades in diversified holdings and is professionally managed.
Robo-Advisor
an online wealth management service that provides automated, algorithm-based portfolio management advice without the use of human financial planners