| Stock |
A stock represents a share in the ownership of a company, including a claim on the company's
earnings and assets. As such, stockholders are partial owners of the company. |
| Bond |
A bond is a fixed income instrument that represents a loan made by an investor to a borrower,
typically corporate or governmental. Bonds pay periodic interest payments based on the bond's
interest rate (coupon rate) and return the principal amount (face value) at maturity. |
| Investment |
An investment refers to the purchase of assets with the expectation of generating income or
profit in the future. Investments can include stocks, bonds, real estate, and other financial
instruments. |
| Dividend |
A dividend is a distribution of profits by a corporation to its shareholders. Dividends are
typically paid in cash, but they can also be issued as additional shares or other property. |
| Asset |
An asset is any resource with economic value that an individual, corporation, or country owns or
controls with the expectation that it will provide future benefit. Assets can include cash,
stocks, real estate, equipment, and intellectual property. |
| Liability |
A liability is a legal obligation or debt that an individual, corporation, or country owes to
another party. Liabilities can include loans, mortgages, accounts payable, and other financial
obligations. |
| Portfolio |
A portfolio is a collection of investments held by an individual, corporation, or financial
institution. Portfolios are diversified to spread risk and can include stocks, bonds, real
estate, and other asset classes. |
| Equity |
Equity represents ownership interest in a corporation in the form of common or preferred stock.
It also refers to the residual claim on assets after liabilities are paid off. Equity holders
have rights to company profits and voting power in corporate decisions. |
| Capital |
Capital refers to financial assets or the financial value of assets, such as funds held in
deposit accounts, as well as tangible assets like buildings or machinery. Capital can be used to
invest in new ventures, purchase equipment, or expand operations. |
| Interest |
Interest is the cost of borrowing money or the return on investment for lending money, expressed
as a percentage of the principal amount. Interest rates can vary depending on factors such as
inflation, risk, and central bank policies. |
| Depreciation |
Depreciation is the decrease in the value of an asset over time due to wear and tear,
obsolescence, or other factors. Depreciation is usually recorded as an expense on a company's
income statement to reflect the reduction in the asset's value. |
| Yield |
Yield is the income return on an investment, usually expressed as a percentage, based on the
investment's cost, current market value, or face value. Yield can refer to different measures
depending on the type of investment, such as dividend yield for stocks or yield to maturity for
bonds. |
| Revenue |
Revenue is the total amount of income generated by a business from its operations and sales of
goods or services. Revenue is calculated before any expenses are subtracted and is a key metric
for evaluating a company's financial performance. |