| A | B |
|---|
| Simple Interest | Interest earned only on the principal amount of an investment or loan. |
| Compound Interest | The type of interest that builds upon not only the principal but previous interest earned. |
| FDIC | Federal Deposit Insurance Corporation. Insure bank deposits up to $250,000 |
| Dividends | Cash distribution of earnings made to stockholders of a corporation. |
| (Loan) Interest | Profit for loaning money or cost of borrowing money. |
| Capital Gains | Increase in value of a stock or stock based portfolio based on growth in earnings over time. |
| Principal | Amount of money invested in an interest bearing account or loan. |
| Rule of 72 | Divide 72 by a rate of return to estimate the number of years to double an investment. |
| Liquidity | The ease with which an asset, or security, can be converted into cash without affecting its market price. |
| Inflation | Steady increase in the price of goods and services over time. As of Nov 2021 it is around 5% |
| Diversification | Principal of spreading risk by investing in different asset classes, i.e. |
| Simple Interest Formula | Interest= Principal ($) x Annual Interest Rate (%) x Time (years) |
| Equities | Another word for Stocks |
| Bond | A loan from an investor to a company or goverment |
