wikiHow Investment Glossary * Stock - A type of investment that represents ownership in a company. * Bond - A type of investment that represents a loan made to a company or government entity. * Mutual fund - A type of investment that pools money from multiple investors to purchase a diversified portfolio of stocks, bonds, and other assets. * Exchange-traded fund (ETF) - A type of investment that tracks the performance of an index or group of assets and can be traded like a stock. * Index - A benchmark used to measure the performance of a particular market or sector. * Portfolio - The collection of investments owned by an individual or entity. * Asset allocation - The process of dividing a portfolio among different types of assets (such as stocks, bonds, and cash) based on an investor's goals, risk tolerance, and time horizon. * Diversification - The practice of investing in a variety of assets to reduce risk. * Risk - The possibility of losing money or failing to achieve a desired return on investment. * Return - The profit or loss earned on an investment over a certain period of time. * Yield - The income earned on an investment, typically expressed as a percentage of the investment amount. * Expense ratio - The cost of owning a mutual fund or ETF, expressed as a percentage of the fund's assets. * Capital gains - The profit earned from selling an investment for more than its purchase price. * Dividend - A portion of a company's profits paid out to its shareholders. * Prospectus - A legal document that provides information about a particular investment, including its risks, fees, and historical performance. Note: This is a basic list, and there may be additional terms and concepts related to investing that may be relevant depending on your specific situation. Page