Investing Basics for Teens

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*Front:* Personal Finance

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money, budgeting, saving, and investing

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*Front:* Investment

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money with the expectation of a future benefit

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*Front:* Stocks

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representing ownership in a company

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*Front:* Bonds

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made to corporations or governments

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*Front:* Mutual Funds

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programs funded by shareholders

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*Front:* Diversification

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investments to reduce risk

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*Front:* Risk

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chance of losing money in an investment

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*Front:* Return on Investment (ROI)

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latex="\frac{\text{Gain from Investment} - \text{Cost of Investment}}{\text{Cost of Investment}}">

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*Front:* Compound Interest

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on initial principal and accumulated interest

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*Front:* Asset Allocation

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investments among different categories