Investing 101

2. A resource owned or controlled by an individual, business, or entity that holds monetary value.
6. Physical items like cash, inventory, real estate, machinery, and vehicles.
7. An example of a stock.
8. The commitment of money or resources today with the expectation of generating a greater return, income, or profit in the future.
13. You buy ownership in a company.
14. An individual Retirement account.
16. Who said: “All models are wrong but some are useful”
18. Accounts that are exempt from taxation.
19. Non-physical items like patents, trademarks, copyrights, and brand reputation.
20. Highly liquid, low-risk assets that preserve capital.
21. To use money to earn more money.
22. Costs represent the potential benefits or value an individual, investor, or business misses out on when choosing one alternative over another.
24. You lend money to an entity (government, corporation) in exchange for regular interest payments.

1. A shared investment where many people combine their money to buy a diverse collection of stocks, bonds, and other assets.
3. A tax-advantaged investment plan designed to help families to save for a child or grandchild's future education expenses.
4. What is the percentage gain or loss on an investment over a specific period of time?
5. Investing in physical property or related funds.
9. Example of a cash equivalent.
10. Example of a bond.
11. What taxes are direct taxes levied by federal, state, and local governments on the earned (salaries, wages) and unearned (dividends, interest)income of businesses and individuals.
12. Accounts that allow investments to grow without annual taxes, with taxes paid only upon withdrawal, often at a lower retirement rate, allowing for faster compounding.
15. A retirement savings plan.
17. Accounts that require annual taxes on gains, dividends, and interest.
23. The sustained, general increase in prices for goods and services across an economy over time.