The Goal

Stocks represent ownership in a company. When you buy a company's stock, you become a shareholder and have a claim on a portion of its assets and earnings.

Key Concepts:

• Stocks represent ownership in a company.
• You can profit from stock price increases (capital appreciation) or dividends.
• Traded on stock exchanges.

Risks and Rewards:

Investing in stocks offers the potential for high returns, but it also involves risks. The value of your investment can fluctuate based on market conditions, company performance, and economic factors.

Bonds are a type of debt security where you lend money to an entity. In return, you receive periodic interest payments and the principal back at maturity.

Key Concepts:

• Issuer: The entity borrowing the money.
• Principal: The original amount borrowed.
• Interest Rate (Coupon): Rate paid to the bondholder.
• Maturity Date: When the principal is repaid.

Risks and Rewards:

Bonds are generally less risky than stocks, but offer lower returns. The risk level depends on the issuer’s creditworthiness.

ETFs are investment funds that trade on stock exchanges, similar to stocks. They hold a collection of assets, offering diversification in a single investment.

Key Concepts:

• Diversification: Exposure to a basket of assets.
• Index Tracking: Tracking a specific market index.
• Liquidity: Bought and sold throughout the day.
• Lower Costs: Typically lower expense ratios.

How ETFs Work:

ETFs offer a way to invest in diversified portfolios without purchasing each asset separately.

Real estate can be a valuable investment. REITs provide a way to invest in property without directly owning it.

REITs:

• Companies that own or finance income‑producing real estate.
• Diversification and regular dividend income.
• Tradable on stock exchanges with liquidity.