A fuller guide to this term is on the way. In the meantime, the related terms below explain the ideas around it.
Related MoneyPedia terms
- DepreciationThe loss in an item's value over time due to age and use, which insurers factor into some claim payouts.
- AssetsThings you own that hold value, such as cash, investments, property, or a business, that add to your net worth.
- Real Estate InvestingBuying property to earn rental income, benefit from rising value, or both, as a way to build wealth.
- Future ValueWhat a sum of money today will grow into by a later date, based on an assumed rate of return.
- Capital GainsThe profit you make when you sell an investment or asset for more than you paid to buy it.
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Plain-English education — not personalized legal, tax, or investment advice.