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
- Annualized ReturnAn investment's average yearly return expressed as a single rate, making different time periods comparable.
- Total ReturnThe full gain on an investment, combining price changes with any dividends or interest it paid.
- CompoundingWhen your investment earnings themselves start earning returns, causing your money to grow faster over time.
- Compound InterestInterest that earns interest — the engine behind long-term growth.
- Growth StockShares of a company expected to grow faster than average, usually reinvesting profits instead of paying dividends.
- BenchmarkA standard index used to compare how well your investments or a fund are performing.
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