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
- AppreciationAn increase in an asset's value over time, such as a home or stock becoming worth more than you paid.
- AssetsThings you own that hold value, such as cash, investments, property, or a business, that add to your net worth.
- Index InvestingA strategy of buying funds that track a whole market index rather than trying to pick individual winners.
- Real Estate InvestingBuying property to earn rental income, benefit from rising value, or both, as a way to build wealth.
- Rate of ReturnThe percentage gain or loss on an investment over a period, measuring how well your money performed.
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Plain-English education — not personalized legal, tax, or investment advice.