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
- Compound InterestInterest that earns interest — the engine behind long-term growth.
- Dividend ReinvestmentAutomatically using the dividends you receive to buy more shares instead of taking the cash.
- Time HorizonHow long you plan to keep money invested before you need it, which shapes how much risk makes sense.
- Total ReturnThe full gain on an investment, combining price changes with any dividends or interest it paid.
- YieldThe income an investment pays you each year, shown as a percentage of its current price.
- Growth StockShares of a company expected to grow faster than average, usually reinvesting profits instead of paying dividends.
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Plain-English education — not personalized legal, tax, or investment advice.