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
- Capital GainThe profit you make when you sell an investment for more than you paid for it.
- DividendA portion of a company's profits paid out to shareholders, usually as cash on a regular schedule.
- YieldThe income an investment pays you each year, shown as a percentage of its current price.
- CompoundingWhen your investment earnings themselves start earning returns, causing your money to grow faster over time.
- Annualized ReturnAn investment's average yearly return expressed as a single rate, making different time periods comparable.
- BenchmarkA standard index used to compare how well your investments or a fund are performing.
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Plain-English education — not personalized legal, tax, or investment advice.