Investment Basics

What You’ll Learn

This chapter explains the foundations of investing, including what investing means, common types of investments, and key concepts like risk, return, and diversification.

Key Takeaways:

• What investing is and why it can help grow wealth over time

• Key terms: return, risk, compound growth, diversification

• Different investment types: stocks, bonds, funds, real estate

• The difference between active and passive investing

• Managing risk and avoiding emotional decisions