Investment Basics

Introduction

There are many different ways that you can invest your money. We’ve already talked about bank accounts that will earn interest. However, these bank accounts typically don’t allow for quick growth of your money. There are other options that involve more risk, but can come with higher rewards! These options include buying stocks, bonds, or certificates of deposit. There is a chance that you could lose money, so you’ll want to be well-informed about your investment choices!

Investment Jargon

Recall that "jargon" is a set of special words or expressions that are used by a particular profession or group and are typically difficult for others to understand. We want to make sure that we understand the jargon that exists for investing opportunities. You may know some of the vocabulary listed below. Click on each word to view the definition. Write down the vocabulary words and definitions that you may not have known in your notebook.

Yield and ROI Activity

The yield and return on investment (ROI) are two good ways of determining the value of an investment. Click on the tabs to find out how to calculate these two values. After you learn about the Effective Annual Yield, click on the arrow in the bottom right corner to advance the activity and learn about Return on Investment. You can also alternatively click on the transcript link below to see all of the information in one place.

Click here to view the transcript of the above interactive activity.

Yield and ROI Practice

In this activity, there are two questions in which you'll want to rank the option from best to worst. Take some time to figure out the yield or ROI for each option and then drag them in order with the best choice at the top. To check your answers, click on the checkmark on the bottom right. Click on the < and > arrows to move between the two questions.

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