What is Investing?

What is Investing?

6th Grade · Math · 45 min

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Learning Objective

I can define what it means to invest money.

  • 1

    A stock represents ownership in a public company, while a bond is essentially an IOU issued by a corporation or government.

  • 2

    Dividends are profits paid out to stockholders, while capital gains occur when a stockholder sells their stock for more than they originally paid.

  • 3

    Simple interest is calculated only on the principal amount, while compound interest is calculated on the principal and the accumulated interest.