Basics

What is Yield?

The income you earn on an investment as a percentage

Full Explanation

Yield tells you how much return you're getting from a stock's dividends or a bond's interest, expressed as a percentage of the price you paid.

Stock costs $100, pays $4/year in dividends = 4% yield.

Pro Tip

High yields can look attractive but sometimes signal trouble — the price fell sharply.

Portfolio

All your investments together

Sector

A group of companies in the same type of business

Market Cap

Total value of a company

IPO

When a company goes public for the first time

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