Investment Basics

This section outlines key concepts that every investor should understand: risk, return on investment, diversified portfolio, fees, and the ability to sell. 

Risk

Risk is the degree of uncertainty about the expected return from an investment, including the possibility that some or all of the investment might be lost. Learn more

Return on Investment

Return on investment (ROI) is an important measure of your portfolio’s performance. Learn about how to calculate your ROI. Learn more

Diversified Portfolio

A diversified portfolio is one that contains a variety of assets.  Diversification is an investment strategy generally intended to reduce risk. Learn more

Fees

Investors are normally charged fees when they buy and sell investments. Find out about the fees before you invest. Learn more

Ability to Sell

The ability to sell with relative ease at a price that reflects the investment's value is also known as liquidityglossary icon.  Learn more