Here are some basic investment terminologies:

1. Investment: An investment refers to the allocation of money or resources with the expectation of generating income or achieving a profit over time. It involves purchasing assets, such as stocks, bonds, real estate, or mutual funds, in the hopes of earning a return on the invested capital.
2. Portfolio: A portfolio is a collection of investments held by an individual, organization, or fund. It includes various assets such as stocks, bonds, cash, and other securities. Diversification across different investments is often practiced to manage risk and potentially enhance returns.
3. Return: Return refers to the gain or loss generated from an investment over a specific period. It can be expressed as a percentage or a monetary value. Positive returns indicate a profit or gain, while negative returns represent a loss.
4. Risk: Risk refers to the possibility of losing some or all of the invested capital or not achieving the expected return. Different investments carry varying levels of risk, and investors need to assess and manage risk based on their risk tolerance and investment goals.
5. Asset Allocation: Asset allocation refers to the distribution of investment funds across different asset classes, such as stocks, bonds, cash, and alternative investments. It is based on an investor’s risk tolerance, time horizon, and investment objectives. Asset allocation aims to balance risk and return by diversifying investments.
6. Diversification: Diversification is a risk management strategy that involves spreading investments across different asset classes, industries, sectors, or geographical regions. The goal is to reduce the impact of individual investment losses by having a mix of investments that may perform differently under various market conditions.
7. Stock: A stock, also known as a share or equity, represents ownership in a company. By buying shares of stock, investors become partial owners and can participate in the company’s profits and growth.
8. Bond: A bond is a fixed-income investment that represents a loan made by an investor to a government or corporation. When an investor buys a bond, they are lending money to the issuer in exchange for periodic interest payments and the return of the principal amount at maturity.
9. Mutual Fund: A mutual fund is an investment vehicle that pools money from multiple investors to invest in a diversified portfolio of stocks, bonds, or other securities. Mutual funds are managed by professional fund managers who make investment decisions on behalf of the investors.
10. Dividend: A dividend is a payment made by a company to its shareholders, usually in the form of cash or additional shares. It represents a portion of the company’s profits that is distributed to the shareholders.
11. Capital Gain: Capital gain refers to the profit or gain realized from selling an investment at a higher price than its purchase price. It occurs when the selling price exceeds the original cost basis of the investment.
12. Capital Loss: Capital loss is the loss incurred from selling an investment at a lower price than its purchase price. It occurs when the selling price is lower than the original cost basis of the investment.

These are some basic investment terminologies to help you navigate the world of investing. It’s important to familiarize yourself with these terms and understand their implications as you make investment decisions.