A plain-English glossary of investing terms used across Creating Overflow.
← Return to ResourcesComputer systems designed to perform tasks such as analysing information, identifying patterns and making calculations or predictions based on data and programmed instructions.
Something of value that you own or have an interest in. Some assets may produce income, increase in value, or both.
A type of digital record-keeping system in which transactions or other information are recorded and shared across a network of computers.
Money or other assets used to make an investment.
An increase in the value of an investment over time.
When earnings remain invested and have the opportunity to generate further earnings over time.
A type of digital asset that uses blockchain or similar technology. Cryptocurrency can be used to transfer value and, in some cases, is also held as an investment.
Financial services built using blockchain technology that can operate without relying entirely on traditional intermediaries such as banks. DeFi opportunities vary widely in how they work and in the risks involved.
Spreading your money across different investments or opportunities so that poor performance in one is less likely to have a major effect on your overall financial position.
How easily an investment can be converted back into money without a significant delay or loss in value.
Income that requires relatively little day-to-day involvement once the investment or income source is established. Passive investments still need to be monitored and reviewed.
The money gained or lost on an investment, which may come from income, a change in value, or both.
The possibility that the outcome of an investment will be different from what you expected, including the possibility of losing some or all of the money invested.
How much and how quickly the value of an investment can rise or fall.
