S is for stocks.
A stock is partial ownership in the assets and earnings of a company. A company sells shares of to investors as a way raise cash to expand its business. Stocks may also be called shares.
U is for underlying index
At Stash, we’ve given the investments available on our platform names that get to the heart of what they are. For example, the underlying index for Do the Right Thing, an ESG investment on Stash is the MSCI USA ESG Select Index.
P is for Park My Cash
E is for exchange-traded fund
An exchange-traded fund (ETF) is a bundle of assets, usually stocks, bonds and/or cash. These bundles of stocks, bonds, and cash usually track an index, or group of securities with something in common. You can buy and sell ETFs in a similar way to stocks. ETFs are bought and sold on exchanges, through a broker, and can trade throughout the day.
R is risk tolerance
Risk tolerance is how much risk you can handle. Are you ready to risk bigger losses for the potential of bigger rewards? Then you may be able to tolerate more risk than the average investor. (Risk tolerance: High.) If you want to play it safe and have potentially smaller returns to guard against loss, you may only be able to tolerate less risk than the average investor. (Risk tolerance: Low.)
B is for bond
A bond is what’s called a “debt instrument.” When you purchase a bond, you’re essentially lending money to whomever is issuing that debt. Bond issuers borrow money for a defined period of time at a set interest rate. When you purchase a bond, you know in advance how much interest you are owed in addition to getting the original money (aka principal) you lend back, and when.
O is for opportunity cost
Opportunity cost is the difference between the value of something you chose and an alternative choice you could have made. An example, is the difference between the $3.00 you spent on a coffee from Starbucks, compared to the 50 cents you would have spent brewing one at home. The opportunity cost is $2.50.
W is for wages
Do you receive a paycheck? Wages are all compensation for a worker’s personal services, whether paid by check or cash. Whether you make money as a full-time employee, hourly, day, or contract laborer, part-time or temporary worker, your payments are considered wages.
L is for long-term investing
Long-term investing is a strategy that often includes investing in a stocks, bonds, and funds and holding them for years or even decades, rather than day trading. Long-term investing can help you weather market volatility, which is another term for the ups and downs of the market. Long-term investing can help you weather market storms and keep time on your side.
And that’s how you spell Superb Owl.