Finance page 4

Here is the continuation of the finance page:

Investing

• Stock Market: The stock market is a platform where companies issue and trade shares of stock to raise capital. Investors can buy and sell these shares in hopes of earning a profit.
• Bonds: Bonds are debt securities issued by companies or governments to raise capital. Investors lend money to the issuer in exchange for regular interest payments and the return of their principal.
• Mutual Funds: Mutual funds are investment vehicles that pool money from many investors to invest in a diversified portfolio of stocks, bonds, or other securities.
• Exchange-Traded Funds (ETFs): ETFs are similar to mutual funds but trade on an exchange like stocks, offering greater flexibility and diversification.

Retirement Planning

• 401(k): A 401(k) is a retirement savings plan sponsored by an employer. Contributions are made on a pre-tax basis, reducing taxable income, and the funds grow tax-deferred.
• Individual Retirement Accounts (IRAs): IRAs are personal retirement savings plans that allow individuals to contribute a portion of their income on a tax-deferred basis.
• Annuities: An annuity is a contract between an individual and an insurance company, where the individual pays a lump sum or series of payments in exchange for a guaranteed income stream in retirement.

Personal Finance

• Budgeting: Budgeting is the process of creating a plan for managing one's finances, including income, expenses, and savings.
• Credit: Credit refers to the ability to borrow money or access goods and services without immediate payment. Credit scores are used to evaluate an individual's creditworthiness.
• Debt Management: Debt management involves creating a plan to pay off debts, such as credit cards, loans, and mortgages, in a timely and efficient manner.

Economic Indicators

• GDP: Gross Domestic Product (GDP) is a measure of a country's economic output, calculated by adding the value of all goods and services produced within a given period.
• Inflation: Inflation is a sustained increase in the general price level of goods and services in an economy over time, often measured by the Consumer Price Index (CPI).
• Unemployment Rate: The unemployment rate is the percentage of the labor force that is currently unemployed and actively seeking employment.