What are the basics of investing?

What are the basics of investing?

Investing involves allocating resources, usually money, to generate income or profit. Key concepts include stocks, bonds, and diversification.

What is the difference between stocks and bonds?

Stocks represent ownership in a company, while bonds are loans made to a company or government that pay interest over time.

How can I start investing with a small amount of money?

You can start by using apps that allow fractional investing, or consider low-cost index funds to diversify your investment.

What is diversification and why is it important?

Diversification is spreading investments across various assets to reduce risk. It helps protect your portfolio from market volatility.

Can you recommend some beginner-friendly investment resources?

Sure! Websites like Investopedia, books like 'The Intelligent Investor', and podcasts like 'BiggerPockets' are great for beginners.