Investments · Module 5 of 5
A piece of one company, not many
Owning single stocks versus funds, reading a stock quote, and the part of the return a price chart doesn’t show.
Key terms in A piece of one company, not many
- Mutual fund
A mutual fund is a pooled investment vehicle that gives shareholders a stake in a diversified portfolio managed by professionals. Federal law requires its shares to be priced at net asset value once per business day, after markets close. Investors buy and redeem shares through the fund or a broker rather than on an exchange.
- Exchange-traded fund (ETF)
An exchange-traded fund is a pooled investment fund whose shares are listed on an exchange and trade throughout the day at changing prices, much like a stock. It holds a basket of assets such as stocks or bonds. It resembles a mutual fund in offering a diversified, professionally managed portfolio.
- Total return
Total return is the full gain or loss on an investment, combining price change with income such as dividends or interest and accounting for costs like commissions and fees. A price chart alone leaves out the income component. Total return is therefore the more complete measure when comparing holdings.
Every term on Lever is in the money glossary.
About this module
A piece of one company, not many is part of Investments, one of 15 subjects in Lever. It’s a short run of 5 lessons, about 13 minutes in all, so you can finish it in one sitting.
Every lesson takes one idea at a time. You read it with the math worked out step by step, answer a question that puts it to use, then see why the right answer is right and why the others aren’t.
It’s for anyone who was never taught this, and you don’t need to know anything first. Every lesson is free. Lever works out what you already know, so you can start here or let your path bring you to it.
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1
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2
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3
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What crypto is, how stablecoins try to hold a steady price, and how much of something this risky you can afford to own.
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4
A building, or a piece of one
Owning a rental property, real estate funds, and why a property is only worth what someone will pay for it.
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Try this module
It’s part of Investments. Lever will bring it to you when you’re ready, or you can go straight there.