Dividend
Also called: dividends
Money some companies pay to people who own their stock, often every few months. It is a share of the profit.
Example
You own stock in a soda company, and it sends you a small dividend each season.
Why it matters
You can use dividends to buy more shares and grow your money faster.
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More in Investing
401(k)
A savings plan for when you stop working, offered by your job. Money comes right out of your check and can grow for years.
Bond
A loan you give to a company or the government. They pay you back later, with interest.
Diversification
Spreading your money across many kinds of investments. If one does badly, the others can help.
ETF
Short for Exchange-Traded Fund. It is a basket of stocks or bonds that you can buy and sell like one stock.
For learning, not personal financial, tax or legal advice. Rules and limits can change each year, so check official sources (like IRS.gov or your plan's documents) or a trusted pro before big decisions.
