A share of stock represents the ownership of a portion of a for-profit company. Often called "equity" because the total of shares represent the "owners equity" in the fundamental accounting equation: Assets = Liabilities + Owner's Equity. It is the variable that makes the equation equal.

A bond is a debt instrument where a company borrows money from in investor for specific term at a specific interest rate (sometimes called a coupon rate). Interest in paid during the term and the principal investment is returned to the investor at the end of the term.

A mutual fund gathers funds from investors, invests those funds in a combination of stocks, bonds, real estate, and cash. A mutual fund charges investors a management fee that can vary widely.

An investment instrument where you invest earned income, after tax. You can withdraw funds without penalty once you reach age 59 1/2. Within a Roth IRA, you can invest in stocks, bonds, mutual funds and other investments.

An investment instrument where you invest earned income, before tax. You can withdraw funds without penalty once you reach age 59 1/2. Within a Traditional IRA, you can invest in stocks, bonds, mutual funds and other investments.

An investment instrument much like traditional IRA or Roth IRA, a 401(k) is offered by a for-profit employer to its employees. These usually allow investing in mutual funds, not individual stocks, bonds or ETFs.

An investment instrument much like traditional 401(k), offered by a non-profit employer to its employees. These usually allow investing in mutual funds, not individual stocks, bonds or ETFs. A 403(b)(9) has unique advantages for licensed/ordained ministers.

An investment instrument not tied to age. Each year, you pay taxes on investment gains. A taxable brokerage account can hold stocks, bonds, mutual funds, or ETFs. A taxable mutual fund account usually only invests in mutual funds.

A subset of IRA or Roth IRA, this instrument can invest in both traditional investments AND alternative investments including real-estate, loans made to others, private stock, and even precious metals.

An investment instrument used for educational expenses. Investments can grow tax-free and be withdrawn tax-free if withdrawals are used for qualified educational expenses for the named beneficiary or another beneficiary who is closely related to the owner of the account.

Interest computed on the accumulated unpaid interest as well as on the original principal.