Important Terms in Investing

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Returns

Returns

In abstract terms it is the value you get in return in exchange of what you pay. Mathematically it is the amount of appreciation you receive in return of the capital you provide.

Risk

Risk

It is the possibility of loss. It can be loss of capital, life or anything of value.

Cashflow

Cashflow

It is the cash flowing in or out of an entity in a given period.

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