Risk
The chance that an investment loses value.
Every investment carries some risk — the possibility it falls in value, at least for a while. Generally, investments with more short-term risk (like stocks) have offered more long-term growth, while safer ones (like cash) grow slowly. Matching risk to your time horizon is one of the most important decisions in investing.
Explain it to your kid
"The chance an investment goes down in value."
Related words
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