Dictionary of investment terms

Crowdfunding = an innovative way of financing projects or companies, where small financial amounts are collected from the general public through an online platform. Investors can contribute smaller amounts, thereby participating in the project or business, and usually receive some rewards or profit share.

ROI = an indicator that expresses the ratio between profit and investment costs. It is calculated as (Profit - Costs) / Costs x 100. A higher ROI means that the investment was successful and generated greater profit.

Diversification = a strategy where investors spread their capital among different types of investments and sectors to minimize the risk of loss. Investing in various assets allows balancing gains and losses and protecting portfolios from fluctuations in individual markets.

Liquidity = a measure of how quickly an investment can be sold for cash without significant loss of value. Some investments are less liquid than others, so it's important to consider liquidity before entering a specific investment.

Portfolio = a collection of all investments held by an investor. It's important to properly balance the portfolio and include different types of investments to minimize risk.

Due Diligence = thorough and careful examination of an investment opportunity or project before deciding to invest. The goal is to obtain as much information as possible and assess the risks associated with the investment.

Risk = the probability that an investment will not generate expected returns or will result in financial loss. Every investment carries certain risk, and it's important to carefully consider and minimize it.

Investment Horizon = the period during which an investor intends to hold their investment before achieving their financial goals. The investment horizon can be short-term (several months to years) or long-term (several years to decades).

Inflation = the rate of increase in prices of goods and services in the economy. Inflation reduces the purchasing power of money, which can affect investment value and portfolio performance.

Return p.a. = return on investment expressed as a percentage per year. It indicates what percentage of the total invested amount an investor will gain in one year.

We believe that this dictionary of investment terms will help you better understand the world of crowdfunding investments and real estate investing. If you are interested in more information or specific investment opportunities, don't hesitate to contact our company occollo. The beginning of an investment journey can be challenging, but with sufficient knowledge base and reliable partners, you will become a successful investor.