Did you know? The term asset allocation refers to the strategy of spreading your investments across different asset classes such as stocks, bonds, and real estate to manage risk and maximize returns. Have you heard of the Rule of 72? This rule is a quick way to estimate how long it will take to double your money at a certain interest rate. Simply divide 72 by the annual interest rate to get the approximate number of years. What does it mean to buy low, sell high? This common investment mantra encourages investors to purchase securities when their prices are low and sell them when they have increased in value, resulting in profit. Ever wonder what a dividend yield represents? It is a financial ratio that shows the annual dividend income as a percentage of the investment's cost. A higher dividend yield indicates a more attractive investment opportunity. What is a stock split? This occurs when a company divides its existing shares into multiple shares to lower the price per share. While the total value of the shares remains the same, the lower price can attract more investors. Understanding these terms can help you navigate the complex world of finance and make informed investment decisions. Remember, knowledge is power in the realm of personal finance.