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Day‑0 Investing: Stocks, Bonds, ETFs, Indexes, Diversification, Compounding — All Using One $100

Investing: Stocks, Bonds, ETFs, Indexes, Diversification, Compounding — All Using One $100

KAHROS Team

TL;DR

Quick Summary

  • Stock = ownership in a company; bond = lending to a borrower.
  • An index is a measuring list; an ETF is a tradable basket that can follow an index.
  • Diversification spreads risk; compounding is reinvested returns generating returns on returns.
  • Thinking through one $100 illustrates how different tools change risk, return drivers, and the role of time.

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