Core Concepts

What is investing?
- Investment
- Investing Tips
Net worth & Value
- Net worth: Total assets - liability.
- Liquidity: How quickly an asset can be converted to cash.
- ROI: Return on Investment.
Growth Mechanics
- Compounding interest
- The Rule of 72
External factors affecting investment value
Market Dynamics & Terminology
- Market Sentiment (시황/시장의 상황)
  - 상품/주식의 매매나 거래의 상황
  - The prevailing mood or trend of the market (e.g., “The market sentiment is bearish today”)
- 서학개미
  - 해외 주식(주로 미국 주식)에 직접 투자하는 한국의 개인 투자자

Asset Classes & Securities

Investment Risk Ladder
Asset/Securities
Equities & Funds
- Index fund
  - A strategy (not a product type)
  - Buying all instead of cherry picking stocks (like the S&P 500 Index Fund)
  - Doesn’t contain hedge funds
- Stocks: Ownership in a company.
- Dividend: Regular profit-sharing (Monthly dividends/달러 배당).
- ETF: Exchange Traded Funds.
- Mutual Funds
- Hedge Funds
Fixed Income & Cash
- Bonds: Debt securities.
- CD (Certificate of Deposit): Low-risk time deposits.
Real Estate
- Real Estate: Physical property.
- REIT (Real Estate Investment Trusts): Real estate companies that trade like stocks.

Stock Market (증시/증권시장)
- The marketplace where securities are bought and sold (주식, 채권과 같은 증권이 거래되는 금융 시장, 주식 시장의 전반적인 상황을 의미하기도 함)
Exchange (거래소)
- The physical/digital venue for trading (e.g., KRX, NYSE).
Stock Market Index (주가 지수)
- A numerical representation of market performance compared to a base year. (e.g., Index 4000 means the market value has grown 40x since the base year of 100).
- Note: Distinct from a general Index (지수) like BMI or IQ; specific to stock prices.
- Major Indices:
  - NASDAQ (나스닥)
    - (USA) Tech-heavy, high growth, volatile. Home to global IT giants (Apple, Tesla, Nvidia).
  - KOSPI (코스피)
    - (Korea) The main board. Large-cap, traditional industries (Samsung, Hyundai). Stable but slower growth.
  - KOSDAQ (코스닥)
    - (Korea) The secondary market. Tech, Bio, Venture SMEs. High risk, high return (benchmarked against NASDAQ).
    - (한국) 중소기업, 벤처, 바이오/IT 중심, 코스피에 입성하기 전 단계거나, 규모는 작지만 성장 잠재력이 큰 기업들
  - S&P 500
    - (USA) The top 500 major US companies.

Accounting basics
- Budgeting
- Balance sheet (대차대조표)
- Profit (차익): Selling price - Acquisition Price (취득가액).
Tax Framework (KR/US)
- Capital gains tax (양도소득제): Tax on the profit from the sale of an asset.
- Standard Deduction (기본공제금액): Amount that reduces taxable income.
- Tax base (과세표준): The total amount of income/assets subject to taxation.
- Deemed Acquisition Price (의제 취득가액)