Glossary

Yield refers to the income generated by an investment, expressed as a percentage of its cost or market value. 💰

It's a measure of an investment's profitability and can be used to compare different income-generating assets like bonds, dividend-paying stocks, or even real estate investments.

For example, if a dividend-paying stock costs $100 and pays an annual dividend of $5, its yield would be 5% ($5 / $100).

Fun fact: The term "yield" comes from the Old English word "gieldan," meaning "to pay" or "to give". 💡 In the world of finance, the yield is like a "gift" investors receive in the form of income from their investments, rewarding them for taking on the risk associated with those investments.