Savings and Investments

Mathematics

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Definition of compound interest

Interest that is calculated based on the original principal and also the accumulated interest from the previous period of savings

Formula compound interest

Definition of return on investment (ROI)

The return value of each ringgit invested by the investor

Formula return on investment (ROI)

Definition of dividend

Profits given to investors or shareholders

Definition of bonus shares

Additional shares that are given free to existing shareholders

Definition of capital gain

Increase in share price when shares are sold

Factors should be considered before making an investment

Potential investment risk

Factors should be considered before making an investment

The level of return

Factors should be considered before making an investment

Liquidity aspect

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