Most people have heard that investing is the best
way to accumulate wealth.
大多數人都聽過，投資是累積財富的最佳方式。
00:10
Investment is the act of redirecting resources from being consumed today
so that they may create benefits in the future. More precisely, investment is the use of assets to
earn income or profit.
The wealthiest individuals in the world became wealthy through successful
investment of their assets.
世界上最富有的個人，都是透過成功的資產投資而致富。
00:29
Let’s go over the basics regarding common ways that people invest.
讓我們來了解一下人們常見的投資方式。
00:33
Stocks and bonds are two of the most common forms of investment.
股票和債券是兩種最常見的投資形式。
00:37
A stock is a representation
of ownership in a public company.
股票代表對一家上市公司的所有權。
00:41
They can be risky to purchase as their prices can change
dramatically and unpredictably, but often the bigger the risk, the bigger the potential reward.
There are two ways for stockholders to make money:
Dividends are
profits paid out four times a year to all shareholders.
股利是每年分四季發放給所有股東的利潤。
01:00
The size of the dividend depends
on the profit of the company.
股利的大小取決於公司的獲利狀況。
01:04
Capital gains are when a stockholder simply sells their stock for
more than they originally paid for it.
資本利得是指股東將股票以高於當初買進的價格賣出。
01:10
If the stockholder made a profit, it’s a capital gain.
If they lost money, it’s a capital loss.
如果股東獲利，稱為資本利得；如果虧損，則稱為資本損失。
01:16
A market for buying and selling stock is called a stock
exchange.
買賣股票的市場稱為證券交易所。
01:21
Brokerage firms are businesses that help stockholders trade stocks and sometimes
even deal out stocks.
經紀商是協助股東交易股票，有時甚至負責發行股票的企業。
01:28
These days, anyone can easily access the stock exchange on their phone
through apps that offer brokerage services. A bond is essentially an IOU issued by a
corporation or by some level of government.
When you buy a bond, you are loaning money
in return for a guaranteed payout at a later date.
當你購買債券時，你是在借出一筆錢，以換取在未來某個日期獲得保證的支付。
01:47
Bonds are usually a more stable investment
than stocks.
債券通常比股票更穩定。
01:51
There are three components of bonds: their coupon rate, maturity date, and
par value amount.
債券有三個組成部分：票面利率、到期日和面額。
01:58
The coupon rate is the interest rate that a bond issuer will
pay to the bondholder.
票面利率是債券發行人將支付給債券持有人的利率。
02:03
The time at which payment to a bondholder is due is called
the bond’s maturity.
支付給債券持有人的到期時間稱為債券到期日。
02:09
A bond’s par value, assigned by whoever issues the bond, is the
amount to be paid to the bondholder at maturity. In order for investment to take place, an
economy first must have a financial system,
which is the network of structures and mechanisms
that allows the transfer of money between savers and borrowers.
也就是一連串的結構與機制網絡，讓儲蓄者與借款人之間可以進行資金移轉。
02:28
As we learned in the previous
tutorial, when people save their money, they often are actually lending funds to others.
Savers and borrowers may be linked directly
through what’s known as financial intermediaries.
Financial intermediaries are institutions that help move funds from savers to borrowers.
They include banks, which we learned about
in the previous tutorial, but they also include
mutual funds, hedge funds, and pension funds. A mutual fund pools the savings of many
individuals and invests this money in a variety
共同基金集合許多個人的儲蓄，並將這筆錢投資於多種
03:03
of stocks, bonds, and other financial assets.
股票、債券與其他金融資產。
03:06
A
hedge fund is a private investment organization that employs risky strategies that can often
make huge profits for investors.
避險基金是一種私人投資組織，它採用高風險策略，通常能為投資人帶來龐大利潤。
03:15
In general, these investors already have tremendous
wealth and are knowledgeable about investing. A pension fund is income that some retirees
receive after working a certain number of
一般來說，這些投資人已經擁有巨大財富，且具備豐富的投資知識。
03:26
years or reaching a certain age.
退休基金是某些退休人士在工作一定年數或達到特定年齡後所領取的收入。
03:29
In some cases,
injuries may also qualify a working person for certain pension benefits.
在某些情況下，受傷也可能讓在職人士符合特定退休福利的資格。
03:35
Employers set up
pension funds by collecting deposits, and pension fund managers then invest those deposits
in stocks, bonds, and other financial assets.
雇主透過收取存款來設立退休基金，然後退休基金經理人會將這些存款投資於股票、債券及其他金融資產。
03:47
In general, the best way to invest your money is
to put it in a diverse range of securities.
一般而言，投資金錢的最佳方式是將其分散於多種證券。
03:52
This reduces risk, especially when stock or bond
prices drop.
這能降低風險，尤其是在股票或債券價格下跌時。
03:57
Therefore, people often invest some of their money in more risky ventures but
invest the rest in more stable funds.
因此，人們通常會將部分資金投資於風險較高的投資，但將其餘資金投資於較穩定的基金。
04:05
It is also better to invest money earlier in life.
越早投資越好。
04:08
This
is because one of the greatest assets is time. The longer your money is invested in securities,
the more it will grow.
這是因為時間是最寶貴的資產之一。你的錢投資在證券中的時間越長，它增長得就越多。
04:15
Put another way, you make more money on the money your money already makes.
換句話說，你從你的錢所賺的錢中賺取更多錢。
04:20
When investing money, it’s important to consider the two types of interest, simple and compound.
Simple interest is based on the principal amount of a loan or deposit.
投資時，務必考量兩種利息類型：單利與複利。單利是基於貸款或存款的本金金額。
04:30
Compound interest is based
on the principal amount and the interest that accumulates on it in every period.
複利則是基於本金金額以及每期累積在上面的利息。
04:38
Thus, it can
be regarded as “interest on interest.” Simple interest is only calculated on the principal
amount of a loan or deposit.
因此，它可以被視為「利息的利息」。單利僅計算在貸款或存款的本金金額上。
04:47
The formula looks like this: A = P(1 + rt) where A is the final
amount, P is the initial principal balance,
公式如下：A = P(1 + rt)，其中 A 是最終金額，P 是初始本金餘額，
04:58
r is the annual interest rate, and t is
time, usually in years.
r 是年利率，t 是時間，通常以年為單位。
05:02
Compound interest is calculated based on both the principal and
interest accrued.
複利是根據本金和累積的利息來計算的。
05:08
The formula looks like this: A = P(1 + r/n)nt where A is the final amount,
P is the initial principal balance, r is the
公式如下：A = P(1 + r/n)^nt，其中 A 是最終金額，P 是初始本金餘額，r 是
05:22
interest rate, n is the number of times interest
is applied per time period, usually in years, and t is the number of periods elapsed.
利率，n 是每段時間（通常以年為單位）內計息的次數，t 是經過的期數。
05:32
Let’s look at an example.
讓我們來看一個例子。
05:34
Say you loaned $10,000 to a friend and they agreed to
pay it back in five years with an annual simple interest rate of 5%.
假設你借給朋友 10,000 美元，他們同意在五年內還清，年單利為 5%。
05:42
After five years, the
amount of interest you would get would be $2,500, as the total amount they would repay would be
$12,500, which is the original principal plus
五年後，你會獲得 2,500 美元的利息，因為他們總共會償還 12,500 美元，這是原始本金加上
05:55
the interest.
利息。
05:56
Now say you loaned $10,000 to a
friend and they agreed to pay it back in five years with an annual compound interest rate of
5%.
現在假設你借給朋友 10,000 美元，他們同意在五年內還清，年複利為 5%。
06:04
Because you really want to make some money, you also make sure that interest is compounded
monthly, or 12 times a year.
因為你真的很想賺錢，所以你還確保利息是按月複利，也就是一年計息 12 次。
06:12
After five years, the amount of interest you would get would now
be $2,833.59, and your friend would have repaid you a total of $12,833.59.
五年後，你會獲得 2,833.59 美元的利息，你的朋友總共會償還你 12,833.59 美元。
06:24
This example serves to
illustrate that compound interest is far superior to simple interest when investing your money.
這個例子旨在說明，在投資時，複利遠優於單利。
06:34
Whenever consumers evaluate an investment, they must balance the risks involved with the
rewards they expect to gain from the investment. In general, the higher the potential return
on an investment, the riskier that investment
