Investment Fundamentals
Opportunity Cost
Definition
What is Opportunity Cost?
The value of the best alternative forgone when one choice is made.
Example in practice
How This Looks in Practice
Using ₦1 million for land means giving up the return it might have earned in a bond fundA fund that invests mainly in bonds with the aim of earning interest income and possible capital gains..
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Related Terms
Investment Fundamentals
Principal
The original amount of money invested or lent, excluding later returns.
Investment FundamentalsCapital
Money or other resources committed to produce income, growth, or another economic benefit.
Investment FundamentalsInvestment
An asset or commitment of money made with the expectation of future income, growth, or both.
Asset ClassesAsset
Anything with economic value that can be owned or controlled.