Glossary
Interest - glossary for children
An extra amount of money that is earned or paid for using money for a certain period of time.
Interest Rate
The price paid for borrowing money or the fee charged for lending it over a specified period of time, expressed as a percentage —for example, how much is paid when receiving a loan or how much is earned on a deposit. The interest rate can be fixed/constant for the entire term of the agreement or variable/floating, depending on certain market indices, interbank rates, or other agreed-upon conditions.
Interest Rate Risk
The risk of financial losses arising from adverse changes in market interest rates, which can affect the value of a financial institution’s assets and liabilities, the return on investments, or the cost of borrowings.
Intestate succession (Inheritance by Law)
A type of succession in which the estate of a deceased person (decedent) passes to the persons designated by law (heirs by law) when there is no will, the will is void or invalid, does not cover the entire estate, or the heirs under a will have renounced, predeceased the decedent, or have been disinherited. Legal heirs are determined by the Inheritance Act and include the surviving spouse as well as relatives of the decedent according to a specified hierarchy (degrees) of kinship – children, parents, siblings, and other relatives, with closer relatives excluding more distant ones. The estate is acquired through acceptance – expressly (by written declaration) or tacitly (through actions indicating intent to inherit, such as using or managing the property). The inheritance may be renounced by submitting a written renunciation before a notary.
Investing
The process of acquiring, managing, and utilizing various assets with the goal of generating income, capital gains, or other financial benefits. Investments can include stocks, bonds, real estate, mutual funds, derivatives, startups, and other financial or tangible assets. The process involves assessing risk, expected returns, and strategic allocation of resources.
Investing - glossary for children
Putting money into a business, objects, gold, property, education, or other things with the expectation of making a profit in the future. Investing can bring profit, but it also carries a risk – the money can be lost.
Investment
The allocation of money or other resources into assets, projects, or business ventures with the goal of achieving returns or increasing their value over time. Investments can be made in various forms such as shares, bonds, mutual funds, exchange-traded funds (ETFs), real estate, startups, and other financial instruments. Unlike savings, investments generally carry a certain level of risk, as the value of the invested resources may increase or decrease depending on market conditions and the outcomes of the investment activity.
Investment Fund
A joint-stock company or other regulated legal entity that raises capital by issuing shares or units and invests it in various financial instruments. Investment funds are typically structured as mutual funds or exchange-traded funds (ETFs) and are professionally managed with the goal of generating returns for investors.
Investment - glossary for children
Something a person puts money into – a business, objects, gold, property, education, or other things – with the expectation of making a profit in the future.
Investment Gold
Physical gold of high purity, purchased mainly as a store of value and as protection against inflation and market risks, rather than as a raw material for jewellery or industry. The main forms are gold bars (99.5% purity or higher) and investment coins recognized by the Ministry of Finance and the Bulgarian National Bank. It is exempt from VAT throughout the European Union. Gold can also be invested in through financial instruments linked to gold, such as shares of gold mining companies, futures, exchange-traded funds (ETFs), mutual funds, and derivatives.
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