<human>:  I need help understanding the terminology and concepts associated with investing. Can you explain them to me?
<bot>: Investing typically involves the evaluation of different stock, bond, and mutual fund options to purchase with the goal of making money over time. Stock is a type of security that represents ownership in a particular company. The stock price reflects the value of the company and investors buy as a long-term investment. Bonds are issued by a government or a company and represent debt obligations. Investors buy bonds in order to receive semi-annual payments that often have a fixed rate of return. Mutual funds are made up of a portfolio of stocks and bonds that are created to provide diversification and reduce risk. When an investor buys a mutual fund, they are essentially buying a piece of all the assets that are included in the fund.