Vocab
The initial amount spent on stocks
Principle
The current price quoted in dollars per share
Market value
If Suzy invested in a house for $45320, and she had a monthly rent of $142 and monthly expenses of $290, what is her annual rent? Annual expenses? ROI?
AnnualR = $142 * 12
AnnualE = $290 * 12
ROI = Net income / Cash investments
Rate of Income (aka Annual Yield)
Net income = ROI * Cash investments
ROI = Cash investments / Net income
Cash investments = Net income / ROI
Change 30.927% to a decimal rounded to the nearest tenth
0.3
The difference between today's closing price and yesterday's closing price
Net Change
shows the number of shares you own in a corporation
Stock certificate
Tani invests $724 in an account that gives her .5% interest for 3 months. What is her interest after the 3 months?
I = (724)(0.005)(.25)
Capital Gain
Capital Loss
Gain = selling price - purchase price
Loss = purchase price - selling price
Round 45012303.03482 to the nearest thousandth
45012303.135
The amount of annual rent left after annual expenses are paid
Annual net income
The place where stocks are sold and bought
Stock exchange
Anise invests in 345 shares of Tesla stock. Each stock goes for $152.60 each. How much money did she invest total? If she sells the shares at $210 each, what is her net profit?
345 * $152.60 = x
210 * 345 = y
x - y
Simple interest
I = prt
7 7/8 + 23 3/4 + 12 2/3
First, find the lcm and change the denominators, then add
a list of corporations in which your mutual fund invests
Investment portfolio
An investment company that pools investors' money and spreads it across stocks to get the best return for everyone
Mutual fund
Net income
Net income = ROI * Cash investments
Net income = Annual Rent - Annual Expenses
19 13/20 * 5 3/4
Change the mixed numbers to improper fractions and multiply
a special financial deposit that allows you to get higher interest for not touching your money for a set amount of time
Certificate of deposit
A pamphlet containing all of the details and information you need before investing in a mutual fund
Prospectus
Annual yield
Annual yield = Annual interest / Selling price