Stocks
This represents a share of ownership in a company.
what is a stock?
This type of investment typically pays a fixed interest rate.
what is a bond?
you agree to leave your money in this account for a specific period of time to earn a higher interest rate.
what is a Certificate Deposit(CD)?
This pools money from many investors to invest in diversified portfolio of securities.
What is a mutual fund?
What is a stock exchange?
The higher this rating is on a bond,the lower the risk.
A penalty you might incur for withdrawing money from a CD before it matures.
This government agency insures deposits in many banks and credit unions.
What is the Federal Deposit insurance corporation?
A professional who manages the investments within a mutual fund.
Who is fund manager?
A payment made to shareholders from a company's profits.
what is a dividend?
The date on which a bond issuer repays the principal.
What is the maturity date?
CDs are typically offered by these institutions.
What are banks or credit unions?
Money withdrawn from a savings account.
What is a withdrawal?
A fee charged annually by a mutual fund to cover its operating expenses.
What is an expense ratio?
A stock generally pays consistent dividends and is considered less risky.
What is blue chip stocks?
what are government bonds?
This is usually fixed for the term of the CD.
What is the interest rate?
Interest earned on a savings account is usually calculated this way.
What is compound interest?
A type of mutual fund that invests primarily in stocks.
What is a stock mutual fund?
This market index tacks the performance of 500 large-cap U.S companies.
What is the S&P 500(Daily Double!)
The risk that a bond issuer may not be able to repay its debt.
what is default risk?
The term for which a CD is issued.
A savings account that requires a higher minimum balance and may offer a higher interest rate.
what is a high-yield savings account?
Mutual funds allows investors to achieve this crucial aspect of investment management.
What is diversification?