Stocks
Represent ownership in a company
A Stock
Loans to governments or corporations
Bonds
Time-bound savings accounts with fixed interest rates
Certificate of Deposit or COD
Low-risk, easily accessible savings option and offered by banks and credit unions
Savings account
A collection of different investments put together in one fund..
A mutual fund
stocks index tracks 30 big U.S companies.
The Dow Jones
Bonds that are considered safe because they are backed by the U.S. government
Treasury bonds
A COD usually gives a better interest rate than a regular savings account because your money is locked in..
Higher
Savings account offers a higher interest rate but may have restrictions like maintaining a minimum balance..
High-yield savings account
Types of mutual funds that allow you to invest in a broad mix of stocks, bonds, and other assets..
Balanced Funds
When stock prices drop quickly
Market Crash
Bonds that you have to pay interest in before the time runs out.
A Coupon
A Penalty
These are insured by by the FDIC up to a certain amount per depositor..
A Federal Deposit Insurance Corporation
Type of mutual funds that focuses on investing in companies with high growth potential..
Growth Fund
Stocks that usually lets you vote at company meetings.
A Common Stock
When a company issues to many bonds, it could be trouble paying them back..
A Default
The time frame for a COD can range from a few months to a few years is known as..
The interest rate on a savings account is often expressed as this annual percentage rate..
Annual Percentage Yield
This type of investing involves buying and selling stocks quickly to make money.
Day trading
Bonds that are sold by cities to raise money for things like schools and roads.
Municipal Bonds
These types of COD allow you to withdraw the interest without penalty, but the principal must stay locked in for the term.
No penalty COD
Accounts that allow you to earn interest while maintaining liquidity, nut might have limitations on the number of withdrawals..
Money market account
This is the yearly fee charged by mutual funds to manage your investment..