Bonds, James Bonds
Corporations and governments borrow money by selling these.
Bonds
A share of stock represents owning a small piece of this.
What is a company?
This term describes the overall attitude or mood of investors toward the market at a given time.
What is market sentiment?
The street where the New York Stock Exchange resides.
Wall Street
This term refers to a share of ownership in a company.
What is a stock (or equity)?
Bonds sold by governments are know as this type of bond.
Gov't Bonds
This major U.S. stock index includes 500 large companies and is often used as a benchmark for the overall market.
What is the S&P 500?
When fear causes investors to sell quickly, pushing prices down, the market is experiencing this emotion-driven reaction.
What is panic selling?
When the stock market is consistently going up it is referred to as this.
Bull Market
A type of financial asset where you lend money to a government or corporation in exchange for interest payments.
What is a bond?
This is the amount a bond is worth when it matures — the amount the issuer promises to pay back.
What is the face value (or par value)?
Share of a companies profit that are paid to stockholders quarterly.
Dividend
This common psychological bias leads investors to follow what everyone else is doing, often buying high or selling low.
What is herd behavior?
When the market is consistently going down it is referred to as this.
Bear market
Where buyers and sellers exchange financial assets
Stock exchange
When interest rates rise, bond prices typically do this — an important inverse relationship investors must understand.
What is fall (or go down)?
This type of stock typically pays regular dividends and represents ownership in a larger, more established company.
What are blue-chip stocks?
The emotional tendency for investors to focus more on losses than gains — feeling losses twice as strongly — is known as this.
What is loss aversion?
On Wall Street, this animal represents a greedy investor who takes on too much risk trying to make quick profits — and often loses money.
What is a pig?
This refers to the ease with which an asset can be converted to cash without losing value.
What is liquidity?
The coupon rate is another term for this.
Interest rate
A company’s total market value — calculated by stock price times number of shares outstanding — is known as this.
What is market capitalization?
This emotional cycle describes overly optimistic “bulls” inflating prices too high, followed by fearful “bears” causing a fast, painful drop.
What is a bubble and crash?
A strategy used by bearish investors where they borrow shares, sell them, and hope to buy them back at a lower price.
What is short selling?
Type of fund that holds a diversified basket of financial assets and is traded on an exchange like a stock.
What is an ETF (Exchange-Traded Fund)?