Investing 1
A savings account you can access quickly to pay for unexpected expenses or emergencies
Emergency Fund
Income that is taxed at a later date
Tax-Deferred Income
You or someone lending money to a business or government
Bond
A share of ownership in a company
Stocks
Basic amount deposited, without adding interest earned
Principal
The higher the risk, the higher the potential return of any money you invest. The lower the risk, the lower the potential return.
Risk and Return
A specialist who is trained to offer specific financial help and advice
Financial Planner
The written pledge of the government or a municipality, such as a city, to repay a specific sum of money with interest
Government Bond
A corporation’s written pledge to repay a specific amount of money, along with interest
Corporate Bond
Savings account that the money must remain in an account for a set amount of time
Certificate of Deposit
The ability to buy or sell an investment quickly without substantially reducing its value
Investment Liquidity
A unit of ownership of a company that entitles the owner, or stockholder, to voting privileges
Common Stock
The amount of money you gain from an investment.
Capital Gains
Represents the performance of 30 of the largest companies in the United States.
Dow Jones Industrial
a way to determine how long an investment will take to double, given a fixed annual rate of interest
Rule of 72
Distributions of money, stock, or other property that a corporation pays to stockholders
Dividends
The process of spreading your assets among several different types of investments to reduce risk
Diversification
The sale of an investment for less that its purchase price
Capital Loss
A collection of stocks, bonds, real estate and other investments.
Mutual Funds
a savings account that gets greater interest than a regular savings and also provides minimal check writing
Money Market Account
the U.S. corporation insuring deposits in the United States against bank failure. You are covered for up to $250,000.
Federal Deposit Insurance Corporation (FDIC)
An individual who has a license to buy and sell stocks and other investments on one or more stock exchanges.
Stock Broker
401k, 403b, Traditional IRA, and Roth IRA are all _________ accounts with tax benefits
retirement savings plan through your employer that lets you invest a portion of each paycheck before taxes are deducted depending on the type of contributions made.
401K
Type of Retirement account that is tax-deferred that you can get from your bank or broker.
IRA