Stocks
This represents ownership in a company.
What is a stock?
A loan you make to a company or government.
What is a bond?
A savings account that holds a fixed amount of money for a fixed period of time.
What is a Certificate of deposit (CD)?
A safe place to keep your money and earn interest.
What is a savings account?
An investment vehicle that pools money from multiple investors to invest in a diversified portfolio of securities.
What is a mutual fund?
This market facilitates the buying and selling of stocks.
What is the stock market or stock exchange?
The date when the principal of a bond is repaid.
What is the Maturity Date?
Withdrawing money from a CD before maturity often incurs this.
What is a penalty?
The interest earned on a savings account is often compounded in this manner.
What is daily or monthly?
The professional who manages a mutual fund.
What is a fund manager or portfolio manager?
A collection of stocks, bonds, and other assets.
What is a portfolio?
Bonds issued by companies with a higher risk of default.
What are high yi bonds or junk bonds?
CDs generally offer a higher interest rate than these accounts.
What are savings accounts?
This federal agency insures deposits in member banks up to $250,000.
What is the FDIC?
A mutual fund that invests in companies with a specific focus, such as technology or healthcare.
What is a sector fund?
This stock market index tracks the performance of 30 large, publicly owned companies.
What is the Dow Jones Industrial Average?
A bond’s yield expressed as a percentage of its current market price.
What is the current yield?
The length of time your money must stay in a CD.
What is the term or maturity?
A type of savings account that typically offers a higher interest rate but may require a higher minimum balance.
What is a money market account?
The fee charged by a mutual fund company for managing the fund.
What is the expense ratio?
This strategy involves spreading investments across different asset classes to reduce risk.
What is diversification?
This type of bond is issued by a local government.
What is a municipal bond?
This type of CD offers an interest rate that adjusts periodically.
What is a variable-rate CD?
This calculates the interest earned on both the principal and any accumulated interest.
What is compound interest?
A mutual fund that tracks a specific market index, such as the S&P 500.
What is an index fund?