Stock/Stock Market
A share of ownership in a corporation that can be purchased or sold.
What is a stock?
A form a debt issued by a company or government entity that can be bought and sold as a investment.
What is a bond?
To beat inflation and let our money work for us.
Why do we invest?
The down side of trying new things, investing, and opportunities.
What is a risk?
Building wealth and fighting inflation.
What are two reasons for investing?
A collection of buyers and sellers of stock or the "place" where buyers and sellers trade stock.
What is the stock market?
Fixed interest payments are received from the issuing company/entity.
How bondholders typically make money on bonds?
The process of buying assets that should increase in value over time and provide returns (more money).
What is investing?
The risk that your money won't be able to buy as much tomorrow as it could today.
What is inflation risk?
This investment is usually considered safer investing in a single stock because it is naturally diversified?
What is a Mutual Fund?
This is how you make money on the stock market.
What is buy low and sell high?
The country with the largest bond market in the world.
What is the United States?
Stocks, bonds, certificates of deposit, mutual funds, gold, real estate.
What are some examples of investments?
Investing in more that one company and/or type of investment to minimize your risk.
What is diversifying/diversification?
The amount you pay to the government on your gains from investing.
What are taxes?
Another word for an ownership interest in a company.
What is equity.
How long do most bonds last?
This is what happens to your money when you invest wisely and your money makes money for you.
What is compounding?
Reasons an investment in stock might lose value.
What are things like bad management, natural catastrophes, or economic downturns?
The amount a company may pay to its shareholders/stockholders each quarter.
What are dividends?
The primary organization responsible for overseeing publicly traded companies/the stock market.
What is the SEC -- Security and Exchange Commission?
One is an ownership interest in a company and one is a debt/loan interest in a company or government entity.
What is the difference between stocks and bonds?
When should you start investing (at least by putting money in an interest bearing account)?
The relationship between risk and reward.
What is moving together (higher risks have higher potential rewards)?
So our money has the maximum amount of time to work for us by compounding.
Why do we want to start saving and investing when we are young?