Stocks
This is the term for a share of ownership in a company that represents a claim on its assets and earnings.
What is stocks
This is the term for the fixed interest rate a bondholder earns, also known as the "coupon rate."
What is the yield?
A Certificate of Deposit is typically offered by these financial institutions.
What are banks?
This is the main purpose of a savings account: to help people keep and grow their ____.
What is money
This type of investment vehicle pools money from many investors to buy a diversified portfolio of stocks, bonds, or other assets
What is a mutual fund?
This is the basic rule of economics that says stock prices often rise when demand increases and supply stays the same.
What is the law of supply and demand?
This is a type of investment where you loan money to a company or government in exchange for regular interest payments.
What is a bond?
This is the term for the fixed amount of time you agree to leave your money in a CD.
What is the term length?
Savings accounts are typically offered by these financial institutions
What are banks and credit unions?
Mutual funds are usually divided into these two main types, based on what the fund invests in.
What are equity funds and bond funds?
This ratio compares a company's stock price to its earnings per share and is often used to assess value.
What is the price-to-earnings (P/E) ratio?
Bonds issued by the U.S. government are often considered one of the safest investments and are called this.
What are Treasury bonds?
This is the main benefit of a CD, where your interest rate stays the same for the entire term.
What is a fixed rate?
This is the small percentage of money that a bank pays you for keeping your funds in a savings account.
What is interest?
Mutual funds that invest in a variety of bonds, such as government or corporate bonds, are called this
What are bond funds?
This type of stockholder is paid dividends first, but they typically don’t have voting rights in the company.
What is a preferred stockholder?
Bonds pay this to investors as a reward for lending money.
What is interest?
This type of CD lets you add more money to your account during the term, unlike a traditional CD.
What is an add-on CD?
Savings accounts usually limit this, the number of times you can transfer or withdraw money in a month
What are withdrawals?
This fee is charged annually by mutual funds to cover operating costs, expressed as a percentage of the fund’s average assets.
What is the expense ratio?
This is the term for money you earn from owning stocks when the company shares its profits.
What are dividends?
Bonds are often considered less risky than this type of investment, which represents ownership in a company.
What are stocks
Unlike stocks, CDs have this kind of risk profile, making them a popular choice for conservative investors.
What is low risk?
This term refers to the minimum amount of money you must keep in a savings account to avoid fees.
What is the minimum balance?
This is a fee that you may pay when buying or selling shares of a mutual fund
What is a load fee?