Stocks & Equities
This type of stock gives shareholders voting rights.
Common Stock
This is the term for the interest a bond pays.
Coupon
This type of fund trades on the stock market like a stock.
ETFs (Exchange-Traded Funds)
Gold, silver, and oil are examples of this type of alternative asset.
Commodities
This contract gives the buyer the right, but not the obligation, to buy an asset.
Call Option
What does Price to Book measure
It measure company's valuation relative to book value (e.g assets)
Bonds issued by the U.S. government are called this.
Treasuries or T-Bills
This type of investment pools money from many investors to buy a diversified portfolio.
Mutual Funds
Bitcoin is this type of digital investment.
Cryptocurrency
This type of contract lets you agree today on a price for something in the future.
Futures Contract
A company’s first time offering stock to the public is called this.
IPO (Initial Public Offering)
A bond is basically this type of financial promise.
A loan or "IOU (I owe you)" acknowledgement of debt.
Funds that aim to match the performance of the S&P 500 are called this.
Index Funds
Investing in house, apartment, or land.
Real Estate or REITs (Real Estate Investment Trusts)
The agreed-upon price in an option or futures contract is called this.
Strike Price
This term means the company pays a portion of its profits to shareholders.
Dividends
This term means a bond is riskier and pays higher interest because the company may not be able to pay it back.
High-Yield Bonds
This type of ETF is structured to achieve inverse performance of an index, often using derivatives.
Inverse ETFs (e.g SQQQ)
Paintings, sports cards, and rare coins are examples of this type of alternative investment.
Collectibles
An investor who sells a call option without owning the underlying stock is said to be doing this.
Writing Naked Call
This ratio compares a company’s stock price to its earnings per share.
P/E Ratio (Price to Earnings)
This type of bond allows investors to convert them into shares of stock.
Convertible Bond
Difference between an ETF’s market price and the value of its underlying assets is called this.
Premium or Discount to NAV (Net Asset Value)
These large private funds often invest in many things, like real estate or startups, and are usually only open to wealthy investors.
Private equity or hedge funds
The rate at which an option loses value as time passes is represented by this Greek letter.
Theta