Index / Benchmark
This market index is one of the three most popular stock indexes for tracking the performance of the US market and is one of the oldest and most commonly followed equity index.
Dow Jones Industrial Average
The Dow Jones Industrial Average, Dow Jones, or simply the Dow, is a stock market index of 30 prominent companies listed on stock exchanges in the United States. The DJIA is one of the oldest and most commonly followed equity indexes.
When most stocks are on the rist, what type of market is it?
Bull Market
A type of asset you buy that you hope will gain value over time.
Investment
An investment fund with a portfolio that tracks a group of stocks such as the S&P 500 companies.
Index Funds
This will decrease the NAV of a fund when distributed to shareholders.
Distribution of Capital Gains
This is an equity index that follows 500 large companies listed on the stock exchange.
S&P 500
When most stocks are declining, what type of market is it?
Bear Market
Money paid to shareholders out of company profits. (Typically paid quarterly. - Hint: Stocks & MF's)
Dividends
Why are mutual funds so popular?
Dividends
Successful investors know that _________ their investments can help reduce the adverse impact of a single investment (hint - part of your reading).
Diversifying
An investment fund with a portfolio that tracks a group of stocks such as the S&P 500 companies.
Index Funds
This gives its holder the right to purchase an asset for a specified price, called the exercise, on or before a specified expiration date (Hint: Profitable if the MV > Exercise Price)
Call Option
The cost of borrowing money.
Interest
(You can also be paid interest for depositing money in a savings account).
This reflects how much a MF pays for portfolio management, administration, marketing, and distribution, among other expenses.
An expense ratio
This type of fund provides an efficient way for an investor to invest in a mix of asset classes through a single fund that both rebalances its asset allocation periodically and becomes more conservative over time.
Target date fund
A hypothetical portfolio which tracks a specific portion of a bond market or markets.
Bond Index
This gives its holder the right to sell an asset at a specified exercise price before a specified expiration date. (Hint: Profitable if MV < Exercise Price)
Put Option
VZ
AMZN
TSLA
F
META
Verizon
Amazon
Tesla
Ford
Meta Platforms
The value of an entity's assets minus the value of its liabilities on a per share basis.
Net Asset Value (NAV)
Mutual Fund Category**
These funds invest in small companies and often participate in the initial public offerings of these companies shares. Hint: the stocks of these companies invested in can be very volatile.
Aggressive Growth Fund
This index is sometimes called the "total stock market index" or "total market index" because almost all publicly-traded companies with headquarters in the US that have readily available price data are included in this index.
Wilshire 5000
This investment vehicle only taxes the holder on a state and federal level.
Corporate Bond
Usually is two or three letters that represent a company when buying stock.
Stock ticker symbol/ ticker symbol / stock symbol
This will determine the value of a Mutual Fund's daily performance change.
Net Asset Value (NAV)
Mutual Fund Category**
These funds focus on foreign securities are often the easiest way for US investors to invest abroad.
International and Global Funds
(Invest primarily in securities of countries other than the US)