Stocks
This term refers to the price at which a stock is currently being bought and sold in the market.
What is the market price or share price?
This is the amount a bond issuer agrees to pay the bondholder when the bond matures.
What is the face value or par value?
This type of time deposit typically offers a higher interest rate than a regular savings account, but the investor must leave the money in the account for a fixed period of time.
What is a Certificate of Deposit (CD)?
This type of account allows you to deposit money, earn interest, and easily withdraw funds, but it typically earns a lower interest rate than other investment options.
What is a savings account?
This type of investment pool allows individuals to invest in a diversified portfolio of stocks, bonds, or other securities, managed by a professional fund manager.
What is a mutual fund?
This billionaire investor, known as the "Oracle of Omaha," is the chairman and CEO of Berkshire Hathaway.
Who is Warren Buffett?
This type of bond is issued by the U.S. government and is backed by the full faith and credit of the U.S. Treasury.
What is a Treasury bond?
This is the penalty or fee you may incur if you withdraw funds from a Certificate of Deposit before its maturity date.
What is an early withdrawal penalty?
This is the amount of interest paid on a savings account balance, often calculated annually but typically compounded on a monthly or quarterly basis.
What is the interest rate?
This type of mutual fund invests primarily in stocks and aims for long-term capital growth, typically involving higher risk than bond funds.
What is an equity fund?
This index, often referred to as the "Dow," includes 30 large publicly traded companies and is one of the oldest and most-watched stock market indices in the U.S.
What is the Dow Jones Industrial Average?
This term refers to the interest rate paid by a bond issuer to bondholders, usually expressed as a percentage of the bond's face value.
What is the coupon rate?
This is the minimum amount of time a Certificate of Deposit must be held before it matures, typically ranging from a few months to several years.
What is the maturity period?
This term refers to the interest rate on a savings account that reflects the effect of compounding over a year, expressed as a percentage.
What is the annual percentage yield (APY)?
This is a measure used to evaluate a mutual fund's risk-adjusted return, comparing the fund's performance to its volatility relative to a benchmark index.
What is the Sharpe ratio?
This term refers to a market condition in which the prices of securities are falling or are expected to fall, often characterized by widespread pessimism and a decline in investor confidence.
What is a bear market?
This credit rating agency, one of the "Big Three" alongside Moody's and Fitch, assigns ratings like "AAA," "AA," and "A" to evaluate the creditworthiness of bond issuers.
What is Standard & Poor's (S&P)?
This type of CD allows the investor to withdraw or add funds during the term, but usually with a lower interest rate compared to a traditional CD.
What is a liquid CD or flexible CD?
This type of savings account typically offers a higher interest rate than a standard savings account but requires the account holder to maintain a minimum balance.
What is a high-yield savings account?
This type of mutual fund is structured so that it buys and sells its own shares at the end of each trading day, at the net asset value (NAV), rather than during market hours like exchange-traded funds (meaning give Jerome a good grade plz).
What is a closed-end fund?
This financial metric, calculated by dividing a company's earnings before interest, taxes, depreciation, and amortization (EBITDA) by its enterprise value (EV), is often used to assess a company's valuation in relation to its earnings potential.
What is the EV/EBITDA ratio?
This type of bond yield takes into account the bond's current market price, coupon payments, and the time remaining until maturity, providing an overall return for an investor.
What is the yield to maturity (YTM)?
This type of Certificate of Deposit allows the investor to increase the principal amount during the term without penalty, typically offering a higher interest rate than a standard CD.
What is a bump-up CD or step-up CD?
This term refers to a type of savings account that offers tiered interest rates based on the account balance, often rewarding higher balances with higher rates.
What is a tiered savings account?
This fee is charged by a mutual fund manager for managing the fund's portfolio and is usually expressed as a percentage of the fund's average net assets. It can significantly affect long-term returns.
What is the expense ratio?