Stocks
This term describes the price you pay to own a single share of a company.
What is the stock price?
This type of investment is often considered safer than stocks and offers steady income.
What is a bond?
This term refers to the interest rate that a CD guarantees for its term.
What is a fixed rate?
This is the percentage paid to you for keeping money in your savings account.
What is the interest rate?
A mutual fund pools money from investors to buy these types of assets.
What are stocks, bonds, or other securities?
Shareholders with this type of stock can vote on company policies.
What is common stock?
This type of bond is issued by the U.S. government and is considered one of the safest investments.
What is Treasury bonds?
CDs are insured up to $250,000 by this federal organization.
What is the FDIC?
Savings accounts often limit the number of these transactions per month.
What are withdrawals?
This fee is charged by mutual funds to cover operating expenses.
What is the expense ratio?
When the market is rising, it is called this.
What is the Bull market ?
This document outlines the terms, interest rate, and repayment details of a bond.
What is a bond indenture?
Withdrawing money from a CD before its maturity date typically incurs this.
What is an early withdrawal penalty?
This type of interest is earned on both the principals and previously earned interest.
What is compound interest?
This type of mutual fund tracks the performance of a specific market index.
What is an index fund?
This measure helps investors assess the risk level of a stock compared to the market.
What is beta?
When a bond is sold for more than its face value, it is sold at this.
What is a premium?
CDs with terms longer than a year are typically called this.
What are long-term CDs?
This account type offers higher interest rates by requiring larger deposits or balances.
What is a money market account?
The person responsible for making investment decisions for a mutual fund is called this.
What is a portfolio manager?
This famous stock index tracks the performance of 30 major U.S. companies.
What is the Dow Jones Industrial Average?
These high risk, high reward bonds are rated below investment grade.
What are junk bonds?
This type of CD allows its interest rate to adjust during the term.
What is a variable rate CD?
Savings accounts at online banks often feature this major advantage over traditional banks.
What are higher interest rates?
Mutual funds are traded at this price, calculated at the end of each trading day.
What is the net asset value (NAV)