Types of Investments
A share of the value of a company, which can be bought, sold, or traded as an investment and which gives the investor small partial ownership of the company
What is a Stock?
The world's largest stock exchange, physically located in New York City?
What is the New York Stock Exchange (NYSE)?
An asset or item that is acquired with the goal of making a profit
What is and Investment?
An investing tool for people to store stocks and funds specifically for their older, non-working years.
What is an Individual Retirement Account (IRA)?
Money from the profits of a company that is paid out to its shareholders, typically on a quarterly basis
What is a Dividend?
A security in which the investor loans money to a company or government, which then pays regular interest to the holder and returns the principal on the maturity date.
What is a bond?
The second largest stock exchange in the world behind the NYSE
What is Nasdaq?
The process of setting money aside to increase wealth over time for long-term financial goals such as retirement
What is Investing?
A collection of stocks and/or bonds combined into one group which will be traded as a unit, typically chosen and actively managed by an "expert" in exchange for a fee from each investor?
What is Mutual Fund?
The growth of an investment that comes back to you, where earnings, such as dividends or interest, are reinvested to generate additional earnings over time
Compound Return
A financial asset, such as a stock or a bond, that can be bought and sold in a financial market
What is a Security?
Open this type of account that lets individual investors trade stocks, bonds, mutual funds, and other investments.
What is Brokerage Account?
A market where shares in corporations are bought and sold through an organized system.
What is a Stock Exchange?
The rate at which the price of goods increases and consumer purchasing power decreases over time
What is Inflation?
A market in which there is increased stock trading and rising stock prices
What is a Bull Market?
A loan, often having tax advantages for individual investors, issued by a state or local government which typically uses the loan to pay for public works to benefit its citizens
What is a Municipal Bond?
A collection of financial investments like stocks, bonds, commodities, cash, and cash equivalents, including mutual funds and ETFs
What is a Portfolio?
The ratio of money gained or lost on an investment relative to the amount of money invested.
What is return on investment (ROI)? (Rate of Return)
The illegal act of trading a company's stock using information that is not available to the public
What is Insider Trading?
A market in which prices are falling, encouraging selling.
What is a Bear Market?
A low-fee portfolio of stocks chosen to track or mimic a stock market index, thereby removing the human element of investing because no one is choosing the individual stocks. Investor own a share of the portfolio, rather than shares of an individual company.
What is an Index Fund?
An online wealth management service that provides automated, algorithm-based portfolio management advice without the use of human financial planners
What is a Robo-Advisor?
A long-term strategy for building wealth by buying investments - typically index funds - and holding them for many years to minimize trading and costs. Research shows that 85-95% of these funds perform better than actively managed funds over the long run.
What is Passive Investing?
A type of investment fund that rebalances its asset mix over time based on a projected retirement year
What is a Target Date Fund (TDF)?
Profit from the sale of an asset, such as a stock or a bond, calculated by subtracting the price you initially paid from the price you then sold it for
What is Capital Gain?