Vocabulary
Adding or putting money into an account.
What is a Deposit
The financial performance on an investment
What is ROI?
This is the process of spreading out the cost of a long-term asset over its useful life.
What is depreciation?
This type of investment represents ownership in a company, often providing dividends and voting rights.
What is a stock
Ticker for Apple
AAPL
Taking money out of an account.
What is a Withdrawal
What is the NASDAQ?
The ratio that measures a company's ability to cover its short-term obligations with its most liquid assets.
What is the quick ratio?
Debt instrument that pays periodic interest and returns the principal at maturity is called this.
What is a bond?
Ticker for Netflix
NFLX
A plan for how to save and spend money.
What is Budget
The Oracle of Omaha is a nickname that describes one of the most famous American investors and CEO of Berkshire Hathaway.
Who is Warren Buffet?
Issued by the U.S. government, considered among the safest investments, and backed by the full faith and credit of the U.S. government.
What is a U.S. Treasury Bond?
This market involves buying and selling securities that are issued by corporations and governments to raise capital
Ticker for The Walt Disney Company
DIS
Extra money that you either earn or owe.
What is Interest
This savings instrument which typically earns more interest than a savings account but is bound by limits set within a contract.
What is a Certificate of Deposit?
A period when stock prices decline significantly, typically defined as a drop of 20% or more from a recent high, often accompanied by market pessimism and investor fear.
What is a bear market?
This term describes the degree of fluctuation in the price of a security over time, often used as a measure of risk.
What is volatility?
Ticker for Chevron Corporation
CVX
FDIC
What is the Federal Deposit Insurance Corporation?
The name of the S&P 500.
What is Standard and Poor's?
This term refers to a company's earnings before interest and taxes.
What is EBIT?
This investment fund pools capital from many investors to invest in a diversified portfolio of stocks, bonds, or there securities.
What is a mutual fund?
Ticker for The Coca-Cola Company
KO