Investing for your future
A rise in the general level of prices
What is inflation?
What is common stock?
The amount the bondholder will be repaid at maturity
What is the face value of the bond?
Land and buildings used to produce income through leasing or renting
What is commercial property?
A legal document giving someone control of property
What is a trust?
The pooling of money from many investors to buy a large selection of securities
What is a mutual fund?
A type of stock pays a fixed dividend but has no voting rights
What is preferred stock?
A bond issued by state and local governments
What is a municipal bond?
Products that are mined or grown
What are commodities?
A defined-contribution plan for employees of companies
What is a 401(K) plan?
The chance that an investment's value will decrease
What is investing risk?
Money paid to stockholders from the corporation's earnings
What are dividends?
A marketplace where brokers meet to buy and sell securities
What is a securities exchange?
In a mutual find, NAV stands for
What is net asset value?
A legal document authorizing someone to act on your behalf
What is power of attorney?
Spreading of risk among many investment types
What is diversification?
A company whose stock is traded openly on stock markets
What is a public corporation?
This indicates the risk category assigned to a bond
What is a bond rating?
An investment in a pool of mortgages
What is a certificate of participation?
An account that has tax advantages and allows individuals to set aside a specified amount each year
What is an IRA?
The rule that will calculate how long it will take to double your investment
What is the Rule of 72?
A prolonged period of rising stock prices and investor optimism
What is a bull market?
This bond is based on the general creditworthiness and reputation of the company
What is debenture?
A corporation that pools the money of many individuals to invest in properties
What is a real estate investment trust?
A loan available to homeowners age 62 and older
What is a reverse mortgage?