Market Types
This style of trader tends to think the market will go down.
What is a bear?
This represents a share of ownership in a company, giving the holder a claim on part of its assets and earnings.
What is a stock?
This is the term for a plan that shows how much money you expect to earn and spend in a given time period.
What is a budget?
This is the extra money you pay back to a lender, on top of the amount you borrowed.
What is interest?
This type of savings account typically offers higher interest rates but may require a minimum balance or limit withdrawals.
What is a high-yield savings account?
This style of trader tends to think the market is going to go up.
What is a bull?
This term refers to the amount of money a company pays its shareholders, usually from profits.
What is a dividend?
This common budgeting rule suggests dividing income into 50% for needs, 30% for wants, and 20% for savings or debt repayment.
What is the 50/30/20 rule?
This is the maximum amount of money you can borrow on a credit card.
What is a credit card limit?
This type of savings account is designed specifically for retirement, offering tax advantages on contributions and growth.
What is an individual retirement account (IRA)?
This short-term trading style seeks to profit from small price movements within a single day, closing all positions before the market ends.
What is day trading?
This advanced strategy involves borrowing shares to sell them at today’s price, hoping to buy them back later at a lower price for profit.
What is short selling?
This is the money you set aside for unexpected costs, like car repairs or medical bills.
What is an emergency fund?
This three-digit number shows how responsible you are with borrowing and repaying money.
What is a credit score?
This term refers to the rate at which interest is compounded annually, showing the true return on a savings account.
What is an annual percentage yield (APY)?
This strategy involves using contracts that give the right, but not the obligation, to buy or sell a stock at a set price before a certain date.
What is options trading?
This term describes when a company increases the number of its shares by dividing existing ones, often to lower the price per share.
What is a stock split?
This concept in economics refers to the value of the next best alternative you give up when making a financial decision.
What is opportunity cost?
This advanced debt instrument allows governments or corporations to borrow money from investors, promising repayment with interest over time.
What is a bond?
This type of retirement account allows contributions with after-tax dollars, and qualified withdrawals in retirement are tax-free.
This style uses charts, indicators, and price patterns to decide when to buy or sell.
What is Technical Analysis Trading?
This term refers to the practice of spreading false or misleading information to manipulate stock prices, often illegal under SEC rules.
This approach to budgeting prioritizes paying yourself first by automatically saving or investing before spending on other categories.
This term refers to the legal process where creditors take back property or assets when a borrower defaults.
This financial shortcut estimates how many years it will take for an investment to double, by dividing 72 by the annual interest rate.