Introduction to Investments

Stocks

100

Represent ownership in a company

A Stock 

200

stocks index tracks 30 big U.S companies. 

The Dow Jones

300

When stock prices drop quickly 

Market Crash 

400

Stocks that usually lets you vote at company meetings. 

A Common Stock 

500

This type of investing involves buying and selling stocks quickly to make money. 

Day trading 

Bonds

100

Loans to governments or corporations

Bonds 

200

Bonds that are considered safe because they are backed by the U.S. government 

Treasury bonds 

300

Bonds that you have to pay interest in before the time runs out. 

A Coupon 

400

When a company issues to many bonds, it could be trouble paying them back..

A Default 

500

Bonds that are sold by cities to raise money for things like schools and roads. 

Municipal Bonds 

COD

100

Time-bound savings accounts with fixed interest rates

Certificate of Deposit or COD

200

A COD usually gives a better interest rate than a regular savings account because your money is locked in..

Higher 

300

If/when you take money out of a COD before the term ends, you might loose some of the interest. 

A Penalty

400

The time frame for a COD can range from a few months to a few years is known as..

The Term

500

These types of COD allow you to withdraw the interest without penalty, but the principal must stay locked in for the term. 

No penalty COD

Savings account

100

Low-risk, easily accessible savings option and offered by banks and credit unions

Savings account

200

Savings account offers a higher interest rate but may have restrictions like maintaining a minimum balance..

High-yield savings account

300

These are insured by by the FDIC up to a certain amount per depositor..

A Federal Deposit Insurance Corporation

400

The interest rate on a savings account is often expressed as this annual percentage rate..

Annual Percentage Yield 

500

Accounts that allow you to earn interest while maintaining liquidity, nut might have limitations on the number of withdrawals..

Money market account

Mutual Funds

100

A collection of different investments put together in one fund..

A mutual fund

200

Types of mutual funds that allow you to invest in a broad mix of stocks, bonds, and other assets..

Balanced Funds

300

Type of mutual funds that focuses on investing in companies with high growth potential..

Growth Fund

400

When a mutual fund manager buys and sells actively, this type of fund is known as..

Actively managed fund

500

This is the yearly fee charged by mutual funds to manage your investment..

The expense ratio