Stocks
Represents ownership in a company
What are "Stocks?"
Lending money to someone for a specific period of time.
How do do Bonds work?
A type of savings account offered by banks or credit unions
What is a "Certificate of Deposit?"
When you deposit money into a savings account so the bank can keep it safe and pays you a small interest
How does a savings account work?
Lower risks, accessibility, and liquidity
What are the benefits of "Mutual funds?"
The value of the Stock for a company goes up and you can sell it for more than you paid
When a company does well?
A Bond is a loan while a Stock is ownership
What is the difference between a Bond and a Stock?
Insured by the Government, so you won't lose your money
Is a CD safe?
A type of bank account where you can store your money safely
What is a "savings account?"
A type of investment where people pool their money together to invest in stocks
What is a "Mutual Fund?"
When companies share their profits with stockholders by giving out payments
What are "Dividends?"
Governments use Bonds to fund things like roads and schools, while companies use them to grow their business
Why do Bonds exist?
Using CDs in order to save money safely while earning more interest than they would in a regular savings account
Why do people use CDs?
Extra profit the bank pays you for keeping your money in the account
What is "Interest?"
Stock funds, bond funds, money market funds, and balanced funds
What are different types of "Mutual funds?"
Economic trends, interest rates, and inflation can impact stock prices; all of these fall under
What are "Market conditions?"
They help fund deficits in the federal budget and are used to raise capital for various projects such as infrastructure spending
Why does the government need bonds?
How much the bank pays you for keeping your money in the CD
What is the interest rate on a CD?
Safe, interest, accessibility, and helps to build good habits
Why should you have a savings account?
Expense ratio and sales charge
What are fees associated with Mutual funds?
It is the success or struggles of a specific sector can affect stock prices for companies within that industry
What is the definition of "Industry trends?"
The date when the issuer pays back the full amount of the Bond to you
What is "Maturity" in Bonds?
If prices rise quickly, the interest you earn on the CD might not keep up
What are the risks of a CD?
One is used for saving money and earning interest, while the other is used for daily expenses
What is the difference between a "savings account" and a "checking account?"
With mutual funds, you can invest in a collection of stocks and bonds while with the other you can invest in one company's share
How is a Mutual fund different from individual stocks?