Key Terms:
The Original amount of money saved or invested
What is the principle?
A form of lending to a company of the government
What are Bonds?
Risk level of a stocks
What is Medium Risk?
A slow,low risk investment
:What are Treasury Bonds?
Define Investments
What are Assets purchased with the goal of providing additional income from the asset itself?
The Initial offering of stock to the general public
What is Initial Public Offering?
Average of 30 significant stocks traded on the new york stock exchange or Nasdaq
What is Dow Jones?
Definition of stocks
What is a share of ownership in a company?
Reduces Risk by spreading money along a wide array of investments
What is an Investment Portfolio?
___+ ___= rate of return
What is Total Return + Amount of money invested?
The Largest equities market in the world
What is the New York Stock Exchange?
Purpose of Diversification
What facilitates buying and selling stock?
:Unearned income received from the sale of an asset above its purchase price
What is Capital Gain?
What is it when you double the stock; cut the price in half
What is 2:1 Stock?
Define inflation risk
What is a danger that money won't be worth as much as today
Large companies with great reputations. Which will cost more to pouches stock
What are Blue Chip Stocks?
A company combines funds to different investors and stocks, bonds
What is the definition of mutual Fund and Index Fund?
What is Dividend Returns?
Share of Profits
Definition: Nasdaq
Portion of the market's average. American Stock Exchange (2nd Largest)
Why are investments less liquid than savings tools
What is that they may not be easily connected into cash?
The difference between a Bull Market and a Bear Market
Bull market share prices are rising,encouraging buying and Bear Market share prices are falling,encouraging selling
Index of 500 stocks chosen for market size and liquidity
What is S&P?
Before the ABC corporation can issue stocks or bonds, it must register with the…
Securities Exchange Commision (SEC)
Definition:Speculative Investments
The Potential for significant fluctuations
investments are for___ ____ Goals
What is Long Term?