Stocks
What are stocks
Ownership being shared in a corporation
These bonds are issued by the U.S. federal government
Treasury Bonds
a term that refers to a length of time until a CD matures
Maturity period
interest earned on a savings account is typically lower than what type of investment
stocks and bonds
This type of mutual fund primarily invests in stocks and aims for long-term growth.
equity fund
This is a place where stocks are bought
Stock Exchange
what type of bond rating indicates a high credit quality and low risk of default
AAA
offers higher interest rates compared to standard bank accounts
Savings Account
savings account in the U.S. are insured by this federal agency up to 250,000 per depositor
FDIC (federal deposit insurance corporation)
Mutual funds are managed by these professionals who make investment decisions on behalf of the fund's investors
fund managers
what strategy involves buying shares in different companies to reduce rick
Diversification
This is the annual interest payment made to bondholders
Coupon
this type of CD allows you to withdrawal money without a penalty before the due date
no penalty CD
a savings account that offers higher interest rates because they work without physical branches
online savings account
This term describes the annual fee that mutual funds charge their shareholders, expressed as a percentage of the fund's assets
expense ratio
This type of analysis involves examining a company's financial statements to see the value
Fundamental analysis
These bonds are issued by local government and often offered as a tax exempt interest
Municipal bonds
withdrawing money from a CD before it matures typically incurs this type of penalty
Early withdrawal penalty
some saving accounts require this to avoid monthly fees
minimum balance
this acronym stands for the per-share value of a mutual fund, calculated by dividing the total value of the fund's assets by the number of shares outstanding
Net Asset Value (NAV)
These stocks are known for paying high dividends and having stable earnings
Blue chip stocks
These bonds are issued by companies to raise capital for business operations
Corporate bonds
this term describes how often interest is added to the CD balance
compounding frequency
a feature that allows you to transfer money from your checking account t to your savings account
automatic transfer
This document provides detailed information about a mutual fund, including its investment objectives, strategies, risks, and fees
prospectus