Stocks
This is the 3-4 letter abbreviation that is used to identify a stock.
What is the Ticker Symbol
The optimistic view of the market
What is a Bull Market (or a Bullish view)
A fund where investors money is pooled together and then allocated across assets that the fund holds
What is a mutual fund
This is a loan given to a company or government from you. In exchange for lending the money, you are given a guaranteed rate of return, sometimes called the coupon rate
What is a bond?
This is an employer-sponsored retirement account, sometimes offering an employer match.
What is a 401(k)?
A share of ownership of a company traded on an exchange
What is a stock
The pessimistic view of the market
What is a Bear Market (or Bearish view)
A fund without a fund manager, this type of mutual fund has a goal of tracking an index and matching its performance
What is an index fund (or passively managed mutual fund)
This is a fund that holds multiple bonds. The money you invest is pooled with other investors and diversified across the bond.
What is a bond fund?
This is a retirement account that you set up as an individual where you can deduct the contributions you make to it on your tax return.
This is the OG stock exchange, typically referred to as "Wall Street"
What is the New York Stock Exchange (NYSE)?
This can refer to two things.
1. An account type where you can make investments in stocks, bonds, and other securities
2. A type of business where you can open the account type in number one, or a retirement account
What is a brokerage?
A fund that is similar to an index fund with one key difference: Shares can be bought and sold DURING the trading day
What is an Exchange Traded Fund (ETF)
This refers to the interest you can earn on your bond?
What is the coupon rate?
This is a retirement account set up by an individual. You can't deduct the contributions from your taxes, but in retirement, your withdrawals can be made tax-free
What is a Roth IRA?
The cooler younger brother of stock exchanges, this stock exchange is where you can find tech stocks like Apple and Google
What is the NASDAQ?
This collection of 506 companies is used as the general "index" to track the performance of many different funds.
What is the S&P 500?
These funds are actively managed, and allocations will shift as the fund approaches a specific date (typically a time horizon for retirement)
What is a Target Date Fund?
This is the date at which you will have received the face value of the bond as well as the interest you are owed
What is the maturity date?
This is a government sponsored retirement benefit. Your taxes pay for people who are currently retired, and when you retire, younger people's taxes will pay for you.
What is Social Security?
This represents the performance of a stock, stated as a percentage
What is the ROI (Return on Investment)
This vocab term represents the high level of changes that the stock market can make, especially day to day. However, keep in mind that the stock market tends to grow on average when we look at long periods of time.
What is volatility?
This type of fund has a goal of beating the index that it is tracking. Buyer Beware, only 6% of these beat market returns over a 20 year period
This is the term used for the money you originally used to buy the bond
What is the face value?
When planning retirement, you have to take this into account. Otherwise, you won't have enough money to cover the rising costs of goods and services as you get older.
What is the rate of inflation?