A
a security issued by a government or corporation to raise money that is promised to pay back at a set maturity date
Bond
A share of ownership in a company
Stock
The possibility you may lose some or all of an investment
Risk
A pooled collection of diversified assets that invests in stocks, bonds, and other securities
Investments
An employer-funded retirement plan that pays a set amount every month after retirement
Pension
It is also called as Value or Worth
Equity
Putting money into assets with the goal of generating income while growing wealth
Mutual Fund
A portion of company profits that are periodically paid out to shareholders
Dividend
stock that pays dividends prior to others shares but there are no voting rights
Preferred Stocks
Stock that allows the owner to vote but doesn't guarantee dividends
Common Stock
interest paid on principle and interest already earned
Compound Interest
The failure to pay principal or interest when it is due
Default
The percentage an investment either loses or gains
Return on Investment (ROI)
A measure of how quickly an asset can be turned into cash
Liquidity
A raw material or primary agricultural product that can be bought and sold such as copper or coffee
Commodity
Annuity
one's collection of monetary assets (investment)
Portfolio
To spread investments out over many different types to reduce risk and withstand changing market conditions
Diversification
Money set aside in a bank account for emergencies and short term financial goals
Savings
Several exchanges in which shares of publicly held companies are bought and sold
Stock Market