Investment Basics
This type of investment allows you to own a portion of a company.
Stock
This is the marketplace where stocks are bought and sold.
Stock Exchange
This long-term strategy involves buying and holding investments over time.
Buy and Hold
This indicator measures the change in the prices of a basket of goods and services purchased by consumers, often used to assess inflation.
Consumer Price Index (CPI)
This term refers to the amount of money you initially invest in a stock.
Principal
This term refers to a company’s total value on the stock market.
Market Capitalization
This strategy involves spreading investments across different asset classes to reduce risk.
Diversification
This term describes the overall economic output of a country, calculated as the total value of all goods and services produced over a specific time period.
Gross Domestic Product (GDP)
This is the term for a market condition where prices are falling.
Bear market
This index tracks the performance of 30 major U.S. companies.
Dow Jones Industrial Average
This analysis approach focuses on company financial statements and metrics.
Fundamental analysis
This economic measurement reflects the value of goods and services produced by a nation's residents, regardless of whether they are located domestically or abroad.
Gross National Product (GNP)
This is a diversified collection of investments managed by a professional.
Mutual Fund
This term refers to the practice of buying and selling stocks to profit from short-term fluctuations.
Day Trading
This term describes the process of selling a stock that you do not own, hoping to buy it back at a lower price.
Short Selling
This term refers to the rate at which inflation is adjusted by the central bank to stabilize the economy, often influencing interest rates.
Taylor Rule
This term describes a bond’s interest rate.
Coupon rate
This is the price at which a stock is traded during the most recent transaction.
Market Price
This investment approach focuses on identifying trends and patterns in stock price movements.
Technical Analysis
This index is a composite measure that includes various leading, lagging, and coincident indicators to predict future economic activity.
Leading Economic Index (LEI)