Types of Investments
This investment will let you own part of a company
Stocks
Also called a CD, this is a low risk, low earning investment
Certificate of Deposit
First opportunity to buy shares of stock in a company
IPO/Initial Public Offering
The risk that the value of a bond will change due to a change in interest rates
Interest Rate Risk
AAPL
Apple
You essentially loan money to a company when they issue these
Bonds
Unlike a checking account, these earn a small amount of interest
Savings account
Secondary Market for buying and selling securities
OTC/Over the Counter
The risk of loss on an investment due to a borrower defaulting on a loan and their credit rating dropping
Credit Risk
NKE
Nike
Property consisting of land and buildings
Real Estate
Government sponsored insurance, you see this posted at banks
FDIC
*Stock Market Index that includes 30 stocks
Dow Jones
Risk of loss due to factors that affect the overall performance of the financial markets
Market Risk
KO
Coca-Cola
Digital assets widely in the news. Bitcoin is an example.
Cryptocurrencies
Concept in which there is a rise in the cost of goods and services over time.
Inflation
Stock Market Index that includes the 500 largest public companies
Standard and Poor's 500
Risk that an institution can not meet its debt obligations due to illiquidity
Liquidity Risk
GS
Goldman Sachs
When a company combines the funds of many different investors and then invests that money.
Mutual Fund
This is how quickly or easily savings can be converted to cash
Liquidity
More than half of all U.S. corporations are incorporated in this state
Delaware
Risk that a foreign government will default
Sovereign Risk
MCD
McDonalds