Stocks
Part ownership of a company
What is a stock?
Essentially a loan of money being paid back later with interest.
What is a bond?
Where stocks are bought and sold.
What is the stock exchange or stock market?
What are U.S. Savings Bonds?
The increase in the value of stock.
What is growth?
You get voting rights to the company.
What is Common Stock?
Percentage of interest the buyer earns each year on a bond.
What is Coupon Rate?
When stock prices fall and unemployment rises.
What is a recession?
Professionally managed investments that offer diversification and liquidity.
What are Mutual Funds?
Spreading risk by having several investments.
What is diversification?
You have first claim on assets if the company fails.
What is Preferred stock?
Issued by a business to raise money for operating expenses or expansion.
What is a Corporate Bond?
What are fluctuations?
An increase in the number of shares without a value change.
What is a stock split?
How to determine how quickly your investment will double in value.
What is the Rule of 72?
Describes the market when stock prices are falling or staying at a low level.
What is a bear market?
The date when the bond must be repaid.
What is the Maturity Date?
Describes the market during a period where stock prices are generally rising.
What is the bull market?
The total amount earned divided by number of years divided by the original investment amount.
What is Average Rate of Return?
A check that has not yet cleared the bank.
What is an outstanding check?
These stocks are consistently the most profitable and most expensive.
What are Blue Chip stocks?
Bonds issues by state, county, or city governments.
What are Municipal Bonds?
A share of the company's profits received by stockholders.
What are dividends?
Comparing a bank statement to one's personal record.
What is reconcilation?
Used to describe a sudden change in the stock market.
What is a market correction?