This investment has this type of risk.
What is High risks?
A contract issued by a corporation promising to repay borrowed money.
what is bond?
This is the financial institution that typically issues a certificate of deposit.
What is a bank or credit union?
This type of bank account is designed to hold money that you don’t intend to spend immediately, often earning a small amount of interest.
What is a savings account?
This financial product pools money from many investors to buy a diversified portfolio of stocks, bonds, or other securities.
What is a mutual fund?
a type of security that gives stockholders a share of ownership in a company.
What is a Stock?
This type of bond is issued by a corporation to raise capital, often offering a higher interest rate due to the increased risk compared to government bonds.
What is a corporate bond?
This is the fixed interest rate paid on a certificate of deposit, which remains the same for the term of the CD.
What is the CD's interest rate (or yield)?
This type of savings account often comes with higher interest rates but requires the account holder to maintain a higher minimum balance.
What is a high-yield savings account?
This type of mutual fund aims to provide regular income by investing in bonds or dividend-paying stocks.
What is an income fund?
payments made quarterly to stockholders but not by all companies.
What is divined?
The date when a bond is issued to be repaid.
what is maturity date?
This is the type of interest that is paid on a CD, typically either compounded daily, monthly, quarterly, or annually.
What is compound interest?
This is the amount of money that a savings account will earn over time, typically expressed as an annual percentage rate (APR).
What is the interest rate?
This fee is charged by mutual funds to cover the costs of managing the fund, including research, administrative expenses, and other operational costs.
What is the expense ratio?
I.P.O
what is initial price offering?
This type of bond, often referred to as "safe," is issued by the U.S. government and is considered low-risk.
What is a Treasury bond?
This U.S. government agency insures CDs up to a certain amount, protecting depositors in case the bank fails.
What is the Federal Deposit Insurance Corporation (FDIC)?
One drawback of savings accounts is that they often have relatively low returns, especially when compared to higher-risk investment options like stocks or real estate. This low return is also known as this.
What is low yield?
This fee is paid to financial advisors or brokers for recommending a mutual fund to an investor.
What is a commission?
A person who buys or sells stocks for the customer.
what is a broker?
DAILY DOUBLE---The market price of a bond fluctuates due to changes in this, which inversely affects bond prices.
What is interest rates (or yields)?
The interest earned on a CD is generally subject to this type of tax.
What is income tax?
In most savings accounts, this is the amount of money that will be available to you at any given time, minus any holds or restrictions.
What is the account balance?
This is the risk that a mutual fund's value will decrease due to changes in market conditions, such as stock market declines or interest rate hikes.
What is market risk?