Stocks
A share of ownership in a company.
What is a stock?
A debt investment where you lend money to a government or company in exchange for interest payments.
What is a bond?
The amount of money you earn from your job before taxes and other deductions are taken out.
What is gross income?
The total value of all final goods and services produced within a country during a given period.
What is GDP?
This is the largest stock exchange in the world by market capitalization.
What is the New York Stock Exchange?
A payment a company makes to its shareholders, usually from profits.
What is a dividend?
The regular interest payment made to a bondholder.
What is a coupon payment?
The portion of your income that remains after taxes and other deductions are taken out.
What is net income?
A sustained increase in the general level of prices for goods and services.
What is inflation?
This famous index tracks 500 large U.S. companies.
What is the S&P 500?
A market in which stock prices are generally rising.
What is a bull market?
The amount a bond issuer promises to repay the investor when the bond matures.
What is the face value (par value)?
A financial account designed to help individuals save money specifically for retirement.
What is a retirement account?
A period when economic activity declines significantly across the economy.
What is a recession?
This term describes a person who expects stock prices to fall.
What is a bear?
A market in which stock prices have fallen at least 20% from recent highs.
What is a bear market?
When interest rates rise, bond prices generally do this.
What is decrease (fall)?
The practice of spreading your investments across different assets to reduce risk.
What is diversification?
The rate at which the general price level of goods and services is falling.
What is deflation?
This is the world's largest cryptocurrency by market capitalization.
What is Bitcoin?
The total value of a company's outstanding shares of stock.
What is market capitalization?
The risk that a bond issuer will be unable to make its required interest or principal payments.
What is default risk?
The process of earning returns on both your original investment and the returns that investment has already generated.
What is compound interest?
The economic situation in which prices rise rapidly while economic growth slows and unemployment increases.
What is stagflation?
This famous investor is known as the "Oracle of Omaha" and is the longtime chairman of Berkshire Hathaway.
Who is Warren Buffett?