Stocks
A share of this represents ownership in a company
What is stock?
This investment represents a loan to a company or government
What is a bond?
A formula that estimates how long it will take to double your money
What is rule of 72?
Investment that allows you to buy multiple stocks or bonds as a group
What is a mutual fund?
Index of 30 well established companies
What is the Dow Jones?
The person or company you go through to buy a stock
The most common bond face value
What is $1,000?
If your money is growing at 8%/year, it will take this long to double
What is 9 years?
Mutual fund that tracks a specific segment of the market and attempts to replicate the performance instead of beat it
What is an index fund?
The Unites States' largest stock exchange
What is the NYSE?
Earnings that a corporation pays out to its shareholders
What is a dividend?
The payments you receive for owning a bond
What is an interest or coupon payment?
If you want your money to double in 12 years, it needs to grow at this rate
What is 6%?
Period of consistently rising prices in the stock market
What is a bull market?
Index heavily weighted towards tech companies, also an electronic exchange
What is the NASDAQ?
The maximum amount you can lose on a stock
What is the amount you paid for it?
A change in this could change the value of your bond
What is the interest rate?
If your money is growing at 10%/year, it will take this long to double
What is 7.2 years?
Period of lowering prices in the stock market, may need a 20% decline to be official
What is a bear market?
Two major ways an index can be weighted
What is price weighting and market cap weighting?
Two main types of stock
What is common and preferred stock?
This type of bond is a loan to a state or local government
What is a municipal bond?
If half of your portfolio is invested in bonds growing at 4%/year and the other half is invested in stocks growing 8%/year, your portfolio will take this long to double
What is 12 years?
Amount that the broker gets paid when you purchase a product
Index that tracks the 500 largest publicly traded stocks in the US
What is the S&P 500?