Stocks
What is a stock
A share of the company
What advantages do bonds offer?
More secure investments
What advantages do funds offer investors
Easy to follow, more buying power, allows for a more hands off approach
Beginning amount of money that you invest
Principal
Guaranteed safe place to invest your money without losing it
Savings Account
The term for the 1-4 letters that represent a stock
Stock Symbol
Term for when Bonds have reached their full value
Maturity
Nasdaq, S&P 500, Dow Jones Industrial Index
The place where all your stocks are kept and you can see all of the various things that you own
Portfolio
How might a person set up an investment portfolio when they are in their late 20s
More risky, more stocks, less bonds
Once a private company decided it wants to sell and be owned by shareholders it goes through this
IPO - Initial Public Offering
Safest Type of bond to invest in
Government Bond (Treasury Bond)
Allows a group of people to pool their money into one type of investment in order to get a better ROI
Mutual Fund
Placing your money into different accounts, funds, stocks and bonds
diversification
The higher the risk on the investment, the _______ the return
Higher
What are the two main types of stocks
Common Stock and Preferred Stock
Lowest rated type of bond
Baa
Perfectly mirrors how the actual market is operating, you can invest in this
Index Fund
Term for the practice of investing a consistent amount which might result in your buying different amounts of your investment each time
Dollar Cost Average
What formula is this (Final Value - Initial Investment) / Initial Investment
ROI
If you sell this stock after a huge profit or gain you are required to pay this
A capital gain tax
A municipal bond will help fund what?
Schools, parks, or other local things
When choosing a fund that has someone that actually attempts to beat the market, what is the term for it?
Actively managed fund
The way in which a company will reward shareholders to provide them a more valuable stock without having to pay them cash
Dividend
considered high-valued, supreme long-term investment vehicles. Historically, they have shown to generate growth in long-term portfolios.
Blue Chip Stocks