Unit 4 Vocabulary

Front

A collection of stocks and/or bonds that are traded on securities exchanges. Unlike mutual funds, they can be traded throughout the day like an individual stock.

Back

Exchange-Traded-Fund (ETF)

Front

A person who is able to generate interest in something (such as a consumer product) by posting about it on social media

Back

Influencer

Front

Profit from the sale of an asset, such as a stock or a bond, calculated by subtracting the price you initially paid from the price you then sold it for

Back

Capital Gain

Front

The tendency to assume things that are scarce are valuable and things that are abundant are not

Back

Scarcity Bias

Front

Money from the profits of a company that is paid out to its shareholders, typically on a quarterly basis

Back

Dividends

Front

The tendency to attribute greater accuracy to the opinion of an authority figure (unrelated to its content) and be more influenced by that opinion

Back

Authority Bias

Front

The ratio of money gained or lost on an investment relative to the amount of money invested; also known as return on investment

Back

Rate of Return/ROI

Front

A collection of financial investments like stocks, bonds, commodities, cash, and cash equivalents, including mutual funds and ETFs

Back

Portfolio

Front

An individual retirement account that allows a person to set aside after-tax income up to a specified amount each year

Back

Roth IRA

Front

An illicit business model where profits are based on the investor's ability to recruit other individuals who are enrolled to make payments to their recruiters. Generally, neither a product or service is delivered.

Back

Pyramid Scheme