Investing Vocab Review

Front

A security in which the investor loans money to a company or government, which then pays regular interest to the bondholder and returns the principal on the bond's maturity date

Back

bond

Front

A collection of stocks and/or bonds combined into one fund which will be traded as a unit, typically chosen and actively managed by an "expert" in exchange for a fee from each investor

Back

mutual fund

Front

Capital Gains

Back

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

Front

Dividend

Back

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

Front

Stock

Back

A share of the value of a company, which can be bought, sold, or traded as an investment and which gives the investor small partial ownership of the company.

Front

The practice of investing in a large variety of stocks, bonds, and/or funds as a way to reduce your overall risk

Back

Diversification

Front

The process of setting money aside to increase wealth over time for long-term financial goals such as retirement

Back

Investing

Front

Degree of uncertainty on how likely the investor is to make money on an investment

Back

Risk

Front

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

Back

Traditional IRA

Front

The second largest stock exchange in the world behind the NYSE

Back

NASDAQ