Chapter 19

using your savings to earn more money

• investment

• interest

• yield

• liquidity

licensed specialist in the buying and selling of stocks and bonds

• stock exchange

• stockbroker

• investment company

• stock market

money you receive for letting others use your money

• savings

• investment

• liquidity

• interest

percentage of money earned on your savings or investment over a year

• yield

• liquidity

• market value

• equity

interest earned on the initial amount saved plus the interest previously earned

• simple interest

• compound interest

interest earned on the initial amount saved

• simple interest

• compound interest

the ease with which an investment can be changed into cash without losing its value

• yield

• safety

• liquidity

• equity

general ownership in a corporation and a right to share in its profits

• Mutual Fund

• Common Stock

• Preferred Stock

given priority in the payment of dividends

• Mutual Fund

• Common Stock

• Preferred Stock

investment fund set up and managed by a company that receives money from many investors

• Mutual Fund

• Common Stock

• Preferred Stock