Financial Literacy Investing Vocabulary

A type of investment that invests in a lot of different companies is called

• Stocks

• Bonds

• Mutual funds

• T-bills

What is a stock?

• A loan an investor makes to a company or government that pays interest over time.

• A share of ownership in a company

• A collection of investments sold as a package.

• An option to purchase something in the future at todays price.

This is where your orders to buy or sell stock are sent and carried out

• Stock Exchange

• Brokerage Firm

• Stock Meeting Place

• Money Exchange

Spreading your investments around to increase financial security

• Risk assessment

• Diversification

• Stocks, bonds & cash

• Liquidity trap

Which of the following is not a type of bond?

• Government

• Corporate

• Stock

• Municipal

Profit from the sale of an investment is known as...

• collateral gains

• Cash

• Sales margin

• Capital gains

What is Bull market?

• Buying a bull online

• When everything goes up and people are buying.

• When prices are going down and nobody is buying.

• When people are selling false information.

What is a Bear market?

• When prices go up and everybody is buying.

• Selling a bear online.

• When prices go down and nobody is buying.

• Buying bears online.

What is the differences between stocks and bonds?

• They are both investments.

• A stock is what corn grows on, and a bond gets you out of jail.

• Stock represents ownership, and bonds represents your word.

• A stock represents ownership, and bonds represents a loan.

Dividends are_____?

• Money shareholders lose in stock.

• Money shareholders pay to buy stock.

• Stock that splits.

• Money shareholders received from stock profits.