Unit 1 - Investing in the Stock Market

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

Interest earned on both the principal amount and any interest already earned.

A retirement account, offered in some job sectors or companies, that an employer maintains to give an employee a fixed payout at retirement.

A federal program that provides monthly benefits to millions of Americans, including retirees, military families, surviving families of deceased workers, and disabled individuals.

A retirement savings plan, sponsored through your employer who will often match your contributions, that allows an individual to save for retirement and have the savings grow while deferring taxes until funds are withdrawn.

An investing tool for individuals to earmark funds specifically for their retirement. Taxes are taken when someone takes out money at retirement.

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

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.

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.

A low-fee portfolio of stocks chosen to track or mimic a stock market index, thereby removing the human element of investing because no one is choosing the individual stocks.