Investment Terminology

The amount you earn as profit from your investment based on your deposited amount, usually expressed as a percentage

• Penalty

• Interest Rate

• Emergency Fund

• Index

Money set aside for unanticipated expenses or loss of income

• Mutual Fund

• T-Note

• Index Fund

• Emergency Fund

A fee you’ll be charged for withdrawing money before a CD’s maturity date

• Index

• Interest

• Risk

• Penalty

The time period an investment is intended to last

• Maturity Date

• Term

• Interest

• Diversification

A market where shares in corporations are bought and sold through an organized system.

• Portfolio

• Index

• Stock Market

• CD

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

• CD

• Mutual Fund

• T-Note

• Stock

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.

• Stock

• Bond

• T-Note

• Mutual Fund

A sudden and extreme downturn in stock performance/value

• Index

• Crash

• Penalty

• Risk

A bond, generally considered to be a risk-free investment, issued by the U.S. Treasury, with a maturity of more than 10 years.

• T-Note

• Mutual Fund

• Emergency Fund

• CD

A bond, often having tax advantages for individual investors, issued by a state or local government, typically uses the loan to pay for public works to benefit its citizens.

• Index Fund

• Commodity

• Municipal Bond

• Emergency Fund