Unit 6 Investing Review

To put out money in order to gain profit

• Investing

• Rate of Return

• Brokerage Account

• Stocks

Where you can buy, sell, and trade stocks

• Stock Market

• IPO

• Index Fund

• Inflation

The profit of an investment

• Rate of Return

• Diversification

• Compound Interest

• IRA

A general increase in prices and fall in the purchasing value of money

• Inflation

• Bonds

• Custodial Account

• Simple Interest

All of the shares into which ownership of the company is divided

• Stocks

• Rate of Return

• Broker

• Investing

A financial strategy where you invest in different companies instead of fixating on one to reduce risk

• Diversification

• Compound Interest

• Custodial Account

• IRA

The first sale of stock issued by a company to the public

• IPO-Initial Public Offering

• IRA-Individual Retirement Account

• Stock

• Inflation

A savings account with big tax breaks, an ideal way to sock away cash for your retirement

• IRA-Individual Retirement Account

• Brokerage Account

• Simple Interest

• Index Fund

The amount of money you earn on your savings account balance

• Simple Interest

• Bonds

• Stocks

• Inflation

What is a key difference between saving and investing?

• Saving earns compound interest while investing earns simple interest

• Saving guarantees you the money you put away while investing has no guarantees.

• Saving earns a much higher rate of return than investing your money

• Saving is for long-term goals; investing is for short-term goals