Unit 3: Investing Vocab

Dividing an investment portfolio among different asset categories, such as stocks, bonds, and cash

• Asset Allocation

• Dividend

• Investing

• Portfolio

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

• Mutual Fund

• Municipal Bond

• Bond

• S&P 500

A measurement of the likelihood that a bondholder will be paid back

• Capital Gain

• Dividend

• Inflation

• Bond Rating

A market in which there is increased stock trading and rising stock prices

• Bull Market

• Mutual Fund

• Municipal Bond

• Stock

Profit from the sale of an asset, such as a stock or a bond, calculated by subtracting the price you initially paid from the price you then sold it for

• Investing

• Risk

• Capital Gain

• Dividend

Reinvesting earned interest back into the principal to allow money to grow exponentially over time

• Compound Interest

• Inflation

• Nasdaq

• Portfolio

The practice of investing in a large variety of stocks, bonds, and/or funds as a way to reduce your overall risk

• Diversification

• Investing

• Stock

• Bond

Money from the profits of a company that is paid out to its shareholders, typically on a quarterly basis

• Rate of Return

• Investing

• Dividend

• Compound Interest

The rate at which the price of goods increases and consumer purchasing power decreases over time

• Bond Rating

• Inflation

• Risk

• Capital Gain

The process of setting money aside to increase wealth over time for long-term financial goals such as retirement

• Asset Allocation

• Dividend

• Stock

• Investing