Personal Finance Vocab 2

A market in which prices are falling, encouraging selling.

• bear market

• bond

• bull market

• dividend

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

• bear market

• bond

• bull market

• dividend

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

• bear market

• bond

• bull market

• dividend

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.

• bear market

• bond

• bull market

• dividend

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.

• individual retirement account (IRA)

• inflation

• investing

• index fund

An investing tool for individuals to earmark funds specifically for their retirement.

• individual retirement account (IRA)

• inflation

• investing

• index fund

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

• individual retirement account (IRA)

• inflation

• investing

• index fund

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

• individual retirement account (IRA)

• inflation

• investing

• index fund

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.

• new york stock exchange (NYSE)

• mutual fund

• nasdaq

• pension

The second largest stock exchange in the work behind the NYSE.

• new york stock exchange (NYSE)

• mutual fund

• nasdaq

• pension