Investing Vocab Review

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

• stock

• bond

• CD

• mutual 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

• stock

• bond

• CD

• mutual fund

Capital Gains

• 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

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

• The ratio of money gained or lost on an investment relative to the amount of money invested; also known as return on investment (ROI)

• 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

Dividend

• 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

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

• The ratio of money gained or lost on an investment relative to the amount of money invested; also known as return on investment (ROI)

• 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

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

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

• The ratio of money gained or lost on an investment relative to the amount of money invested; also known as return on investment (ROI)

• 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

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

• Diversification

• Investing

• Dividend

• Risk

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

• Diversification

• Investing

• Dividend

• Risk

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

• Risk

• Return

• Stock

• Dividend

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

• Traditional IRA

• Roth IRA

• NASDAQ

• 401(k)

The second largest stock exchange in the world behind the NYSE

• Traditional IRA

• Roth IRA

• NASDAQ

• S&P 500