Vocab Quiz: Investing

Rate at which the general level of prices for goods and services is rising and the purchasing power is falling

• Saving

• Bond

• Interest

• Inflation

risk management technique which spreads assets into a portfolio with a variety of investments

• Inflation

• Risk

• Diversification

• Compound Interest

portion of ownership in a corporation

• Real Estate

• Bond

• 401K Plan

• Stock

Interest which is calculated on the initial principal as well as the accumulated interest of previous periods

• Compound Interest

• Simple Interest

• Investment Banks

• Inflation

tax-advantaged savings plan designed to encourage saving for future college costs

• Real Estate

• Stock

• Mutual Fund

• Qualified Tuition Plan

contract between investors and insurance company in which the company makes periodic payments to the investor

• Annuity

• Bond

• 401K Plan

• Savings Account

interest computed on the principal, excluding previously earned interest

• Compound Interest

• Compounding

• Simple interest

• Inflation

issued by governments and corporations when they want to raise money

• Risk

• Bonds

• Annuity

• Stock

an asset that can be quickly bought in the market without affecting the asset's price

• High Yield Savings

• Asset

• Simple Interest

• Liquidity

employer-sponsored retirement savings plan

• 401K Plan

• Bond

• Annuity

• Brokerages