Investment Terminology

Front

The amount you earn as profit from your investment based on your deposited amount, usually expressed as a percentage

Back

Interest Rate

Front

Money set aside for unanticipated expenses or loss of income

Back

Emergency Fund

Front

A fee you’ll be charged for withdrawing money before a CD’s maturity date

Back

Penalty

Front

The time period an investment is intended to last

Back

Term

Front

A market where shares in corporations are bought and sold through an organized system.

Back

Stock Market

Front

A share of the value of a company, which can be bought, sold or traded as an investment and which gives the investor partial ownership of the company

Back

Stock

Front

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.

Back

Mutual Fund

Front

A sudden and extreme downturn in stock performance/value

Back

Crash

Front

A bond, generally considered to be a risk-free investment, issued by the U.S. Treasury, with a maturity of more than 10 years.

Back

T-Note

Front

A bond, often having tax advantages for individual investors, issued by a state or local government, typically uses the loan to pay for public works to benefit its citizens.

Back

Municipal Bond