Investment Vocab Review

Spreading your assets to reduce risk.

• specialization

• diversification

• mitigation

• allocation

A unit of ownership with voting rights.

• common stock

• preferred stock

• retained earnings

• equity capital

Distribution of money or stock to stockholders.

• profits

• bonuses

• income

• dividends

Stock type that gives owner advantage of dividends before common stock.

• corporate bond

• preferred stock

• government bond

• common stock

Specialist trained to offer financial advice.

• high school teacher

• tax accountant

• financial planner

• a relative

Stock market index tracking 500 largest companies on stock exchange.

• Dow Jones

• Russell 2000

• P and S 500

• S and P 500

Ability to buy or sell investment quickly.

• mobility

• solvency

• investment liquidity

• flexibility

Investment which investors pool money to buy stocks and bonds.

• mutual funds

• stocks

• government bonds

• corporate bonds

Tax advantaged retirment plan offered by employer.

• pension

• 401K

• target funds

• index funds

Corporations pledge to repay an amount with interest.

• preferred stock

• government bond

• corporate bond

• capital stock