Finance and Investment Vocabulary- 20 terms

Active Trading is:

• a long-term investment strategy

• a short-term investment strategy

• a type of savings account

• a form of passive income

Asset Allocation is:

• The process of dividing an investment portfolio among different asset categories

• A type of asset that guarantees fixed returns

• The act of buying and selling assets frequently

• A method to evade taxes

An Asset Class is a group of financial instruments that have similar financial characteristics and behave similarly in the marketplace.

• A type of investment strategy

• A group of financial instruments with similar characteristics

• A financial market

• A type of asset management

A Bear Market is characterized by:

• A period of rising stock prices

• A period of falling stock prices

• A stable stock market

• A market with high trading volume

A bond is a type of:

• Equity

• Debt

• Commodity

• Derivative

What is Bond Rating?

• A measure of credit risk of a bond issuer

• A type of interest rate

• A financial market index

• A stock market term

A Brokerage Account is:

• a type of savings account

• an account that allows you to buy and sell securities

• a retirement account

• an account for storing physical assets

A Bull Market is characterized by:

• a period of declining stock prices

• a period of rising stock prices

• a market with no significant changes

• a market dominated by bears

What is Capital Gain?

• A type of income earned from the sale of an asset

• A type of tax imposed on goods and services

• A type of expense incurred in business operations

• A type of loan provided by financial institutions

Capital Gains Tax is:

• A tax on the profit from the sale of property or an investment.

• A tax on the income earned from employment.

• A tax on goods and services purchased.

• A tax on the total income of a corporation.