WorksheetsInvesting Vocabulary
Total questions: 7
Worksheet time: 11mins
Match the following
An employer contribution made to their employees' 401(k) plan based on individual employee's contributions
401(K) Match
Dividing an investment portfolio among different asset categories, such as stocks, bonds, and cash
Asset Allocation
A group of financial instruments which have similar financial characteristics and behave similarly in the marketplace (like stocks, bonds, and cash)
Asset Class
A market in which prices are falling, encouraging selling.
Bear Market
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
Bond
Match the following
Match the following
A market in which there is increased stock trading and rising stock prices
Bull Market
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
Capital Gain
Reinvesting earned interest back into the principal to allow money to grow exponentially over time
Compound Interest
The annual interest payment on a bond, usually expressed as a percentage of its face value
Coupon
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
Match the following
Money from the profits of a company that is paid out to its shareholders, typically on a quarterly basis
Dividend
A collection of stocks and/or bonds that are traded on securities exchanges. Unlike mutual funds, they can be traded throughout the day like an individual stock.
Exchange-Traded Fund (ETF)
A low-fee portfolio of stocks chosen to track or mimic a stock market index, thereby removing the human element of investing because no one is choosing the individual stocks
Index Fund
An investing tool for individuals to earmark funds specifically for their retirement
Individual Retirement Account (IRA)
The rate at which the price of goods increases and consumer purchasing power decreases over time
Inflation
Match the following
The process of setting money aside to increase wealth over time for long-term financial goals such as retirement
Investing
The illegal act of trading a company's stock using information that is not available to the public
Insider Trading
Market value of a company's outstanding shares calculated by multiplying the current share price by number of shares outstanding
Market Capitalization
An application that allows users to regularly save small sums of money
Micro-Investing Platform
A bond, often having tax advantages for individual investors, issued by a state or local government which typically uses the loan to pay for public works to benefit its citizens
Municipal Bond
Match the following
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
A federal program that provides monthly benefits to millions of Americans, including retirees, military families, surviving families of deceased workers, and disabled individuals
Social Security
An index of 500 large cap companies chosen based on their size, industry, and other factors, used to represent the entire market
S&P 500
The world's largest stock exchange, physically located in New York City
NYSE
The second largest stock exchange in the world behind the NYSE
Nasdaq
Match the following
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
Mutal Fund
An individual retirement account that allows a person to set aside after-tax income up to a specified amount each year
Roth IRA
A bond, generally considered to be a risk-free investment, issued by the U.S. Treasury with a maturity of more than 10 years
Treasury Bond
A retirement savings plan, sponsored through your employer who will often match your contributions, that allows an individual to save for retirement and have the savings grow while deferring taxes until funds are withdrawn
Traditional 401(k) Plan
A type of investment fund that rebalances its asset mix over time based on a projected retirement year
Target Date Fund (TDF)
