| A | B |
|---|
| Saving | what you people do to meet short-term goals |
| Investing | setting money aside for long-term goals |
| Time Value of Money | the relationship among time, money, and rate of interest |
| Inflation | a rise in the cost of goods and services over time |
| Earned Interest | the payment you recieve for allowing a financial institution or corporation to use your money |
| Compound Interest | the idea of earning interest on interest |
| Stock Market | the place where stocks are bought and sold |
| Dividends | a share of the profits you recieve as a stockholder |
| Capital Gains | the difference between the purchase price and the selling price |
| Capital Loss | the difference of the price paid and the price sold on a stock |
| Rate of Return | rate of interest, which is simply the annual percentage return on an investment |
| Diversification | reducing investment risk by putting money in several different types of investments |
| Dollar Cost Averaging | the practice of investing a fixed amound in the same investment at regular intervals |
