| A | B |
|---|
| Face Value | amount being borrowed by the buyer |
| Coupon Rate | rate of interest |
| Corporate Bond | issued by corporation |
| Municipal Bond | issued by local/state government |
| Federal Bond | issued by federal government |
| Stock | share of ownership |
| Stock Certificate | proof of ownership |
| Dividends | part of profits |
| Preferred Stock | priority over common stocks, no voting rights |
| Common Stock | general ownership |
| Broker | go between for buyers and sellers of securities |
| Stock Exchange | market place for securities |
| Bull Market | optimistic stock market |
| Bear Market | pessimistic stock market |
| Current Yield | annual dividend divided by current market value |
| Price/Earnings Ratio | price of one share of stock divided by the earnings per share |
| Total Return | calculation of everything earned on an investment |
| Capital Gains | profit from sale of asset |
| Capital Loss | loss from sale of asset |
| Life Insurance | cash value provides both savings and death benefits. |
| Pension | series of regular payments made to a retired worker under an organized plan |
| Annuity | – amount of money that an insurance company will pay at definite intervals to a person who has previously deposited money with company |
| Mortgage | legal document giving lender legal claim to property |
| Real Estate | land and anything attached |
| Home Equity | difference between home worth and home loan |
| Collectibles | items of personal interest to collectors |
| REITs | several people invest in real estate |
| Commodities | grain, livestock, precious metals, etc |
| Investment Funds | small group of people who invest money |
| Mutual Funds | investment company that invests other peoples money |
| Safety | assurance that the money you have invested will be returned to you |
| Liquidity | ease with which an investment can be changed into cash without losing any of its value |
| Yield | rate of return |
| Diversification | process of spreading your assets among several different types of investments to lesson risk |
| Rate of return | total interest earned divided by original deposit |
| Risk | chance of loss |
