| A | B |
|---|
| capital gain | the difference between the higher selling price and the lower original purchase price |
| capital loss | an investor who sells a stock at a price lower than the purchase price |
| stock split | the directors determine that the price of the stock has become so high that it discourages investors so they split each share into two |
| broker | link buyers and sellers of stock |
| investment bank | buys and sells large blocks of stock |
| bull market | when the Dow steadily RISES over a period of time |
| bear market | when the Dow average FALLS for a period of time |
| yields | interest on money owed to a bondholder |
| futures | another type of investment where markets trade various types of products such as copper, oil and metals instead of stocks |
| prospectus | is a fact sheet containing data on the company's finances |
| installments | principal and interest are divided into EQUAL amounts |
| credit rating | is an estimation of the probability of repayment |
| credit bureau | credit reporting service |
| finance charge | the TOTAL cost of credit expressed in dollars and cents |
| annual percentage rate | (APR) is the total cost of credit expressed as a yearly PERCENTAGE |
| usuary | charging interest above what the government limits |
| bankruptcy | is a legal declaration of inability to pay debts |
