| A | B |
|---|
| indirect investing | buying stock in a mutual fund or REIT |
| rollover | the process of moving a retirement account balance to another qualified retirement account |
| annuity | a contract purchased from an insurance company that guarantees a series of regular payments for a set time |
| preferred stock | shares that may pay a guaranteed dividend to shareholders |
| business plan | a document that outlines how a business plans to succeed |
| vested | the employee has the legal rights to a retirement account |
| direct investing | buying stocks or bonds directly from companies and holding them individually |
| commodity | an item of value that is bought and sold in a market, such as corn or silver |
| collectibles | items bought for their investment value, such as art objects or coins |
| asset allocation | choosing a combination of stocks, bonds, mutual funds, or other investments to limit risk and increase returns |
| illiquid | when an investment cannot be turned into cash quickly without a penalty |
| clearing account | used to deposit money from stock sales and to pay for stocks when they are purchased |
| tax shelter | an investment that allows investors to legally avoid income taxes |
| discount | the difference between a bond's selling price and its face or maturity value |
| futures contract | an agreement to buy or sell a specific commodity or currency at a set price on a set date in the future |
| common stock | shares of stock that represent ownership interest and give stockholders voting rights in the company |
| redeem | when you cash in a bond at maturity |
| mutual fund | an investment that consists of stocks, bonds and other investments focused on a strategy, such as balance or growth |
