| A | B |
|---|
| stockholders | interested people who are affected by a company |
| inflation | a rise in the level of prices |
| diversification | to spread the risk of investment |
| annual report | a yearly report of a corporation |
| speculation | actions that can produce either a relatively large loss or a gain |
| financial pages | sections of newspapers that provide information for potential investors |
| illiquid | an investment, such as real estate, that cannot be easily converted into cash |
| securities | investment instruments, such as stocks and bonds |
| stock | represents ownership in a corporation |
| bonds | debt obligations of corporations or government |
| financial advisers | persons professionally qualified to counsel you on investment choices |
| put-and-take | also known as your emergency fund; the money you use to pay bills and cover unexpected expenses |
| investing | the use of savings to earn a financial return |
| systematic investing | investing on a regular and planned basis |
| strategic investing | the careful management of investment alternatives to maximize growth of your portfolio |
| speculative investing | the final stage in investing where an investor takes larger risks where they could make--or lose --a great deal of money |
| risk averse | the act of being afraid to make investments in which one might lose some or all of their investment |
| risk-takers | investors who like to take on a great deal of risk |
| interest-rate risk | the risk that the return on an investment will not keep pace with the inflation rate |
| political risk | government actions that affect business conditions such as increased taxes and costly environmental controls |
| market risk | general types of events which affect many types of investments, because of declining business sudden national or world events, or interest rate fluctuations |
| company risk | also known as industry risk that are produced by events that affect only one company or industry |
| penny stocks | low-priced stocks of small companies that have no track record |
