| A | B |
|---|
| stockholders | People who have invested in a corporation and own some of its stock |
| capital gain | Increase in value of an asset from the time it was brought to the time it was sold |
| capital loss | Decrease in value of an asset or bond from teh time it was bought to the time it was sold |
| tax exempt bonds | Bonds sold by local and state governments; interest paid on the bond is not taxed by the federal government |
| savings bonds | Bonds issued by the federal government as a way of borrowing money; they are purchased at half the face value and increase every 6 months until full face value is reached |
| Treasury bills | Certificates issued by the U.S. Treasury in exchange for a minimum amount of $1,000 and maturing in 3 months to 1 year |
| Treasury notes | Certificates issued by the U.S. Treasury in exchange for minimumamounts of $1,000 and maturing in 1 to 10 years |
| Treasury bonds | Certificates issued by the U.S. Treasury in exchange for minimum amounts of $1,000 and maturing in 10 or more years |
| broker | a person who acts as a go-between for buyers and sellers of stocks and bonds |
| over-the-counter market | Electronic purchase and sale of stocks and bonds, often of smaller companies, which takes place outside the organized stock exchanges |
| mutual fund | Investment company that pools money of many individuals to buy stocks, bonds, or other investments |
| money market fund | Type of mutual fund that uses investors'money to make shortterm loans to businesses and banks |
| saving | Setting aside income for a period of time so that it can be used later |
| interest | Payment people receive when the lend money oe allow someone else to use their money |
| passbook savings account | Account for which a depositor receives a booklet in which deposits, withdrawals, and interest are recorded |
| statement savings account | Account similar to a passbook savings account except that instead f a pasbook, the depositor receives a monthly statement showing all transactions |
| money market deposit account | Account that pays relatively high rates of interest, requires a minimum balance, and allows immediate access to money |
| time deposits | Savings plan that require savers to leave their money on deposit for a certain period of time |
| maturity | Period of time at the end of which time deposits will pay a stated rate of interest |
| certificates of deposit | Time deposits that state the amount of the deposit, maturity, and rate of interest being paid |
