| A | B |
|---|
| Saving | Putting away money for future use. |
| Investing | Using savings to earn more money for future financial security. |
| Simple Interest | Money paid to saver on amount deposited for a period of time. |
| Compound Interest | Money paid to saver on money deposited and interest previously earned. |
| Simple Interest Formula | I=P*R*T |
| Compound Interest Formula | A=P(1+r/n)nt |
| Certificate of Deposit | Requires minimum deposit for a period of time gives higher interest rate. |
| Money Market Account | Requires minimum deposit interest is earned based on government and corporate securities. |
| Preferred Stock | Pay dividends at a set rate. |
| Common Stock | Represents general ownership in company and sharing profits. |
| Stockbroker | Buys and sells stocks and bonds at a set price for a commission for stockholders. |
| Stock Exchange | Where trading of securities takes place. |
| Dividend Yield | Amount paid per share for stock. |
| Price-earnings Ratio | Relationship between a stock's selling price and its yield. |
| Yield Calculation | current value-original value/original value |
| Bond | Promissory note to pay back a specified amount of money at a stated rate on a specific date. |
| Municipal Bonds | Issued by local and state governments for public projects. |
| Corporate Bonds | Loaning money to a company |
| ETF | Exchange-traded fund |
| Mutual Fund Categories | Aggressive-growth, International funds, Sector funds, Bond funds, Balanced funds |
