| A | B |
|---|
| Securities | All investments, bonds mutual funds, stocks. |
| blue chip stocks | Large, national company witha solid record of earnings and/or dividend growth and a reputation for high quality management and/or products. These stocks are expected to provide their investors with a sizeable return despite the ups and downs of the economy. |
| dividends | the portion of the corporation's profits that are paid to each stockholder. |
| Dow Jones Industrial Average | 30 large stocks that are an indicator of how the market is doing. |
| NASDAQ | National Association of Securities Dealers Automated Quotations. Largest electronic screen based equity securities trading market in the US - 2nd largest by market capitalization in the world. |
| speculative stocks | A stock which is considered to be very risky, in comparison with its expected return. One example of an often speculative stock is a penny stock. |
| S&P 500 | an index that measures the activity of 500 stocks |
| Inflation | When prices rise. |
| 401K | Retirement plan offered by businesses to their employees. |
| Index Fund | A basket of stocks or exchange-traded fund (ETF) with a portfolio constructed to match or track the components of a financial market |
| Bonds | Certificate issued by a government or company promising to pay back borrowed money at a fixed rate at a specified date. |
| mutual funds | A managed investment that uses members' capital to buy a diverse group of stocks from other companies to have a diversified portfolio. |
| NYSE | A stock exchange based in NYC which is considered the largest equity-based exchange in the world. |
| asset | Any property that is owned. |
| IRA | Individual Retirement Account for individuals used with pretax money. |
| Roth IRA | Individual Retirement Account for individuals used with after tax money. |
| portfolio diversication | Combined holidngs that are spread out across many different types of investments so that there is less risk. |
| speculative stock | A risky stock at a low price that could be great or could lose everything. |
| 529 plans | is an education savings plan operated by a state or educational institution designed to help families set aside funds for future college costs. It is named after Section 529 of the Internal Revenue Code which created these types of savings plans in 1996 |
| Public Corporation | Company whose stock can be bought by anyone on the stock exchange. |
| Liquidity | The ease in which assets can be converted to cash. |
| Opportunity cost | The value of the next-best alternative when a decision is made. |
| Index Fund | a type of mutual fund or exchange-traded fund that seeks to track the returns of a market index. |
| Cryptocurrency | a digital money in which transactions are verified and records maintained by a decentralized system using cryptography |
