| A | B |
|---|
| mutual funds | Professionally managed portfolios made up of stocks, bonds, and other investments. |
| dividend | periodic payment made by a corporation to its shareholders |
| capital appreciation | increase in the market value of an asset |
| index | group of stocks selectd according to certain criteria |
| growth fund | emphasizes companies that are expected to increase in value; also has higher risk |
| income fund | features stocks and bonds with high dividends and interest |
| certificate of deposit | Bank pays a fixed amount of interest for a fixed amount of money during a fixed amount of time |
| compound interest | Interest is paid on original amount of deposit, plus any interest earned |
| Rule of 72 | Computes how long it will take to double an investment |
| bond | an “IOU,” certifying that you loaned money to a government or corporation and outlining the terms of repayment |
| stock | represents ownership of a corporation |
| blue chip | stock of a large established company |
| savings account | a bank account that accrues interest in exchange for use of the money on deposit |
| terms | the period of time and the interest rate arranged between the creditor and debtor to repay a loan |
| diversification | dividing investment funds among various investments |
| commercial bank | nongovernmental financial institution |
| credit union | a member owned institution either state or federally chartered |
| commission | fee paid to a broker |
| IPO | initial public offering |
| fundamentals | term is generally used for any measure used to relate the price of an investment with its potentail |
