| A | B |
|---|
| Appreciation | acquiring value over time |
| bond | a loan to an organization that earns interest plus original amount at maturity |
| Brokerage account | Account with a stock broker in order to trade stock on an exchange – money is used to buy and sell on your behalf when you make a trade |
| Capital gain | The amount of money gained from an investment; tax is paid if the investment is sold at a profit |
| Depreciation | the loss of value over time |
| Dividends | a company’s profits divided up and distributed among shareholders |
| DOW Dow Jones Industrial | Represents the performance of thirty of the largest trading companies in US |
| Market capitalization | The total value of all stocks held by investors in a company |
| Municipal bond | Bond issued by local city or county; interest is tax deductible |
| Mutual fund | Collection of investments that you can buy as a single package |
| NASDAQ | first electronic stock market – trades made via computer; not in person or over the phone |
| NYSE | largest securities exchange in the world located in the main financial district (Wall Street) in NYC |
| Rate of return | The ratio of money you gain on an investment in relation to the amount of money that was invested (usually an annual rate) |
| Risk and return | high risk, high return; low risk, low return |
| S&P 500 Standard and Poor | Represents the performance of 500 companies (most are American) |
| Security | A category of investments (ex. Stocks, bonds, mutual funds) |
| Stock | A share of ownership in a company (aka shares) |
| Stock Exchange | A place where stocks are bought and sold (aka traded) |
| Stock market indices | Measures overall performance of the stock market (uses prices of multiple companies to estimate performance |
| Stock quote | Published info about a stock’s performance |
| Stock ticker | A scrolling banner that provides stock information (on TV screens, web pages and e-billboards) |
| Stockbroker | An individual who has a license to buy and sell stocks and other investments on one or more stock exchanges |
| Stockholder/shareholder | A person who owns stock(s)/share(s) |
| Ticker symbol | A series of letters used to identify a stock or mutual fund (length depends on type of investment and where it is traded) |
| Treasury bond | Bond issued and backed by the U.S. treasury – guaranteed |
| primary market | Market where a company’s IPO is made through an investment banker |
| secondary market | Market where investors trade securities amongst themselves |
| penny stock | low cost, high risk stocks that have low regulation |
| junk bond | high risk bond offered by corporations with bad credit that are not well rated |
| IPO | Initial Public Offering - a company has "gone public" and is selling stock for the first time via an investment banker |
