| A | B |
|---|
| Saving | Not spending |
| Risk | degree of safety – how likely are you to lose your money |
| Liquidity | Ability to convert asset to cash without losing monetary value |
| Dividend | Income earned on stocks |
| Interest | Income earned on savings and bonds |
| FDIC | Federal agency that insures depositors in commercial banks |
| Compound Interest | Interest earned on principal and interest |
| Rule of 72 | Quick way to estimate the amoutn of time it takes to double money, calcualted by dividing interest percentage into the number 72 |
| APY | Annual Percentage Yield, AKA Rate of Return |
| Stock | Ownership in a corporation |
| Bond | debt obligations of corporations or governments |
| Mutual Fund | professionally managed group of investments bought using a pool of money from many investors |
| Tax Avoidance | legally reducing taxes by careful investment planning |
| Proxy | legally assigning your voting right to someone else |
| Real Estate | a form of investment that includes land and any buildings on it |
| Mortgage | a special type of loan used for purchasing a home |
| Bear Market | a prolonged period of decreasing stock prices and a general feeling of investor pessimism |
| Bull Market | a prolonged period of rising stock prices and a general feeling of investor optimism |
| Buying on the Margin | purchasing investments by making a down payment and borrowing the balance |
| Rent | Income on Real Estate |
| Capital Gain | Selling an investment for more than you paid for it |
| Dividend | Income on Stock |
