| A | B |
|---|
| bear market | a market condition that occurs when investors are pessimistic about the economy and sell 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. |
| DJIA | a |
| 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 |
| stock symbol | A stock symbol or ticker symbol is a short abbreviation used to uniquely identify publicly traded shares of a particular stock on a particular stock market. |
| financial market risk | Day to day potential for an investor to experience losses from fluctuations in securities prices. |
| global investment risk | Possibility of a reduction in value of an insurance instrument resulting from a decrease in the value of the assets incorporated in the investment portfolio underlying the insurance instrument. This reduction can also be effected by a change in the interest rate |
| inflation risk | The risk borne by an interest bearing asset, such as a loan or a bond. As rates rise, the price of a fixted rate bond will fall |
| coroporate and govenrment bonds | A government debt obligation (local or national) backed by the credit and taxing power of a country with very little risk of default. Corporate bonds are considered higher risk than government bonds. As a result, interest rates are almost always higher, even for top-flight credit quality companies. |
| mutual funds | A mutual fund is a company that brings together money from many people and invests it in stocks, bonds or other assets. The combined holdings of stocks, bonds or other assets the fund owns are known as its portfolio. Each investor in the fund owns shares, which represent a part of these holdings. |
| real estate | Land, including all the natural resources and permanent buildings on it. |
| NYSE | A stock exchange based in NYC which is considered the largest equity-based exchange in the world. |
| stockbroker | One that acts as an agent in the buying and selling of stocks or other securities |
| interest rate risk | The risk due to variability of interest rates. As rates rise, the price of a fixed rate bond will fall and vice versa. |
| stock financing | Like accounts receivable financing, stock financing offers a flexible loan that allows companies to financially cushion peaks in their stock building. The level of stock financing depends on the type of stock and the nature of the customers. For example, a higher percentage of loan can be granted for presold stocks. Stock financing is always provided in combination with accounts receivable financing |
| portfolio diversication | Combined holidngs that are spread out across many different types of investments so that there is less risk. |
| buisness failure risk | The risk that a company will go bankrupt. |
| 529 plans | A 529 Plan 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 |
| equity financing | This is when a company raises money by issuing stock |
| Commission | A fee paid to an agent for a service, usually a percentage of the total amount |
| bull market | a market conditon that occurs when investors are optimistic about the economy buying stock. Becasue of the greater demand for stock, the value of many stocks and the value of the stock market as a whole increases. |
