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Investing Vocabulary

AB
Mutual FundA fund created by an investment company that raises money from many shareholders and invests in a variety of stocks and bonds.
StockA share of ownership in a business.
Capital LossA negative return on stock when you sell the stock for less than the purchase price.
DividendsA share of the profits of a corporation paid to stockholders.
Stock MarketA marketplace where stocks are bought and sold.
Bear MarketA market that reflects a downward movement.
BondA debt investment (loan) sold by companies and governments to finance projects and activities.
Time Value of MoneyA dollar today is worth more tomorrow.
Capital GainA profit made on stock when you sell stock for more than the purchase price.
InvestmentAn asset or item that is purchased with the hope that it will generate income or appreciate in the future.
Stock BrokerA dealer who specializes in buying and selling stock.
Compound InterestInterest on interest
Bull MarketAn upward trend in the market.
CorporationOwned by stockholders. Decisions made by Board of Directors who are elected by stockholders.
VolumeThe number of shares traded in a given time.
Ticker SymbolThe abbreviation used to identify a company's securities for trading purposes.
SecuritiesFinancial investments
PortfolioYour collection of investments.
CommissionThe fee charged bya broker to buy or sell a stock for you.
RiskThe possiblity for an investor to experience losses.
Preferred StockStock that gives its shareholders certain privileges, such as receipt of dividends before other stockholders.
YieldThe rate of return on an investment or amount of money an investment earns.
Common StockMost common form of ownership in a corporation.
ShareholderSomeone who buys stock in a company and therefore becomes a part-owner.


Syracuse Jr. High
UT

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