| A | B |
|---|
| Bear Market | pessimistic stock market |
| Bond | a certificate representing a promise to pay a definite amount of money at a stated interest rate on a specified maturity date. |
| Broker | go between for buyers and sellers of securities |
| Bull Market | optimistic stock market |
| Capital Gains | profit from sale of asset |
| Capital Loss | loss from sale of asset |
| Certificate of Deposit | required minimum deposit for a minimum amount of time. |
| Commission | a fee charged by brokers for their services. |
| Common Stock | general ownership and a right to share its profits but not a stated dividend and has voting rights |
| Compound Interest | interest computed on the amount saved plus the interest previously earned |
| Corporate Bond | debt securities issued by corporation |
| Coupon Rate | rate of interest |
| Current Yield | annual dividend divided by current market value |
| Dividends | part of profits |
| Face Value | amount being borrowed by the buyer |
| Federal Bond | issued by federal government |
| Investing | putting your money to use in order to make more money. |
| Liquidity | the ease with which an investment can be changed into cash without losing any of its value. |
| Market Value | the price at which a share of stock can be bought and sold in the stock market. |
| Municipal Bond | bonds issued by local/state government |
| Mutual Funds | funds set up and managed by investment companies that receive money from many investors and then usually buy and sell a wide variety of stocks or bonds. |
| Preferred Stock | priority over common stocks in the payment of dividends, no voting rights |
| Price/Earnings Ratio | price of one share of stock divided by the earnings per share |
| Saving | money put aside for future use. |
| Savings Account | simplest form of saving. |
| Securities | a general term for bonds and stocks that are sold by corporations and governments to raise large sums of money. |
| Simple Interest | interest that is computer only on the amount saved |
| Stock | share of ownership |
| Stockbroker | a licensed specialist who helps investors buy and sell stocks and bonds. |
| Stock Certificate | proof of ownership |
| Stock Exchange | market place for securities to be bought and sold |
| Total Return | calculation of everything earned on an investment |
| Yield | the percentage of interest that will be added to your savings over a period of time. |
