| A | B |
|---|
| bond | certificate issued by the government or publically held corporation that promises to pay borrowed money to the lender at a fixed rate of interest at a specific time in the future |
| dividends | share of a company's net profits paid to stockholders |
| financial assets | variety of instruments, such as stocks, bonds, bank deposits and mutual funds |
| investment | amount of money invested in stocks, bonds, mutual funds, and other financial assets |
| money market deposit accounts | write a limited number of checks out of this type of account, usually requires a minimum balance |
| mutual fund | mutual fund buys stocks in a group to make profits for investors |
| stocks | an ownership share or shares in a company |
| stock market | market where the public trade (buy or sell) stock that somebody owns |
| SEC | Securities and Exchange Commission |
| Securities and Exchange Commission | federal agency whose primary mission is to protect investors and maintain integrity of the markets |
| Blue Chip | refers to the stock of a large, established company |
| diversification | is the dividing of funds among varying investments in order to minimize risk |
| inflation | the rate at which prices for goods and services increase |
| commission | fee paid to a broker for executing a trade |
| IPO | first sale of stock to the public by a private company |
