| A | B |
|---|
| annual percentage rate | The percentage amount of interest that will be charged to the customer each year for a loan of credit card balance. |
| bear market | A market in which the existing conditions are likely to drive down stock prices |
| bond | Type of investment in which you lend or loan money to a company, government, or organization for a specific period of time at a specific interest rate. |
| bull market | A market in which the existing conditions are likely to bring up stock prices |
| bull market | A market in which the existing conditions are likely to bring up stock prices |
| capital gains | When you sell an asset at a higher price than you paid for it, the difference is your capital gain. |
| collectible | Items that are relatively rare that people collect in hopes that they will increase in value |
| diversification | An investment strategy in which you spread your investment dollars among different sectors, industries, and securities within a number of assets classes in order to balance and reduce the level of risk. |
| dividend | Distribution of the after-tax earnings that are distributed to company’s shareholders. |
| earnings per share | The amount of earnings per each outstanding share of a company’s stock. This number is one indicator of a company’s profitability. |
| investment | Act of purchasing assets (stocks, bonds, property) with expectation that they will increase in value over time. |
| liquidity | The speed with which an asset can be sold without hurting it value. |
| maturity date | Specified time in the future when the initial investment of the bond is returned to the bondholder |
| mutual fund | Diversified portfolio of combined investments such as stocks, bonds, and other investments that is managed by an investment company. |
| preferred stock | Stocks that provide for a dividend that is paid before the dividends paid to common stock holders |
| price to earnings ratio | Measure of the price paid for a share relative to the annual net income or profit earned by the firm per share. |
| profit | Money earned after subtracting an initial investment, commission or fees paid and any taxes paid. |
| rate of return | Earnings you receive form an investments as a percentage of the investment |
| real estate | Land of any item permanently attached to the land |
| risk | The likelihood that an investment will decrease in value. |
| share | Part ownership in a company |
| stock market | Marketplace or stock exchanges around the world where company stocks are bought and sold. |
| stock symbol | Letters or abbreviations that indicate a particular company stock. |
| stock | A certification that represents a share of ownership in a company. |
