| A | B |
|---|
| Investment philosophy | An individual’s general approach to investment risk |
| Investment Risk | The possibility that an investment will fail to pay the expected return or fail to pay a return at all |
| Market Price | The current price that a buyer is willing to pay |
| Maturity Date | The specified time in the future when the principal (or initial investment) amount of the bond is repaid to the bondholder |
| Mutual Fund | Created when a company combines the funds of many different investors and then invests that money in a diversified portfolio of investments |
| Portfolio diversification | Reduces risk by spreading money among a wide array of investments |
| Rate of Return | The total return on an investment expressed as a percentage of the amount of money saved |
| Return | The profit or income generated by saving and investing |
| Speculative investments | Have the potential for significant fluctuations in return over a short period of time |
| Stock | A share of ownership in a company |
| Stockholder or Shareholder | The owner of a stock |
| Tax‐advantaged investments | Reduce, defer, or adjust the current year tax liability |
