| A | B |
|---|
| Savings | Provides the foundation for financial security. |
| Investing | Enhances and helps build wealth. |
| Broker | Is a person who is licensed to buy and sell stocks, provide investment advice, and collect a commission on each purchase or sale. |
| Dividends | A sum of money paid regularly by a company to its shareholders out of its profits. |
| IPO (Initial Public Offering) | A corporation's first offer to sell stock to the public. |
| ROI (Return On Investment) | The total return on an investment expressed as a percentage of the amount of money invested. |
| Common Stock | Represents the ultimate ownership of a firm -Stockholders directly control the business |
| Preferred Stock | Stockholders do not have an ownership interest in the firm -Have a priority to claim dividends over common stockholders. |
| Blue Chip Stock | Stock in a corporation with a national reputation for quality, reliability, and the ability to operate profitably. |
| Exchange | May be an actual building or a network of computers that serve as a central location where people buy and sell financial products. |
| NYSE (New York Stock Exchange) | Is an auction market that uses floor traders to make most of its trades. Each stock on the exchange has a specialist; this is a person who oversees and facilitates all of the trades for a particular stock. |
| Liquidity | Represents the ease in which an asset can be converted to cash. |
| Bull Market | A________market is when the prices of stock are generally rising. |
| Bonds | A form of lending to a company/business/organization or the government. |
| Mutual Funds | Pooling of money from many investors to buy a large selections of securities. |
| NASDAQ (National Association of Securities Dealers Automated Quotation) | Is a virtual market called an “over the counter (OTC) market. -trading is done through a computer and telecommunications network of dealers. |
| Portfolio | Collections of investments. |
| Diversification | Spreading of risk among many types of investment. |
| Dow Jones Industrial Average | An index of 30 blue chip American stocks used to measure the performance the U.S. market. |
| The Rule of 72 | A quick formula for computing how long it will take to double money invested at a given interest rate. |
| Bear Market | When the prices of the stock are generally falling. |
| Securities | All of the investments, including stocks, bonds, mutual funds, options, and commodities, that are traded. |
| SEC (Securities Exchange Commission) | Makes and enforces the rules of the stock market. |
