| A | B |
|---|
| Diversification | The practice of dividing the money a person invests between several different types of investments in order to lower risk |
| Investing | The process of setting money aside to increase wealth over time for long-term financial goals such as retirement |
| Investment | Account or arrangement in which a person puts his/her money for long-term growth; invested money should not be used for a suggested minimum of five years |
| Liquidity | Quality of an asset that permits it to be converted quickly into cash without loss of value; availability of money. |
| Portfolio | A list of your investments |
| Risk | Degree of uncertainty of return on an asset; in business, the likelihood of loss or reduced profit |
| Risk Return Ratio | Relationship of substantial reward compared to the amount of risk taken |
| Share | Piece of ownership in a company, mutual fund, or other investment |
| Stocks | Securities that represent part ownership or equity in a corporation |
| Tax-Favored Dollars | Money that is invested, either tax-deferred or tax-free, within a retirement plan |
| Scholarship | A form of financial aid that does not need to be repaid; usually awarded on the basis of academic, athletic or other achievements |
| Grant | A form of federal or state financial aid that does not need to be repaid; usually given to students who demonstrate financial need |
| Branding | The promotion of a product or service by identifying it with distinct characteristics (usually associated with public perception, quality, or effectiveness) |
| Brand recognition | Refers to the public's ability to recall and recognize a brand by its logo, jingles, packaging, etc. |
| Buyer's remorse | Feeling regret or concern after making a large purchase |
| Caveat emptor | Latin term for "buyer beware" |
| Financing | To buy an item with credit; paying over time |
| Marketing | The process of communicating the value of a product or service to customers |
| Opportunity Cost | Refers to the financial opportunity that is given up because you choose to do something else with your money |
| Significant purchase | An amount of money you spend, usually $300, that causes some pain to part with |
