A | B |
Bear Market | A stock market with declining stock prices |
Stock | Share of Ownership in a Corporation. |
Treasury Note | A government bond that is repaid within two to ten years |
Return on Investment (ROI) | Ratio of money gained or earned on an investment. |
Dividend | Check paid to stockholders, usually quarterly, representing portion of corporate profits. |
Treasury Bill | A government bond that is repaid within three months to a year. |
Mutual Fund | Fund that pools the savings of many individuals and invests this money in a variety of stocks, bonds, and other financial assets. |
Brokerage | A firm that provides you access to the stock markets. |
Diversification | Spreading out investments to reduce risks. |
Dow Jones | The average price of 30 selected industrial stocks, used as a measure of general market trends. |
Capital Gain | The profit from the sale of an asset such as stocks, bonds, or real estate. |
Liquidity | Ease with which an asset can be converted into cash. |
S & P 500 | Tracks the prices of 500 different stocks as a measure of overall stock market performance. |
Securities | All of the investments, including stocks, bonds, mutual funds, options, and commodities, that are traded. |
Bond | An IOU issued by a corporation or government that confirms you are lending the corporation or government money. Pay interest regularly to lenders. At the end of the term, the borrower returns to the amount the lender. |
Bull Market | A period of rising stock prices |
NASDAQ | America's largest electronic stock market. Many technology stocks such as Apple, Microsoft and Yahoo are traded on this stock exchange. |
Savings Bond | Obtainable through the U.S. government. Purchased at one-half the face value and will mature to full face value over a specified period of time. FDIC insured, moderate liquidity, moderate rate of return. |