| A | B |
|---|
| Advantage of tangible asset | can be enjoyed & used while owned |
| NASDAQ | electronic trading system in over-the-counter market |
| Iron law of risk and return | to earn higher return must take higher risk |
| High stock beta | implies high market risk |
| Dollar cost averaging | invests equal amount in assets at periodic intervals |
| Technical analysis | valuation method relying heavily on graphs |
| Bond indenture | contract between bond issuer and buyer |
| Face value of bond | amount issuer will pay to redeem bond at maturity |
| Zero coupon bond | pays no periodic interest |
| Bond sinking fund | method of reserving funds to gradually retire bonds |
| Convertible bond | can be converted into specific number of common shares |
| US Treasury Strip | zero coupon bond created from Treasury securities |
| General Obligation Municipal Bond | supported by full taxing authority of issuing government |
| Cumulative preferred stock | unpaid dividends accumulate |
| Mutual funds | pools fund to invest in securities issued by other corp. or gov't. |
| Mutual fund net asset value | market value of all funds holdings |
| Index fund | fund attempting to match overall market performance |
| Sector fund | invests in one industry |
| Real estate investment trust | a limited partnership involving real estate |
| Inflation risk | investment's return might be higher or lower than inflation rate |
| Market-timing strategies | trying to exploit investment cycle |
| Stock dividend | dividend paid in shares of company declaring dividend |
| Margin account | allows you to borrow from your broker |
| Advantage of limited partnership | cannot lose more than you invest (as compared to general partnership) |
