| A | B |
|---|
| Fixed Rate | Investment that yields an unchanging return, such as some savings accounts and bonds |
| Common Stock | Risky, no dividend, voting priveledge |
| Preferred Stock | Low risk, receives a dividend, & no voting priveledge |
| Securities | A general term for bonds & stocks that are sold by corporations & governments to raise large sums of money. |
| Stock Exchange | The place where stocks are bought and sold |
| Corporate Bond | A loan to a corporation |
| Municipal Bond | A loan to a city government |
| Bond | A certificate representing a promise to pay a definite amount of money at a stated interest rate on a specified maturity date. |
| Commission | A fee charged by brokers for their services. |
| Face Value | The amount borrowed by the seller of a bond. |
| Investment Club | A small group of people who organize to study stocks & invest money. |
| Market Value | The price at which a share of stock can be bought & sold in the stock market. |
| Mutual Funds | Funds set up and managed by investment companies that receive money from amny investors. |
| Price- Earning Ratio (P/E) | The ratio of a stock's selling price to its earnings per share. |
| Stockbroker | A licensed specialist who helps investors buy & sell stocks & bonds. |
| Collectibles | Items of personal interest to collectors purchased in anticipation of an increase in value in the future. |
| Speculative Investment | An investment that has an unusually high risk. |
| Spot Price | The current price quoted for precious metals in the world markets. |
| 401 K | A tax-deferred retirement savings plan offered to employees by enployers |
| Blue Chip Stock | Large well established companies |
| Brokerage Firms | A company that specializes in helping people buy and sell securities |
| Capital Gain | Profit for selling socks at a higher price |
| Diversification | Investing in various businesses with different levels of risk |
| IRA | A retirement savings plan with special tax benefits, not employer sponsored |
| NASDAQ | "Over the counter" electronically link stock exchange |
| Return | The income one earns on an investment |
| SEC | The agency that enforces the laws concerning the trading of securities |
| Share of Stock | Designates ownership in a company |
| Transaction | When stocks or bonds are bought or sold |
