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INVESTING TERMS

AB
securitiesA general term for bonds and stocks that are sold by corporations and governments to raise large sums of money.
bondsA promise to pay a definite amount of money at a stated interest rate on a specified maturity date.
market valueThe price at which a share of stock can be bought and sold in the stock market.
stockbrokerA licensed specialist who helps investors buy and sell stocks and bonds.
commissionA fee charged by brokers for their services.
mutual fundsSet up and managed by investment companies that receive money from many investors and buy and sell a variety of investments.
preferred stockStock that has priority over common stock in the payment of dividends.
dividendsPart of the profits that is paid to the stockholders.
yieldThe rate of return on an investment.
stockholderPart owner of a business.

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