Intro To Investing Vocab 2nd Half
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11 Terms
Index
A benchmark that represents the performance of a specific market or sector.
Volatility
The degree of variation in the price of an investment over time.
Yield
The income generated by an investment, usually expressed as a percentage of its price.
Expense Ratio
The annual fee charged by a mutual fund or ETF to cover operating expenses.
Market Order
An order to buy or sell a security at the current market price.
Limit Order
An order to buy or sell a security at a specific price or better.
Bull Market
A market characterized by rising prices and investor optimism.
Bear Market
A market characterized by falling prices and investor pessimism.
Blue Chip Stocks
Shares of large, well-established, and financially stable companies.
IPO
The first sale of a company's stock to the public.
401(k)
A retirement savings plan offered by employers, where employees can contribute a portion of their salary on a pre-tax basis.