Investing Vocab 2

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Last updated 2:14 PM on 9/10/25
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10 Terms

1
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Index

A benchmark that represents the performance of a specific market or sector.

2
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Volatility

The degree of variation in the price of an investment over time.

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Yield

The income generated by an investment, usually expressed as a percentage of its price.

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Expense Ratio

The annual fee charged by a mutual fund or ETF to cover operating expenses.

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Market Order

An order to buy or sell a security at the current market price.

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Limit Order

An order to buy or sell a security at a specific price or better.

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Bull Market

A market characterized by rising prices and investor optimism.

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Bear Market

 A market characterized by falling prices and investor pessimism.

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Blue Chip Stocks

Shares of large, well-established, and financially stable companies.

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IPO (Initial Public Offering)

The first sale of a company's stock to the public.