Investing Vocab 2

11-20

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 (Initial Public Offering)

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