Investing 101: You and Your Money

These flashcards cover key terms and concepts related to investing, stocks, bonds, and market strategies.

Common Stock

A type of stock that gives the stockholder voting rights on corporate events and issues.

Preferred Stock

A type of stock that typically does not have voting rights but may receive payments in the event of a bankruptcy.

Initial Public Offering (IPO)

The first sale of stock by a company to the public.

Growth Stock

A type of stock that pays no dividends and is anticipated to grow at an above-average rate compared to its industry or the overall market.

Income Stock

A type of stock that pays dividends to shareholders, providing regular income.

Blue Chip Stocks

Stocks from large, established corporations with a history of stable earnings.

Dow Jones Industrial Average (DJIA)

A stock market index that measures the stock performance of 30 large companies listed on stock exchanges in the United States.

Market Capitalization

The total market value of a company's outstanding shares.

Risk Tolerance

An investor's ability to endure losses in their investment portfolio.

Mutual Fund

A pooled investment vehicle that actively or passively manages a diversified portfolio of stocks and bonds.

Diversification

A risk management strategy that mixes a wide variety of investments within a portfolio.

Corporate Bonds

Debt securities issued by corporations to raise capital, where the issuer must pay interest to the bondholder.

Government Bonds

Bonds issued by a government to support government spending, considered safer than corporate bonds.

Liquidity

The measure of how easily an asset can be converted into cash.

Return on Investment (ROI)

A performance measure used to evaluate the efficiency or profitability of an investment.