iff t2

Savings

The process of setting aside money so it can be used in the short term and on a minimal or short notice

Investing

The process of setting money aside to increase wealth over time for long

Security

A financial asset, such as a stock or a bond, that can be bought and sold in a financial market.

Dividend

Money from the profits of a company that is paid out to its shareholders, typically on a quarterly basis

True or False: Trading is a form of investment looking at the longer time with a small amount of risk

False

Bull market

a situation where the stock market is risings and gaining value

Initial Public Offering

When a private company first sells shares of stock to the public.

Beta

How volatile, or risky, a stock's price is compared to the stock market

Asset allocation

decided on the mix of assists such as stocks, bonds, mutual funds, etc in your portfolio. This helps you diversify your portfolio according to your own risk tolerance

Bear Market

A market in which prices are falling, encouraging selling

Diversification

The practice of investing in a large variety of stocks, bonds, and/or funds as a way to reduce your overall risk

Trading

Involves more frequent investment transactions, such as the buying and selling of stocks, commodities, or other instruments. The goal is to generate return that outperform buy

Risk

the degree of uncertainty on how likely the investor is to make money on an investment

Market cap

Measures the size of a company based on the number of its shares on the sock market multiples by its current share price

Compound Interest

The interest you earn on interest. This allows money to grow exponentially over time

Earnings Per Share

A measure of a company's profitability, calculated by dividing quarterly or annual income by the umber of outstanding stock shares

Common Share

Represents partial ownership in a company, entitles investors to generated profit paid in dividends

Principal/Face Value

The initial amount of money invested in the body

Fund

A financial vechile that pools assets from shareholders to invest in securities like stocks

Revenue Bond

Serviced and paid for by income of a specific project

Municipal Bond

Not backed by specific revenue producing project

A preferred shareholder (can or can't?) vote on corporate matters

Can't vote

52 Week Range

The lowest and highest price at which the stock has traded during the previous 52 weeks

Corporate bond

Issued by a corporation in order to raise financing for a variety of reasons including ongoing operations

Passive funds have a low or high expense fee?

Low

Bonds

Issued by government sand corporations when they want to raise money

Yield To Maturity

An estimated rate of return. It assumes that the buyer of the bond will hold it until its maturity date, and will reinvest each interest payment at the same interest rate

Rating Agencies

Moody's, Standard, Poor's and Fitch

Mid Cap

Companies with market capitalization between 2

Actively Managed

This type of fund will have higher fees, its goal is to outperform the market but it does so assuming a higher level of risk

Mutual Fund

This financial vehicle pools assets from shareholders to invest in securities like stocks, bonds, money market instruments, and other asses

Bid

The price that a prospective buyer is prepared to pay to buy the stock

Index fund

This fund will invest in stocks that correspond with a major market index such as the S&P 500 or the Dow Jones

Value Stocks

These are strong companies that are being underpinned by the stock market.