investing vocab

bear market

“sellers” market, selling stocks and shares

bull market

“buyers” market, buying stocks and shares

blue chip stock

highest quality stocks, best stocks available

bonds

loans that pays interest over a period of time

capital gains

money made when selling an asset

certificate of deposit

time deposit within a bank

common stock

stock that shows ownership

compound interest

interest that earns interest

cyclical stock

stocks that change with the weather or seasons of the year

dividends

stock company may pay you a portion of their profit

diversification

the heart and soul of investing, spreading your investment money around

dow jones

group of 30 companies that measures how the stock market is doing

growth stock

stock that has great potential

IRA

individual retirement account

investing

putting money aside for future use

limit

selling an upside or downside when trading stocks

margin

buying stock on credit

mutual fund

professionally managed, diversified investments, for small investors

NYSE

new york stock exchange

penny stocks

stocks that trade at a really low price

portfolio

all your investments

speculating

trying to get a quick return on your money

s and p

standard and poors

yield

return on your investments