stock market eco

breh

Liquidity

How fast you can turn something into cash without losing its value.

Exchange Trade Fund (ETF)

• An investment you can buy and sell on the stock market, just like a regular stock.

• Holds collection of assets such as stocks, bonds, or commodities.

Rule of 72

• A formula to help calculate how long it’ll take for an investment to double in value.

Beneficiary

• Is a person/organization, or entity designated to receive assets, money, or advantages from a will or trust

Beneficiary Primary

First person or entity you want to inherit the asset.

Beneficiary Contingent

Backup in case the primary beneficiary is deceased or declines.

Volatility

• Measures how fast and dramatically an asset’s price moves up or down over time.

Rate of Return

• The percentage of gain or loss throughout a specific period of time calculated relative to its initial cost.

Stockbroker

• Licensed professionals and firms that buy stocks for clients through technology

Diversification

• The process of shifting an economy from one income source to many others

Short Selling

• Sell stock or other securities or commodities at a lower price

Speculation [Day Trading]

• The method of buying and selling stocks in the same day and gaining profits of low fluctuation in the market

Dow Jones Industrial Average

• Acts as a temperature check for the overall status of the US market and economic health

• It’s a stock index that tracks 30 large well known US companies

NASDAQ and S&P 500

• Both indices and two of the highest indexes of the stock market

Bonds

• Bonds are fixed-income debt securities where investors lend money to issuers (borrowers) for a set period. This is where they receive regular interest payments and principal payment at the maturity date.

• Neither are covered by the FDIC (bonds are not FDIC insured as it is essentially a loan that you are taking)

Types of bonds

Government bonds, corporate bonds

Blue Chip Stocks

• Lead industry, achieve steady earnings 

• Blue chip stocks are shares of a large, well-established and financially secure company with a track record of good performance on the stock market.

Capital Gain & Loss

• The profit an individual makes when selling an asset for more than its purchase price, resulting in profit

Short Term Gain

• Assets held for 1 year or less.

• Generally taxed at a higher rate than long-term gains.

Long Term Gains

• Assets held for 1 year or more.

• Taxed at a lower rate than short-term gains.