math 8.5 review

annuity

a sequence of equal payments made at equal time periods

trading

buying or selling stock is called

stock exchange

stocks are traded on a

capital gain

when you sell shares of your own stock for more than what you purchased them for

dividends

while you own stocks in a company, they distribute all or part of its profit to shareholders. these is called

rule of 72

a shortcut for estimating the number of years it will take for your investment to double.

(100-how old you are)%

the general rule for what portion of your investments should be in stocks if you are "a" year old.

diversify

when you____ your investments your money is invested in a variety of different companies, as well as cushioning stock investments with cash investments and bonds

mutual fund

A__is a group of stocks and/or bonds managed by a professional investor called a fund manager

250,000

FDIC insures up to