money matters- investing test

Investment portfolio

collection of financial assets—such as stocks, bonds, cash, or mutual funds—owned by an individual or organization to grow wealth over time

shares

partial ownership in a company, representing a claim on the company's assets and earnings.

stocks

a type of security that gives stockholders a share of ownership in a company, which can appreciate in value and may pay dividends.

bonds

debt securities that represent loans made by investors to borrowers, typically corporate or governmental, which pay interest over a specified period.

mutual funds

investment programs funded by shareholders that trade in diversified holdings and are professionally managed.

index funds

a type of mutual fund designed to follow a specific market index, offering broad market exposure and low operating expenses.

exchange traded funds

a type of investment fund that is traded on stock exchanges, similar to stocks, which holds assets such as stocks, commodities, or bonds and generally operates with lower expense ratios.

S&P 500

a stock market index that measures the stock performance of 500 large companies listed on stock exchanges in the United States.

target date funds

a type of mutual fund that automatically adjusts its asset allocation based on a specified target retirement date, becoming more conservative as the target date approaches.

risk

the chance that something will go wrong and hurt a company's profits or cause it to fail

return

the financial gain or loss generated by an investment or business activity over a period of time

risk tolerance

 the specific, measurable amount of uncertainty, financial loss, or performance variation an organization is willing to accept while trying to reach its goals

volatility

how fast and how much the price or value of something changes up and down over a period of time

dividend

a payment that a company makes to its shareholders out of its profits or earnings

bear market

a period when stock prices or overall financial markets fall by 20% or more from a recent high, accompanied by widespread investor fear and pessimism

bull market

a financial market condition where prices are rising or expected to rise—typically defined as a 20% or more increase in major stock indexes from recent lows

market capitalization

is the top dollar value of a company’s public trade stock

Mega cap/Blue chip

a public traded business with am massive total market value (usually $200 billion or more) and a company that is established, financially strong market leader know for stability, a solid balance sheet and a long history of reliable performance or dividends

small cap

a company that is a publicly traded buisness with a total market value (market capitalization) generally between $250 million and $2 billion