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vocab quiz

capital gains: when an asset increases in value, resulting in it being sold for more than the amount it was originally bought with

capital loss: when an asset decreases in value, resulting in it being sold for less than the amount it was originally bought with

commission: money paid to a person providing a service for their effort put into making the service happen

dividends: the distribution of the profit a corporation makes to its shareholders

insider trading: when information not publicly reported by a company convinces an interested investor to invest in the company

IPO (initial public offering): when a private company makes the transition of becoming a public company by selling stocks for the first time

IRA (individual retirement account): an account that allows people to save up for retirement by either adding money to it throughout fixed intervals (monthly, annually) or investing in the market, of which any profits will be added to the account

market value: the price of something as determined by its supply and demand

mutual funds: bringing together money from numerous investors in order to mutually invest in something

stock exchange: a place where investors can buy and sell investments

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vocab quiz

capital gains: when an asset increases in value, resulting in it being sold for more than the amount it was originally bought with

capital loss: when an asset decreases in value, resulting in it being sold for less than the amount it was originally bought with

commission: money paid to a person providing a service for their effort put into making the service happen

dividends: the distribution of the profit a corporation makes to its shareholders

insider trading: when information not publicly reported by a company convinces an interested investor to invest in the company

IPO (initial public offering): when a private company makes the transition of becoming a public company by selling stocks for the first time

IRA (individual retirement account): an account that allows people to save up for retirement by either adding money to it throughout fixed intervals (monthly, annually) or investing in the market, of which any profits will be added to the account

market value: the price of something as determined by its supply and demand

mutual funds: bringing together money from numerous investors in order to mutually invest in something

stock exchange: a place where investors can buy and sell investments

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