Saving and Investing
Terms in this set (27)
A form of lending to a company or government (city, state, or federal)
Facilitates the buying and selling of investments from a stock exchange.
An earned income received from the sale of an asset above its purchase price.
Discount Brokerage Firm
Only completes orders to buy and sell investments.
The share of profits distributed in cash.
A trained professional that helps people make investing decisions.
Full-Service Brokerage Firm
Offers investment transaction as well as investment advice and a financial adviser.
A group of similar stocks and bonds.
A mutual bond that was designed to reduce fees by investing in the stocks and bonds that make up an index.
The rise in the general level of prices.
The danger that money won't be worth as much in the future as it is today.
Assets purchased with goal of providing additional income from the asset itself but with the risk of loss.
An individual's general approach to investment risk.
The possibility that an investment will fail to pay the expected return or fail to return at all.
The current price that a buyer is willing to pay.
The specific time in the future when the principal (or initial investment) amount of the bond is repaid to the bondholder.
Created when a company combines the funds of many different investors and then invest that money in a diversified portfolio of investments.
Reduces risk by spreading money among a wide array of investments.
Rate of Return
The total return on an investment expressed as a percentage of the amount of money saved.
A fee charged for the use of property or land.
The profit or income generated by saving and investing.
The chance of loss from an event that cannot be entirely controlled.
Have the potential for significant fluctuations in return over a short period of time.
A share of ownership in a company.
Stockholder or Shareholder
The owner of stock.
An organized, central service to buy and sell stock, bonds, and other investments that are traded.
Reduce, defer, or adjust the current year tax liability.