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Make Your Money Grow-Basics of Investing for Youth
Terms in this set (12)
Rate Of Return
The ratio of money gained or lost on an investment relative to the amount of money invested
The portion of corporate profits paid out to stockholders
The practice of investing in a large variety of stocks, bonds, and/or funds as a way to reduce your overall risk
Profit from the sale of an asset, such as a stock or a bond, calculated by subtracting the price you initially paid from the price you then sold it for
Degree of uncertainty on how likely the investor is to make money on an investment
Interest earned on both the principal amount and any interest already earned; It is the result of reinvesting interest.
Refer to the original amount of an investment or refers to the original sum of money borrowed in a loan, or put into an investment.
Rule of 72
A formula that is popularly used to estimate the number of years required to double the invested money at a given annual rate of return.
A general and progressive increase in prices
When most stock prices are rising over several months.
A steady drop in the stock market over a period of time
A person that buys or sells an investment for you in exchange for a fee called commission.
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