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Terms in this set (25)
The average price of 30 selected industrial stocks used as a measure of general market trends
An IOU issued by a corporation or government that confirms you are lending the corporation or government money. Bonds pay interest regularly to lenders. At the end of the term of the bond, the borrower returns to the lender the face value of the bond (the amount the lender invested in the bond). Corporations issue bonds to raise money for expansion or other company operations.
S & P 500
Tracks the prices of 500 different stocks as a measure of overall stock market performance.
Ease with which an asset can be converted into cash. The most liquid is a savings account and the least are stocks, bonds, and real estate
Spreading out investments to reduce risk.
The profit from the sale of an asset such as stocks, bonds, or real estate.
The loss from a sale.
America's largest electronic stock market. Many technology stocks such as Apple, Microsoft and Yahoo are traded on this stock exchange.
Share of ownership in a corporation. Shares of stock are also known as equities
A government bond that is repaid within 2 to 10 years.
A period of rising stock prices
A stock market with declining stock prices.
Funds that pools the savings of many individuals and invests this money in a variety of stocks, bonds, and other financial assets.
Check paid to stockholders, usually quarterly, representing a portion of corporate profits. Stockholders may reinvest dividend and buy more stock in the company called a dividend reinvestment plan.
RETURN ON INVESTMENT (ROI)-
Ration of money gained or earned on an investment.
All of the investments, including stocks, bonds, mutual funds, and commodities that are traded.
A government bond that is repaid within 3 months to a year. It is a secure, low risk investment.
A firm that provides you access to the stock markets
SEC or SECURITIES AND EXCHANGE COMMISSION
Makes and enforces rules for the stock market.
CERTIFICATE OF DEPOSIT or CDs
A certificate deposit (CD) is a savings instrument that requires a deposit for a period of time (31 days to 8 years) during which the saver can't withdraw the money without a penalty. The longer the time, the higher the interest rate = more money for the investor. This is considered a predictable investment because you will know beforehand how much money you will get at the end of the investment. CDs also typically pay the highest rate of interest.
NEW YORK STOCK EXCHANGE or NYSE
This is the largest equities market in the world. Founded in 1792 on Wall Street in New York City. Also known as the "Big Board" or "the Exchange."
is a speculative method whereby an investor borrows up to 50% of the money needed from a brokerage firm in order to buy a wanted stock and pays a fee for the privilege.
is when the existing stock divides into a larger number of shares and the price of each share is then reduced accordingly. (a 2 for 1 split on 40 shares that is worth $80 would result in 80 shares at $40 at the time of the split
BLUE CHIP STOCK
- are of well-known companies with a long record of profit growth and or dividend payment and a reputation for quality management, products, and services. (e.g. General Electric).
issued by local governments to raise money for roads, bridges and other construction.
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