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income from capital investment paid in a series of regular payments


a certificate issued by a government or private company which promises to pay back with interest the money borrowed from the buyer of the certificate: The city issued bonds to raise money for putting in new sewers.


the act of choosing or selecting


Earnings distributed to stockholders

common stock

stock other than preferred stock

preferred stock

stock whose holders are guaranteed priority in the payment of dividends but whose holders have no voting rights

revenue bond

a bond issued by an agency that is commissioned to finance public works

convertible bond

a bond that can be converted to other securities under certain conditions

growth and income fund

a mutual fund whose investment goal is to earn returns from dividends and capital gains

global fund

a mutual fund that includes international investments


a general and progressive increase in prices


contracts to buy or sell at a specific date in the future at a price specified today


the act of introducing variety (especially in investments or in the variety of goods and services offered)

growth stocks

stocks that pay low dividends, but are expected to grow

stock split

an increase in the number of outstanding shares of a corporation without changing the shareholders' equity

income stock

pays higher-than-average dividends compared to other stock issues

general obligation bond

a bond that is backed by the full faith and credit of the government that issued it

callable bond

a bond that the issuer can redeem at a given price prior to its maturity

index fund

a mutual fund that invests in the stocks that are the basis of a well-known stock or bond index


not used technically


a venture undertaken without regard to possible loss or injury

mutual fund

a regulated investment company with a pool of assets that regularly sells and redeems its shares

blue chip stocks

high-priced common stocks that have been strong, profitable stocks for a long period of time.


a power of attorney document given by shareholders of a corporation authorizing a specific vote on their behalf at a corporate meeting

face value

the apparent worth as opposed to the real worth

growth fund

fund that buys stock in medium-sized companies that have experienced some growth and are still expanding; also called a mid-cap fund

balance fund

A mutual fund that invests in a mixture of stocks and bonds to minimize risk


the act of investing

rule of 72

The number of years it takes for a certain amount to double in value is equal to 72 divided by its annual rate of interest.

discount bond

Bond selling below its par value.

penny stocks

A stock trading under $5. They tend to very speculative and volatile and often end up worthless

capital gain

the amount by which the selling price of an asset exceeds the purchase price

Earnings Per Share

the amount of net income after federal income tax belonging to a single share of stock

Municipal Bond

a bond issued by a state or local government

junk bond

A type of mutual fund whose portfolio consists of income-producing wells

income fund

a (speculative) bond with a credit rating of BB or lower, A type of mutual fund whose portfolio consists of income-producing wells

money market fund

a fund that pools money from small savers to purchase short-term government and corporate securities

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