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5.03 Second Half
Second half of The Fundamentals of Investing Vocabulary
Term | Definition |
---|---|
Market Price | The current price that a buyer is willing to pay. |
Maturity Date | The specified time in the future when the principal (or initial investment) amount of the bond is repaid to the bondholder. |
Mutual Fund | Created when a company combines the funds of many different investors and then invests that money in a diversified portfolio of investments. |
Portfolio Diversification | 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. |
Rent | A fee charged for the use of property or land. |
Return | The profit or income generated by saving and investing. |
Risk | The chance of loss from an event that cannot be entirely controlled. |
Speculative Investments | Have the potential for significant fluctuations in return over a short period of time. |
Stock | A share of ownership in a company. |
Stockholder or Shareholder | The owner of a stock. |
Stock Exchange | An organized, central service to buy and sell stocks, bonds and other investments that are traded. |
Tax-advantaged Investments | Reduce, defer, or adjust the current year tax liability. |