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EM II 5
Question | Answer |
---|---|
Annual Percentage Yield (APY) | the actual interest rate an account pays per year |
Blue chip stock | stock of an established and historically successful corporation |
Bond | a written promise to pay a debt by a specified date |
Brokerage firm | a company that specializes in helping people buy and sell stocks and bonds |
Capital gain | profit earned from selling stock at a price higher that its purchase price |
Capitol loss | the amount lost if selling stock at a price lower price than its purchase price |
Certificate of Deposit (CD) | a deposit in a savings institution that earns a fixed interest rate for a specified period of time |
Commercial bank | a financial institution that serves individuals and businesses with a variety of accounts, loans, and other financial services |
Common stock | a voting share of stock that does not pay a set dividend |
Compound interest | interest paid on the principal and also on previously earned interest, assuming that the interest is left in the account |
Diversification | investing in various businesses with different levels of risk |
Dividend | a share of corporation's profit paid to it's stockholders based on the number of shares of stock owned |
Face value | the amount printed on a bond |
High-Yield Bond (HYB) | high-return, high-risk bonds or junk bonds |
Insider trading | trading stock based on information that is not available to the general public |
Investing | saving in a way that earns income |
Load | sales fee paid when investing in a mutual fund |
Money market account | a deposit for which the interest rate changes over time |
Mutual fund | business that accepts deposits from many people and invests them in a variety of ways |
Credit union | a financial institution that offers memberships to people who share a common bond, such as people in a particular profession, company, church, or labor union |