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Investing Vocabulary
Vocab terms for Mr. Sal's Investment Unit
| Defintion/? | Term |
|---|---|
| Stocks that are generally priced below $5.00 a share. | Penny Stocks |
| Money generated by just owning a stock, no sale is required. | Dividend |
| Time frame of 10 years or longer. | Long Range/Long Term |
| Time frame of 1-3 years. | Short Range/Short term |
| Time frame of 3-9 years. | Mid Range/Mid Term |
| This item allows you to own a piece, or pieces, of ONE company; you can buy it many different ways. | stock |
| This item gives you ownership in a variety or number of companies at one time, they are grouped together. | Mutual Funds. |
| This investment is purchasing debt of companies, governments, or quasi-government agencies, which HOPEFULLY will be paid back later with interest. | Bonds |
| General Fact: Most people have many goals they are working towards at the same time. True or False? | True |
| Ordering your goals by importance is an example of this. | Prioritizing |
| General Rule of Thumb: The more potential there is to quickly make money on an investment, usually means there is a better chance to lose money too. | True |
| This type of stock is the most prevalent, anyone can purchase it. | Common Stack |
| The collection of investments you own are called this... | Portfolio |
| Insurance that protects your savings and checking accounts in banks, up to $250, 000.00. | FDIC, or Federal Deposit Insurance Corporation. |
| The term that describes how your investments are distributed, or how you own what you own. | Asset Allocation. |
| When your pension becomes somewhat secure, you gain ownership of it. | Vested |
| Ownership in an investment, be it a house, stock, mutual fund, or bond. It can also be the amount of difference between the value of a house and the amount owed on the property. | Equity |
| Investments where all earnings are exempt from future taxes. | Tax Free |
| Investments where no taxes are paid until the investment is cashed in. | Tax Deferred |
| Investments where money invested from pay before taxes come out. It may affect how much is owed in taxes. | Pre-Tax Investments |
| The very first chance to invest in a corporation via stock purchases. | IPO or Initial Public Offering. |
| An economic entity whose main purpose is for charitable work. | Nonprofit |
| An economic entity whose main purpose is to make money for its owners or shareholders. | For Profit |
| An economic entity whose main purpose is for helping a specific section of society; but it is not a charity. It is a form of a business. | Not for Profit. |
| Rolling your earnings into your original investment amount. This allows your money to grow more quickly...usually. | Compounding |