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5.03 Second Half

Second half of The Fundamentals of Investing Vocabulary

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.
Created by: ELI173



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