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Wise Investing
| Term | Definition |
|---|---|
| American Stock Exchange | A stock exchange located in the United States. |
| Bear market | A market condition where prices are falling or are expected to fall. |
| Big Board | A nickname for the New York Stock Exchange. |
| Blue chip stock | Stocks of well-established companies with a history of stable earnings. |
| Bond | A fixed income instrument that represents a loan made by an investor to a borrower. |
| Bond fund | A mutual fund that invests primarily in bonds. |
| Bond principal | The amount of money that the bond issuer borrows and agrees to pay back at maturity. |
| Bull market | A market condition where prices are rising or are expected to rise. |
| Capital gain | The profit from the sale of an asset. |
| Capital loss | The loss incurred when a capital asset decreases in value. |
| Common stock | A type of security that represents ownership in a corporation. |
| Diversification | The practice of spreading investments across various financial instruments to reduce risk. |
| Dividends | Payments made by a corporation to its shareholders, usually in the form of cash or additional stock. |
| Dollar Cost Averaging | An investment strategy where a fixed dollar amount is invested at regular intervals. |
| Dow Jones Industrial Average | A stock market index that indicates the value of 30 large publicly owned companies in the U.S. |
| Equities | Stocks that represent ownership in a company. |
| Face value | The nominal value of a bond or stock as stated by the issuer. |
| Liquidity | The ease with which an asset can be converted into cash. |
| Mutual Fund | An investment vehicle made up of a pool of money collected from many investors to purchase securities. |
| Portfolio | A collection of financial investments like stocks, bonds, commodities, etc. |
| Preferred stock | A class of ownership in a corporation that has a higher claim on assets and earnings than common stock. |
| Rate of return | The gain or loss made on an investment relative to the amount invested. |
| Risk | The potential of losing financial investment. |
| Securities | Financial instruments that represent an ownership position in a company or a creditor relationship with a government body. |
| Treasury bill | A short-term government security with a maturity of less than one year. |
| Volatility | A statistical measure of the dispersion of returns for a given security or market index. |
| 401(k) | A retirement savings plan sponsored by an employer that allows employees to save a portion of their paycheck before taxes are taken out. |
| Asset | Any resource owned by an individual or entity that is expected to provide future economic benefits. |
| Balance Sheet | A financial statement that summarizes a company's assets, liabilities, and shareholders' equity at a specific point in time. |
| Consumer Price Index | A measure that examines the weighted average of prices of a basket of consumer goods and services. |
| Income tax | A tax imposed on individuals or entities based on their income. |
| Net worth | The total assets minus total liabilities of an individual or company. |
| Pension | A regular payment made during a person's retirement from an investment fund to which that person or their employer has contributed. |
| Roth IRA | An individual retirement account allowing a person to set aside after-tax income up to a specified amount each year. |
| Social Security income | A government program that provides financial assistance to individuals who are retired, disabled, or survivors of deceased workers. |
| Traditional IRA | An individual retirement account that allows individuals to direct pre-tax income towards investments that can grow tax-deferred. |
| Monthly mortgage payment | The amount paid each month towards the repayment of a mortgage loan. |
| Mortgage interest | The interest charged on a mortgage loan. |
| Property taxes | Taxes assessed on real estate properties, usually based on the value of the property. |
| Retirement planning | The process of determining retirement income goals and the actions necessary to achieve those goals. |
| Accountant | A professional responsible for financial record-keeping and reporting. |
| Banker | A person who works in a bank and is responsible for managing financial transactions. |
| Financial consultant | A professional who provides advice on financial planning and investment strategies. |
| Insurance agent | A person who sells insurance policies to clients. |
| Investment analyst | A professional who analyzes investment opportunities and provides recommendations. |
| Mortgage banker | A person or company that originates and funds mortgage loans. |
| Stock analyst | A professional who evaluates stocks and provides investment recommendations |
Created by:
moonpool13
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