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EPF-Lawson
Unit 4 Vocabulary
| Term | Definition |
|---|---|
| bear market | a market in which prices are falling, encouraging selling |
| bond | a security in which the investor loans money to a company or the government, which then puts regular interest to the holder and returning |
| brokerage account | an account that lets individual investors trade stocks, bonds, mutual funds, and other investments |
| bull market | a market in which there is increased stock trading and rising stock prices |
| capital gain | profit from the sale of an asset, such as a stock or bond, calculated by subtracting the price initially paid from the price it sells for |
| compound gain | reinvesting earned interest back into the principal to allow money to grow exponentially over time |
| diversification | the practice of investing in a large variety of stocks, bonds, and/or funds as a way to reduce your overall risk |
| dividend | money from the profits of a company that is paid out to the shareholdes, typically on a quarterly basis |
| index fund | a low-fee portfolio of stocks chosen to track or mimic a stock market index; removing the human element of investing because no one is choosing the individual stocks |
| investment | an asset or item that is required with the goal of making profit |
| mutual fund | a collection of stocks and/or bonds combined into one fund |
| pension | a retirement account, offered in some job sectors or companies, that an employer maintains to give an employee a fixed pay out at retirement |
| portfolio | a collection of financial investments, like stocks, bonds, commodities, cash, and cash equivalents, including mutual funds |
| risk | degree of uncertainty or how likely the investor is to make money on an investment |
| shareholder | a person, company, or institution that owns at least one share in a company |
| security | a financial asset, such as a stock or bond that can be bought and sold in a financial market |
| stock | a share of the value of a company, which can be bought, sold, or traded as an investment and which gives the investor small partial ownership of the company |
Created by:
billie.perkins