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Stock Market Vocab
| Term | Definition |
|---|---|
| Stock | Partial ownership of a company by owning shares. A share is a small % of a the company If the company does well, people will want those shares. |
| Bond | "I owe you " from a government or big company. Bond can be traded until they mature, then they are paid back. |
| Index | A snapshot of the market. Look at a few companies that represent the whole market. |
| Foreign exchange | Trading currencies |
| Crypto "Currency" | An investment in a "coin" with the hope to sell it for more later. |
| Initial Public Offering | When a company sells its first shares. |
| Diversification | An investing strategy that protects you. Buy stocks or assets that are not related. |
| Speculation | When investors buy assets only on the hope that someone else will buy it for more. |
| Volatility | The rapid rise and fall of prices. |
| Bear Market | When the market drops over a period of time. Usually about 20% off a recent high. |
| Bull Market | When a market grows over time. |