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EM II 5b
| Question | Answer |
|---|---|
| Preferred stock | a non-voting share of stock that pays a fixed dividend |
| Principle | money on deposit in a savings account, CD, or other savings options |
| Prospectus | a publication that describes how a fund is operated, the fund's investing objectives, and the fees it charges |
| Return | income earned on an investment |
| Risk | the chance that an investment will decrease in value |
| Savings | money that is put aside for a later use |
| Savings bond | a U.S. government bond issued for amounts of $50 to $10,000 |
| Share of stock | a unit of ownership in a corporation |
| Simple interest | the amount paid on the average balance in an account once a year at the end of the year |
| Stock exchange | the location where orders to buy or sell stock are sent and carried out |
| Stock transaction | when shares of stock are bought and sold |
| Stockbroker | a person who handles the transfer of stocks and bonds between buyer and seller |
| Stockholder | an investor who owns part of a corporation because he or she owns shares of stock |
| Savings account | an account offered by any savings institution in which money is deposited, interest is earned on the deposits, and the money can be withdrawn at any time |
| Securities and Exchange Commission (SEC) | the government commission responsible for enforcing the laws concerning the trading of stocks and bonds |
Created by:
lmary
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