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EM II 5b

QuestionAnswer
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by any savings institution in which money is deposited, interest is earned on the deposits, and the money can be withdrawn at any time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