Term | Definition |
Aggressive Growth Stock Mutual Fund | A mutual fund that attempts to receive the highest capital gains. They are wilder and know as small-cap funds. |
Annuity | Savings accounts with an insurance company |
Bond | A debt instrument by which the company owes you money |
C.D. | Certificate of Deposit |
Commodity | You either hit big or lose it all |
Diversification | To Spread Around |
Dividend | A profit you get when the company you are investing in increases its value |
Fixed Annuity | These are at a low interest rate (5%) and are a bad investment because they do not pay enough. |
Liquidity | Availability; You can get to it; How you can get to your investment |
Investments | Investing your money or capital in order to gain profitable returns. (Invest in a business or a share of stock) |
Mutual Funds | investors pool their money to invest. These are good long term investments |
Large-Cap Fund | 25% growth and income |
Money Market | money accounts with check writing priviledges. These are good for emergency funds |
Mid-Cap Fund | 25% Growth |
Risk | Chances of losing your money. As the risk goes up, so does the potential return. |
International Stock Mutual Funds | An investment made anywhere outside of the country that the resident is not in |
Risk/Return Ratio | The higher the risk, the more the return and vice versa |
Savings Account | An Account in which people put money in to save. Does not earn very good interest and you can't access it very easy. |
Share | a part in the joint-stock company |
Single Stocks | High degree of risk; when you buy stock, you are buying a small piece of ownership. When the value of the company increases, you get a dividend |
Small-Cap Fund | 25% Aggressive Growth |
Speculative | Based on history, you will predict how you will do in the future. |
Track Record | How well the stock has performed |
Variable Annuity | mutual funds sheltered by the annuity covering |
New York Stock Exchange | The largest stock exchange in the U.S. located in New York City |
American Stock Exchange | The second largest stock exchange in the U.S. located in New York City |
Growth Stock | Long term stock that will grow and be worth more money |