Question | Answer |
Bond | Investment loan |
Brokerage Firm | To go through to buy stocks |
Capital Gain | Sell your investment and make money |
Discount Brokerage Firm | (E-trade) Buy and sell stocks |
Divided | When you have stock company making money and give to the shareholders. |
Financial Advisor | They help manage your money |
Full-service Brokerage Firm | Buy stocks and sell them also advises you |
Index | A group of similar stocks and bonds |
Inflation | The rise in prices |
Inflation risk | The danger when you sell something your stock might not be good enough to use. |
Investment | Has risk but trying to make more money or income. |
Investment Philosophy | Individual approach to risk |
Market Price | The price of that stock |
Maturity Date | The date when a bond is over and when you get money and interest back |
Mutual Fund | When you want to spread out your risk. |
Portfolio Diversification | Reduces risk by spreading money among a wide array of investments |
Rate of return | Calculate what is the percentage of what you get when you sell an investment |
Rent | A fee for using someone property or land |
Return | How much you make by saving and investing |
Risk | A loss |
Speculative investments | Have high risk over a short period of time |
Stock | Ownership in a company |
Stockholder or Shareholder | Owner of a stock |
Stock Exchange | Buy and sell stock (Trading at different places) |
Tax-advantaged investments | Reduce, defer, or adjust the current year tax liability |
Investment risk | The possibility to win it all or lose it all |