5.03 Word Scramble
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Term | Definition |
bond | lending to the govt. or companies |
brokerage firm | facilitates buying and selling of investments from stock exchange |
capital gain | unearned income from selling assets above their purchase prices |
discount brokerage firm | only completes orders to buy and sell investments |
dividend | share of profits distributed in cash |
financial advisor | helps people make investing decisions |
full-service brokerage firm | offer investment transactions, investment advice, and financial advisor |
index | group of similar stocks and bonds |
index funds | mutual fund to reduce fees by investing in the stocks and bonds that compose an index |
inflation | rise in prices |
inflation risk | danger that money won't be worth today's value in the future |
investment | assets purchased with goal of acquiring additional money from the asset, but with risk of loss |
investment philosophy | individual's approach to investment risk |
investment risk | investment's potential to fail to pay expected return |
market price | current price a buyer is willing to pay |
maturity date | specific time when the principal amount of the bond is to be repaid to the bondholder |
mutual fund | company combines many investors' funds than invests that amount into a diversified portfolio of investments |
portfolio diversification | reduces risk by spreading money over a wide range of investments |
rate of return | total return on an investment; % of amount of money saved |
rent | fee charged for property usage |
return | profit by saving or investing |
risk | chance of loss from an uncontrollable event |
speculative investments | potential for significant return amounts in short time periods |
stock | share of ownership in a company |
stock/share holder | owner of a stock |
stock exchange | organized, central service to buy and sell stocks, bands, and other tradeable investments |
tax-advantaged investments | reduce, defer, or adjust the current year tax liability |
Created by:
Tate.cord70
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