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26 Cards in this Set
- Front
- Back
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Stock
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A collection of ownership shares in a company
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Portfolio
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A collection of investments
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Stock Holder
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A person who owns stock in a company
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Capital Gain
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The profit realized on the purchase or sale of a property, like real estate or stocks
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Bond
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A promise made by a corporation or government to pay an investor a certain amount of money, plus interest, at a specified time in the future
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Maturity Date
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The date on which a corporation or government will pay back the value of a bond plus interest
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Stock Broker
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A dealer in stocks and bonds
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Commission
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Fee paid to a broker for the service of buying, selling, and recommending stocks
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Stock Exchange
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The central market where brokers buy and sell securities
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Why may savings accounts be a bad investment?
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The rate of return (interest) may be less than the rate of inflation
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What are the three important questions you should ask before buying stocks?
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If I buy stock, will I:
1. be able to provide for my family? 2. have enough left over for emergencies? 3. have enough insurance to protect my family? |
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Blue Chip Stocks
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Stocks of the largest corporations with long, steady records of paying dividends
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Growth Stocks
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Stocks issued by companies that are growing fast, but do not have a long record
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Speculative Stocks
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Stocks that are selling at a high price compared to history or earnings, but which may continue to grow
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Municipal Bonds
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Bonds issued by state or local governments, usually not taxable
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Corporate Bonds
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Bonds issued by companies
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Federal Bonds
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Bonds issued by the federal government with a fixed period of time before they can be redeemed
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What is the difference between Federal Bonds and Savings Bonds issued by the federal government?
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Savings Bonds can be cashed in at any time, but Federal Bonds cannot be redeemed until they reach their maturity date
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What are the three kinds of Federal Securities and what is their maturity period?
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Treasury Bills, less than year;
Treasury Notes, one to ten years; Treasury Bonds, over ten years |
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Mutual Fund
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Investment company that pools money from several investors to buy securities. You buy shares in the fund.
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What is the difference in risk between investments that provide either high or low earnings rates?
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High earnings rate investments usually have high risk
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How do stock brokers make money?
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Buy charging a commission on their service in buying or selling a stock
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What are the two types of stack markets?
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Organized exchanges, and "over-the-counter"
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Common Stock
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Stock that does not pay a fixed dividend but allows the owner to vote on activities of the company
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Preferred Stock
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Stock that entitles the owner to preferential treatment in the payment of dividends and the return of investment but does not have voting privileges
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Dividend
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Money paid to an investor based on profits made by the company
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