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Investing Vocabulary
Vocab terms for Mr. Sal's Investment Unit
Defintion/? | Term |
---|---|
Stocks that are generally priced below $5.00 a share. | Penny Stocks |
Money generated by just owning a stock, no sale is required. | Dividend |
Time frame of 10 years or longer. | Long Range/Long Term |
Time frame of 1-3 years. | Short Range/Short term |
Time frame of 3-9 years. | Mid Range/Mid Term |
This item allows you to own a piece, or pieces, of ONE company; you can buy it many different ways. | stock |
This item gives you ownership in a variety or number of companies at one time, they are grouped together. | Mutual Funds. |
This investment is purchasing debt of companies, governments, or quasi-government agencies, which HOPEFULLY will be paid back later with interest. | Bonds |
General Fact: Most people have many goals they are working towards at the same time. True or False? | True |
Ordering your goals by importance is an example of this. | Prioritizing |
General Rule of Thumb: The more potential there is to quickly make money on an investment, usually means there is a better chance to lose money too. | True |
This type of stock is the most prevalent, anyone can purchase it. | Common Stack |
The collection of investments you own are called this... | Portfolio |
Insurance that protects your savings and checking accounts in banks, up to $250, 000.00. | FDIC, or Federal Deposit Insurance Corporation. |
The term that describes how your investments are distributed, or how you own what you own. | Asset Allocation. |
When your pension becomes somewhat secure, you gain ownership of it. | Vested |
Ownership in an investment, be it a house, stock, mutual fund, or bond. It can also be the amount of difference between the value of a house and the amount owed on the property. | Equity |
Investments where all earnings are exempt from future taxes. | Tax Free |
Investments where no taxes are paid until the investment is cashed in. | Tax Deferred |
Investments where money invested from pay before taxes come out. It may affect how much is owed in taxes. | Pre-Tax Investments |
The very first chance to invest in a corporation via stock purchases. | IPO or Initial Public Offering. |
An economic entity whose main purpose is for charitable work. | Nonprofit |
An economic entity whose main purpose is to make money for its owners or shareholders. | For Profit |
An economic entity whose main purpose is for helping a specific section of society; but it is not a charity. It is a form of a business. | Not for Profit. |
Rolling your earnings into your original investment amount. This allows your money to grow more quickly...usually. | Compounding |