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5.03 first half

vocabulary test study

TermDefinition
Bond A form of lending to a company or the government (city, state, or federal)
Brokerage Firm Facilitates the buying and selling of investments from a stock exchange
Capital Gain Unearned income received from the sale of an asset above its purchase price
Discount Brokerage Firm Only completes orders to buy and sell investments
Dividend The share of profits distributed in cash
Financial Adviser A trained professional that helps people make investing decisions
Full-Service Brokerage Firm Offer investment transactions as well as investment advice and a financial adviser
Index A group of similar stocks and bonds
Index Fund A mutual fund that was designed to reduce fees by investing in the stocks and bonds that make up an index
Inflation The rise in the general level of prices
Inflation Risk The danger that money won’t be worth as much in the future as it is today
Investment Assets purchased with the goal of providing additional income from the asset itself but with the risk of loss
Investment philosophy An individual’s general approach to investment risk
Investment Risk The possibility that an investment will fail to pay the expected return or fail to pay a return at all
Created by: Ellie Casner
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