Saving and Investing Word Scramble
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| Question | Answer |
| Saving | Setting money aside for later use |
| Investing | Taking risks with savings in order to earn a higher rate of return |
| Principal | The original amount of your investment (how much you put in originally) |
| Interest | The price for borrowing money |
| Maturity | Time required for money to be in a particular investment |
| Liquidity | The ability to turn an investment into cash (how quickly it can pay out) |
| Capital Gain | Selling an investment for more than you paid for it |
| Capital Loss | Selling an investment for less than you paid for it |
| Savings Accounts | Used to save money for large purchases, also used for a rainy day (emergencies) |
| Passbook Savings Account | Regular savings account |
| Money Market Account | Earns a higher amount of interest than a normal savings account |
| Certificates of Deposit (CDs) | Time deposit in which you agree to deposit a sum of money with a financial institution for a certain amount of time |
| Stocks | Buying partial ownership in a company |
| Dividends | A sum of money paid regularly by a company to its shareholders out of its profits |
| Mutual Funds | Pools of money from many people |
| The Dow (Stock Indexes) | Tracks prices of 30 representative stocks, tracks the price of 500 stocks |
| Bull Market | Optimism in market; stock prices are generally climbing |
| Bear Market | Pessimism in market; stock prices falling |
| Corporate bonds | Debt security issued by a corporation and sold to investors |
| Government bonds | A bond issued by a national government, generally with a promise to pay periodic interest payments and to repay the face value on the maturity date |
| Bonds | - Loan (no ownership) - No voting rights - Less liquid (maturity date) - Less risk (lower potential for gain/loss) - Profit through |
| Stocks | - Ownership - Voting rights - More liquid (sell anytime) - More risk - Profit through - Dividends (buy low & sell) - Selling high (high = capital gain) |
| Dividends & selling high | How do you profit in the Stock Market? |
| Predetermined interest rate | How do you profit in the Bond Market? |
Created by:
livilou541
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