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securities
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Investments such as stocks, bonds, mutual funds, options, and commodities.
private corporation
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A company that issues stocks to a small group of people.
public corporation
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A company that sells its shares openly, anyone can buy them.
cyclical stock
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Has a market value that tends to reflect the state of the economy.
defensive stock
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A stock that remains stable during the declines in the economy.
bull market
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A market condition that occurs when investors are optimistic about the economy and buy stocks.
bear market
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A market condition that occurs when investors are pessimistic about the economy and sell stocks.
portfolio
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A collection of all the securities held by an investor.
maturity date
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The date when a bond will be repaid.
face value
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The dollar amount the bondholder will receive at the bond’s maturity.
municipal bond
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A security issued by a state or local government to pay for its ongoing activities.
yield
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Rate of return earned by an investor.
net asset value (NAV)
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The amount that one share of a mutual fund is worth.
load fund
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A mutual fund where you pay a commission everytime you buy or sell shares.
no
A mutual fund that has no commission fee.
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load fund
income dividends
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The earnings a fund pays to its shareholders.
commercial property
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Real estate intended to generate a profit.
precious metals
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metals that are rare and have a high economic value.
precious gems
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gems that are rare and have a high economic value.
collectibles
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An item worth far more than it was originally sold for because of its rarity and popularity, as well as its condition.
emergency fund
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Money that can be accessed quickly to pay for unexpected expenses.
speculative investment
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A high risk investment.
dividends
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A portion of the profit shared with the stockholders.
retained earnings
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Profit a company reinvests in itself.
common stock
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unit of ownership that allows the stockholder voting privileges.
preferred stock
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Stockholders that receive dividends before common stockholders.
corporate bond
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Lending money to a corporation for a period of time that they pledge to repay with interest.
government bond
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Lending money to a government for a period of time that they pledge to repay with interest.
mutual fund
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An investment in which investors pool their money to buy stocks, bonds, and other securities.
diversification
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Spreading assets among several different types of investments to reduce risks.
financial planner
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A specialist who is trained to offer specific financial advice.
tax
Income that is not taxed.
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exempt income
tax
Income that is taxed at a later date.
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deferred income
capital gain
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Profit from the sale of an asset.
capital loss
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Sale of an investment for less than its purchase price.
prospectus
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Document that discloses information about a company’s earnings, assets, and liabilities.

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