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Definition
| the act of redirecting resources from being consumed today so that they may create benefits in the future; the use of assets to earn income or profit |
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| the system that allows the transfer of money between savers and borrowers |
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| claim on the property or income of a borrower |
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| institution that helps channel funds from savers to borrowers |
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Definition
| fund that pools the savings of many individuals and invests this money in a variety of stocks, bonds and other financial assets |
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Definition
| spreading out investments to reduce risk |
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| a collection of financial assets |
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| an investment report to potential investors |
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Definition
| the money an investor receives above and beyond the sum of money initially invested |
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Definition
| borrowers may not pay back the money they have borrowed, or they may be late in making payments |
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Definition
| you may not be able to convert the investment back into cash quickly enough for your needs |
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| inflation rates erode the value of your assets |
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Definition
| you may have to pass up better opportunities for investment |
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Definition
| the interest rate that a bond issuer will pay to a bond holder |
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Definition
| the time at which payment to the bondholder is due |
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Definition
| the amount that an investor pays to purchase a bond and that will be repaid to the investor at maturity |
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Term
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Definition
| the annual rate of return on a bond if the bond were held to maturity |
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Definition
| a bond issued by a state or local government or municipality to finance such improvements as highways, state buildings, libraries, parks and schools |
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Definition
| a bond that a corporation issues to raise money and expand its business |
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Term
| Securities and Exchange Commission (SEC) |
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Definition
| an independent agency of the government that regulates financial markets and investment companies |
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Definition
| a lower-rated, potentially higher-paying bond |
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Term
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Definition
| market in which money is lent for periods longer than a year |
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Definition
| market in which money is lent for periods of less than a year |
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Definition
| market for selling financial assets that can only be redeemed by the original holder |
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Definition
| market for reselling financial assets |
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Term
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Definition
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Term
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Definition
| claims of ownership in a company, such as stock |
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Definition
| the difference between a higher selling price and a lower purchase price, resulting in a financial gain for the seller |
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Term
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Definition
| the difference between a lower selling price and a higher purchase price, resulting in a financial loss to the seller |
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Definition
| the division of a single share of stock into more than one share |
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Definition
| a person who links buyers and sellers of stock |
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Definition
| a business that specializes in trading stocks |
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Definition
| a market for buying and selling stock |
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| Over-The-Counter (OTC) Market |
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Definition
| an electronic marketplace for stocks and bonds |
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Definition
| American market for OTC securities |
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Term
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Definition
| contracts to buy or sell at a specific date in the future at a price specified today |
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Term
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Definition
| contracts that give investors the choice to buy or sell stock and other financial assets |
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Term
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Definition
| the option to buy shares of stock at a specified time in the future |
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Term
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Definition
| the option to sell shares of stock at a specified time in the future |
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Term
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Definition
| a steady rise in the stock market over a period of time |
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Definition
| a steady drop in the stock market over a period of time |
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Term
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Definition
| index that shows how certain stocks have traded |
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Term
| Standard and Poor's (S&P) 500 |
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Definition
| index that shows the price changes of 500 different stocks |
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Definition
| the collapse of the stock market in 1929 |
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Term
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Definition
| the practice of making high-risk investments with borrowed money in hopes of getting a big return |
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Term
| Black Tuesday - October 29, 1929 |
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Definition
| record 16.4 million shares of stock were sold, marking the true beginning of the Great Crash |
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Term
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Definition
| the Dow reaches an all-time high of 381 |
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