Vocab Weeks 5 + 6 (MP2)

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Index Fund

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A type of mutual fund designed to follow certain preset rules to replicate the performance of other investments.

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Mutual Fund

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A pooled investment that combines money from multiple investors to buy stocks, bonds, and other investments.

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Trading Period

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A single day of business in the local financial market, from the market's opening bell to its closing bell.

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ETFs (Exchange-Traded Funds)

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A type of pooled investment that holds multiple underlying assets, allowing investors to buy shares in a diversified portfolio.

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Active Investing

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The strategy of buying stocks or other investments regularly, often with the goal of outperforming the market.

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Passive Investing

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An investment strategy that aims to replicate the performance of a specific index or benchmark, rather than trying to outperform it.

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Market Timing

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The strategy of making buy or sell decisions of financial assets by predicting future market price movements.

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Debt Fund

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A type of mutual fund that invests primarily in fixed-income securities such as bonds.

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Monetary Fund

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A type of mutual fund that invests in short-term debt instruments and aims to provide liquidity and safety.

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Slush Fund

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A fund that is used for illicit or unethical purposes, often without proper accounting.