PFL.5 Savings and Investments

Front

appreciation

Back

increases in value

Front

bond

Back

debt obligation of state or local government or corporations

Front

capital gain

Back

increase in the value of stock above the original price

Front

capital loss

Back

decrease in the value of stock from the original price

Front

diversification

Back

spreading risk among investments

Front

dividend

Back

part of a corporation's profit paid to stockholders

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investment

Back

the cost of borrowing money, typically shown as a percentage per year

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liquidity

Back

the ability to turn an asset to cash quickly without losing value

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mutual fund

Back

a group of investments managed professionally

Front

portfolio

Back

collection of investments