Stocks and Bonds

Front

A loan agreement between the issuer and an investor. The issuer is obligated to pay a specified amount of money at specified future dates.

Back

Bond

Front

What is a share of ownership in a particular company?

Back

Stocks

Front

A piece of the company’s profit that it pays out to each shareholder every three months.

Back

Dividend

Front

The estimate of the total value of the company.

Back

Market Capitalization

Front

How is Market Capitalization determined?

Back

Total number of shares multiplied by the per stock value.

Front

The practice of holding a large number of different stocks so that increases in some can offset unexpected declines in others.

Back

Diversification