Investing Vocabulary

Front

The money you save or invest

Back

principle

Front

The number of years it takes for your money to double

Back

Rule of 72

Front

Interest calculated on both the principal and the accrued interest

Back

Compound interest

Front

"rental" fee for borrowing money

Back

interest

Front

Interest paid on principal alone

Back

Simple interest

Front

A retirement savings plan that is funded by employee contributions and (often) matching contributions from the employer.

Back

401K

Front

A savings account that offers a competitive rate of interest in exchange for larger than normal deposits

Back

money market

Front

A collection of stocks and/or bonds, allowing you to own shares in companies you couldn't afford to buy on your own

Back

mutual funds

Front

A market condition in which the prices of securities are falling

Back

bear market

Front

Ownership in a company. The last to be paid in the event the company goes under.

Back

common stock