Financial Terms Flashcards

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Bear Market

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When stock prices are dropping, and people are selling more than buying.

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Bond

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A loan you give to a company or the government, and they pay you back with interest over time.

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Brokerage Account

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An account that lets you buy and sell investments like stocks and bonds.

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Bull Market

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When stock prices are going up, and people are buying more than selling.

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Compound Interest

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Earning interest on both your money and the interest you've already earned.

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Diversification

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Spreading your money across different investments so you don’t lose everything if one does poorly.

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Dividend

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Money a company gives to its stockholders as a share of its profits.

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Exchange-Traded Fund (ETF)

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A mix of stocks and/or bonds that you can buy and sell like a single stock.

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Index Fund

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A low-cost group of stocks designed to follow the stock market’s overall performance.

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Individual Retirement Account (IRA)

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A special savings account to help people save money for retirement.