Unit 6 Vocabulary

Front

Buying and selling investments - typically individual stocks and funds - within a short time frame (from seconds/minutes to days/weeks) in hopes of making quick profits from the small price changes

Back

Active Trading

Front

Dividing an investment portfolio among different asset categories, such as stocks, bonds, and cash

Back

Asset Allocation

Front

A group of financial instruments which have similar financial characteristics and behave similarly in the marketplace (like stocks, bonds, and cash)

Back

Asset Class

Front

A market in which prices are falling, encouraging selling.

Back

Bear Market

Front

A security in which the investor loans money to a company or government, which then pays regular interest to the bondholder and returns the principal on the bond's maturity date

Back

Bond

Front

A measurement of the likelihood that a bondholder will be paid back

Back

Bond Rating

Front

An account that lets individual investors trade stocks, bonds, mutual funds, and other investments

Back

Brokerage Account

Front

A market in which there is increased stock trading and rising stock prices

Back

Bull Market

Front

Profit from the sale of an asset, such as a stock or a bond, calculated by subtracting the price you initially paid from the price you then sold it for

Back

Capital Gain

Front

A tax levied on profit from the sale of property or an investment

Back

Capital Gains Tax