Unit 3D Vocabulary

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Mutual Fund

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a mix of different investments, like stocks and bonds

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Stock

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a small piece of ownership in a company

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Bond

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a loan to a company or government which has a specific date when it gets paid back in full

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CD (Certificate of Deposit)

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 A savings account where money is locked in for a set time and earns more interest.

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Coupon Rate

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The interest amount paid on a bond.

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Compount Interest

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when you earn interest on both the money you save and the interest you’ve already earned

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Stock Market (Stock Exchange)

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where investors can invest their money in new companies or trade shares when they agree on a fair price

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Liquidity

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how fast you can convert your investment into cash if you need to spend it.

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Risk

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The probability that an investment will lose some, or all, of its value.

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Dividend

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A payment stockholders receive out of the total profits of the business