Investing #3

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

• Bond Rating

• Treasury bond

• Bond

• New York Stock Exchange

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

• Bond Rating

• New York Stock Exchange

• Treasury bond

• Bond

The annual interest payment on a bond, usually expressed as a percentage of its face value

• Dividend

• Coupon

• Return on Investment

• Par

The practice of investing in a large variety of stocks, bonds, and/or funds as a way to as a way to reduce your overall risk

• Dollar Cost Averaging

• Index Funds

• Diversification

• Retirement

Money from the profits of a company that is paid out to its shareholders, typically on a quarterly basis

• Bonds

• Coupon

• Dividends

• Interest rates

A share of the value of a company, which can be bought, sold, or traded as an investment and which gives the investor small partial ownership of the company

• Stock

• Bond

• New York Stock Exchange

• Retirement Account

The process of setting money aside to increase wealth over time for long-term financial goals such as retirement

• Bond

• Dollar cost averaging

• Diversification

• Investing

The practice of putting a fixed amount into an investment over a period of time, regardless of the price of that investment

• Dollar Cost Averaging

• Diversification

• Index Funds

• Wealth building