Unit 4 Vocabulary

A collection of stocks and/or bonds that are traded on securities exchanges. Unlike mutual funds, they can be traded throughout the day like an individual stock. 

• Bond

• Exchange-Traded-Fund (ETF)

• Stock

• Roth IRA

A person who is able to generate interest in something (such as a consumer product) by posting about it on social media

• Social Proof Bias

• Confirmshaming

• Pyramid Scheme

• Influencer

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

• Mutual Fund

• Capital Gain

• Scarcity Bias

• Ways of Influence

The tendency to assume things that are scarce are valuable and things that are abundant are not

• Phishing Scam

• Social Proof Bias

• Scarcity Bias

• Philanthropy

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

• Dividends

• Capital Gain

• Bond

• Stock

The tendency to attribute greater accuracy to the opinion of an authority figure (unrelated to its content) and be more influenced by that opinion

• Scarcity Bias

• Social Proof Bias

• Ways of Influence

• Authority Bias

The ratio of money gained or lost on an investment relative to the amount of money invested; also known as return on investment

• Roth IRA

• Rate of Return/ROI

• Traditional IRA

• Traditional 401(k) Plan

A collection of financial investments like stocks, bonds, commodities, cash, and cash equivalents, including mutual funds and ETFs

• Portfolio

• Diversification

• Dividends

• Index Fund

An individual retirement account that allows a person to set aside after-tax income up to a specified amount each year

• Traditional IRA

• Brokerage Account

• Traditional 401(k) Plan

• Roth IRA

An illicit business model where profits are based on the investor's ability to recruit other individuals who are enrolled to make payments to their recruiters. Generally, neither a product or service is delivered.

• Confirmshaming

• Pyramid Scheme

• Influencer

• Phishing Scam