Unit 2 Review (Investing)

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

• Bond
• Stock

Terminology 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

• Bond
• Stock

Terminology A market in which prices are falling, encouraging selling.

• Bull
• Bear

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

• Bull
• Bear

Terminology 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
• Lump Sum Investing

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

• Dividend
• Coupon

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

• Dividend
• Coupon

Terminology The rate at which the price of goods increases and consumer purchasing power decreases over time

• Deflation
• Inflation

Terminology Reinvesting earned interest back into the principal to allow money to grow exponentially over time

• Compound Interest
• Inflation
• Investing

Terminology The rate at which the price of goods increases and consumer purchasing power decreases over time

• Compound Interest
• Inflation
• Investing