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Lesson 13 Intro to Investing
Definitions over various investing terms and concepts.
42
Business
10th Grade
02/22/2012

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Term
Back End Load
Definition
Fees paid to the mutual fund company when selling a mutual fund.
Term
Dividends
Definition
Quarterly payout of profits by a company to all shareholders.
Term
FDIC Insured
Definition
A insurance where if your investments or the bank fail the FDIC will pay back your inital investment.
Term
Front End Load
Definition
A entry requirment to get into certian mutual funds.
Term
Inflation
Definition
Rise in price of goods.
Term
Savings Account
Definition
A safe area to place your money with very low intreset rate.
Term
Year To Date Return
Definition
A comparison of how the fund has done compared to how it started out.
Term
Yield
Definition
For a savings account, the Percentage of intrest earned annually. For a stock, the annual dividend divided by the share price.
Term
Back End Load
Definition
Fees paid to the mutual fund company when selling a mutual fund.
Term
Dividend
Definition
Quarterly payout of profits by a company to all shareholders.
Term
FDIC Insured
Definition
A insurance where if your investments or the bank fail the FDIC will pay back your inital investment.
Term
Front End Load
Definition
A entry requirment to get into certian mutual funds.
Term
Inflation
Definition
Rise in price of goods.
Term
Savings Account
Definition
A safe area to place your money with very low intreset rate.
Term
Year To Date Return
Definition
A comparison of how the fund has done compared to how it started out.
Term
Yield
Definition
For a savings account, the Percentage of intrest earned annually. For a stock, the annual dividend divided by the share price.
Term
Asset Class
Definition
Separate types of investments, such as stocks/stock mutual funds, bonds/bond funds, money market accounts, and international stock funds. Each asset class has typical risks and returns, and a certain investment within that class may perform better or worse then its peers.
Term
Capital Gain
Definition
When you sell a stock for more than you paid for it, the diffrence is called a captial gain. Capital gains are income that must be reported on taxes.
Term
Capital Loss
Definition
When what you sell a stock for is less than what you originally paid for a stock, the diffrence is called capital loss.
Term
Common Stock
Definition
A share in a company's assets and profits. The ownership of a publicly traded company is split up into the shares of a stock being traded and held.
Term
Dividend
Definition
Money paid by a corp. to each shareholder, typically given four times a year, these distributions of company profits can be used to reinvest in more share of the company.
Term
Money Market
Definition
A type of mutual fund or account that invests in short term, liqid investments. These funds generally pay better then a savings account.
Term
Mutual Fund
Definition
A pool of stocks, bonds, and other securities managed by an investment company.
Term
Private Corporation
Definition
A incorporated business that does not trade shares of stock on an open market.
Term
Public Corporation
Definition
A business owned jointly by all stockholders.
Term
Rate Of Return
Definition
The annual amount of money an investment makes, given as a percentage.
Term
Risk
Definition
The chance of loseing value from stocks, or gaining from them.
Term
Return
Definition
Monetary increase that an investment makes.
Term
Bear Market
Definition
A time with generally falling stock prices.
Term
Blue Chip Stock
Definition
Stocks issued by soild and reliable companies with long records of growth and stability.
Term
Bonds
Definition
Money loaned to the government, corporations, or municipalites that pays the investor interest. Different types of bonds can be more or less risky, and bonds can have high yields or low yields (interest rates).
Term
Bull Market
Definition
A time with generally rising stock prices.
Term
Defensive Stock
Definition
Stocks of companies that produce such staples as food, beverages, and pharmaceuticals, and insurance companies.
Term
Diversification
Definition
Owning a collection of investments such as stocks from diffrent industries and small and large companies, bonds, and money market funds for cash, in order to rspread risk and have a safer investment overall.
Term
Growth Stock
Definition
Stocks of companies that generally do not pay dividends or pay only very small dividends.
Term
Investment Portfolio
Definition
The collection of investments you personally hold, including stocks, bonds, money market accounts, and savings accounts.
Term
Large-Cap Stock
Definition
Stocks of very large companies such as WalMart, General Electric, and IBM, that have a market capitallization of between $10 billion and $200 billion.
Term
Personal Investing Plan
Definition
A collection of investments tailored to your investment risk tolerance and time horizon.
Term
Small-Cap Stock
Definition
Stocks of largely unkown companies with smaller market capitlization, that is, dollar value of total stock ownership.
Term
Liquidity
Definition
The difficulty of getting to your money. The more liquid it is the easier to get to the money and vice versa.
Term
Risk Return Ratio
Definition
The real chance of a investment paying off. Determines if its worth the risk.
Term
Share
Definition
A chunk of stock owned by a outside individual. The stock itself is dependent on the company.
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