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Definition
| A formal agreement where you (the bond holder) will lend money to a borrower who can then use that money for a set period of time. In exchange, you, as the lender, will get paid a specific amount of interest. |
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Definition
| The difference between the purchase price and the selling price when an investor buys a stock and sells it later at a higher price. |
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| This is the difference when an investor ends up selling a stock at a lower price than the purchase price. |
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| Compounding or Compound Interest |
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Definition
| Earning interest on interest. |
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Definition
| Reducing investment risk by putting money in several different types of investments. |
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Definition
| The portion of the profits paid to the shareholders of a company. |
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Definition
| The practice of investing a fixed amount into the same investment at regular intervals, regardless of what the stock market is doing. |
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Definition
| The payment you receive for allowing a financial institution or corporation to use your money. |
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Term
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Definition
A rise in the cost of goods and services.
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Term
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Definition
Payment for the use of money (Principal x interest rate x time)
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Definition
| Putting money to use in a venture that offers the possibility of growing in value as interest, income, or increased value. |
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Term
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Definition
| An asset that can be converted into cash quickly and with minimum impact to the price received. |
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Term
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Definition
| An investment security that is actually a diversified portfolio of equities, bonds, or other securities. Investors purchase shares and can sell them at any time. |
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Definition
| The value of what is given up when you choose one option over another. |
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Term
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Definition
| The percentage of gain or loss on an investment over a period of time. |
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Term
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Definition
| A mathematical method that can be used to show how long it will take to double your money in an investment simply by dividing 72 by the rate of interest. |
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Term
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Definition
| An amount of money that is set aside to be used for a future purpose. |
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Term
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Definition
| An account you have at a financial institution that helps you accumulate and save money and earn a small amount of interest at the same time. |
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Definition
| An investment that makes the investor a part owner of a company. |
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Definition
| The place where stocks are bought and sold. |
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Definition
| The idea that money today is worth more than the same amount of money in the future due to its potential earning capacity. |
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Term
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Definition
| The profit from an investment. |
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