1 / 50

Investment Vocabulary

Investment Vocabulary. Appreciation . An increase in the basic value of an investment. Depreciation . A decrease in the basic value of an investment. Bear Market. A market characterized by generally falling prices over a period of several months or years. Blue Chip .

lida
Télécharger la présentation

Investment Vocabulary

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Investment Vocabulary

  2. Appreciation • An increase in the basic value of an investment

  3. Depreciation • A decrease in the basic value of an investment

  4. Bear Market • A market characterized by generally falling prices over a period of several months or years

  5. Blue Chip • Common stock of a company known nationally for the quality of it’s products and it’s profitability

  6. Bond • Certificate representing a loan of money to a corporation or government for a specific period, in exchange for a promise to repay the bondholder the amount borrowed plus interest.

  7. Broker • A representative who handles transactions related to investor’s order to buy and sell securities.

  8. Bull Market • A market characterized by generally rising prices over a period of several months or years.

  9. Capital Gain • The gain obtained when a security is sold for more than the purchase price.

  10. Capital Loss • The loss incurred when a security is sold for less than it’s purchase price.

  11. Caveat Emtpor • Latin Phrase meaning, “Let the buyer beware”

  12. CFP • Certified Financial Planner • An individual who has completed the education requirements of the International Board of Certified Financial Planners

  13. CFTC • Commodity Futures Trading Commission • The federal regulatory agency that monitors the futures and options market

  14. Commission • A broker’s or adviser’s fee charged for buying or selling securities for an investor.

  15. Common Stock • The most basic form of corporation ownership. Owners of common stock have a claim on the assets of a company after those of preferred stockholders and bondholders.

  16. Compound Interest • Interest earned on interest that is added to the principal.

  17. Discount • Sale of a bond at a price less than face value

  18. Diversification • Spreading investment funds among different types of investments and industries

  19. Dividend • Payment received by stockholders from the earnings of a corporation

  20. DJIA • Dow Jones Industrial Average • Price-weighted average of actively traded stocks

  21. Face Value • The amount the bond is worth when it matures.

  22. FDIC • Federal Deposit Insurance Corporation • An agency of the federal government created to guarantee bank deposits

  23. Financial Planner • A person who advises others about financial issues. This person may need to be registered as an investment adviser if he/she provides investment advice for a fee.

  24. Futures Contract • A legal commitment to buy or sell a commodity at a specific future date and price.

  25. Hedging • The process of protecting an investment against price increases.

  26. Inflation Risk • The risk that the financial return on an investment will lose purchasing power due to a general rise in prices of goods and services.

  27. Insider Trading • The illegal use of investment information not generally known to the public.

  28. Interest • For the investor, interest is the payment received from a financial institution for lending money to it.

  29. IRA • Individual Retirement Account • A tax-defrred savings account

  30. Liquidity • The ease with which an investment can be converted into cash.

  31. Load Fund • A mutual fund purchased directly by the public that charges a sales commission when bought.

  32. Market Risk • The risk that the price of stocks, real estate, or other investments will go down due to business cycles or other causes.

  33. Mutual Fund • A company that invests the pooled money of its shareholders in various types of investments.

  34. NASAA • North American Securities Administrators Association • An organization of securities administrators charged with enforcing securities laws and protecting investors from fraudulent investments.

  35. No Load Fund • A mutual fund purchased directly by the public and does not have a charge for buying.

  36. Odd Lot • A unit of less than 100 shares of stock

  37. P/E Ratio • The price of a stock divided by per share earnings for a 12 month period

  38. Penny Stocks • High risk stocks that generally sell for less than $3 and are not listed and traded on any exchange or stock market. • (Con Artists often deal in Penny Stock frauds)

  39. Ponzi Scheme • An illegal investment scam named for its inventor, Charles Ponzi.

  40. Portfolio • The total investments held by an individual

  41. Preferred Stock • Ownership in a corporation that has a claim on assets and earnings of a company before those of common stockholders but after bondholders.

  42. ROI • Return on Investment • A performance measure used to evaluate the efficiency of an investment or to compare the efficiency of a number of different investments. To calculate ROI, the benefit (return) of an investment is divided by the cost of the investment; the result is expressed as a percentage or a ratio.

  43. Risk • In an investment, the uncertainty that you will get an expected return. • In insurance, the uncertainty whether a loss will occur.

  44. Risk Tolerance • A person’s capacity to endure market price swings in an investment. • Risk tolerance is an important component in investing. An individual should have a realistic understanding of his or her ability and willingness to stomach large swings in the value of his or her investments.

  45. Round Lot • 100 Shares of one stock

  46. Securities • A broad range of investments instruments, including stocks, bonds, and mutual funds.

  47. SEC • Securities and Exchange Commission • A federal agency established to license brokerage firms and regulate the securities industry.

  48. Stock • An investment that represents ownership of a company

  49. Tax Exempt Investments • Investments not subject to tax on income earned.

  50. Time Value of Money • An increase in the amount of money over time as a result of investment earnings.

More Related