Intro to Investing & Exponential Functions Flashcards
Saving
For saving for a purchase, making an emergency fund, and shorter term goals
Investing
For longer term financial success like accumulating wealth and saving for retirement
Bull Market
When stock market is rising and the economy is booming
Bear Market
A decline in market and decrease in economy
Stocks
- represents partial ownership in a company
- aka shares with companies
- value depends on company performance, trends, etc
examples include any company like Apple
Stock Market
- the collection of exchanges and markets where stocks are bought and sold
- where buyers and sellers trade stocks
Examples: New York Stock Exchange and Nasdaq
Bonds
- a loan to the government or a company
- in return, they promise to pay you back with interest, after a certain time
Ex: Municipal Bond: Issued by state or local govs for public projects
Bond Fund
- a basket where many people pool their money to buy bonds
- buying a small piece of many different bonds
Bond Coupon
Annual interest rate paid on a bond
Dividends
- cash payment that a company gives you for owning their stock
- taken advantage of by using a DRIP (dividend reinvestment plan) it can help us share stock which can compound earnings
- long term investment strategies
Return on Investment
- Relationship between how much spent on investment and how much you get back from that investment
- Also called percent growth
International Stock
Stocks from abroad and operates globally
ex: Nestle, an multinational company that operates globally
High Yield Bond
- Risky bonds, like junk bonds
- often issued by startups or struggling businesses
- low credit score
Cash
Cash or equivalents like Treasury bills backed by the federal government
Large Cap
- Largest US companies,
- market cap over $10 billion
ex: Apple
