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| The practice of dividing the money a person invests between several different types of investments in order to lower risk |
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| The process of setting money aside to increase wealth over time for long-term financial goals such as retirement |
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| Account or arrangement in which a person puts his/her money for long-term growth; invested money should not be used for a suggested minimum of five years |
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| Quality of an asset that permits it to be converted quickly into cash without loss of value; availability of money |
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| A list of your investments |
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| Degree of uncertainty of return on an asset; in business, the likelihood of loss or reduced profit |
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| Relationship of substantial reward compared to the amount of risk taken |
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| Piece of ownership in a company, mutual fund or other investment |
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| Securities that represent part ownership or equity in a corporation |
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| Money that is invested, either tax deferred or tax free, within a retirement plan |
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| Money loaned to the government, corporations, or municipalities that pays the investor interest. Different types of bonds can be more or less risky, and bands can have high yields or low yields (interest rates). |
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| A time with generally rising stock prices. |
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| Stocks of companies that produce such staples as food, beverages, and pharmaceuticals, and insurance companies. These businesses may not grow enormously fast, but they should keep their value relatively constant. |
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| Stocks of companies that generally do not pay dividends or pay only very small dividends. These companies plow their profits back into growing the business. They can be new and entrepreneurial companies, and can experience high growth or financial failure. |
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| Stocks of very large companies such as Walmart, General Electric, and IBM, that have a market capitalization of between $10 billion and $200 billion. |
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| A collection of investments tailored to your investment risk tolerance and time horizon. Any plan only works as well as your ability to stick with it, including sometimes selling "winners" to keep your overall spread of investments to where you want it to be. |
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| Stocks of largely unknown companies with smaller market capitalization, that is, dollar value of total stock ownership. Small-cap stocks generally have a market capitalization of between $300 million and $2 billion. |
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