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investment
vocab
13
Finance
10th Grade
05/06/2013

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Term
return
Definition
income that an investment produces
Term
volatility
Definition
the degree to which an investment's return or value change
Term
risk
Definition
the possibility of variation in the return on your investment
Term
diversification
Definition
a strategy of making a variety of investments in order to reduce your exposure to risk
Term
portfolio
Definition
collection of investments
Term
investment club
Definition
a group of people who meet regularly to learn about investing and to make investments together
Term
pension plan
Definition
any retiremant plan offered to a company's employees
Term
401(k) plan
Definition
a type of defined-contribution pension plan to which the employee contributes on a pretax basis
Term
IRA (individual retirement account)
Definition
personal savings plan that enables workers and their spouses to set aside money for retirement
Term
roth IRA
Definition
an ira in which contributions are not taxdeductible however earnings accumulate tax free
Term
keogh plan
Definition
a federally approved defined contribution tax deferred retirement plan designed specifically for self employed people
Term
stock
Definition
ownership interest in the corporation
Term
shares
Definition
individual units of ownership available for purchase
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