1. Stocks - A share of ownership of a company.
I bought 3000 stocks of Walmart yesterday so they give me special ownership privileges.
2. Bonds - A portion of money borrowed by the government that you can use withdraw down the road with added interest.
My grandma bought me a savings bond so that after I graduate i can use the money that has garnered interest to go to college on.
3. Dow Jones - A section of 30 stocks on the NYSE that give an idea of how the economy is doing.
When I looked on Yahoo Finance today the Dow Jones was down.
4. Equity - Ownership of an asset that is completely paid off.
My mom's house will become an Equity after she completely pays it off.
5. Dividends - a distribution of a portion of the companies earnings
My dads salary is part of a dividend of what his store makes because it belongs to a company.
6. Earnings - amount of profit that a company produces
Some companies have huge earnings of more then a billion dollars.
7. Private companies vs Public Companies - private not available to buy/public available to public purchase.
Walmart is a public company because you can buy stocks off of it while some of its competitors remain private.
8.Growth Stocks - shares of a company whose earnings are expected to grow above average
I believe that Nike is a growth stock because its projected 52 week range is supposed to rise.
9. Risk - In a return risk is the possibility that one might lose some or all of the investment
When I reviewed my stock portfolio the return lost quite a lot compared to the original investment it was a higher risk than i thought it would be.
10. Small Cap - Companies that have a market capitalization between 300$ million and 2$ billion.
Small Cap companies are at a higher risk of losing all its money.
11. Mid Cap - Companies that have a market capatalization between 2$ billion and 10$ billion.
I would prefer to invest in Mid Cap companies because I prefer safer investments.
12. Large Cap - companies that have a market capatalization of more than 10$ billion.
I believe Apple is a good large cap company because of the way they release technology.
13. Dow Jones- an average price of 30 stocks in the United States
When the Dow Jones is up, it helps our economy go up as well.
14. S & P 500- 500 large cap stocks that are commonly traded
Walmart is a part of the S&P 500
15. Russell 2000 - index measuring the performance of 2000 smallest companies
Small cap companies are part of the Russell 2000
16. Treasurery Bond- a bond with a fixed interest issued by the government
A treasurery bond is paid for all by the government.
17 Inflation - The rate at which the general level of prices for goods and services is rising, and, subsequently, purchasing power is falling
With the inflation of the market buying groceries is difficult.
18 Gross Demestic Product - The monetary value of all the finished goods and services produced within a country's borders in a specific time period
The GDP is a good inductor of knowing how the consumer and the producers are doing.
19 Infrastructure - The basic physical systems of a business or nation. Transportation, communication, sewage, water and electric systems are all examples of infrastructure
When the infrastucture of the US deteriorates it effects everyone in the country.
20 Currency - A generally accepted form of money, including coins and paper notes, which is issued by a government and circulated within an economy.
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