SAVING AND INVESTING
UNIT 2INTRODUCTION TO FINANCIAL MARKETS
VOCABULARY
Diversification—spreading out savings and investments over multiple categories
VOCABULARY
Dividend—are the distribution of a company's profit or earnings to the company's shareholders or
stockholders
VOCABULARY
Liquid—can be bought and sold easily
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Stock—an investment product that represents partial ownership of a compnay or corporation
VOCABULARY
Prospectus—the legal document describing the mutual fund
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The return—more moneyInvestors run the risk of losing their money when they
invest, but they stand to gain a return—more money—if the investment is profitable.
VOCABULARY
Securities—investment instruments such as stocks and bonds
VOCABULARY
Tax-exempt—taxes do not have to be paid
VOCABULARY
Appreciation—to increase
VOCABULARY
Mutual fund—invests the pooled money of its shareholders in various types of investments
VOCABULARY
Bond—means investors have loaned money to a company or a governmental entitiy
VOCABULARY
No-load—no sales commissionAn employee takes your order to buy or sell, or can
offer limited support.The investor is fully responsible for understanding the
investment.
Talking Points
Savings Accounts
How does it relate to future investing?
Talking points
Liquid
What does the use of the word liquid usually mean?
Talking Points
Risk Tolerance
Conservative vs high-risk
Talking Points
The greater the risk, the higher the rate of return.
Talking Points
Dividends
Who gets a dividend?
Talking Points
Municipal
What does the word municipal mean?
Talking Points
Management fee
What is this?