Economics Part 4

Stocks

Two main types: common and preferred

Treasury bills

sold in denominations of $1,000 up to a maximum purchase of $5 million and commonly have maturities of one month (four weeks), three months (13 weeks) or six months (26 weeks).

Bond

used by companies, municipalities, states and sovereign governments to raise money and finance a variety of projects and activities

Common stock

usually entitles the owner to vote at shareholders' meetings and to receive dividends.

Mutual fund

An investment vehicle that is made up of a pool of funds collected from many investors for the purpose of investing in securities such as stocks, bonds, money market instruments and similar assets

Money market fund

An investment whose objective is to earn interest for shareholders while maintaining a net asset value (NAV) of $1 per share

Savings account

A deposit account held at a bank or other financial institution that provides principal security and a modest interest rate.

Futures

A financial contract obligating the buyer to purchase an asset (or the seller to sell an asset), such as a physical commodity or a financial instrument, at a predetermined future date and price.

Securities

A financial instrument that represents: an ownership position in a publicly-traded corporation (stock), a creditor relationship with governmental body or a corporation (bond), or rights to ownership as represented by an option

Certificate of deposit

A savings certificate entitling the bearer to receive interest

Stocks

A type of security that signifies ownership in a corporation and represents a claim on part of the corporation's assets and earnings.

Stocks

Also known as "shares" or "equity."

Bonds

Owners of _____ are debtholders, or creditors, of the issuer.

Certificate of deposite

bears a maturity date, a specified fixed interest rate and can be issued in any denomination

Money market fund

comprised of short-term (less than one year) securities representing high-quality, liquid debt and monetary instruments

Securities

fungible, negotiable financial instrument that represents some type of financial value

Preferred stock

generally does not have voting rights, but has a higher claim on assets and earnings than the common shares.

Bond

is a debt investment in which an investor loans money to an entity (typically corporate or governmental) which borrows the funds for a defined period of time at a variable or fixed interest rate.