Investing

Initial Public Offering (IPO)

a company's first sale of stock to the public

Capital Loss

a loss of money that occurs when the selling price of an investment is less than the purchase price

Risk

a measure of the likelihood that something will be lost

Dividend

a portion of company earnings paid to shareholders

Capital Gain

income that results from selling an asset for more than the purchase price

appreciation

increase in the value of an investment

Inflation

overall rise in prices

Investing

purchasing a financial product or valuable item with the goal of increasing wealth over time in spite of possible loss

Stock

share in the ownership of a corporation

investment portfolio

Collection of the investments a person has made.

Level of Risk

Degree to which an investment may deviate from its rate of return.

Bull Market

Extended period of rising stock prices, which comes with high consumer confidence and optimism

Bear Market

Extended period of uncertainty and pessimism when stock prices fall

Dividend Reinvestment Plan (DRIP)

Allows investors to reinvest cash dividends by purchasing additional shares of stock.

Rate of Return

Amount earned on an investment for a given period of time.

Yield

Amount of money earned on the investment, usually expressed as an annual percentage

Risk Tolerance

Amount of uncertainty a person is willing to handle.

personal investment plan

Outlines how to develop investment growth

Market Value

Price at which something can be bought or sold at a given point in time.

Volatility

Quick and unexpected changes in value or price.