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.