Return on Investment (ROI)
Bond
a forms of debt that corporations and governments issue to borrow money from the public
dividend
a portion of a corporations profits that is distributed to shareholders
mutual fund
a professionally managed investment fund that pools the money of many individual investors to purchase large blocks of stock or other securities
Return on Investment (ROI)
a profitability ratio used to evaluate an investment; calculated by dividing the return on the investments (income from investment) by the cost of the investment
securities
a public market for buying and selling stocks and bonds
diversification
a risk management technique allocating investment dollars amo9unt a variety of investments
common stock
a share of stock which represents ownership in a corporation but doesn't pay a regular divident
Brokerage Account
an account held by an investor with a licensed brokerage firm which allows the investor to buy and sell securities and other investments
debenture
an unsecured bond
capital gain
in increase in the value of an asset; profit resulting from the sale of an asset
equity security
shares of stock in a corporation
preferred stock
stock that pays a regular dividend
debt security
a tradable financial instrument in the form of a bond
portfolio
an investor's collection of investments
cash flow
difference between what is collected
Asset Class
A grouping of similar type of investments
income stream
a flow of money generated by a business or an asset
Real Estate Invesment Trust (REIT)
a company or fund that pools investors money and invests in income producing real estate