Everfi Module 10 Investing/Saving Explained
1. Risk and Return: The higher the risk, the higher the potential
return of any money you invest. The lower the risk, the lower the
potential return.
2. Rate of Return: The ration of the money you gain on an
investment in relation to the amount of money that was invested.
3. Bonds: Basically a loan, except you're the lender.
4. Security: A term referring to a category of investments.
5. Stocks: A share of ownership in a company
6. Appreciation in Value: An investment that appreciates and
gets more valuable over time, like a savings account.
7. Capital Gain: The amount of money you gain from an
investment.
8. Mutual Funds: A collection of investments that you can buy as a
single package, rather than purchasing individual stocks, bonds,
and other investments yourself.
9. NASDAQ: Stands for the National Association of Securities
Dealers Automated
Quotations.
, 10. NYSE: The largest stock exchange in the world in terms of
amount of money traded.
11. Stockbroker: An individual who has a license to buy and sell
stocks and other investments on one or more stock exchanges.
12. Stock Market Indices: How the performance of the stock
market is measured.
13. DOW Jones Industrial: Represents the performance of 30 of
the largest companies in the United States.
1. 401k: defined contribution retirement account that is taken out of
your paycheck before you pay any taxes on this income. you dont
pay taxes on this money until you start withdrawing money.
2. Cerificate of Deposit (CD): an account that pays interest on a
sum of money that a person has deposited. Usually needs to be
left in the cd for a certain length of time before you can withdraw, if
one does withdraw earlier they must pay a fine
3. Compound Interest: interest paid periodically and paid on the
principal plus interest earned
4. Defined Contribution Plan: a retirement plan in which the
employee and/or employer set aside money into an account for
the employee
1. Risk and Return: The higher the risk, the higher the potential
return of any money you invest. The lower the risk, the lower the
potential return.
2. Rate of Return: The ration of the money you gain on an
investment in relation to the amount of money that was invested.
3. Bonds: Basically a loan, except you're the lender.
4. Security: A term referring to a category of investments.
5. Stocks: A share of ownership in a company
6. Appreciation in Value: An investment that appreciates and
gets more valuable over time, like a savings account.
7. Capital Gain: The amount of money you gain from an
investment.
8. Mutual Funds: A collection of investments that you can buy as a
single package, rather than purchasing individual stocks, bonds,
and other investments yourself.
9. NASDAQ: Stands for the National Association of Securities
Dealers Automated
Quotations.
, 10. NYSE: The largest stock exchange in the world in terms of
amount of money traded.
11. Stockbroker: An individual who has a license to buy and sell
stocks and other investments on one or more stock exchanges.
12. Stock Market Indices: How the performance of the stock
market is measured.
13. DOW Jones Industrial: Represents the performance of 30 of
the largest companies in the United States.
1. 401k: defined contribution retirement account that is taken out of
your paycheck before you pay any taxes on this income. you dont
pay taxes on this money until you start withdrawing money.
2. Cerificate of Deposit (CD): an account that pays interest on a
sum of money that a person has deposited. Usually needs to be
left in the cd for a certain length of time before you can withdraw, if
one does withdraw earlier they must pay a fine
3. Compound Interest: interest paid periodically and paid on the
principal plus interest earned
4. Defined Contribution Plan: a retirement plan in which the
employee and/or employer set aside money into an account for
the employee
