Unit 2 vocabulary
Passbook Savings: Low interest savings account very liquid and safe if insured.
Certificate of Deposit: A savings account that gives you a fixed rate of
return higher than a passbook savings, but you must remain locked in for a fixed period of time.
Money Market: Insured deposits with limited number of checks and withdrawals allowing bank to use your money as a short term loan.
Pension and Retirement Funds: Tax deferred retirement accounts
401(k) 403 (b) IRA’s
Corporate Stock: Ownership in this type of security allows you a voice in corporate decision
making by voting.
Corporate Bonds: You are not buying into a company you are lending
them money, you can receive dividends.
Mutual Funds: Diversifies
your stock investments with some possible fees and expenses
U.S. Savings Bonds: Loans to the U.S. Government
Bonds:
Loans in which interest is paid at intervals, the principal is paid at end of loan period.
Bond Ratings: The high the rating AAA the lower the interest rate and risk.
Common Stocks: Ownership in this type of security allows you a voice in corporate decision
making by voting.
Preferred Stocks: Non voting ownership in a company and preference when paying dividends or if corp. goes bankrupt.
NYSE
AMEX
NASDAQ
OTC