Investment Vocabulary

Chance that investment's actual return will be less; or loss of some or all of the investment

A stock that pays a high dividend; typically blue chip; have stable earnings & a solid outlook

CPI stands for

stocks of well-established companies that are known for their long-standing track records

A group of companies that produce or sell the same kind of product or service

resources used to produce goods and services is called .......

A reverse movement, usually negative, of at least 10% in a stock, bond, commodity or index.

an independent legal entity owned by shareholders

The _________ consists of the income and the capital gains relative to an investment

When a company pays part of its profits to its shareholders, this is called a ...

Holding an asset for an extended period of time

Investors should do this to help reduce risk by investing in several different types securities

Holding an asset for short period of time, generally less than one year

This allows smaller investors to participate in the stock market

What does this market graph depict?

A regular payment to a shareholder from a company's profit.

A decline in Real Gross Domestic Product (GDP) for a period of at least six months

What does this graph represent?

Shares of company whose earnings & price are expected to increase at an above-average rate

A stock whose price is affected by ups and downs in the overall economy.

all the investments held by a person or organization

Stock that holds up during a down market; a staple of our economy

This refers to the interest or dividends received from a security

A price weighted stock index that is made up of 30 significant stocks

I agree with Dave Ramsey, in that the type of investment an individual should have is: