Bull Market
Market that trends upward
Bear Market
market that trends downwards
Stock
owning a small portion of a company
Primary Market
initial place where a new stock is traded (IPO)
Secondary Market
where stocks and investments are traded daily
Bond Market
The market of buying and selling bonds
Housing Market
The buying and selling place of real estate
Forex Market
marketplace to buy and sell foreign currency
Crypto Market
Digital currency on the blockchain
Growth Stock
stock invested in for increasing value
Defensive Stock
stock that is low risk to drop
Dividend
a percentage of money you get back typically quarterly
P/E Ratio
price to earnings ratio; stock valuation method; market share price divided by earnings per share
EPS
Earnings per share; how much a company makes for each share of its stock
Market Cap
the total value of a company
Limit
set price that your stock should be sold when
Liquidity
how easy something is to be turned into cash
ROI
Return on Investment. How much money you made from your initial investment
NYSE
The most popular marketplace for trading stocks
Over-the-Counter Market
stock exchange but less regulated
NASDAQ
stock exchange, the most active stock exchange in the world
Investor Lifecycle
the types of investments someone should make depending on their life stage (age, risk tolerance, health)
Mutual Fund
basket of investments run by a person
Bond Yield
the change in price of a bond
Maturity Date
The date your bond will be sent back to you
Face Value
The value the bond holder will receive at maturity date
Fixed income
income that comes in at a consistent rate
Municipal Bond
a type of debt security issued by local, county, and state governments
Benchmark
the comparison of your stock to the S&P 500
Money Market Fund
a mutual fund that invests in low-risk, short-term debt instruments such as U.S. Treasuries, commercial paper, and certificates of deposit
coupon rate
rate of interest paid back on bond
Bond
a loan from an investor to a borrower such as a company or government
Liabilities
things that cause you to lose money
Expense Ratio
extra money you have to put in on an investment
Net Asset Value
the company's total assets minus its total liabilities.
Tertiary Market
where you trade small companies like penny stocks
Mortgage
an agreement between a lender and a borrower that gives the lender a right to take away your purchase if you don't pay it off. Also charge interest
Down Payment
the percentage you pay on your house initially to buy the property
Fixed Rate Mortgage
mortgage rate that lasts the entirety of the loan until refinanced
Adjustable rate mortgage
Lower initial mortgage rate then after 5 years it adjusts to the current rate
Credit Score
a measurement of how reliable you are at paying off your loans
Realtor fees
5-6% commission on house (typically split by buyer and seller)
Closing costs
fees paid to the lender to transfer the title or ownsership
Home equity
portion of the home you actually own as you pay your monthly mortgage, you build equity
REIT
a publically traded company that owns, operates and finances income properties
Collateral
getting a loan and invest that money. (risky)
HELOC
essentially a credit card using your house
cryptocurrency
digital currency in which transactions are verified and records maintained by a decentralized system using cryptography(secure code), rather than by a centralized authority
Blockchain
a shared, immutable ledger that facilitates the process of recording transactions and tracling assets in a business network
Crypto Mining
to validate the info contained in blocks, essentially miners are getting paid for their works as auditors
fiat currency
value is not backed by anything