Stocks, bonds, mutual funds, ETFs, index funds, diversification, and risk and return.
39 cards · basic cards · AI-written, checked twice. Edit anything.
- What does it mean to own a stock?
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You own a small piece of the company and have a claim on its assets and earnings.- What is a share?
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One unit of ownership in a company.- What are dividends?
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Payments companies distribute to shareholders from their profits.- What is an IPO?
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Initial Public Offering, the first time a company sells shares to the public.- What is the stock market?
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A system where stocks are bought and sold between investors.- What causes a stock price to change?
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Supply and demand from buyers and sellers, plus how well the company is performing.- What is capital gains?
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Profit made by selling an investment for more than you originally paid for it.- How can you lose money in a stock?
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If the stock price falls below what you paid for it, you have a capital loss.- What is a bond?
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A loan to a company or government, where they promise to pay you back with interest.- What is a coupon payment?
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Regular interest payments made by a bond issuer to bondholders.- What happens when a bond reaches maturity?
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The issuer repays the bondholder the full principal amount borrowed.- What is the relationship between bond prices and interest rates?
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When interest rates rise, existing bond prices fall, and vice versa.- What is a Treasury bond?
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A bond issued by the U.S. government to borrow money from investors.- What is credit risk in bonds?
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The risk that the issuer will not repay the loan.- What are bond ratings?
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Letter grades that indicate how likely a bond issuer is to repay its debt.
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