A company-sponsored retirement account to which employees can contribute income directly into an investment account. The employer may match a part of all of that contribution.

A market where the prices of stocks fall which encourages investors to sell.

A market in which share prices are rising, encouraging buying.

A security in which the investor loans money to a company or government, which then pays regular interest to the investor and returns the principle on the maturity date.

The measurement or grading given to a bond. This indicates the bond's creditworthiness, which is the likelihood that the bondholder will be paid back.

Tax on the profit from the sale of an asset.

Occurs when you sell an asset for more than what you originally paid for it (profit).  Almost any type of asset you own is considered a capital asset.

Earning interest on the interest plus the principle invested.

The annual interest rate paid on a bond is expressed as a percentage of the face value and paid from the issue date until maturity. 

The practice of investing in a large variety of stocks, bonds, and/or funds as a way to reduce your overall risk.

When your employer contributes money to your 401(k) account to reflect the contributions you've made out of your compensation.

A sum of money paid regularly (typically quarterly) by a company to its shareholders out of its profits.

A portfolio of stocks or bonds designed to mimic the composition and performance of a financial market index. These funds have lower expenses and fees than actively managed funds because the human element of investing is removed; no one is choosing the individual stocks. They are designed to follow certain preset rules.

An account is set up at a financial institution that allows an individual to save for retirement.

Rate of increase in prices over a given period of time decreasing the purchasing value of money.

The process of setting money aside to increase wealth over time for long-term financial goals such as retirement.

A bond issued by state or local governments is typically used for local public works that benefit its citizens. Examples: highways, bridges, schools, etc.

Lets you pool your money with other investors to "mutually" buy stocks, bonds, and other investments. They're run by professional money managers who earn a fee from each investor in the group.

The second-largest stock exchange in the world behind the NYSE, the National Association of Securities Dealers Automated Quotations, a computerized system for trading securities.

The world's largest stock exchange.

A retirement account, offered in some job sectors or companies, that an employer maintains to give an employee a fixed payout at retirement.

The ratio of money gained or lost on an investment relative to the amount of money invested; also known as return on investment (ROI)

degree of uncertainty on how likely the investor is to make money on an investment

An online wealth management service that provides automated, algorithm-based portfolio management advice without the use of human financial planners.

An individual retirement account that allows a person to set aside after-tax income up to a specified amount each year & will not be taxed when they withdraw for retirement.

A tradable financial asset, such as a stock or bond, that can be bought or sold in a financial market.

A stock market index that tracks 500 publicly traded domestic companies; used to represent the entire market.

A federal program that provides monthly benefits to millions of Americans, including retirees, military families, surviving families of deceased workers, and disabled individuals. Included in the FICA taxes that are withdrawn from your gross pay on your paycheck.

A share of the value of a company, which can be bought, sold, or traded as an investment and which gives the investor a small piece of ownership of the company.

A market where shares in corporations are bought and sold through an organized system.

A bond, generally considered to be a risk-free investment, issued by the US Treasury with a maturity of more than 10 years.

An individual retirement account that allows a person to set aside pre-tax income up to a specified amount each year, and will be taxed when you begin withdrawing it.

An object such as a piece of art that has high value due to its age and/or craftmanship.

Nickname of the NYSE.

Stocks of a reputable company that is well-established in the market in terms of stable earnings and growing dividends.

A group of investors that invests in bonds. Allow for better investing due to a financial manager and a greater diversification of investments.

The initial amount of a bond that the issuer of a bond gives out to the lender.

A person who buys or sells orders for an investor.

Loss made from the sale of an investment.

An item that has high value due to its rarity and demand.

A portfolio that has various investments with different characteristics - ex: stocks & bonds

means don't invest all of your money in one type of investment

An index of figures that indicate the price of shares on the NYSE.

general term for shares of a company

the dollar value of a security stated by the issuer (business selling the security)

a professional who gives financial services to individuals; can be financial advisers, planners, or brokers

largest non-governmental regulator for all securities firms

A stock of a corporation that has higher-than-average gains and is expected to continue to do so

income from investments rather than work

A bond with interest and principle payments insured by a third party

a collection of financial assets such as stocks and bonds

stocks that give the shareholder a fixed dividend and take priority over common stock holders

A market that issues new securities on an exchange

The degree of change (mostly in losses) investment return that an individual is willing to withstand.

a market where investors purchase securities from other investors, rather than from the issuing company themselves.

Federal agency that regulates the securities within the market and protects investors.

generally short-term investments that involves high risk of loss

a person who trades securities and assets at a higher-than-average risk in return for higher than average profit potential

A fund that invests in stocks.

Same thing as a shareholder - owner of a piece of stock

A short-dated government security, yielding no interest but issued at a discount on its redemption price.

A measure of the variation of the price of a financial asset or security over time.

Doubles over its lifetime - bond issued by the Treasury Dept.

protects you from inflation. With this bond, you earn a fixed rate of interest and a variable rate of interest that changes with inflation.

Letters used to identify listed companies on the securities exchange