financial markets Flashcards
bear market
steady drop in the stock market over a period of time
yield
annual rate of return on a bond-percent of growth on a stock
bull market
a steady rise in the stock market over a period of time
prospectus
information about an investment
capital gain
difference between a high selling price and a low purchase price
portfolio
collection of all your assets (net worth)
par value
the amount the investor pays to purchase a bond
financial asset
anything that has value
investment
earns more than the rate of inflation
equity
claims of ownership in anything
blue chip stock
top performing stock
stock split
a division of a single share of stock into more than one buisness
growth stock
pays few or no dividends, reinvest its earning into the buisess
tax sheltered
tax free
what are components of a bond?
coupon rate, maturity, par value, yield
