investing pt.2 Flashcards
convertible bond
bond that can be converted to shares of common stock
municipal bond
bond issued by state and local governments
debenture bond
based on the general credit worthiness of the company
junk bond
low rating or not at all
callable bond
bond that the issuer has the right to pay off before it maturity date
zero coupon bond
sold at a deep discount; makes no interest payments and is redeemable for its face value at maturity
revenue bond
a municipal bond issued to raise money for a public works project
growth fund
mutual fund whos investment goal is to buy stocks that’ll increase in value over time
income fund
fund’s goal is to produce current income in the form of interest or dividend
money market fund
invest in safe, liquid, securities and bonds that mature in less that a year
global fund
purchases international stocks and bonds as well as US securities
index fund
mutual fund that tries to match the performance of a particular index by investing in the companies included in that index
preferred stock
represents a type of stock that pays a fixed dividend but has no voting rights
income stock
they have consistent history pf paying high dividends
growth stock
stocks in corporations that reinvest their profits into the business so it’ll grow
emerging stock
young, often small corporations that have higher overall risk that stocks of companies that’ve been successful for many years
bluechip stock
large, well known corporations with a solid record of profitability
defensive stock
non cyclical stock is one that remains stable and pays dividends during an economic decline
cyclical stock
do well when the economy is stable or growing but often do poorly during recessions, when the economy slows down
