vocab list for 5/17

Question 1

capital gains

Answer 1

the increase in the value of an asset relative to the price that was originally paid for it

Question 2

capital loss

Answer 2

the net amount of capital losses eligible to be carried forward into future tax years

Question 3

commission

Answer 3

compensation sales professionals receive for selling products and services and developing business relationships

Question 4

dividends

Answer 4

the distribution of corporate profits to qualified shareholders

Question 5

insider trading

Answer 5

trading in a public company’s stock by someone who has non-public, material information about the company

Question 6

IPO

Answer 6

the process of offering shares of a private corporation to the public in a new stock insurance for the first time

Question 7

IRA

Answer 7

indivudual retirement account

a retirement account that allows tax-deductible contributions and tax-deferred growth until retirement withdrawals

Question 8

market value

Answer 8

the price an asset fetches in the market

Question 9

mutual funds

Answer 9

a managed fund that pools money from shareholders to invest in securities

Question 10

stock exchange

Answer 10

a centralized location where investors can buy or sell various equities and bonds