Investing Vocabmutual fund- an investment pool made up of different businesses in order to make money off stocks and bonds; usually used by new businesses in order to make money in a professional way.
pension fund
- a fund made by the employer for the employee's retirement fund; contributed by the employer.
hedge fund
- a manage portfolio of investments that uses investment strategies with the end goal of getting high returns.
mortgage
- a way of debt secured by the collateral real estate property that the borrower needs to pay back with a predetermined payment.
bond
- a debt investment where the investor loans the money through the goverment that borrows the funds for a period of time at a fixed interest rate.
treasury bill
- a short term debt obligation that's backed by the government for less than one year; they're sold in denominations of a thousand dollars and can be up to five million dollars.
savings bond
- a tax free certificate thats value increases over a set period of time.
PEG ratio
- price/earns to grow; a ratio used to determine a stocks value and growth.
P/E ratio
- a ratio of a share price compared to its per/share earns.
New York Stock Exchange (NYSE)
- a stock exchanged in NYC that is the largest exchange in the world.
portfolio diversification
- related to hedging; a wide variety of investments within a portfolio.
Dow Jones Industrial Average (DJIA)
- a stock market created by the Wall Street Journal.
S & P 500
- an index of the prices of 500 large stocks in the U.S.
stock
- entity that represents the original paid or invested into the business by its founders.
dividend
- payments made by a corporation by its members. yield
- the rate of a return based on what the holder earns on a financial instrument or security.
bond yield
- a bond with a lower credit rating then corporate bonds, treasury bonds and municipal bonds.
TTM
- the time frame of the past twelve months for finanical figures.
EPS
- earning per share; a poriton of a companys profit divided among the share of stocks.
FY
- fiscal year; a twelve month period that a company uses for accounting purposes.
foward P/E
- a measure of price/to/earnings ratio using furture earnings for the calcuation.
Limit order
- an order placed to buy or sell a number of shares a specified price. short selling
- the opposite of going long, short sellers make money if the stock goes down. buy to cover
- a buy order on a stock that closes out an exsisting short position.
long term
- holding a stock for the biggest potential profit.
buy and hold
- to buy a stock and hold them for a long period of time regardless of ups and downs in the market.
52 week high/low
- the highest and lowest price the stock was traded over a 52 weeks period.
market capitalization
- a total dollar value of a companys shares.
volume
- the total number of shares traded over the market over a period of time.
outstanding shares
- the total amount of shares out there.
pension fund
- a fund made by the employer for the employee's retirement fund; contributed by the employer.
hedge fund
- a manage portfolio of investments that uses investment strategies with the end goal of getting high returns.
mortgage
- a way of debt secured by the collateral real estate property that the borrower needs to pay back with a predetermined payment.
bond
- a debt investment where the investor loans the money through the goverment that borrows the funds for a period of time at a fixed interest rate.
treasury bill
- a short term debt obligation that's backed by the government for less than one year; they're sold in denominations of a thousand dollars and can be up to five million dollars.
savings bond
- a tax free certificate thats value increases over a set period of time.
PEG ratio
- price/earns to grow; a ratio used to determine a stocks value and growth.
P/E ratio
- a ratio of a share price compared to its per/share earns.
New York Stock Exchange (NYSE)
- a stock exchanged in NYC that is the largest exchange in the world.
portfolio diversification
- related to hedging; a wide variety of investments within a portfolio.
Dow Jones Industrial Average (DJIA)
- a stock market created by the Wall Street Journal.
S & P 500
- an index of the prices of 500 large stocks in the U.S.
stock
- entity that represents the original paid or invested into the business by its founders.
dividend
- payments made by a corporation by its members.
yield
- the rate of a return based on what the holder earns on a financial instrument or security.
bond yield
- a bond with a lower credit rating then corporate bonds, treasury bonds and municipal bonds.
TTM
- the time frame of the past twelve months for finanical figures.
EPS
- earning per share; a poriton of a companys profit divided among the share of stocks.
FY
- fiscal year; a twelve month period that a company uses for accounting purposes.
foward P/E
- a measure of price/to/earnings ratio using furture earnings for the calcuation.
Limit order
- an order placed to buy or sell a number of shares a specified price.
short selling
- the opposite of going long, short sellers make money if the stock goes down.
buy to cover
- a buy order on a stock that closes out an exsisting short position.
long term
- holding a stock for the biggest potential profit.
buy and hold
- to buy a stock and hold them for a long period of time regardless of ups and downs in the market.
52 week high/low
- the highest and lowest price the stock was traded over a 52 weeks period.
market capitalization
- a total dollar value of a companys shares.
volume
- the total number of shares traded over the market over a period of time.
outstanding shares
- the total amount of shares out there.
~Dani & Abby