investing2010 - home

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 &amp; 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 &amp; Abby