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The amount you earn as profit from your investment based on your deposited amount, usually expressed as a percentage
Penalty
Interest Rate
Emergency Fund
Index
Money set aside for unanticipated expenses or loss of income
Mutual Fund
T-Note
Index Fund
Emergency Fund
A fee you’ll be charged for withdrawing money before a CD’s maturity date
Index
Interest
Risk
Penalty
The time period an investment is intended to last
Maturity Date
Term
Interest
Diversification
A market where shares in corporations are bought and sold through an organized system.
Portfolio
Index
Stock Market
CD
A share of the value of a company, which can be bought, sold or traded as an investment and which gives the investor partial ownership of the company
CD
Mutual Fund
T-Note
Stock
A collection of stocks and/or bonds combined into one fund, which will be traded as a unit, typically chosen and actively managed by an expert in exchange for a fee from each investor.
Stock
Bond
T-Note
Mutual Fund
A sudden and extreme downturn in stock performance/value
Index
Crash
Penalty
Risk
A bond, generally considered to be a risk-free investment, issued by the U.S. Treasury, with a maturity of more than 10 years.
T-Note
Mutual Fund
Emergency Fund
CD
A bond, often having tax advantages for individual investors, issued by a state or local government, typically uses the loan to pay for public works to benefit its citizens.
Index Fund
Commodity
Municipal Bond
Emergency Fund
Semiannually means
Once a year
Every other year
Twice a year
Four times a year
The act of investing in a large variety of stocks, bonds and/or alternative investments, like gold or real estate, as a way to reduce your overall risk.
Dividends
Mutual Fund Investing
Portfolio
Diversification
The overall collection of investments held by a person.
Fund
Portfolio
Savings Account
Certificate of Deposit
A security in which the investor loans money to a company or government, then pays regular interest to the bondholder and returns the principal on the bond’s maturity date
Index Fund
Dividend
Bond
T-Note
A payment made by a publicly traded corporation to its shareholders
Dividend
Index
Commodity
T-Note
A mutual fund that invests in the stocks that are the basis of a well-known stock or bond index
T-Note
CD
Index Fund
Commodity
A raw material or primary agricultural product that can be bought and sold, such as copper or coffee
CD
Dividend
Commodity
Bond
Degree of uncertainty on how likely the investor is to make money on an investment
Index
Risk
Maturity
Penalty
A certificate issued by a bank to a person depositing money for a specified length of time.
Mutual Fund
Index
Bond
Certificate of Deposit (CD)
There are no consequences for withdrawing money from a CD before the maturity date
True
False
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