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Investment Terms |
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Blue Chip |
a company that is well-known with a history of growth and profits His parents invested in blue chip stocks for his college fund. |
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Bonds |
long-term debt securities issued by corporations and governments usually paying interest on a regular basis The city issued bonds to raise money for a new housing project. |
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Brokerage |
firms licensed by the Securities and Exchange Commission (SEC) to buy and sell securities for clients and for their own accounts He went to a brokerage to purchase shares of stock. |
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Certificates of Deposit |
an interesting-earning investment issued by a bank with a fixed amount and term My bank offered a high interest 5-year certificate of deposit. |
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Commission |
a fee charged by a broker to buy or sell shares of stock The broker made a large commission on the sale of the new technology stock. |
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Diversification |
a strategy of investing in several types of investments in order to maximize profit and reduce risk of loss Her investment portfolio held securities in many different types of industries in order to achieve diversification. |
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Dividend |
payment that stockholders receive from a company's profit The healthcare stock that she owned paid a quarterly dividend. |
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Invest |
use money to make more money Some people invest in art along with stocks and bonds. |
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Liquidity |
easily sold or converted into cash Stocks traded on the New York Stock Exchange have a high liquidity. |
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Maturity |
the date that a security is due and the initial investment plus any remaining interest owed is repaid The maturity date for her bond is April 1, 2014. |
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Mutual Fund |
an investment that is made up of several securities managed by a professional He chose to invest in a mutual fund because he wanted the expertise that a fund manager provides. |
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Securities |
all types of investments such as stocks, bonds, funds, etc. The Securities and Exchange Commission regulates investment securities. |
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Stocks |
shares of ownership in a company Some stocks pay dividends several times a year. |
