Vocabulary

1. Stocks: A share of ownership of a company.
- My mom's biggest dream has always been to own Walmart, so she bought a stock so now she does own part of it.

2. Bonds: A debt investment, where the investor loans money to a business or corporation that borrows funds and returns money with interest.
-My cousins business bought a bond in hope that the company would grow from it.

3. Dow Jones: A system of telling how the stock market is doing.
- My friend is really into the stock market, so she checks the Dow Jones frequently.

4. Equity: Ownership of an asset that is completely paid off.
- The old couple did not have home equity, but they later wish they had.

5. Dividends: A distribution of a portion of a company's earnings.
- When I buy my stock, I am getting a dividend from a certain company.

6. Earnings: The amount of profit a company produces.
- As treasurer of my fathers company, I have to take care of all the earnings.

7. Private companies vs. Public companies: Private companies do not sell their shares to more than 50 people, where as public companies share many shares.
- My moms small local company is a private company, so people can't buy shares of her company.

8. Growth stock: a stock of a corporation that has faster than average gains in earnings and is expected to continue to stay that way.
- My uncles corporation has a very fast growth stock.

9.Risk: The chance that an investments actual return will be different than expected.
-Susan didn’t want to take the risk of investing in a stock without doing much research on it.

10.Small Cap: A stock with a market capitalization less than $2 million.
-Jeffs company is not very big, so it’s considered a small cap company.

11.Mid Cap: A stock with a market capitalization between $2 million and $10 million.
-Once the company gets more popular it will probably become a big cap company, but for right now it’s only a mid cap company.

12.Large Cap: A stock with a market capitalization more than $10 million.
-Most companies that I invest in are large cap companies because they are very well known and sell a lot of products.

13. Dow Jones: an average price of 30 stocks in the U.S.
-today I saw the Dow Jones was up.

14.S and P 500: Commonly traded large cap stocks.
-I noticed that most companies are go to are a part of the S and P 500.

15.Russel 2000: An index measuring the performance of 2000 of the smallest companies.
-Many popular new companies are probably part of the russel 2000.

16.Treasury Bond: A bond with a fixed interest that is issued by the government.
-my grandma owns many treasury bonds that she has had since she was very young.

17.Inflation: The rising and falling of prices.
-the inflation in the stock market fluctuates a lot these days.

18.Gross domestic product: The money value of all the finished goods and Services produced within a countries Borders in a specific time period.
-The U.S. has a higher gross domestic product this year than they have had in the past couple of years.

19.Currency: Money.
-most people aren't making the amount of currency they want to.

20.Infrastructure: the basic physical systems of a business or nation.
-our infrastructure isn't doing too well right now, but it should get better soon.

21.Economy: The large set of related economic production and consumption Activities which aid in Determining how recourses are used.
-our economy is in a giant hole right now, but we are working our way out.

22.Economic System: the system of production, consumption, and distribution.
-we need to work on making our economic system a little bit better.

23. Supply and demand: higher demand means the prices of things will go up, as demand goes down, so does the prices on things.
-supply and demand in water is a lot higher in places in south Africa than it is here in America.

24.interest: The amount of extra money being charged while you pay something off.
-sometimes I think the interest I am paying n my house is much more than my house it's self is actually worth.

25.Assets: Anything you are Able to sell that is beneficial to you.
-The brackets that the bead shop produces is their main asset.

26.Accounts payable:Short term debt payments.
-I used my birthday money for my accounts payable to pay off my loan.

27.Accounts receivable: Money owed to you.
-Myparents owe me my accounts receivable for when I payed for their new car.

28.Amortize: installment payment.
-When I amortize my loan, the money Equals out better, and I Saw a better layout of it.

29.Economic index: data on a macroeconomic scale used to interpret current or future investment possibilities.
-the economic index is very helpful when imlooking to buy stocks.

30.Deperciation: When the value of something gets less over time.
-the Deperciation of linen has gone down a lot over the years.

31.Gross margin: Profits divided by net sales.
-By selling my ring for more than Gross margin I will have less of a chance of someone actually buying it.

32.Earnings per share:Portion of a companies profit of outstanding share of their common stocks.
-the earning per share of my favorite company is higher now than it ever has been before.

33.Liabilities: financial obligations or debts.

34.Overhead Expense: Income not directly related to goods or services.

35.Owners equity:A stock or any other security representing an ownership interest.

36. Production Cost: The cost of producing a good or providing a service.

37.Working capital:A measure of both a company's efficiency and it's short term financial health.

38.loan: money given to someone for a short period of time until it is paid back.

39.Loss leader: Offering a good or service that is not profitable, so they can offer another product or service For a greater profit to attract customers.

40.Scarcity: Economic wants,Unlimted wants and only limited resources.

41.Opportuity costs: The cost of an alternative in order to Pursue a certain action.

42.Explicit costs: Obvious cash flow outs.

43.Implicit costs: Costs that aren't easily accounted for.

44.Price: how much something costs.

45.Realitive price: The Realitive amount that something costs.

46.Incentives: A fee investors Pay to a fund manager.

47.Profit: the amount of money made off of a product.

48.Loss: When expensives exceed the overall income.

49.Equilibrium: When supply and demand Balance each other and the Price becomes equal.

50.Surplus: When there's too much Product than needed.

51.Shortage: The demand for product.

52.Minimum wage: The minimum amount of money An employee must receive for labor.

53.Price floor: The lowest price the government will allow an item to be sold for.

54.Bear market: A market condition where the Prices of securities are falling.

55.Bull market: Where the prices of securities are rising.

56.Boom: When the sales Of a product rapidly increases.

57.Bill of exchange: A non interest written order Used in international trade That binds one party to pay A fixed sum of money To another party At a predetermined future date.

58.Budget deficit: A financial Situation When an entity has more money going out than coming in.

59. Capital: Financial assets.

60.Sort cover: Buyng securities in order to Close an open short position.