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The Meaning Of Some Financial Words
Bull Market – Describes the stock market when stock prices have increased (up) for an extended period of time.
Bear Market – Describes the stock market during a period of prolonged decline (down), specifically a period in which stock values decrease at least twenty percent or more.
Market Timing – An investment strategy (plan) used by people trying to outsmart the stock market. They try to anticipate trends by buying when they think the market is on the verge of advancing and selling before they expect a market downturn.
Stock – a share of ownership in a corporation.
Shareholder – A person who owns shares of stock in a company.
Dividend – A company’s distribution of earnings (profits) to investors who own stock or mutual fund shares.
Bond(s) – An evidence of debt on which the issuer promises to pay the bondholders a specified amount of interest and to repay the principal at maturity. Bonds are usually in multiples of $1,000.
Mutual Fund – An investment that pools money from many people and invests in a portfolio of stocks, bonds, or cash. A mutual fund offers investors the advantages of diversification and professional management. One mutual fund will often invest in about one hundred different companies.
Portfolio – All investments owned by an investor at one specific time.
Yield – Income (profit) received from an investment, usually expressed as a percentage of the market price of security.
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