3. 401k
• A defined contribution plan offered by a
corporation to its employees, which allows
employees to set aside tax-deferred
income for retirement purposes, and in
some cases employers will match their
contribution dollar-for-dollar.
4. IRA
• Individual Retirement Account: represents
a retirement account, usually offering
various tax advantages and benefits in view
of retirement savings
6. Mutual Fund
• Collects money from a number of investors
and then invests them in money market
instruments that are short term, stocks,
bonds, and other securities types.
7. Bond
• The bonds are a form of debt security in which
the issuer owes a debt to the bondholders. The
issuing institution will repay the principal at a
fixed date, named maturity date. Depending on
the term of the bond, we can differentiate
between three categories of bond maturities. Bills
will have maturities up to one calendar year.
Notes will have maturities in the range of one to
ten years. The maturity of bonds will exceed ten
years.
8. NY Stock Exchange
• The largest Stock Exchange in the world is
the New York Stock Exchange, located at
Wall Street in Manhattan, NY.
9.
10.
11. NASDAQ
• A computerized system that facilitates
trading and provides price quotations on
more than 5,000 of the more actively
traded over the counter stocks. Created in
1971, the Nasdaq was the world's first
electronic stock market.
12.
13. Dow Jones
• Dow Jones Industrial Average
• An index based on the share value of the
top 30 blue-chip stocks listed on NYSE (New
York Stock Exchange).
14. S&P 500
• An index of 500 stocks chosen for market
size, liquidity and industry grouping, among
other factors. The S&P 500 is designed to
be a leading indicator of U.S. equities and is
meant to reflect the risk/return
characteristics of the large cap universe.
15. beta
• A measure of a mutual fund’s risk. Below 1
is below average risk. Above 1 is above
average risk.
