the most important terms in finance
TRANSCRIPT
H O L L Y B E C K E R Z I M M E R M A N
T H E M O S T
I M P O R T A N T T E R M S
I N F I N A N C E
According to US News & World Report
Growth Stocks
These are shares of stocks projected by investors to grow at afaster rate than what is normal in the industry. They are high-
risk stocks with the potential for large gains.
Value Stocks
Value stocks are shares of stocks that are undervalued,according to investors. They are usually in reputable
companies and have the vast potential to rise in the future.
Treasury Securities
These are debt securities from the government that matureover time. They are the safest type of security, but come with
very low interest rates.
Municipal Bonds
These are bonds given by a smaller municipality. They areusually used to fund public projects in order to give taxpayers a
break. They are exempt from federal taxes.
Corporate Bonds
Corporate bonds are bonds issued by a corporate organization.They are much riskier, but they come with a much higher
interest rate.
Interest Rates
These have a direct impact on the return an investor receivesfrom his or her investment. Interest rates are inversely related
to bond prices.
Index Funds
These are passively managed funds, which give investorsmarket exposure without the added cost. They are beneficial
over long periods of time.
Exchange-Traded Funds
Exchange-traded funds are lower cost funds as well, and areeasily traded. They fluctuate in price throughout any given
day.
For the complete list, visit US News& World Report