INVESTMENT TERMINOLOGY.
Built around real course units and objectives.
The amount you earn as profit based on your deposited amount, usually expressed as a
percentage - Answer: Interest Rate
Money set aside for unanticipated expenses or loss of income - Answer: Emergency Fund
Degree of uncertainty on how likely the investor is to make money on an investment -
Answer: Risk
A fee you'll be charged for withdrawing money before a CD's maturity date - Answer:
Penalty
The time period an investment is intended to last - Answer: Term
The end date for a bond or a CD, aka the date when you get your money back - Answer:
Maturity Date
A market where shares in corporations are bought and sold through an organized system -
Answer: Stock Market
A share of the value of a company, which can be bought, sold or traded as an investment
and which gives the investor partial ownership of the company - Answer: Stocks
A collection of stocks and/or bonds combined into one fund, which will be traded as a unit,
typically chosen and actively managed by an expert in exchange for a fee from each
investor - Answer: Mutual Fund
A sudden, extreme downturn in stock performance/value - Answer: Crashes
APPHIA – Crafted with Care and Precision for Academic Excellence. 1
Built around real course units and objectives.
The amount you earn as profit based on your deposited amount, usually expressed as a
percentage - Answer: Interest Rate
Money set aside for unanticipated expenses or loss of income - Answer: Emergency Fund
Degree of uncertainty on how likely the investor is to make money on an investment -
Answer: Risk
A fee you'll be charged for withdrawing money before a CD's maturity date - Answer:
Penalty
The time period an investment is intended to last - Answer: Term
The end date for a bond or a CD, aka the date when you get your money back - Answer:
Maturity Date
A market where shares in corporations are bought and sold through an organized system -
Answer: Stock Market
A share of the value of a company, which can be bought, sold or traded as an investment
and which gives the investor partial ownership of the company - Answer: Stocks
A collection of stocks and/or bonds combined into one fund, which will be traded as a unit,
typically chosen and actively managed by an expert in exchange for a fee from each
investor - Answer: Mutual Fund
A sudden, extreme downturn in stock performance/value - Answer: Crashes
APPHIA – Crafted with Care and Precision for Academic Excellence. 1
