Person who acts as a go-between for buyers and sellers

of stocks and bonds.

Investment company that pools the funds of many individuals to buy stocks, bonds, or other

investments

Bonds sold by local and state governments; interest paid on the

bond is not taxed by the federal government.

Private retirement plan that allows individuals or married couples to save a certain amount

of untaxed earnings per year with the interest

being tax-deferred.

Spreading of investments among

several different types to lower

overall risk.

Company plans that provide retirement

income for their workers.

Measures of what is happening to a given set

of stock prices for a specified list of

companies; the most well known is the Dow

Jones Industrial Average

Certificates issued by the U.S. Treasury in

exchange for a minimum amount of

$1,000 and maturing in a few days up to 26

weeks.

Certificates issued by the U.S. Treasury in

exchange for minimum amounts of $1,000 and maturing in 30 years.

Type of mutual fund that uses investors’

funds to make short-term loans to

businesses and banks

Account that pays interest, has no

maturity date, and from which funds can be

withdrawn at any time without penalty.

Setting aside income for a period of time so that

it can be used later.

Account that pays relatively high rates of

interest, requires a minimum balance, and

allows immediate access to funds.

Period of time at the end of which time

deposits will pay a state rate of interest.

Savings plans that require savers to leave their funds on deposit for certain periods of

time.

Certificates issued by the U.S. Treasury in

exchange for minimum amounts of $1,000 and

maturing in 2 to 10 years.

Time deposits that state the amount of the

deposit, maturity, and rate of interest being

paid.

Retirement plan that allows self-employed individuals to

save a maximum of 15 percent of their income up to a specified amount each year,

and to deduct that amount from their yearly taxable

income.

Bonds issued by the federal government as a

way of borrowing money; they are purchased at half

the face value and increase every 6 months

until full face value is reached.

Increase in value of an asset from the time it

was bought to the time it was sold.

Decrease in value of an asset from the time it

was bought to the time it was sold.

Electronic purchases and sale of stocks and

bonds, often of smaller companies, which often takes place outside the

organized stock exchange.

People who have invested in a

corporation and own some of its shares of

stock.