Bond - typically viewed as an I.O.U between the lender and the borrower., Brokerage firm - Facilitates the buying and selling of investments from a stock exchange, Capital Gain - Unearned income received from the sale of an asset above its purchase price, Dividends - Distributions of earnings paid to stockholders., Financial advisor - A trained professional that helps people make investing decisions, Index fund - fund designed to reduce fees by investing in stocks & bonds at lower fees , Inflation risk - The danger that money won’t be worth as much in the future as it is today, Investment - Assets purchased with the goal of providing additional income from the asset itself but with the risk of loss, Portfolio diversification - Reduces risk by spreading money among a wide array of investments, Rate of return - The net gain or loss of an investment expressed as a percentage, Speculative Investment - Have the potential for significant fluctuations in return over a short period of time, Stock - A share of ownership in the assets and earnings of a company., Stock exchange - An organized, central service to buy and sell stocks, bonds and other investments that are traded,

Investing Vocabulary #2

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