Vocabulary

Stocks: Share of a company or corporation that can be owned and proven with a certificate.
- I bought a stock for $29.00
DowJones: Weighted average of 30 actively traded blue chip stocks
-The DowJones went up three points today.
Bond: a debt security issued by a corporation
-I have two years until my bond goes up in value.
Equity:the value of a piece of property over and above any mortagage or other liabilities
- Renovating your home increases equity.
Earnings: Money earned through paid employment, as profit or from investments.
- We exceeded our expectations for this semester's earnings.
Dividends: Company profits paid to stock holders in cash or in more shares.
-This week I will receive a dividend from Apple for investing in stocks from their company.
Small Cap: refers to stocks with a small market capitalization.
-because I own a lot of small cap companies, I check the Russell 2,000 a lot.
Treasury bonds: marketable, fixed interest, US Gov. debt secutiry, with maturity of more than 10 years.
-China has accepted treasury bonds from our government.
Inflation: Prices are increasing, values are not.
-Since our inflation in the US bread has gone up $2.50.
GDP: value of all goods in services produced in a nation during a specific period of time.
-Currency: money, paper or coins issued by federal reserve.
-a system of money, or the bills and coins themselves, used in a country
Economy: system of production distributiond and consumption of goods and services that a society uses.
-efficiency and conservation of effort in the operation or achievement of something
Economic system:
- the structure of production, allocation of economic inputs, distribution of economic outputs, and consumption of goods and services in an economy
Supply and Demand:
-when supply goes up, price goes down.