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Business Terms. Stocks, Bonds and Mutual Funds By (Your name). Income. The money you receive from selling your resources Including your labor and human capital. Expenses. Money that must be paid to keep a business going. Profits. The money that a company gets to keep Its earnings. - PowerPoint PPT Presentation
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Business Terms
Stocks, Bonds and Mutual FundsBy
(Your name)
Income
• The money you receive from selling your resources – Including your labor and human capital
Expenses
– Money that must be paid to keep a business going
Profits
• The money that a company gets to keep • Its earnings
Dividends
• The part of a company’s profits that are given to their shareholders
Capital
• Another use for this word!• Money used to expand a business• Not the same as physical capital (buildings and
equipment) or human capital (skills and knowledge)
Capital Gain
• Money that is made over what is spent
Capital Loss
• Loss from selling stocks for less than what you paid for them
Savings
• The term for money you get to keep– Not expenses
• Includes investments
Securities
• Stocks and bonds are called securities.
Portfolio
• All your investments are your portfolio
Equity
• The value of what is owned
Stock
• When companies sell a part of their business to raise money they are said to issue stock.
Primary Market
• Investment banks buy shares of stock directly from the corporations - IPO
Secondary market
• Markets where stocks are bought and sold after being issued
• Stock Market or Stock Exchange• NYSE• AMEX• NASDAQ
Shareholders
• People who own stock in a company• Also called stockholders or investors
Bonds
• When a company borrows money from the public, this is issuing bonds.
Mutual Fund
• An investment in group of related companiesWhen you buy a mutual fund you buy stock in
several companies at the same time. (remember mutual means share)
Their stock symbols end with an X
Diversified
• A diversified portfolio is one where lots of different industries and different kinds of businesses are represented
• “Don’t put all your eggs in one basket!”
IRA
• Stands for Individual Retirement Account• Allows people to save for the future without
paying taxes now