Friday, September 23, 2011

Week One Vocabulary

1. Stocks- Shares the public buys from a company.
     *Last week, Sally bought stocks from three different companies.

2. Bonds- Debt investment in which an investor loans money to an entity (corporate). It borrows the funds for a defined period of time with interest.
     *A company issued Dave a bond that will be returned with interest.

3. Dow Jones- The average of how the top thirty companies in the stock market are doing, whether they are up or down.
     *Today, the Dow Jones is down, however; I haven't invested in these companies therefore, it doesn't have a major affect on my stocks.

4. Equity-They money value of a property or business beyond any amounts owed on it in mortgages, claims, etc. 
     *Over they years, the couple has avoided tapping into their home equity for unnecessary expenses.

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