The Most Important Terms in Finance

H O L L Y B E C K E R Z I M M E R M A N

T H E M O S T

I M P O R T A N T T E R M S

I N F I N A N C E

According to US News & World Report

Growth Stocks

These are shares of stocks projected by investors to grow at afaster rate than what is normal in the industry. They are high-

risk stocks with the potential for large gains.

Value Stocks

Value stocks are shares of stocks that are undervalued,according to investors. They are usually in reputable

companies and have the vast potential to rise in the future.

Treasury Securities

These are debt securities from the government that matureover time. They are the safest type of security, but come with

very low interest rates.

Municipal Bonds

These are bonds given by a smaller municipality. They areusually used to fund public projects in order to give taxpayers a

break. They are exempt from federal taxes.

Corporate Bonds

Corporate bonds are bonds issued by a corporate organization.They are much riskier, but they come with a much higher

interest rate.

Interest Rates

These have a direct impact on the return an investor receivesfrom his or her investment. Interest rates are inversely related

to bond prices.

Index Funds

These are passively managed funds, which give investorsmarket exposure without the added cost. They are beneficial

over long periods of time.

Exchange-Traded Funds

Exchange-traded funds are lower cost funds as well, and areeasily traded. They fluctuate in price throughout any given

day.

For the complete list, visit US News& World Report