Unit 21: Investing
Reciting article:
Mutual funds have been extremely popular since the early 1990's. There are currently thousands of funds to choose from for almost every industry and every region of the world.
Individual investors save money by placing their stock orders through discount brokers or purchasing stocks on the Internet, through sites such as E-Trade.
Most large companies have pension plans for employees, People may also choose to open IRAs (Individual Retirement Accounts), which they add money to as they get older. The interest earned on the account is not taxed, so the money in the account can grow very quickly.
Vocabulary:
account
annuity
balance
bankrupt
bear market
blue chip stock
bond
brokerage
budget
bull market
charge
commission
corporate bond
credit rating
currency
decrease
diversify
dividend
dollar cost averaging
earning per share (EPS)
estimate
foreign exchange market
futures market
hedge your bets
in the black
in the red
increase
index fund
individual retirement account
industry
inflation
interest rate
junk bond
life insurance
loan
long-term
market analyst
millionaire
municipal bond
mutual fund
on margin
portfolio
price/earnings (P/E) ratio
principle
real estate
research
roll over
securities
short-term
speculate
stock broker
stock market
take a risk
tax exempt
timed deposit
value
wealthy
