Investment glossary

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Blue-chip stocks: Considered the best stocks, they are from companies that are old, reliable, and profitable over time. (Traditionally, a blue betting token, or chip, is worth the most.)

Bond: An IOU ("I owe you") from a company to a person who lends money to the company. The company promises to pay back the money, plus interest (extra money).

Company: A business formed to make products or offer services. Most companies aim to make a profit - take in more cash than they spend. It can be privately owned (by a family, perhaps) or publicly owned. Publicly owned companies sell stock.

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Dow Jones Industrial Average: The prices of 30 specially chosen blue-chip stocks are used to compute the "average." The "Dow" is the best-known measure of how the stock market is doing.

Mutual fund: A company or organization that takes investors' money and buys stocks, bonds, or other types of investments. Everyone who invests shares in the profits.

Stock: A share in the ownership of a company. Companies issue stock to raise capital (money) to make things or provide services.

You might like these websites:

www.agedwards.com A.G. Edwards' 'Big Money Adventures' has stories and coloring activities for young children. There's a stock-picking game for older kids.

www.younginvestor.com Liberty Financial hosts this site. It has a reference guide and articles for young entrepreneurs. Classrooms can manage an imaginary $100,000.

www.mutualfunds.about.com This about.com site offers financial information for children and adults in the Family Investing section.

(c) Copyright 2001. The Christian Science Publishing Society

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