Investment glossary

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.

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: A.G. Edwards' 'Big Money Adventures' has stories and coloring activities for young children. There's a stock-picking game for older kids. Liberty Financial hosts this site. It has a reference guide and articles for young entrepreneurs. Classrooms can manage an imaginary $100,000. This site offers financial information for children and adults in the Family Investing section.

(c) Copyright 2001. The Christian Science Publishing Society

You've read  of  free articles. Subscribe to continue.
QR Code to Investment glossary
Read this article in
QR Code to Subscription page
Start your subscription today