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:
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