| Equities - Ownership, dividends, and valuation. | Bonds (Fixed Income) Lending, interest, and debt mechanics. | Precious Minerals (Commodities) Focus: Tangible assets, hedging, and units of measure. | Mutual Funds - Pooling, management, and NAV. | ETFs (Exchange-Traded Funds) Focus: Liquidity, trading, and comparison to mutual funds. |
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What is a share?
This term represents a small unit of ownership in a corporation.
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What is a loan (or debt)?
Unlike stocks, which represent ownership, a bond represents this type of financial relationship.
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What is gold?
This yellow metal is historically the most popular precious mineral for investors seeking a "safe haven" during inflation.
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What is pool?
A mutual fund allows many investors to do this with their money to buy a diversified portfolio of stocks or bonds.
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What is a Stock Exchange?
Unlike mutual funds which trade once a day, ETFs can be bought and sold throughout the day on one of these.
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What is a dividend?
This is the portion of a company's profit paid out to its shareholders, often quarterly.
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What is the maturity date?
This is the specific date on which the principal amount of a bond is to be paid back to the investor.
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What is a Troy Ounce?
Precious metals are typically weighed and priced using this specific measurement unit, which is about 31.1 grams.
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What is a Fund Manager?
This is the person or team responsible for making the buy and sell decisions within a mutual fund.
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What is a Ticker Symbol?"
This 3-to-4 letter code is used to identify an ETF (or stock) on a trading platform.
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What is $500?
If you buy 50 shares of a company at $20 and sell them for $30, this is your total capital gain, excluding fees.
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What is the coupon rate?
This is the fixed interest rate that a bond issuer agrees to pay the bondholder annually.
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What is a hedge?
This term describes an investment made specifically to reduce the risk of adverse price movements in an asset, often used with gold.
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What is NAV (Net Asset Value)?
Calculated daily, this acronym stands for the total value of the fund's assets minus its liabilities, divided by the number of shares.
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What is intraday trading?
This is the primary difference in how ETFs and mutual funds are priced; one is priced "real-time" while the other is "end-of-day."
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What is the P/E Ratio (Price-to-Earnings)?
This financial ratio is calculated by dividing the current market price per share by the company's earnings per share.
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What are Treasury Bonds (or Treasuries)?
These specific types of bonds are issued by the U.S. government and are considered among the safest investments in the world.
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What is silver?
400: While gold is a store of value, this precious metal is highly sought after for both jewelry and its high electrical conductivity in industrial use.
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What is the Expense Ratio?
This percentage represents the annual fee a mutual fund charges its shareholders to cover operating expenses.
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What is the Bid-Ask Spread?
his term refers to the difference between the "buy" price and the "sell" price of an ETF share at any given moment.
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What is Market Capitalization?
This term describes the total dollar market value of a company's outstanding shares, calculated by multiplying share price by total shares.
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What is the Current Yield?
If a bond has a par value of $1,000 and a 5% coupon rate, but you buy it at a discount for $900, this term describes the actual percentage return you earn.
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What are Karats?
This term refers to the "pureness" of gold; 24 of these indicates 99.9% purity.
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What is an Index Fund?
500: This specific type of mutual fund is designed to mirror the performance of a specific market benchmark, like the S&P 500.
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What are lower expense ratios (or lower costs)?
Because most ETFs are passively managed, they generally offer this mathematical advantage over actively managed mutual funds.
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