Glossary Terms:

How Global is Your Portfolio?

Glossary terms from:
http://www.econedlink.org/e918


Benefit

Monetary or non-monetary gain received because of an action taken or a decision made.

Consume

To buy and use a good or service.

Diversify

To invest in a variety of stocks, bonds, money market accounts, etc., in order to spread risk.

Economics

The study of how people, firms and societies choose to allocate scarce resources with alternative uses.

Equity

Stock, both common and preferred. Also, the value of mortgaged property after accounting for charges against it or money owed.

Exchange

Trading a good or service for another good or service, or for money.

Goods

Tangible objects that satisfy economic wants.

Investing

The process of putting money someplace with the intention of making a financial gain. Investment possibilities include stocks, bonds, mutual funds, real estate, and other financial instruments or ventures.

Markets

Places, institutions or technological arrangements where or by means of which goods or services are exchanged. Also, the set of all sale and purchase transactions that affect the price of some good or service.

Money

Anything that is generally accepted as final payment for goods and services; serves as a medium of exchange, a store of value and a standard of value. Characteristics of money are portability, stability in value, uniformity, durability and acceptance.

NASDAQ

An electronic marketplace enabling buyers and sellers to get together via computer and hundreds of thousands of miles of high-speed data lines to trade stocks. NASDAQ used to be the acronym for National Association of Securities Dealers Automated Quotation System.

New York Stock Exchange (NYSE)

The oldest stock exchange in the United States, founded in 1792.

Portfolio

A person's or an institution's collection of savings and investments.

Price

The amount of money that people pay when they buy a good or service; the amount they receive when they sell a good or service.

Return

Earnings from an investment, usually expressed as an annual percentage.

Services

Activities performed by people, firms or government agencies to satisfy economic wants.

Stock

An ownership share or shares of ownership in a corporation.

Stock Market

A market in which the public trades stock that someone already owns; the buying and selling of stock.