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FINANCIAL CHOICES FOR TEENS
8
CROSSWORD CLUES (for crossword puzzle on page 7)
Across
1. Named after a highly valued poker chip, these stocks are those of major corporations.
5. What you earned after subtracting taxes and any costs associated with the product or service you provided.
7. The gain you receive from a savings account or investment fund, usually expressed as a percentage.
9. A nickname for an extremely low-priced stock, usually only a few dollars a share. These stocks are considered quite risky.
They are priced low because they have not yet proven themselves in the market.
12. A unit of ownership in an investment such as a stock, company or credit union.
13. A payment made by a company to a stockholder to share in the company’s profits. In a credit union, this term also refers to
the interest paid on your savings or share account.
15. An insured (no risk) investment with a bank for a set amount of time and rate of return, or interest, for the period of the investment.
If you withdraw the money early you will incur a penalty.
16. To grow in value. This term refers to a collectible item or investment that becomes worth more than the person originally paid.
17. An investment fund which combines money from a group of investors to purchase a range of securities such as stocks, bonds
and real estate. The investors each own a small portion of the fund’s investments.
Down
2. This makes your money grow without additional contributions from you. Interest on an investment that is calculated not only on
the amount originally invested, but also on any interest the investment has already earned. For example, if you put $100 in a
savings account and get 5 percent interest, after one year you will have $105. During the next year, you will earn interest on the
$105 (not just on the $100 originally invested) and end up with $110.25.
3. The percentage rate the borrower pays on the amount of money borrowed.
4. The amount paid by you, the borrower, to the lender for being able to borrow the money.
6. The likelihood that you will lose money on an investment or not receive the gain you expect. Often the investments with the
highest amount of this can also have the greatest returns.
8. An investment in which you lend money to the government or a corporation for a set amount of time and interest rate.
The company pays you interest regularly and at the end of the term you receive the original amount of money, or the face value.
10. Developing a mixture of investments or “not putting all your eggs in one basket.” Often, this translates to a combination of
stocks, bonds, and cash savings. This balance will lower the overall risk of your investments.
11. A way for you to buy and sell stocks and for corporations to raise money. The most notable is the New York Stock Exchange
(NYSE.)
14. A share of ownership in a company. The price changes depending on how much investors want to own it. When the price
goes up, the value of your investment increases.
