Certainly! Here's a breakdown of the key terms and concepts matched with their descriptions:
1. Financial system: Network of structures and mechanisms that allows the transfer of money between savers and borrowers.
2. Yield: Annual rate of return on a bond if the bond is held to maturity.
3. Inflation-indexed bond: Bond that protects the investor against inflation by its linkage to an index of inflation.
4. Secondary market: Market for reselling financial assets.
5. Bull market: Steady rise in the stock market over a period of time.
6. Corporate bond: Bond issued by a corporation to help raise money for expansion.
7. Bear market: Steady drop or stagnation in the stock market over a period of time.
8. Speculation: Practice of making high-risk investments with borrowed money in hopes of getting a big return.
9. Options: Contracts that give investors the right to buy or sell financial assets at a particular price until a specified future date.
10. Futures: Contracts to buy or sell commodities at a particular date in the future at a price specified today.
11. Capital loss: Difference between the selling price and purchase price that results in a financial loss for the seller.
12. Money market: Market in which money is lent for periods of one year or less.
13. Return: Money an investor receives above and beyond the sum of money initially invested.
14. Investment: Use of assets to earn income or profit.
15. Financial intermediary: An institution that helps channel funds from savers to borrowers.
16. Capital gain: The difference between the selling price and the purchase price that results in a financial gain for the seller.
17. Municipal bond: A bond issued by a state or local government or a municipality to finance a public project.
18. Stock exchange: A market for buying and selling stock.
Each term and description are paired up to help you understand the concepts related to finance, investments, and financial markets.
