BIOSC 0150 Lecture Notes - Lecture 4: Dow Jones Industrial Average, S&P 500 Index, Corporate Bond
29 Aug 2016
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Stock mutual funds - investors pool funds with professional managers who decide where to invest the money. Growth funds - usually have high expenses and fees. Index funds - low expenses/fees but less return. Adjusted average price of 500 largest us corporations sold on the nyse. Adjusted average price of 30 large us corporations. Bond - certificate of debt issued by the government or a corporation, guaranteeing the repayment of the price plus interest. Date of maturity - when the prinicipal will be repaid. Interest rate - proportion of prinipal paid regularly to the bond holder until the date of maturity. Interest - amount of money determined by interest rate. Us governement issues a bond with face value of for 10 years with 2% annual interest rate. Government bonds - most common issued by federal government with low risk of default must pay federal taxes.
