Saving and Investing for Students

Savings
—
Income that is not spent on consumption but is put 
aside.
Security
—
A stock, bond, or another investment.
Stocks
—
An instrument that represents partial ownership 
(called equity) of a corporation, and a claim on a proportional 
share of the corporation’s assets and profits. Ownership in the 
company is determined by the number of shares a person owns 

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divided by the total number of shares outstanding. Most stock 
also provides voting rights, which give shareholders a propor-
tional vote in certain corporate decisions, such as the election 
of corporate directors.
Stock Market
—
A g
eneral term for the organized trading of 
stocks through exchanges, over-the-counter and computerized 
trading venues.
Stock Quotes
—
Listin
gs of prices to buy and sell a specific 
stock. During trading, quotes show bids, the prices buyers are 
willing to pay, and offers, the prices sellers are willing to ac-
cept, in real time. Historical data for past trading provides the 
opening and closing price, and the daily high and low price for 
a stock, along with trading volume.

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Notes

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