Investing - Vocabulary

Investing is the act of allocating ____________________ , usually money , with the expectation of ____________________ an ____________________ or profit . There are different types of ____________________ , including stocks and ____________________ .

Bonds are issued by ____________________ and corporations when they want to ____________________ money . By buying a bond , you're giving the ____________________ a ____________________ , and they agree to pay you back the face value of the loan on a specific date , and to pay you periodic ____________________ payments along the way , usually ____________________ a year .

Unlike stocks , bonds ____________________ by companies give you no ownership ____________________ . So you don't necessarily ____________________ from the company's ____________________ , but you won't see as much impact when the company isn't doing as well , ____________________ .

Companies can issue bonds , but most bonds are issued by ____________________ . Because governments are generally ____________________ and can raise ____________________ if needed to cover debt payments , these bonds are typically ____________________ - quality .

It is important for ____________________ to do their ____________________ and understand the potential ____________________ and rewards before ____________________ their money .