Here are some trader’s terms:

Mutual fund: An open-ended investment fund that reinvests its shareholders’ money in usually diversified group of securities of other corporations.

Stock: Money invested into a corporation for the purpose of trading.

Savings bond: U.S. (EE) savings bonds are an investment in the U.S. Government. In return, the U.S. Treasury promises to repay the buyer’s investment, with interest. They can be purchased from banks and through employer payroll deduction plans in amounts as little as $50.

Traditional IRA: An account that allows you to make contributions to a retirement plan without paying taxes until you withdraw your investment. Qualified participants may contribute up to $2,000 annually.

Roth IRA: A nondeductible account that features tax-free withdrawals for certain reasons after a five-year holding period. It allows your contributions and earnings to grow tax-free. Contributions may be withdrawn tax-free at any time. Qualified participants may contribute up to $2,000 annually.

Education IRA: A trust or custodial account created exclusively for the purpose of paying higher education expenses. Qualified participants may contribute up to $500 annually.

Money market: A mutual fund that invests in short-term securities, such as treasury bills and CDs. The share price is kept stable at $1, and interest is competitive.