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Appendix A. Glossary - Pg. 105

Glossary 105 inflation risk The danger that your investment will not maintain its initial purchasing power because it is not growing as fast as the national inflation rate. interest An attached charge for the loan of money. The borrower pays, and the loaner receives, an amount above and beyond the initial amount loaned. international markets Stock exchanges in other countries. liability Anything owed, including bills, taxes, loans, or other financial obligations. limit orders Instructions to a broker to purchase stock at a price lower than the current market price or sell it at a price higher. long-term capital gains The total amount of profits from the sale of, or potential sale of, an investment asset that has been held more than one year. margin account A brokerage account that permits the purchase of stock with credit. market order Instructions to trade stock immediately at the best possible price. A market order is also known as an open order. market price The amount that can be received upon the sale of property. market risk