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Definition of Growth Stock A growth stock is a publicly traded company that is expected to grow at a rate significantly above the average for the overall market. These are the kinds of companies reinvesting their earnings back into the business instead of paying dividends, with the goal of expanding fast—think rocket fuel, not steady cruise.

Definition of Penny Stock A penny stock is typically a share of a small public company that trades for less than $5 per share. These stocks are often traded over-the-counter (OTC) through platforms like the OTC Bulletin Board or Pink Sheets, rather than on major exchanges like the NYSE or Nasdaq. Penny stocks are known for their low price, low trading volume, and high risk—but also the potential for high reward.

Definition of a Blue Chip Stock A blue chip stock refers to shares of a well-established, financially sound, and nationally recognized company with a history of reliable performance. Think of them as the all-star players in the stock market—companies that are leaders in their industries, pay regular dividends, and have a track record of weathering economic storms.

Definition of a Parent Company A parent company is a corporation that owns enough voting stock in another company to control its policies and management. The company it controls is called a subsidiary. Think of a parent company as the “boss” in the business family tree. While it may not run the day-to-day operations of its subsidiaries, it has the power to call the shots when it matters—like choosing leadership, approving budgets, or selling the business.

A C Corporation (or C Corp) is a type of business structure in the United States that’s legally separate from its owners (called shareholders). This means the corporation itself can own property, enter contracts, sue or be sued, and—here’s the kicker—pay its own taxes. Unlike sole proprietorships or partnerships where profits pass through directly to the owners, a C Corp files its own tax return and pays corporate income tax on profits. In plain English? A C Corporation is

When you invest in an index fund, you’re essentially buying tiny pieces of all the companies in that index.

Starting early with your retirement planning is the smartest financial move you can make. Time is your friend when building wealth.

Day trading is a style of trading where individuals buy and sell financial instruments within the same trading day.

Active Investment seeks to beat the market through strategic buying and selling of stocks, bonds, or other assets.

Passive Investing is putting your money into investment vehicles that don’t require daily decisions or constant portfolio tinkering

A capital loss occurs when you sell an asset (like stocks, bonds, or real estate) for less than what you paid for it.

A Roth IRA is a unique investing vehicle where you pay taxes on money going into your account, and then all future withdrawals are tax-free.

An Individual Retirement Account (IRA) is a tax-advantaged investing tool that allows your savings to grow exponentially over time.

Leverage involves using borrowed money or financial instruments to increase the potential return of an investment.

Trading on Margin is utilizing a broker loan to buy stocks.

A derivative is a financial instrument whose value is based on the performance of an underlying asset.

Consumer Price Index tracks the average change over time in the prices paid by urban consumers for a basket of goods and services.

A recession is a significant decline in economic activity that lasts for months or even years.

An IPO is when a privately held company decides to go public by offering its shares to the general public for the first time.

Private equity is a form of investment where funds are directly invested into private companies, or public companies are taken private.