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Saving & Investing Terms (Part 1 of 2)
The basics of saving & investing: investor education 2020
24
Economics
12th Grade
11/17/2011

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Cards

Term
Annual Percentage Plan
Definition
Yearly intrest rate charged on a credit account
Term
401(K) Plan
Definition
Tax-deferred savings plan that allows an employer to match employee deposits into the account up to 100%
Term
Asset
Definition
An item owned by an individual or organization that has monetary value
Term
Blue Chip Companies
Definition
Common name for companies with a long history of trustworthy accounting, favorable returns & growth
Term
Boiler Room
Definition
Slang term for the calling center used by telemarketers because it is where swindlers "turn up the heat" on their potential victims
Term
Bond
Definition
Certificate representing a loan of money for a specific period in exchange for a promise to repay the amount borrowed with interest by the government or a corporation
Term
Capital Gains
Definition
Increased value at the time of redemption of a security since its original purchase
Term
Capital Loss
Definition
Decreased value at the time of redemption of a security from its original purchase
Term
Caveat Emptor
Definition
Latin phrase meaning "Let the buyer beware."
Term
Certificate of Deposit (CD)
Definition
Saving tool purchased for a specific dollar amount at a fixed interest rate for a specific time period
Term
Commission
Definition
Fee paid to a broker or agent fee for carrying out a transaction
Term
Common Stock
Definition
Securities representingequity ownership in a public company
Term
Compound Interest
Definition
Interest earned on a principle plus previously accrued interest
Term
Credit
Definition
borrowing money now with a promise to pay it back at a later time, generally with interest
Term
Diversification
Definition
Strategy for reducing risk by spreading investment money among a number of investment types and industries
Term
Dividend
Definition
Earnings on stock paid to shareholders by corporations
Term
Dow Jones Industrial Average (DJIA)
Definition
Market indicator that averages blue chip U.S. stocks in different categories
Term
Entrepreneur
Definition
Individual who establishes, maintains, & assumes the risk of a business operation
Term
Exchange
Definition
Central location where buyers & sellers unite to execute transactions
Term
Federal Deposit Insurance Corporation (FDIC)
Definition
Agency of the federal government created to guarantee bank deposits
Term
Financial Adviser
Definition
Professional who provides financial info & advise; may include an employee benefits staff member, credit counselor, bank employee, broker, financial planner, accountant, insurance agent, or attorney
Term
Financial Plan
Definition
Systematic course of action for identifying financial goals, figuring net worth, estimating income & expenses & using credit wisely
Term
Fraud
Definition
Use of intentional misrepresentation for illegal gain
Term
Futures
Definition
Contract to buy or sell specific amount of a commodity at a specific future date & price
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