Term
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Definition
| income not used for consumption |
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Term
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Definition
| the use of income today in a way that allows for a future benefit |
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Term
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Definition
| consists of institutions such as banks, insurance markets, bond markets, and stock markets |
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Term
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Definition
| a claim on the property of the borroweer |
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Term
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Definition
| a situation in which buyers and sellers exchange particular types of financial assets |
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Term
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Definition
| a financial institution that collects funds from savers and then invests these funds in loans and other financial assets |
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Term
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Definition
| a pool of money managed by an investment company that gathers money from individual investors and purchases a range of financial assets |
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Term
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Definition
| the market for buying and selling long-term financial assets |
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Term
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Definition
| the market for buying and selling short-term financial assets |
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Term
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Definition
| the market for buying newly created financial assets directly from the issuing entity |
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Term
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Definition
| the market where financial assets are sold |
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Term
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Definition
| a financial goal that an investor uses to determine if an investment is appropriate |
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Term
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Definition
| the possibility for loss in an investment |
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Term
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Definition
| the profit or loss made on an investment |
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Term
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Definition
| the practice of distributing investments among different financial assets to maximize return and limit risk |
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Term
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Definition
| a secondary market where securities (stocks & bonds) are bought and sold |
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Term
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Definition
| gains made from the sale of securities |
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Term
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Definition
| share of ownership in a corporation, giving holders voting rights and a share of profits |
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Term
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Definition
| share of ownership in a corporation giving holders a share of profits (paid before common stockholders) but no voting rights; they have guaranteed dividends (but their dividends do not increase if the stock increases in value) |
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Term
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Definition
| an agent who, for a commission, buys and sells securities for customers |
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Term
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Definition
| a contract to buy and sell a stock on a specified future date at a preset price |
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Term
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Definition
| a contract giving the investor the right, but not the obligation, to buy or sell stock at a future date at a preset price |
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Term
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Definition
| an instrument used to measure and report the change in prices of a set of stocks |
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Term
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Definition
| a situation where stock market prices rise steadily over a relatively long period of time |
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Term
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Definition
| a situation where stock market prices decline steadily over a relatively long period of time |
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Term
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Definition
| the amount that a bond issuer promises to pay at maturity |
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Term
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Definition
| the date when the bond is due to be repaid |
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Term
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Definition
| the interest rate a bond holder receives every year until a bond matures |
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Term
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Definition
| the annual rate of return on a bond |
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Term
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Definition
| high-risk, but potentially high-yield, corporate bonds |
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