Shared Flashcard Set

Details

chap 10
n/a
24
Finance
12th Grade
12/11/2012

Additional Finance Flashcards

 


 

Cards

Term
save
Definition
To set aside present income for future use
Term

 

invest

 

Definition

 

To put money to work earning interest over time

 

Term
profit
Definition
Money remaining in a business after expenses are paid
Term
interest
Definition
Money paid for the use of someone else’s money over a period of time
Term
liquidity
Definition

How easily an asset can be converted into cash

Term
volatility
Definition

How easily the interest or cash value of an investment can change

Term
risk
Definition

The possibility of earning or losing money from an investment

Term
return
Definition
The income that can be made on an investment
Term
transaction
Definition
A saving/investing activity---e.g., deposits, withdrawals, and transfers
Term
savings account
Definition
An account in a bank/financial institution for saving, making deposits/withdrawals
Term
money market
Definition
A savings account in which deposits are invested to yield additional earnings
Term
CD
Definition
A certificate of deposit stating money has been deposited for a specific time
Term
savings bond
Definition
A debt certificate issued by the U. S. Treasury that is not  transferable
Term
IRA
Definition
An Individual Retirement Account used to save money for retirement
Term
Koegh plan
Definition
A tax-deferred retirement plan for self-employed people
Term
Roth IRA
Definition

A personal savings plan; contributions are not tax-deductible; earnings are tax-free

Term
stock
Definition
A share of ownership and interest in the assets and earnings of a company
Term
common stock
Definition
Stock in a public corporation; returns vary, but higher risk
Term
preferred stock
Definition
Stock with fixed dividends, less risk
Term
blue chip stock
Definition
Stock from large companies, less risk
Term
growth stock
Definition
Stock from growing companies, more risk
Term
penny stock
Definition

Stock that costs less than $1 per share; extremely high risk

Term
bond
Definition

A certificate of debt given by a company or government that entitles the

bondholder to the original amount plus interest paid by a set date

Term
mutual fund
Definition
A group of investments held in common with shares owned by individual investors
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