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Chapter 12
Personal Finance
24
Finance
10th Grade
03/26/2012

Additional Finance Flashcards

 


 

Cards

Term
stock
Definition
a share in the ownership of a corporation.
Term
dividend
Definition
a portion of a company's earning paid to stockholders
Term
common stock
Definition
ear dividends declared by the company
Term
preferred stock
Definition
recieve regular dividends at a set rate
Term
securities exchange
Definition
a formal market where securities are bought and sold by stockbrokers
Term
stockbroker
Definition
an agent who buys and sells securities for clients.
Term
bond
Definition
a certificate of debt issued by a corporation or government
Term
mutual fond
Definition
created by pooling the money of many people and investing it in a collection of securities
Term
net assest value (NAV)
Definition
the fund's assests minus its liabilities
Term
money market fund
Definition
a type of mutual fund that deals only in high interest, short-term investments, such as U.S. treasury securities, certificates of deposit, and commericial paper
Term
bull market
Definition
an extended period of consumer confidence and optimism when stock prices rise
Term
bear market
Definition
an extended period of uncertanity and pessimism when stock prices fall.
Term
investment portfolio
Definition
collection of securities and other assets a person owns
Term
diversification
Definition
refers to spreading risk by putting money in a variety of investments
Term
prospectus
Definition
a legal document that gives a detailed description of a security
Term
doller-cost averaging
Definition
a strategy of investing a fixed dollar amount at regular intervals, such as monthly, without regard to the price of the investment at the time you buy it.
Term
annuity
Definition
a contract with an insurance company that provides regular income for a set period of time, usually for life
Term
estate
Definition
refers to the assets and liabilities a person leaves when he or she dies
Term
executor
Definition
a person appinted to carry out the terms outlined in their will
Term
will
Definition
a legal document stating a person's wishes for his or her estate after death
Term
trustee
Definition
a person or institution named to manage assets on behalf of the beneficiaries.
Term
living will
Definition
a statement of instructions for specific medical treatment if a person becomes unable to make medical decisions.
Term
trust
Definition
a legal document that gives a named trustee the authority to manage the assets in an estate on behalf of the beneficiaries
Term
probate court
Definition
the government institution that processes a deceased individual's wo;; and estate
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