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Chapter 12
Investing and Estate planning
26
Finance
11th Grade
03/26/2012

Additional Finance Flashcards

 


 

Cards

Term
appreciation
Definition
increase in value of an investment
Term
capital gain
Definition
income earned from an investment
Term
stock
Definition
share in ownership of a corporation
Term
divedend
Definition
a portion of a companys earnings paid to stock holders
Term
common stock
Definition
earn dividens declared by the company
Term
preffered stock
Definition
recieve regular dividens at a set rate
Term
securities exchange
Definition
is a formal market where securities bought and sold
Term
stock broker
Definition
an agent who buys and sells securities
Term
bond
Definition
a certifricate of debt issued by a corporation
Term
mutual fund
Definition
is created by pooling money of many people
Term
net asset value NAV
Definition
the funds assetts minus its liabilities
Term
money market fund
Definition
a type of fund that only deals in high interest short term investments
Term
bull market
Definition
an extended period of consumer confidenceand optimism
Term
bear market
Definition
extended period of pessimism and unsertainty
Term
investment portfolio
Definition
a collection of securities and other assetts people own
Term
diversifacation
Definition
spreading risk by putting money into a variety of other investments
Term
prospectus
Definition
is a legel document that gives a detailed description of a security
Term
dollar-cost averaging
Definition
is a strategy of investing a fixed dollar amount at regular intervals
Term
annuity
Definition
a contract with an insurance company
Term
estate
Definition
refers to the assets and liabilities that a person has
Term
executor
Definition
is a person appointed to carry out the terms outlined in their will
Term
will
Definition
a legel document stating how a persdons estate will be distributed
Term
trustee
Definition
is a person or institution named to manage assets on behalf on the beneficiaries
Term
living will
Definition
healthcare directive distributing the wealth of someone unwilling to care for themselves
Term
trust
Definition
is a legel document that gives the named trustee the authority to manage assets
Term
probate court
Definition
the government institution that processes the deceased persons will and estate.
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