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Flashcards
Investing and Estate Planning
26
Finance
12th Grade
03/26/2012

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Cards

Term
Appreciation
Definition
An increase of value to an investment
Term
Capital Gain
Definition
Income earned when selling prices are greater than purchase prices.
Term
Stock
Definition
Share in ownership of a corporation.
Term
Dividend
Definition
Portionof company's earnings paid to stockholders.
Term
Common Stock
Definition
dividends earned and declared by the company.
Term
Preferred Stock
Definition
Regular dividends received at a set rate.
Term
Securities Exchange
Definition
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 Fund
Definition
The pooling(s) of money by many people and investing it in a collection of securities.
Term
Net Asset Value (NAV)
Definition
Current market value (the fund's assets minus its liabilities)
Term
Money Market Fund
Definition
Type of mutual fund dealing only in high interest, short-term investments, such as U.S Treasury securities, certificates of deposits, and commercial 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 uncertainty and pessimism when stock prices fall.
Term
Investment Portfolio
Definition
Collection of securities and other assets a person owns.
Term
Diversification
Definition
Spreading risk by putting money in a variety of investments.
Term
Prospectus
Definition
Legal document that gives a detailed description of security.
Term
Dollar-cost Averaging
Definition
Strategy of investing a fixed dollar amount at regular intervals without regarding the price of the investment at the time you buy it.
Term
Annuity
Definition
Contract with an insurance company providing regular income for a set period of time.
Term
Estate
Definition
The assets and liabilities a person leaves when he or she dies.
Term
Executor
Definition
A person appointed to carry out terms outlined in their will.
Term
Will
Definition
Legal document stating a person's wishes for his or her estate after death.
Term
Trustee
Definition
Person or institution named to manage assets on behalf of beneficiaries.
Term
Living Will
Definition
(Healthcare directive) Statement of instructions for specific medical treatment if person(s) become unable to make medical decisions.
Term
Trust
Definition
Legal document giving a named trustee the authority to manage assets in an estate on behalf of beneficiaries
Term
Probate Court
Definition
Government institution processing a deceased individual's will and estate.
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