Shared Flashcard Set

Details

Investing and Estate Planning
N/A
26
Finance
9th Grade
03/26/2012

Additional Finance Flashcards

 


 

Cards

Term
Appreciation
Definition
an increase in the value of an investment
Term
Capital Gain
Definition
income earned from selling an asset for more than the purchase price
Term
Stock
Definition
a share in ownership of a corporation
Term
Dividend
Definition
a portion of a company's earnings paid to stockholders
Term
Common Stock
Definition
stock that pays dividends declared by the company and gives stockholders certain voting rights.
Term
Preferred Stock
Definition
stock that pays regular dividends at a set rate. Preferred stockholders have priority in receiving dividends and assets, but do not have voting privileges
Term
Securities Exchange
Definition
a formal market where securties are bought and sold by stockbrokers
Term
Stockbroker
Definition
an agent who buys and sells securties for clients
Term
Bond
Definition
A certificate of debt issued by a corporation or government that entitles the bondholder to a set rate of interest on the face value of the bond until it matures
Term
Mutual Fund
Definition
an investment created by pooling the money of many people and investing it in a collection of several securities
Term
Net Asset Value (NAV)
Definition
a mutual fund's assets minus its liabilities. Also called current market value
Term
Money Market Fund
Definition
a type of mutual fund that deals only in high interest, short-term investments such as U.S. Treasury Bills, certificates of deposit, and commercial paper
Term
Bull Market
Definition
term for the market when investors are confident in the economy and stock prices are rising
Term
Bear Market
Definition
term for the market when investors feel insecure and stock prices fall
Term
Investment Portfolio
Definition
the collection of securities and other assets a person owes
Term
Diversification
Definition
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
Dollar-Cost Averaging
Definition
a strategy of investing a fixed dollar amount at regular intervals
Term
Annuity
Definition
a contract with an insurance company that provides income for a set period of time or for life
Term
Estate
Definition
the possesions, such as property, savings, investments, and insurance benefits, a person leaves when he or she dies
Term
Executor
Definition
a person appointed to carry out the terms outlined in a will
Term
Will
Definition
a legal document stating a person's wishes for his or her estate after death
Term
Trustee
Definition
a person of institution named to manage an estate 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. Also called a healthcare directive
Term
Trust
Definition
a legal agreement where assets and property are managed by a trustee on behalf of the beneficiaries
Term
Probate Court
Definition
the government institution that processes a deceased individual's will and estate
Supporting users have an ad free experience!