Shared Flashcard Set

Details

investing and estate planning
chapter 12
26
Finance
10th Grade
03/26/2012

Additional Finance Flashcards

 


 

Cards

Term
appreciation
Definition
refers to an increase in the value of an investment
Term
capital gain
Definition
is income earned when selling price is greater than the purchase price
Term
stock
Definition
is a share in the ownership of a corporation
Term
dividend
Definition
is a portion of a company earnings paid to stockholders
Term
common stock
Definition
earn dividends declared by the company
Term
preferred exchange
Definition
receive regular dividents at set rate
Term
stockbroker
Definition
is an agent who buys and sells securities for clients
Term
bond
Definition
is a certificate of debt issued by a corporation or government
Term
mutual fund
Definition
is created by pooling the money of many people and investing it in a collection of securities
Term
net asset value
Definition
the fund assets minus its liabilities
Term
money market fund
Definition
a type of mutual fund that deals only in high interest, shot term investments, such as
Term
bull market
Definition
is 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 port folio
Definition
is a 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 detaled description of a security
Term
dollar cost averaging
Definition
is a strtegy 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
Term
annuity
Definition
is a contracut with an insurance company that provides regular income for a set period of time
Term
estate
Definition
refers to the assets and liabilities a person leaves when he or she dies
Term
executor
Definition
is a person appointed to carry out the terms oulined in their will
Term
will
Definition
a legal document stating a perons wishes for his or her estate after death
Term
trustee
Definition
is a person or intitution named to manage assets on behalf of the beneficiaries
Term
living will
Definition
helthcare directive
Term
trust
Definition
legal document that gices a named trustee the authority to manage the assets in an estae on behalf
Term
probate court
Definition
the goverment institution that processes a deceased individual will and estate
Term
securities exchange
Definition
is a formal market wwhere securities are bought and sold by stockbrokers
Supporting users have an ad free experience!