Shared Flashcard Set

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Investment & Estate Planning
Finance
26
Finance
10th Grade
03/26/2012

Additional Finance Flashcards

 


 

Cards

Term
Appreciation
Definition
Increase in the  value of an investment
Term
Capital Gain
Definition
Income earned when selling price is greater than the purchase price
Term
Stock
Definition
A share in the ownership of a corporation
Term
Dividend
Definition
Portion of a company's earnings paid to stockholders
Term
Common Stock
Definition
Earn dividends declared by the company
Term
Preferred Stock
Definition
Reciving regular dividends 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
Certificate od debt issued by a corporation or government
Term
Mutual Fund
Definition
created by pooling the money of many people and investing it in a collection of securities
Term
Net Asset Value (NAV)
Definition
Fund's assets minus its liabilities
Term
Money Market Fund
Definition
Type of mutual fund that deals only in high intrest, short-term investments, certificates of deposit, and commercial paper
Term
Bull Market
Definition
Extended period of consumer confidence and optimism when stock prices rise
Term
Bear Market
Definition
Extended period of uncertainty and pessimism
Term
Investment Portfolio
Definition
Collectio 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 a security
Term
Dollar-Cost Averaging
Definition
Strategy of investing a fixed dollar amount at regular intervals such as monthly, without reguard to the price of the investment at the time you buy it
Term
Annuity
Definition
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
Person appionted to carry out the terms outlined in their will
Term
Will
Definition
Legal document stating a person's wishes for his or her estate of death
Term
Trustee
Definition
Person or institution named to manage assets on behalf of the beneficiaries
Term
Living Well
Definition
Statement of instructions for specific medical treatment if a person becomes unable to make medical decisions
Term
Trust
Definition
Legal document that gives a named trustee the authority tto manage the assets in an estate on behalf of the beneficiaries
Term
Probate Court
Definition
Government institution the processes a deceased indivisduals will and estate
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