Shared Flashcard Set

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Investments
n/a
33
Finance
12th Grade
05/06/2013

Additional Finance Flashcards

 


 

Cards

Term
Return
Definition
The income that an investment produces
Term
Volatility
Definition
The degree to which an investments return or value may change
Term
Risk
Definition
The possibility of variation in the return on an investment
Term
Diversification
Definition
A strategy of making a variety of investments in order to reduce exposure to risk
Term
Portfolio
Definition
Collection of investments
Term
Investment Club
Definition
A group of people who meet regularly to learn about investing and to make investments together
Term
Pension Plan
Definition
Any retirement offered to a company's employees
Term
401(k) Plan
Definition
A type of defined-contribution pension plan to which the employee contributes on a pretax basis
Term
IRA
Definition
Individual retirement accoount; a personal savings plan that enables workers and their spouses to set aside money for retirement
Term
Roth IRA
Definition
An IRA in which contributions are not tax-deductible; however, earnings accumulate tax-free
Term
Keogh Plan
Definition
A federally approved, defined-contribution, tax-deferred retirement plan designed specifically for self-employed people
Term
Stock
Definition
Ownership interest in a corporation
Term
Shares
Definition
Individual units of ownership in a corporation
Term
Shareholders
Definition
People who have purchased shares of stock in a corporation and are therefore part-owners of the company
Term
Stock Market
Definition
The organized trading of stocks
Term
Stock Exchange
Definition
A central location where stocks are sold
Term
Dividend
Definition
A payment to shareholders that represents a portion of the companys net profit
Term
Stockbroker
Definition
An individual or firm that will buy and sell stock for clients according to their instructions
Term
Bonds
Definition
Certificates of debt
Term
Mutual Fund
Definition
A group of investments that is held in common by many individual investors
Term
Prospectus
Definition
A legal document that provides potential investors with information about mutual fund or other security
Term
Annuity
Definition
A contract purchased from an insurance company that gaurantees to provide payments at regular intervals in the future, usually after age 59 1/2
Term
Real Estate
Definition
Land and any structures on it
Term
Commodities
Definition
Basic economic goods bought and sold in quantity, such as wheat, corn, iron ore, natural gas, and precious metals
Term
Estate
Definition
The assests and liabilities of a deceased person
Term
Estate Planning
Definition
Making legal and financial arrangements for how ones property should be administered before and after death
Term
Will
Definition
A legal document in which a person directs how his or her estate is to be distributed after death
Term
Executor
Definition
The individual who is in charge of handling the affairs of an estate
Term
Beneficiary
Definition
A perosn or group designated to receive some or all of a deceased persons assets
Term
Intestate
Definition
Without a valid will
Term
Living Trust
Definition
A egal arrangement that can serve as an alternative to a wll. It transfers control of a living persons assets to a trustee, someone who holds and mangaes assets for someone else
Term
Power of Attorney
Definition
A legal document assigning someone the right to act on a persons behalf
Term
Living Will
Definition
A legal document that outlines a persons wishes for medical treatment under specific circumstances
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