Shared Flashcard Set

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Investments
Personal Finance
33
Finance
12th Grade
05/07/2013

Additional Finance Flashcards

 


 

Cards

Term
Return
Definition
The income that an investment produces.
Term
Volatility
Definition
The degree to which an investment's return or value may change.
Term
Risk
Definition
The possibility of variation in the return on your investment.
Term
Diversification
Definition
A strategy of making a variety of investments in order to reduce your exposure to risk.
Term
Portfolio
Definition
Collection of investments that is both diversified and well balanced.
Term
Investment club
Definition
A group of people who meet regularly to learn about investing and to make investments together.
Term
Pension pay
Definition
Any retirement plan 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
A personal saving 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, tex-deferred
retirement plan designed specifically for self-employed people.
Term
Stock
Definition
Ownership intetrest in the corporation.
Term
Shares
Definition
Individual units of ownership.
Term
Shareholders
Definition
Investors who purchase shares of stock.
Term
Stock market
Definition
The organized trading of stocks.
Term
Stock exchange
Definition
A central location where stocks are sold on a trading floor.
Term
Dividend
Definition
A payment to shareholders that represents a portion of the company's net profits.
Term
Stockbroker
Definition
An individual or firm that will but and sell stock for clients according to their instructions.
Term
Bonds
Definition
Certificate 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 a mutual fund or other security.
Term
Annuity
Definition
A contract purchased from an isurance company.
Term
Real Estate
Definition
Land and any structures on it.
Term
Commodities
Definition
Basic economic goods bought and sold in quantity.
Term
Estate
Definition
The assets and liabilities left behind by a deceased person.
Term
Estate planning
Definition
The process of making legal and financial arrangements for how one's 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 handleing the affairs of an estate.
Term
Beneficiary
Definition
A person or group designated to recieve some or all of a deceased person's assets.
Term
Intestate
Definition
A person who dies without a valid will.
Term
Living trust
Definition
A legal arrangement that can serve as an alternative to a will.
Term
Power of attorney
Definition
A legal document assigning someone the right to act on a person's behalf.
Term
Living will
Definition
A legal document that outlines a person's wishes for medical treatment under specific circumstances.
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