Shared Flashcard Set

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march 26th,2012
ms graves.
26
Finance
11th 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
income earned when the selling price is greater than the purchase price
Term
stock
Definition
a share in the ownership of a corporation
Term
dividend
Definition
a portion of a companies earnings paid to stock holders
Term
Common stock
Definition
earn dividends declared by the company and can vote in the electon of company directors
Term
Preferred stock
Definition
receive regular dividends at a set rate
Term
securities exchange
Definition
a 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
a certificate of debt issued by a corporationor 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
Definition
the funds assets minus its liabilities
Term
money market fund
Definition
a type of mutual fund that deals only in high interest and short term investments
Term
bull market
Definition
an extended period of consumer confidence and optimism when stock prices rise
Term
bear market
Definition
an extended period of uncertainty and pessimisim when stock prices fall
Term
investment portfolio
Definition
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 detailed description of a security
Term
dollar cost averaging
Definition
a strategy of investing a fixed dollar amount at regular intervals, asuch as monthly, without regard to the price of the investment at the time you buy it
Term
annuity
Definition
is a contact 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
is a person appointed to carry out the terms outlined in their will
Term
will
Definition
legal document stating a persons wishes for his or her estate after death
Term
trustee
Definition
a person or institution named to manage assets on behalf of the beneficiaries
Term
living will
Definition
healthcare directive
Term
trust
Definition
legal document that gives a named trustee the authority to manage the assets in an estate on behalf of the beneficiaries
Term
probate court
Definition
government institution that processes a deceased individuals will and estate.
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