Shared Flashcard Set

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presonal finance
1.02
27
Business
9th Grade
03/26/2012

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Term
apprecition
Definition
refers to an increase in the value to an investment. various types of investments gow at different rates.
Term
capital gain
Definition
is income earned when the selling price is greater than the purchase price.
Term
stock
Definition
is a share in the ownership of a corpration.
Term
dividend
Definition
is aportion of a comparnys earnings paid to stockhold.
Term
common stock
Definition
earn dividends declared by the company.
Term
preferred stock
Definition
receive regular dividends at a set rate.
Term
securities exchange
Definition
is a formal market where securities are bought and sold by stockbrokers.
Term
stockbroker
Definition
is an agent who buys and sells securities for clients.
Term
bond
Definition
is a certificate of debt issused by a corporation or goverment.
Term
mutual fund
Definition
is created by pooling the money of many people and investing it in a collection of securuties.
Term
net asset
Definition
redeems share at their net value .
Term
value (NAV)
Definition
is the funds asset munus its liabilties.
Term
money market fund
Definition
is a type of mutual fund that deal only in high interset.
Term
bull market
Definition
is an extended period of cosumer confidence and optimism when stock prices rise.
Term
bear market
Definition
is an exenteded period of uncertainty and pessimism when stock prices fall.
Term
invstment portflio
Definition
is a collection of secrities and other assets a person owns.
Term
diversification
Definition
refers to spreading risk by putting money in a variety of investments.
Term
propectus
Definition
is a legal document that gives adetailed descrition of a securitiy.
Term
dollar-cost averaing
Definition
is a strategy of inesting a fixed dollar amount at regular.
Term
annuity
Definition
is a contract with an insrance comany that provides regular.
Term
estate
Definition
refers to the assets and lidilities a person leaves when he or she dies.
Term
executor
Definition
is a person appointed to carry out the trems outlined in their will.
Term
will
Definition
is a legal document stating a persons wishes for his or her estate after death.
Term
trutee
Definition
is a person or institiution maned to mange asset on behahlf of the bebficiaries.
Term
living will
Definition
or heathcare directive is statement of intructions for specific medical treatment if a person becimes unable to make medical decisions.
Term
trust
Definition
is a legal document that gives a named trustee the authority to manage the assests in an estate on behalf of the beneficiaries.
Term
probate court
Definition
is the gorerment instition that processes a deceased individuals will and estate.
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