Shared Flashcard Set

Details

stock and investments
none
24
Business
12th Grade
12/11/2012

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Cards

Term
save
Definition
to set aside present income for future use.
Term
invest
Definition
put money to work earning interest over time.
Term
profit
Definition
money remaining in a business after expenses are paid.
Term
interest
Definition
money paid for the use of someone else's money over a period of time.
Term
return
Definition
the income that can be made on an investment.
Term
liquidity
Definition
how easy an asset can be converted into cash.
Term
volatility
Definition
how easily the interest or cash value of an investment can change.
Term
risk
Definition
the possibility of earning or losing money from an investment.
Term
transaction
Definition
a saving/investing activity (deposits, transfers, withdrawals)
Term
savings account
Definition
an account in a bank/financial institution for saving, making deposits/withdrawals.
Term
money market
Definition
a savings account in which deposits are invested to yield additional earnings.
Term
CD
Definition
certificate of deposit stating money has been deposited for a specific time.
Term
savings bond
Definition
a debt certificate issued by the U.S Treasury that is not transferable.
Term
IRA
Definition
an individual retirement account used to save money for retirement.
Term
Koegh Plan
Definition
a tax-deferred retirement plan for self-employed people.
Term
Roth IRA
Definition
A personal savings plan; contributions are not tax-deductible ; earnings are tax free.
Term
stock
Definition
a share of ownership and interest in the assets and earnings of a company.
Term
common stock
Definition
stock in a public corporation;returns vary, but higher risk.
Term
preferred stock
Definition
stock with fixed dividends; less risk
Term
blue chip stock
Definition
stock from large companies; less risk
Term
growth stock
Definition
stock from growing companies; more risk
Term
penny stock
Definition
stock that costs less than $1 per share; extremely high risk
Term
bond
Definition

a certificate of debt given to a company or government

that entitles the

bondholder to the original amount plus interest paid by a set date

Term
mutual fund
Definition
A group of investments held in common with shares owned by individual investors
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