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vocab
chapter 12
25
Business
12th Grade
03/26/2012

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Term
appreciation
Definition
refers to an increase in the value of an investment. Various types of investments grow at different rates.
Term
Capital gain
Definition
income earned when the selling price is greater than the purchase price
Term
dividend
Definition
is a prtion of a companys earnings paid to stockholders.
Term
common stock
Definition
earn dividends declared bt the company
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
agent who buys and sells securities for clients.
Term
bond
Definition
is a certificate of debt issued by a corporation or gov.
Term
mutual fund
Definition
pooling the money of many people and investing it in a collection of securities
Term
NAV
Definition
funds assets minus its liabilities
Term
money market fund
Definition
type of mutual fund that deals only in high interest, short term investments such as US . treasury securities, certificates or deposit
Term
bull market
Definition
extended period of consumer confidence and optimism when stock prices rise
Term
bear market
Definition
is an extended period of uncertainty and pessimism when stock prices fall
Term
investment portfolio
Definition
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
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 such as monthly without regard to the price of the investment at the time you buy it
Term
annuity
Definition
contract 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
person or instituion named to manage assets oon behalf of thee beneficiaries
Term
living will
Definition
healthcare directive is a statement of instructions for specific medical treatment if a person becomes unable to make medical decisions
Term
trust
Definition
is a 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 instituion that processes a deceased individuals will and estate
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