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vocab
vocab
26
Finance
12th Grade
03/26/2012

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Term
appreciation
Definition
refers to an increase in the value of an investment
Term
Capital gain
Definition
is the income earned when the selling price is greater than the purchase price
Term
stock
Definition
is a share in the ownership of a corporation
Term
dividend
Definition
is a portion of a company's earnings paid to stockholders
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 buy and sells securities for clients
Term
bond
Definition
is a certificate of debt issued by a corporation or government
Term
mutual fund
Definition
is created by pooling the money of mant people and investing it in a collection of securities
Term
net asset value (NAV)
Definition
is the fund'd asset minus its liabilities
Term
money market fund
Definition
is a type of mutual fund that deals onlu in high interest short-term investment
Term
bull market
Definition
is an extended period of consumer confidence and optimism when stock prices rise
Term
bear market
Definition
is an extended period of uncertainly and pessimism when stock prices fall
Term
investment portfolio
Definition
is 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
is a legal document that gives a detailed description of a security
Term
dollar-cost averaging
Definition
is a strategy of investing a fixed dollar amount at regular intervals such as monthly without regard to the price of the investmentat the time you buy it
Term
annunity
Definition
is a contract with an insurance company that provides regular income for a set period of time usually life
Term
estate
Definition
refers to tha assets and libilities 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
is a legal document stating a persons wishes for his or her estate after death
Term
trustee
Definition
is a person or institution named to manage assets in behalf of the beneficiaries
Term
living will
Definition
or healthcare directive is a statement of instruction 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
is the government institution that processes deceased individuals will and estate
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