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12 ECON Vocab 12
study material for economics vocab CH 12 - Ponder
Term | Definition |
---|---|
current yield | percent of return paid on an investment |
money market | market where money is loaned for periods of less than one year |
financial asset | claims to property or income such as a bank deposits |
Stockbroker | person who buys or sells equities |
Roth IRA | type of IRA favored by people who plan to retire in a higher tax bracket |
Risk | situation in which the outcome is not certain but the probabilities of different outcomes can be estimated |
equities | stocks that represent ownership shares in corporations |
pension | regular payment made to retired workers who have worked for a company for a minimum number of years |
call option | right to sell a share of stock at a specified price in the future |
bull market | strong market with prices moving up for a long period of time |
Individual Retirement Account (IRA) | long-term, tax-sheltered deposits people set up to help provide income during retirement |
capital market | market where money is loaned for more than one year |
put option finance company | firm that makes loans to consumers and buys installment contracts from merchants who sell goods on credit |
tax-exempt | when the government does not tax interest paid on an investment |
put option | right to sell a share of stock at a specified price in the future |
401(k) plan | tax-deferred investment and savings plan to which many employers contribute matching funds |
portfolio diversification | holding a large number of stocks so that increases in some will offset unexpected declines in others |
mutual fund | company that sells stock in itself to individual investors and then invests the money in stocks and bonds of other corporations |
Standard & Poor’s 500 (S&P500) | popular benchmark of stock performance that uses the price changes of 500 representative stocks as an indicator of overall market performance |
bear market | mean market in which prices of equities decline for a long period of time |