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Financial Literacy
| Question | Answer |
|---|---|
| Certificate of Deposit | a certificate issued by a bank to a person depositing money for a specified length of time. |
| Annual Percentage Yield | how much money you earn on a deposit over a year. |
| Stocks | security that signifies ownership in a corporation and represents a claim on part of the corporation's assets and earnings. |
| Stock Certificate | physical piece of paper representing ownership in a company. |
| Profit | financial gain, especially the difference between the amount earned and the amount spent in buying, operating, or producing something. |
| Loss | loss of money or decrease in financial value. |
| Dividend | a sum of money paid regularly by a company to its shareholders out of its profits. |
| Mutual Fund | an investment program funded by shareholders that trades in diversified holdings and is professionally managed |
| Net Asset Value | the value of a mutual fund that is reached by deducting the fund's liabilities from the market value of all of its shares and then dividing by the number of issued shares |
| Loading Charges | sales charge or commission charged to an investor when buying or redeeming shares in a mutual fund. |
| Bonds | It is a debt security, under which the issuer owes the holders a debt |
| Rental Property | A type of property that derives more than 80% of its revenue from dwelling units. |
| Rent | a tenant's regular payment to a landlord for the use of property or land. |
| Individual Retirement Account | a savings account with big tax breaks, making it an ideal way to sock away cash for your retirement |
| Required Minimum Distribution | the amount that traditional, SEP or SIMPLE IRA owners and qualified plan participants must begin distributing from their retirement accounts |