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Chapter 12 vocab

financial lit

QuestionAnswer
Certificate of Deposit Interest at a higher rate than a regular savings account.
Annual Percentage Yield (APY) Certificates of deposit into savings accounts.
Stocks When you purchase a stock. Each day you will find the stock prices published in the newspapers and web sites. Stocks are usually quoted in dollars and cents.
Stock Certificate Proof of ownership.
Profit the amount of money you make over the initial money.
Loss the opposite of profit.
dividend the money you earn as the shareholder of the company.
Mutual fund offered by an investment company, which accumulates the savings of many individuals and invests them in a portfolio of stocks, bonds, or both.
Net Asset Value calculated by the daily by most investment companies
loading charge 0% to 6% invested
Bonds a written pledge that you will paid your specified amount of money plus interest
Rental property another alternative
rent received from the rental property is comparable to interest and dividends from other investments.
IRAS most common types of investment plans
RMD The amount you must begin withdrawal is based on your life expectancy.
Created by: Justinisalol
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