Help
Options
Didn't know it?
click below
click below
Knew it?
click below
click below
Don't know (0)
Remaining cards (0)
Know (0)
retry
shuffle
restart
0:00
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.
Normal Size Small Size show me how
Normal Size Small Size show me how
Chp 10 Terms Study
Study Guide for Chapter 10 Money Matters
| Term | Definition |
|---|---|
| Saving | money set aside for the future |
| Investing | a strategy to earn more on your money than the rate of inflation; sometimes explained as using money to make more money |
| Emergency fund | Money set aside for unplanned expenses |
| Contingencies | Unplanned or possible events |
| Liquidity | a measure of how quickly an asset can be turn into cash |
| Wealth | The accumulation of assets over your lifetime |
| Financial security | the ability to meet current and future needs while living comfortable |
| Retirement | a period of time, usually in later years, when you are not working and need to meet expenses through other income sources |
| Estate | all that a person owns (assets), minus debts owed, at the time of that person’s death |
| Foundation | a fund or an organization established and maintained for the purpose of supporting an institution or a cause |
| Return of investment (ROI) | a performance measure used to evaluate the efficiency of an investment |
| Investment risk | the potential for change in the value of an investment |
| Inflation risk | the chance that the rate of inflation will rise faster than your investment rate of return |
| Bond | A debt instrument that issued by a corporation or government |
| Industry risk | the chance that factors affecting an industry as a whole will affect the value of an investment |
| Political risk | The chance that actions taken by the government will affect the value of an investment; example would a destroyed facility due to protest or rioting. |
| Market risk | the chance that changes in the business cycle will affect the value of an investment |
| Non-Market risk | the chance that events unrelated to market trends will affect the value of an investment |
| Stock | ownership interest in a publicly held company |
| Company risk | The chance that activities or events that affect a company will change the value of an investment in that company |
| Tax deferral | a postponement of taxes to be paid |
| Tax exempt | an investment that is not subject to taxation |
| Systematic saving | a strategy that involves regularly setting aside cash that can be used to achieve goals |
| Systematic investing | a strategy that involves a planned approach to making investments on a regular basis |
| Investment tracking | a technique for making investment choices by following the prices of stocks and other investments over time |
| Market timing | buying and selling stocks based on what the market is expected to do |
| Dollar-cost averaging | Investing the same amount of money on a regular basis regardless of market conditions |
| Diversification | Holding a variety of investments for the purpose of reducing overall risk |
| Portfolio | a collection of investments; usually having a strong foundation of safe investments |
| Financial market | any place where investments are bought and sold |
| Bull market | A prolonged period of rising stock prices and general feeling of investor optimism |
| Bear market | A period of steadily decreasing stock prices and investor pessimism; this may offer an opportunity to buy sound stocks at a lower price |
| Market timing | involves the buying and selling of stocks based on what the market is expected to do. |
Created by:
mrstephens