click below
click below
Normal Size Small Size show me how
Savings
| Term | Definition |
|---|---|
| savings | an economy of or reduction in money, time, or another resource. |
| investment | the action or process of investing money for profit or material result. |
| return on investment | performance metric that measures the profitability of an investment |
| compound interest | interest you earn on both your initial investment |
| stock | the capital raised by a business or corporation through the issue and subscription of shares. |
| bond | a connection between two surfaces or objects that have been joined together, especially by means of an adhesive substance, heat, or pressure. |
| diversification | the process of a business enlarging or varying its range of products or field of operation. |
| retirement account | a tax-advantaged investment account designed to help individuals save money for their old age. |
| stock market | a stock exchange |
| dividend | a sum of money paid regularly (typically quarterly) by a company to its shareholders out of its profits (or reserves). |
| mutual fund | an investment program funded by shareholders that trades in diversified holdings and is professionally managed. |
| common stock | a type of share that represents partial ownership in a company. |
| preferred stock | hybrid security that blends features of both stocks and bonds, |
| corporate bond | debt instrument issued by a company to raise capital |
| government bond | debt-based investment where an individual loans money to a government for a set period in exchange for regular interest payments |
| beneficiary | a person who derives advantage from something, especially a trust, will, or life insurance policy |
| executor | a person or institution appointed by a testator to carry out the terms of their will. |
| trust | an arrangement whereby a person (a trustee) holds property as its nominal owner for the good of one or more beneficiaries. |
| estate | all the money and property owned by a particular person, especially at death. |
| will | a legal declaration of a person's wishes regarding the disposal of his or her property after death. |
| power of attorney | the authority to act for another person in specified or all legal or financial matters. |
| investment liquidity | ease and speed at which an asset can be converted to cash without a loss in value. |
| personal financial planning | process of managing your money to achieve your financial goals by evaluating your current financial status and creating a strategy for income, expenses, savings, and investments. |
| estate planning | legal and financial process of arranging for the management and distribution of a person's assets after their death or incapacitation. |