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Savings & Inesting

TermDefinition
savings putting aside money for future use
investment The outlay of money usually for income or profit
return on investment The profitability of an investment.
compound interest interest computed on the sum of an original principal and accrued interest
stock a store or supply accumulated or available
bond a binding agreement
diversification the act or practice of spreading investments among a variety of securities or classes of securities
retirement account Tax-advantaged investment account for saving for retirement stock market : a market for particular stocks
dividend A company’s profits paid to its shareholders
mutual fund an open-end investment company that invests money of its shareholders in a usually diversified group of securities of other corporations
common stock stock other than preferred stock
preferred stock stock guaranteed priority by a corporation’s charter over common stock in the payment of dividends and usually in the distribution of assets
corporate bond debt security issued by a corporation to raise capital for things like expansion or acquisitions
government bond debt security issued by a government to raise money for public spending and projects
beneficiary person or entity that receives a benefit from contract, trust, or other agreement
executor person or entity named in a will to manage the deceased’s estate, which include their business interests
trust legal arrangement where a trustee manages assets for beneficiaries, or a combination of companies organized to reduce competition
estate involves activities like buying, selling, leasing, and managing properties for profit
will legal document that outlines an owner’s specific wishes for their company after their death or incapacitation
power of attorney a legal instrument authorizing one to act as the attorney or agent of the grantor
investment liquidity asset can be converted into cash without a significant loss in its value
probate legal process of validating a business owner’s will and overseeing the transfer of the business assets to beneficiaries
personal financial planning the comprehensive and ongoing process by which business owners manage their individual finances
estate planning the arranging for the disposition and management of one’s estate at death through the use of wills, trusts, insurance policies, and other devices
Created by: user-1986157
 

 



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