Help
Options
Didn't know it?
click below
click below
Knew it?
click below
click below
Don't Know
Remaining cards (0)
Know
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
Saving & Investing
| Term | Definition |
|---|---|
| savings | the practice of setting aside surplus cash in a dedicated bank account to earn interest |
| investment | the allocation of capital into an asset, project, or enterprise with the expectation of generating a future profit |
| return on investment | measures the profitability of an investment by comparing the profit of loss generated against the cost of the investment |
| compound interest | the interest earned on the original principal plus any accumulated interest from previous periods |
| stock | a share of ownership in a company |
| bond | a debt tool used to raise capital, similar to a loan |
| diversification | strategy that involves expanding into new products, markets, or industries to spread out risk and create new revenue |
| retirement account | a savings plan that helps both employers and employee’s retirement |
| stock market | A marker where buyers and sellers trade ownership stocks in publicly traded companies |
| dividend | a portion of a company’s earnings that a company distributes to its shareholders |
| mutual fund | a business that pools money from many investors |
| common stock | a type of ownership in a company that gives shareholder voting rights |
| preferred stock | a type of corporate equity that is preferred over common stock, it receives a priority claim on assets and earnings |
| corporate bond | a loan company issues to investors to raise money |
| government bond | a loan to a government in exchange for regular interest payments |
| beneficiary | a person that is designated to receive assets |
| executor | the individual appointed in a will to carry out the deceased owner’s wishes |
| trust | the belief that a company will act competently and honorably |
| estate | involves buying, selling, or managing properties |
| will | is a legal document used as a core part of an estate plan |
| power of attorney | a legal document that authorizes another person |
| investment liquidity | refers to the ability to quickly and easily convert an investment or asset into cash without a significant loss |
| probate | the legal process a court oversees to determine the validity of a decreased owner’s will |
| personal financial planning | the process of managing an individual’s or family’s money |
| estate planning | the process of arranging for the management and transfer of a business’s ownership |
Created by:
user-1961608