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
savings and investin
| Term | Definition |
|---|---|
| savings | the money one has saved, especially through a bank or investment plan. |
| investment | the action or process of investing money for profit or material result |
| return on investment | shows how much profit or loss an investment generates relative to its costs, then expressing the result as a percentage |
| compound interest | The interest calculated on the initial principal plus any accumulated interest from previous periods |
| stock | a share that entities the holder of a fixed dividend, whose payment takes priority over that of common stock dividends |
| bond | type of debt security where an investor loans money to an entity |
| diversification | investment strategy that involves spreading capital across a variety of assets to reduce risk |
| retirement account | tax-advantaged investment account designed to help individuals save for their future and be be either employer sponsored or individual |
| stock market | collection of exchanges and other markets where investors can buy or sell stocks, which represent ownership in a company |
| dividend | a distribution of a company’s earnings or profit to its shareholders |
| mutual fund | an investment company that pools money from many investors to buy a diversified portfolio of securities such as stocks, bonds, and other assets |
| common stock | fractal ownership in an company |
| preferred stock | class of ownership in a corporation that has a higher claim on assets and earnings than common stock. |
| corporate bond | debt security issued by a company to raise capital from investors |
| government bond | debt security issued by a government to raise capital for public projects |
| executor | bond that has a designated person or entity to receive the bond’s ownership upon the death of the original owner. |
| trust | secured by other securities like stocks or bonds held by a trustee, or a trustee bond. |
| estate | financial and property assets left behind after a person's death. |
| will | a legal document that outlines how a person's assets should be distributed after they die |
| power of attorney | grants an agent legal authority to manage your finance |
| investment liquidity | how easily an investment can be converted into cash without affecting its market price. The higher the liquidity, the faster and with less impact on value an asset can be bought or sold. |
| probate | legal process of administering a deceased person's estate to pay debts and distribute remaining assets to beneficiaries |
| personal financial planning | the continuous, systematic process of managing your money including income, expenses, savings, investments, and protection to achieve your personal financial goals and ensure long-term financial security |
| estate planning | comprehensive process of arranging for the management and distribution of an individuals assets and wealth |
| beneficiary | bond that has a designated person or entity to receive the bond’s ownership upon the death of the original owner. |
Created by:
user-1847321