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Leadership Vocab
| Term | Definition |
|---|---|
| savings | The portion of income not spent on current expenses or money saved for future use. |
| investment | The commitment of current financial resources in order to achieve higher gains. |
| Return on investment | The profitability of an investment by comparing net profit and the cost. |
| Compound interest | The interest that is calculated on both the initial principal and the accumulated interest from previous periods. |
| Stock | The ownership of shares in a corporation |
| Bond | A debt security where an investor lends money to a company or the government for a set period. |
| diversification | A strategy of introducing new products, services, markets, or industries to reduce risk. |
| retirement account | A type of savings plan established to help employees save for retirement. 401k. |
| Stock market | A network of exchanges where investors buy and sell shares of public companies to make profit. |
| Dividend | A portion of a company's profits paid to its shareholders, often a cash payment |
| Mutual fund | A type of investment that pools money from many investors to purchase stocks/bonds. |
| Common Stock | A fractional ownership stake in a corporation, granting shareholders voting rights |
| Preferred stock | A stock that gives a priority claim on a company's assets & earnings. |
| Corporate bond | A stock that represents ownership in a corporation, with each share granting a claim on the company's assets and profits. |
| Government bond | A debt-based investment where an individual loans money to a gov. for a set period in exchange for regular interest payments. |
| beneficiary | the person who receives an advantage from something, like a trust, will, or life insurance. |
| Executor | The person named in the will to manage the deceased owners estate also business interests. |
| Trust | A legal arrangement where a trustee manages assets for beneficiaries to reduce competition. |
| Estate | the total property, real and personal, owned by an individual prior to the will. |
| will | A legal document that outlines what happens to your business and assets and how they will be managed. |
| power of attorney | A legal document that grants one person, the agent, the authority to act on behalf of another. |
| investment liquidity | The ease of an asset can be converted into cash to pay short-term debts. |
| Probate | The court process by which a will is proved valid or invalid. |
| personal finance planning | A specialized service that focuses on guiding individuals towards financial security and stability. |
| estate planning | the process of creating a plan for the management transfer of a company's assets. |