FIPF CH8 Word Scramble
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Term | Definition |
Diversification | The practice of dividing the money a person invests between several different types of investments in order to lower risk |
Investing | setting money aside to grow wealth |
Investment | money set aside for more than 5 years for long-term growth |
Liquidity | Assets that can be converted quickly into cash without penalty |
Portfolio | List of investments |
Risk | Degree of uncertainty of return on assets |
Risk Return Rate | Substantial reward compared to amount of risk taken |
Share | Piece of ownership in a company, mutual fund or investment |
Stock | Securities that represent part ownership in a corporation |
Tax Favored Dollar | Tax deferred or tax free investment in retirement plan |
Dividend | Distribution of earnings to stockholders |
Rule of 72 | the time it will take to double a sum of money by dividing 72 by the expected interest rate to determine the number of years. |
The ROTH IRA | funded with after-tax money so you can use your Roth tax free in retirement. |
IRS~Internal Revenue Service | Agency responsible for collecting taxes and the interpretation and enforcement of the tax code |
529 Plan | A plan set up to allow families to set aside funds for college |
Speculative | Purchasing risky investments that present the possibility of large profits but pose high risk of loss |
401k | a retirement savings plan offered by corp to its employees. |
403b | nonprofits |
Commodities | Agricultural or mining products. |
SEC - Securities and Exchange Commission | The government agency responsible for regulating the stock market. |
FDIC | Federal agency that insures |
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fcswatsons
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