Investing - Final Word Scramble
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Question | Answer |
Anything of value that is owned | Assets |
Allocating money for a particular purpose | Budget |
Expenses that don't change month to month | Fixed Expenses |
Something a person intends to acquire, achieve or accomplish | Goal |
The total amount of money earned before any deductions are made | Gross Pay |
An amount owed to a lender | Liability |
The amount left after all deductions are taken out | Net Pay |
Expenses that change or vary month to month | Variable Expenses |
The danger that money won't be worth as much in the future as it is today | Inflation Risk |
The current price that a buyer is willing to pay for stock | Market Price |
The specified time int he future when the principal amount of the bond is repaid to a bondholder | Maturity Date |
The total return on an investment expressed as a percentage of the amount of money invested (return/money invested) | Nominal Rate of Return |
Reduces risk by spreading investment money among a wide array of investments | Portfolio Diversification |
Nominal Rate of Return - Inflation Rate | Real Rate of Return |
The uncertainty regarding the outcome of a situation or event (the higher the risk the higher the reward) | Risk |
Allows a person to calcualte when the future value of an investment will double the principal amount (72/IR=# of years) | Rule of 72 |
Owner of a share of stock | Shareholder |
Have potential for significant fluctuations in return over a short period | Speculative Investments |
The market is doing poorly, investors are not purchasing stock | Bear Market |
Measures a stocks volatility compare to the overall changes in the stock market (higher beta = higher risk) | Beta |
The market is doing well, investors are optimistic and purchasing stock | Bull Market |
shares of ownership in a public corporation (voting rights, most common, dividends can be paid) | Common Stock |
Brockerage firms buy and sell stocks (New York stock Exchange, American Stock Exchange, Regional Stock Exchanges, NASDAQ) | Exchange |
Price per share / Earnings per share | P/E Ratio |
Shares which pay fixed dividends and have priority over common stock (less risky, no voting rights, dividends stated as a fixed percentage) | Preferred Stock |
Companies that do no issue stock | Private Companies |
Companies that sell stock | Public Companies |
Information about the companies of financial information | Prospectus |
A class of shares with lower 12b-1 fees, breakpoints, and good for large investments and a long time frame | Class A Shares |
A class of shares with no front-end fees or breakpoints, there are deferred sales charges, the shares can convert to class A shares and they have a higher expense ration. They are good for investors with little investment amounts and a long time horizon. | Class B Shares |
A class of shares with no front-end or breakpoints, they have a small back-end load that can be removed after 1 year, there are higher expense ratios. Good for investors with a short-time horizon. | Class C Shares |
The interest payment on a coupon bond. | Coupon |
The price an investor pays for a bond (also called par value or principal) | Face Value |
An investment in which the amount of income an investor receives is set, or fixed, by the issuer. | Fixed Income Security |
The entity (government or corporation) that writes the bond purchased by investors. | Issuer |
The price an investor pays for a bond (also called face value or principal) | Par Value |
The initial cost of the bond (also known as the par value or face value of the bond | Principal |
Created by:
mryan396
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