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deciding to invest
chapter 12
26
Finance
9th Grade
03/27/2012

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Term
apprection
Definition
refers to an increase in the value to grow over time
Term
capital gain
Definition
is income earned when selling price is greater than the purchase price.
Term
stock
Definition
is a share in ownership of a corporation.
Term
divided
Definition
is a poration of a company earnings paid to stockholders
Term
common stock
Definition
earn divided declared by the company.
Term
preferred stock
Definition
receive regular dividends at a set rate.
Term
secutities exchange
Definition
is a formal market securities are bought and sold by stockbrokers
Term
stockbroker
Definition
is an agent who buys and sells securities for clients
Term
bound
Definition
is a certificate of dept issued by a corporation or government.
Term
mutual fund
Definition
is created by pooling the money of many people and investing it in a collection of securities.
Term
net asset value
Definition
is the funds asset minus its liabilities
Term
money market fund
Definition
is a type of mutual fund that deals only in high intervester short term investment such as us treasury securities certificate of deposits and commercial paper
Term
bull market
Definition
is an extended period of consumer confidence and optimism when stock period rise
Term
bear market
Definition
is an extended period of uncertainty and pessimism when stock prices fall
Term
investment portfolio
Definition
is a collection of securities and other assets a person owns
Term
diversification
Definition
refers to spreading ridk by putting money in a veriety of investments.
Term
prospectus
Definition
is a legal document that gives a detailed descripition of a security
Term
dollar cost averaging
Definition
is a stratergy of investing a fixed dollar ammount at regular intervals such as monthly without regard to the price of the investment at the time of period
Term
estate
Definition
refers to assets and liabilities a person leaves when he or she dies.
Term
executor
Definition
is a person appointed to carry out the terms outlined in their will
Term
will
Definition
is a legal document stating a person wishes for his or her estate after death
Term
annutiy
Definition
is contract with an insurance company that providies regular income for a set period of time usually for life
Term
trustee
Definition
a person or institution named to manage assets on behalf of the beneficiaries
Term
living will
Definition
or healthcare directive is a statement of instruction for a specific medical treatment is a person becomes unable to make medical decicion
Term
trust
Definition
is a legal document that gives a named trustee the authority to mange the assets in a estate on behalf of beneficiaries
Term
probate court
Definition
is the government institution that processes a decreased individuals will and estate
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