Shared Flashcard Set

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Econ. Unit 4 Vocab
Prentice Hall Principles In Action
20
Economics
12th Grade
03/07/2012

Additional Economics Flashcards

 


 

Cards

Term
option
Definition
contract that gives investors the choice to buy or sell stock and other financial assets
Term
speculation
Definition
the practice of making high-risk investments with borrowed money in hopes of getting a big return
Term
barter
Definition
the direct exchange of one set of goods or servivces for another
Term
diversification
Definition
spreading out investments to reduce risk
Term
default
Definition
failure to pay back a loan
Term
mortgage
Definition
a specific type of loan that is used to buy real estate
Term
bull market
Definition
a steady rise in the stock market over a period of time
Term
liquidity
Definition
the ability to be used as, or directly converted to, cash
Term
portfolio
Definition
a collection of financial assets
Term
principal
Definition
the amount of money borrowed
Term
capital gain
Definition
the difference between a higher selling price and a lower purchase price,resulting in a financial gain fo the seller.
Term
maturity
Definition
the time at which payment to a bondholder is due
Term
share
Definition
a portion of stock
Term
FDIC
Definition
the government agency that insures customer deposits if a bank fails
Term
mutual fund
Definition
the pooling of savings of many individuals and investing the money in a variety of investments
Term
bear market
Definition
a steady drop in the stock market over a period of time
Term
prospectus
Definition
an investment report to potential investors
Term
junk bond
Definition
a lower-rated but potentially higher paying investment instrument
Term
money
Definition
anything that serves as a medium of exchange
Term
interest
Definition
the price paid for the use of borrowed money or money earned by deposited funds
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