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Investing & Estate Planning
Chapter 12
26
Finance
9th Grade
03/26/2012

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Term
appreciation
Definition
An increase in the value of an invetsment.
Term
capital gain
Definition
Is income earned when the selling price is greater than the purchase price.
Term
stock
Definition
Is a share in the ownership of a corporation.
Term
dividend
Definition
Is a portion of a company's earnings paid to stockholders.
Term
common stock
Definition
Stock that pays dividends declared by the company .
Term
preferred stock
Definition
Recieve regular dividends at a set rule.
Term
securities exchange
Definition
Is a formal market where securities are bought and sold by stockbrokers.
Term
stockbroker
Definition
Is an agent who buys and sells securities for clients.
Term
bond
Definition
Is a certificate of debt 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 fund (NAV)
Definition
Is the fund's assets minus its liabilities.
Term
money market fund
Definition
Is a type of mutual fund that deals only in high interest, short-term investments, such as u.s. treasury securities, certificates of deposit, and commercial paper.
Term
bull market
Definition
Is an extended period of consumer confidence and optimism when stock prices 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 risk by putting money in a variety of investments.
Term
prospectus
Definition
Is a legal document that gives a detailed description of a security.
Term
dollar-cost averaging
Definition
Is a strategy of ivesting a fixed dollar amount at regular intervals, such as monthly, without regard to the price of the investment at the time you buy it.
Term
annuity
Definition
Is a contract with an insurance company that provides regular income for a set period of time, usually for life.
Term
estate
Definition
Refers to the asstes 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's wishes for his or her estate after death.
Term
trustee
Definition
Is a person or institution named to manage assets on behalf of the beneficiaries.
Term
living will
Definition
Or healthcare directive, is a statement of instructions for specific medical treatment if a person becomes unable to make medical decisions.
Term
trust
Definition
Is a legal document that gives a named trustee the authority to manage the assets in an estate on behalf of the beneficiaries.
Term
probate court
Definition
Is often a necessary part of the process of distributing a person's assets after their death.
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