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Investment
n/a
33
Finance
12th Grade
05/06/2013

Additional Finance Flashcards

 


 

Cards

Term
return
Definition
income that an investment produces
Term
votality
Definition
degree to which an investments retuirn or value may change
Term
risk
Definition
possibility of variation in the return on your investment
Term
diversification
Definition
stratgey of making avariety of investments in order to reduce your exposure to risk
Term
portfolio
Definition
collection of investments
Term
investtment club
Definition
group of people who meet reguarly to learn about investing and make investments together
Term
pension plan
Definition
retirement plan offered to a companys employees
Term
401kn plan
Definition
defined contribution pension plan to which the employee contributes on a pretax basis
Term
IRA
Definition
personal savings plan that enables workers and their spouses to set aside money for retirement
Term
ROTH IRA
Definition
IRA in which contributions are not tax deductable, earnings accumulate tax free
Term
Keogh plan
Definition
federally approved, defined contribution, tax defrred retirement plan designed fornm the self employed
Term
stock
Definition
ownership interest in the corporation
Term
shares
Definition
individual units of ownership, available for purchase
Term
shareholders
Definition
investors who purchase shares of stock
Term
stock market
Definition
organized trading of stocks
Term
stock exchange
Definition
central ocation where stocks are sold on a trading floor
Term
dividend
Definition
payment to shareholders that repreents a portion of the companys net profits
Term
stockbroker
Definition
indidual or firm that will buy and sell stock for clients
Term
bonds
Definition
certificates of debt
Term
mutual fund
Definition
group of investments that id held in common by many individual investors
Term
prospectus
Definition
legal document that provides potential investors with info on funds
Term
annuity
Definition
contract purchased from insuarnce company
Term
real estate
Definition
land and any structures on it
Term
commodities
Definition
basic economic goods bought and sold in quanity
Term
estate
Definition
assets and liabilities left behind by a deceased person
Term
estae planning
Definition
process of making legal and financial arrangements on how to give property
Term
will
Definition
legal document in which a person directs how his/her estate is to be distributed
Term
executor
Definition
individual who is in charge of handling the affairs of an etate
Term
beneficiary
Definition
a person assigned to recieve assets
Term
intestate
Definition
a person who dies without a will
Term
living trust
Definition
legal arrangement that can serve as an alternativwe to a will
Term
power of attorney
Definition
legal document assigning someone the right to act on a persons behalf
Term
living will
Definition
legal document that outlines a perosns wishes for medical treatment
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