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investment
investment
29
Business
12th Grade
05/06/2013

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Term
return
Definition
is the income that an investment produces.
Term
volatility
Definition
is the degree to which an investment return or value may chage.
Term
risk
Definition
is the possibility of variation in the return on your investment
Term
diversification
Definition
is a strategy of makeing a variety of invest ments in order ot reduce yuour exposure to risk
Term
portfolio
Definition
wise investors develop a porfolio or colectin of investments that is both diversified and well balanced
Term
investment club
Definition
a group of people who meet regulary to learn about investing and make investments together
Term
pension plan
Definition
is any retirment plan offered to acompny employees
Term
401 plan
Definition
is a type of defined contribution pension plan to whcih the employee contributes on a pretaz basis.
Term
IRA
Definition
is a personal saveings palen that enables workders and their sqpouses top set aside money for retirement
Term
roth IRA
Definition
IS an IRa in whcih contributions are not taz deductible however earnings accumulate taz free.
Term
keogh plan
Definition
plan is federally approved defined contribution taz deferred retirement plan designed specifically for selfemployed people
Term
stock
Definition
instead of borrowing from a bank it might decide to raise the money from investors by selling stock ownershuip interest in the corporation.
Term
shares
Definition
it does this by makeing shares or individual untis or ownership availblefor purchase
Term
shareholders
Definition
they are actually part owners of the company
Term
stock market.
Definition
those people interested in purchasing stock bib on it offerning the price they want to pay. if someone who owns the stock is willing to sell it at the offered price the transaction is made.
Term
stock exhange
Definition
a central location where stocks are sold ona trading floor
Term
dividend
Definition
owners os stock may periodically reveive a payment to shareholders that represents a portion of the company net profits
Term
stockbroker
Definition
9sm an individual or firm that will buty and sell stocks for lients according totheir instructions
Term
bonds
Definition
corporations and governments can obtain funds by issuing ceritifecation of bebt called bond.
Term
mutual fund
Definition
is a group of investments that is held in common by many indivdual investors
Term
prospectus
Definition
is a legal document that provieds postential investors with information abouot mautal funds or other scurity
Term
annuity
Definition
is a contract purchased form an insurance company
Term
real estate
Definition
land and any structures on it by owning their own homes
Term
estate
Definition
the assets and liabilityties left behind by a deceased person are that persons
Term
estate planning
Definition
is the process of makeing legal and financial arrangemtns for how ones property should be administed before and after dealth
Term
will
Definition
a legal document in whcih a person directs how his or her estate id to be distuributed arter death
Term
execurtor
Definition
is the individual who is in charge of handling affairs of an estate.
Term
beneficiary.
Definition
a person or gropu designeted to receive some or all of a deceased persons assets is called a beneficiary
Term
intestate.
Definition
a person who dies without a valid will is saide
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