Shared Flashcard Set

Details

Key Terms
Investing and Estate Planning
26
Business
12th Grade
03/26/2012

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Cards

Term
Appreciation
Definition
An increase in the value of an investment.
Term
Capital gain
Definition
Income earned from selling an asset for more than the purchase price.
Term
Stock
Definition
A share in ownership of a corporation
Term
Dividend
Definition
A portion of a company's earnings paid to stockholders.
Term
Common stock
Definition
Stocks that pays dividends declared by the company and gives stockholders certain voting rights.
Term
Preferred stock
Definition
Stock that pays regular dividends at a set rate.Preferred stockholders have priority in receiving dividends and assets,but do not have voting privileges.
Term
Securities exchange
Definition
A formal market where securities are bought and sold by stockbrokers.
Term
Stockbroker
Definition
An agent who buys and sells securities for clients.
Term
Bond
Definition
A certificate of debt isssued by a corporation or government that entitles the bondholder to a set of interest on the face value of the bond until it remains.
Term
Mutual fund
Definition
An investment created by pooling the money of many people and investing it in a collection of several securities.
Term
Net Asset Value(NAV)
Definition
A mutual fund's assets minus its liabilities.
Term
Money market fund
Definition
A type of mutual fund that deals only in hogh interset,short-term investments such as U.S. Treasury Bills,certifcates of deposit, and commercial paper.
Term
Bull market
Definition
Term for the market when investors are confident in the economy and stock prices are rising.
Term
Bear market
Definition
Term for the market when the investors feel insecure and stock prices fall.
Term
Investment portfolio
Definition
The collection of securities and other assets a person owns.
Term
Diversification
Definition
Spreading risk by putting money in a variety of investments.
Term
Prospectus
Definition
A legal document that gives a detailed description of a security.
Term
Dollar-cost averaging
Definition
A strategy of investing a fixed dollar amount of regular intervels.
Term
Annuity
Definition
A contract with an insurance company that provides income for a set period of time or for life.
Term
Estate
Definition
The possessions, such as property, savings,investments,and insurance benefits,a person leaves when he or she dies.
Term
Executor
Definition
A person appointed to carry out the terms outlined in a will.
Term
Will
Definition
A legal document stating a person's wishes for his or her estate after death.
Term
Trustee
Definition
A person or institution named to manage an estate on behalf of the beneficiaries.
Term
Living will
Definition
A statement of instructions for specific medical treatment if person becomes unable to make medical decisions. Also called a healthcare directive.
Term
Trust
Definition
A legal agreement where assets and property are managed by a trustee on behalf of the beneficiaries.
Term
Probate court
Definition
The government institution that processes a deceased individual's will and estate.
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